Speaking at the opening of the Senate's
"Hearing on the State of Competition in the Telecom Industry," Senator
Fritz Hollings (D, SC), the outgoing Chairman of the Committee on
Commerce, Science and Transportation, said that while the Telecom Act of
1996 is finally beginning to work for American consumers, five FCC
commissioners appear ready "to set off on their own" to revise the rules
of the game in the name of a "so-called broadband imperative." Hollings
charged that the FCC is not fulfilling the duty Congress set forth but
instead pursuing their own agenda with the "wild idea" that they are
promoting jobs and investment.
Incoming committee co-chairman Senator John McCain (R, AZ)
attributed part of the blame for the telecom industry crisis to the
failure of Congress to legislate. He said massive campaign
contributions have distorted the legislative debate.
Senators Barbara Boxer (D-CA) and
George Allen (R-VA) highlighted their newly introduced Wireless
Broadband Bill that would make more broadcast spectrum available for
Wi-Fi services. (see
http://www.convergedigest.com/regulatory/regulatoryarticle.asp?ID=5673)
FCC Chairman Michael Powell said
we have reached a technology crossroads that demands a more enlightened
regulatory environment. While competition in local services is taking
hold, Powell said the FCC must act soon to define new rules for
unbundled network elements (UNEs). Due
to a previous court ruling (see
http://www.convergedigest.com/regulatory/regulatoryarticle.asp?ID=3857),
all existing UNE rules will be vacated on February 20. A
Triennial Review of network unbundling
rules is underway at the FCC. Powell could not say what the outcome of the
proceeding would be, but he said the FCC would look towards promoting
long-term, sustainable competition in local access with the presumption
that all competitors bring something to the table in terms of on-going
facilities. He insisted that any decision would not be as simple as
pro-Bell or anti-Bell, but driven by the public interest and follow in
the spirit of the Telecom Act. Powell also stated that broadband is the
central telecommunications policy objective today. The big question is
how to help drive the enormous investment required to rollout broadband
everywhere.
Commissioner Kevin Martin warned
against the dangers of allowing the telecom sector to continue
stagnating -- continued job losses, lower market valuations, less
investment, fewer telecom providers and ultimately fewer network
equipment providers. There is a risk of being left with too few
providers of critical infrastructure, possible affecting national
competitiveness and security. Martin said the FCC main objective should
be to create a regulatory environment that encourages the deployment of
new infrastructure while maintaining access to those network elements
that are truly needed for local competition.
Commissioner Kathleen Abernathy
said the industry needs regulatory certainty and policies that can
withstand judiciary scrutiny and are backed by significant and
enforceable penalties. She expressed concern that universal service
remain viable in any outcome and that competitive service be available
to all Americans. Abernathy believes the commission should define
broadband service and then craft an appropriate regulatory scheme.
Commissioner Jonathan Adelstein
said the greatest priority should be to speed up broadband deployment to
all Americans and deliver the greatest amount of bandwidth to the
greatest number of people. Adelstein said a widespread broadband
rollout could fuel a turnaround for the telecom sector.
Commissioner Michael Copps noted
that this hearing takes place at the start of what is likely to be a
very historic year for the FCC. Copps said the FCC should remain
focused on the public objective. Broadband is becoming key to America's
future. Managing the transition from monopoly to competition is always
tricky. He believes the commission should look toward deliberate and
incremental steps rather than any knee-jerk reactions toward new
policies. Copps also argued that the FCC should not pre-empt the
decisions of state public utility commissions.
