Markey’s Oversight Role Effective, Observers Say

The U.S. fell from 12th to 15th, according to Dec. 2006 Organization for Economic Cooperation & Development (OECD) data. “These rankings aren’t a beauty contest they're about our competitiveness as a country and creating economic opportunity for all our people,” FCC Comr. Copps said, urging a U.S. broadband strategy “like every other industrialized nation.”

“We are failing to bring the benefits of broadband to all our citizens, and the consequences will resonate for generations,” said Ben Scott, Free Press policy dir., who’s to testify today at a Senate Commerce Committee broadband hearing. “There is no justification for America’s declining status as a global Internet leader,” Scott said: “Instead of more excuses, it’s time for true national broadband policy that will put America'’s digital future back on track.” Free Press, Consumers Union and the Consumer Federation of America will urge Congress to pursue a comprehensive broadband policy that enhances competition, protects free speech, encourages new providers to enter the marketplace and stimulates investment in underserved areas, Scott said.

Though the U.S. ranks 15th in some listings, this country has the most broadband subscribers in the world, NCTA Pres. Kyle McSlarrow said in a letter to House and Senate Commerce Committee leaders Mon. McSlarrow said there’s an “appropriate” role for govt. to play in rolling back barriers to broadband deployment, but federal policy should focus on putting high-speed service where it isn’t offered. He said Congress should consider tax credits and loans.

Markey has invited experts from Japan, New Zealand and the U.K. to speak. Phoenix Center policy experts will discuss the extent to which the data accurately portray the speed with which U.S. high-tech services are being deployed. A separate ITU survey ranks the U.S. 16th in broadband penetration.

Markey’s subcommittee has held hearings each week Congress has been in session this year, with 3 specially designated oversight hearings on the FCC, NTIA and the DTV transition. Markey reached out in advance to the agencies, enumerating topics he wanted covered. Members on both sides of the aisle got lots of time to question witnesses -- within committee rules -- and Markey kept a friendly decorum throughout lengthy, detailed proceedings.

“There is a healthy amount of respect for Markey at the FCC,” said Jessica Zufolo, analyst with Medley Global Advisors, adding that Chmn. Martin recognizes Markey’s sway on telecom. And Markey has a good relationship with Speaker Pelosi (D-Cal.), known to respect and seek his counsel on industry issues. Markey’s years of experience with telecom and energy issues make him “very good at giving everyone a reality check,” Zufolo said.

Senate Commerce Committee Chmn. Inouye (D-Hawaii) has held 5 telecom hearings in the 110th Congress, covering some of the same issues as the House with an FCC oversight hearing and one on the proposed XM-Sirius merger. Separately, Inouye’s committee has examined the Universal Service Fund, interoperability and E-911 services for VoIP calls. “The key committees have clearly stepped up oversight of the Commission,” analyst Paul Gallant of Stanford Washington Research Group said: “It’s probably a reaction to the limited oversight previously and also a more practical way to move the ball forward when there are no clear drivers for telecom legislation.”

Stifel Nicholaus analysts agreed in a note published Mon. “Lawmakers continue to focus on hearings and oversight, as major legislation remains difficult,” they said: “VoIP E- 911, pretexting and a few other targeted bills may move (USF?) but face resistance.” The report predicted Congress would try to pass bills extending the Internet access tax moratorium and killing the 3% phone excise tax.