Inouye releases rewrite of Telecom rewrite
Sen. Dan Inouye (D-HI), the ranking member on the Commerce Committee and, along with Ted Stevens (R-AK) a co-sponsor of the Consumer Competition and Broadband Promotion Act, has put out a revised draft of the bill which will presumably be the topic of discussion when the Committee takes it up again 6/16/06. Among other things, it goes to great lengths to both grease the wheels for telcos to enter the MVPD business while maintaining a level playing field between them and incumbent providers; provides for national franchising while allowing a statewide franchise as long as it conforms to national minimum requirements; imposes build-out requirements on new MVPD entrants ultimately mandating 80% market service within seven years; legalizes broadcast and digital audio flagging material to prevent piracy; adopts the Olympia Snowe (R-ME)/Byron Dorgan (D-ND) plan to protect Internet network neutrality. In a recent hearing, Dorgan also mentioned his plan to introduce language prohibiting further FCC media ownership regulation. There is no mention of that one way or the other in the Inouye draft.
Here it is in its entirety
Consumer Competition and Broadband Promotion Act
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Title I - Promoting Video Competition
* Applies Title VI to all facilities-based providers of video programming (cable and IPTV)
* Streamlines Local Franchising Process.
Provides for 30-day accelerated approval process if applicant takes the same terms and conditions as those contained in the franchise most recently granted to the incumbent cable operator.
Creates new standard franchise process. Allows an applicant to elect a standard franchise agreement after 60 days of negotiation; notice of election to be filed at least 30 days before commencing service.
Allows franchise authority to terminate incumbent's standard franchise on 180 days notice if incumbent becomes the sole provider in the area.
Limits eligibility to new providers and incumbents, with the latter eligible only when another operator with a standard franchise begins offering cable service to more than 5% of households.
Limits eligibility to entities in states other that those in which a single state franchise authority responsible for franchising or those in which a cable operator may obtain a franchise by operation of law if the terms of the state standard franchise are nondiscriminatory and consistent with the minimum terms under this Act.
* Requires standard franchises to include
10-year term;
Same franchise area as the incumbent, or for ILECs, the telephone exchange service territory;
Same number of PEG channels as the largest cable operator (or three channels if no operator exists).
* Allows authority, on renewal, to increase PEG channels by greater of 1 channel or 10% of PEG channel capacity;
* Requires operator to ensure that subscribers receive PEG programming;
* Provides that programming production is sole responsibility of authority;
* Requires Commission to adopt regulations for interconnection and cost-sharing related to PEG programming;
* Requires operator to provide PEG program information;
* Allows authority to require financial support for PEG and INETs of greater of 1% of gross revenues or fee equivalent on a per subscriber basis to the value provided by the provider with the most cable service subscribers;
* Allows authority to require an operator to continue to operate a pre-standard franchise INET with cost-sharing by other operators.
Franchise fee required equal to lesser of 5 percent of gross revenues or the percentage charged to the largest cable operator. Gross revenues defined. Fees collected in compliance with section 622;
Broadens existing prohibition on discrimination;
Negotiated or default build-out terms with enforcement authority.
* Default terms: all households in initial service area in 18 months; 65% of households in 3 years; 80% of households in 7 years, with allowances for sparsely populated areas.
* Other consistent standard terms or conditions.
* Ratifies the FCC's Broadcast Flag Order; requires marketplace adoption of audio flag for HD radio.
* Eliminates terrestrial loophole in program access rules but limits use of program access rules for MVPDs with exclusive sports contracts.
* Requires satellite providers of multichannel audio or video programming service or Internet access service to provide comparable services in all 50 states.
* Expands prohibition on cable provider coercion and retaliation related to exclusive programming against other MVPDs to include other video distributors, such as Internet video.
* Reinstates FCC's video description rules.
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Title II - Promoting Voice and Data Competition
* Prohibits broadband service providers from engaging in various forms of discrimination based on the content, application or service. (Snowe-Dorgan, S. 2917)
* Requires ILECs to comply with sections 201 (Service and Charges), 202 (Discrimination and Preferences), 224 (Regulation of Pole Attachments), 251 (Interconnection), 252 (Procedures for Negotiation, Arbitration, and Approval of Agreements), 259 (Infrastructure Sharing) and 271(Bell Operating Company Entry into InterLATA Services).
* Requires broadband service providers to offer stand-alone broadband service without bundling it with any cable service, telecommunications service or IP-enabled voice service.
* Requires an annual report to Congress on deployment of local transmission facilities by providers of telecommunications, telecommunications service, and IP-enabled voice service.
* Increases maximum penalties for violations by common carriers to ten times the current limits; increases statute of limitation to three years.
* Requires integrated ILECs to offer tariffed special access services that (1) are subject to a price index; and (1) include service quality measurements and benchmarks.
Applies only to "integrated incumbent local exchange carriers" - only those that provide local and wireless services and that obtain 15 % or more of total ILEC annual special access revenues; provides regulatory relief from price indices where competitive alternatives exist.
Applies a price index that ensures that productivity gains are not only realized but shared with customers.
Prohibits conditions on volume and term agreements that do not relate to the cost reductions from purchasing on a volume and term basis; grants customers a "fresh look" - a right to terminate the contract without liability - if existing arrangements include prohibited terms.
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Title III - Encouraging Broadband Deployment and Basic Communications Research
* Allows use of broadcast television "white spaces" by certified unlicensed wireless devices. (similar to provisions in S. 2686)
* Allows states, localities and tribes to provide advanced telecommunications capability and services, subject to (1) a nondiscrimination requirement; and (2) federal and state law and regulation. (same as S. 1294)
* Authorizes $250 million/5 year National Science Foundation grant program to fund basic research into advanced information and communications technologies.
* Accelerates pilot program to increase sharing of federal and non-federal spectrum.
* Establishes a grant program ($500 million for three years) to extend and expand the availability, affordability, and use of broadband services in unserved areas and underserved communities; requires an annual report to Congress.
* Directs the FCC to revise its definition of broadband within 90 days and every two years thereafter.
* Directs the Secretary of Commerce to expand the American Community Survey to gather information about household Internet access.
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Title IV - Reform and Strengthen USF
* Eliminates current limitation restricting USF contribution base to assessments on interstate telecommunications revenues only. Directs FCC to expand contribution requirements to cover VoIP and broadband service providers.
* Requires FCC to adopt a new USF contribution mechanism within six months; allows the FCC to collect USF contributions based on total provider revenues, telephone numbers, connections, or any combination thereof.
* Codifies competitive neutrality as a USF principle.
* Extends rate averaging to substitutes for interexchange telecommunications services, including information services.
* Requires network traffic identification accountability standards.
* Permanently extends ADA exemption.
* Provides exclusive jurisdiction over intercarrier compensation; requires FCC within six months to establish a comprehensive, unified intercarrier compensation regime.
* Bars Commission adoption of primary line restriction.
* Conditions ETC designation on providing service throughout the carrier's service area, ensuring emergency preparedness, and filing information regarding use of USF funds; directs FCC to conduct reviews of USF funds use.
* Requires carriers receiving USF funds to offer broadband (200 kilobits per second in one direction) within five years of enactment unless they receive a waiver because of cost or technical infeasibility.
* Directs FCC to adopt regulations to expand the rural health care program to all communications service providers; requires FCC to ensure that amendments do not result in reduced support to schools and libraries, rural heath care or life-line/link-up.
* Excludes libraries not eligible for assistance under Library Service Technology Act from an Indian tribe or other organization from eligibility for support.
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