Local Governments Want Senate Bill Changed

By Ted Hearn
MultiChannel News

7/5/2006 6:03:00 PM

http://www.multichannel.com/article/CA6349902.html


Top local government organizations want changes to a Senate 
telecommunications bill or they plan to oppose the measure if it ever 
reaches the Senate floor.

In a letter Monday, local officials outlined their objections to the bill 
(S. 2686, H.R. 5252), which passed the Senate Commerce Committee last 
Wednesday in a 15-7 vote that left its main backer, Sen. Ted Stevens 
(R-Alaska), wondering whether he has sufficient support -- 60 votes -- to 
get the full Senate to debate the bill.

Five local organizations -- including the U.S. Conference of Mayors and the 
National Association of Counties -- said the fact that the bill excluded a 
requirement that phone companies need to extend their video facilities to 
all potential subscribers in a franchise area was a "gave concern."

They added that tax relief for wireless-phone companies and a permanent ban 
on taxation of Internet access were "unacceptable."

Lastly, they objected to an amendment sponsored by Sen. John Ensign 
(R-Nev.) that would exempt from cable franchising a hybrid video service 
that combined satellite TV and terrestrial broadband service. AT&T's 
Homezone project -- which offers satellite TV with movies and video 
downloaded from the Internet -- would be covered by the exemption.

"To exclude satellite service integrated with landline service appears to 
be inconsistent with our prior understanding and your public statements as 
to the applicability of this legislation to AT&T," the local officials said.

The Stevens bill, however, includes a definition of "video-service 
provider" intended to require AT&T to obtain a franchise for its 
Internet-protocol-TV product, U-Verse, which more closely resembles 
traditional cable TV than Homezone. AT&T is rolling out U-Verse in San Antonio.

Local governments argued that the Homezone exemption was a franchising 
loophole that needed to be closed.

"Unless we receive assurances that the tax amendments and the modifications 
to the video-service-provider definition will be removed during floor 
debate, we will have to urge our members to oppose the bill," local 
officials said.

Also signing the letter were officials from the National League of Cities, 
the Government Finance Officers Association and the National Association of 
Telecommunications Officers and Advisors.


================================
George Antunes, Political Science Dept
University of Houston; Houston, TX 77204
Voice: 713-743-3923  Fax: 713-743-3927
antunes at uh dot edu



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