Commerce Narrowly Defeats Build-Out Provision

By John Eggerton
Broadcasting & Cable

6/28/2006 1:05:00 PM

http://www.broadcastingcable.com/article/CA6347946.html?display=Breaking+News


In an extremely close vote (12 to 10), the Senate Commerce Committee 
Wednesday defeated a phased-in video franchise build-out requirement.

The amendment, co-sponsored by Senator John Kerry (D-Mass.) and Barbara 
Boxer (D-Calif.) would have no build-out requirement for the first three 
years, then a requirement of a 15% building out within two years, then if 
that were achieved, another 20% until the build-out was complete.

Kerry called it called it a moderate proposal that  would not require any 
buildout that was not predicated on the economic success of the service, 
saying it struck a balance between the interests of those investing capital 
and needing a return, and the government interest in as many people getting 
broadband service as quickly as possible.

Kerry pointed out that the telephone companies have already struck even 
larger build-out agreements in states including Utah, Florida, Maryland, 
Texas, Pennsylvania, Virginia, and Colorado, suggesting they were already 
doing more than the bill would require.

Senator Barbara Boxer (D-Calif.), the bill's co-sponsor, pointed out that 
current state franchise agreements would not be grandfathered, so their 
existing build-out requirements would be superseded.

But Republican votes, buttressed by the argument that any build-out 
requirement could scare off Wall Street, barely won the day.


=================================================
George Antunes                    Voice (713) 743-3923
Associate Professor               Fax   (713) 743-3927
Political Science                    Internet: antunes at uh dot edu
University of Houston
Houston, TX 77204-3011         



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