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House Commerce Approves National Franchise Bill


HOUSE COMMERCE APPROVES NATIONAL FRANCHISE BILL
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The House Commerce Committee, by an overwhelming vote of 42 to 12, has paved the way for the creation of national video franchises, though the bill itself still has a ways to travel before it becomes law. The goal, say the bill's proponents including Committee Chairman Joe Barton (R-TX), is to increase price and service competition to cable, while speeding the rollout of high-speed Internet service. Opponents, almost all of whom concede some video franchise reform is needed, say this bill will, instead, pave the way for telcos to cherry pick service while discriminating in the provision of Internet access, "fundamentally and detrimentally" changing the character of the Internet. Not included in the bill are voted-down amendments that would have held national video franchisees to a build-out schedule and toughened prohibitions on red-lining--building out more attractive parts of a franchise and bypassing ones with less potential return on investment or, as Ed Markey (D-MA) puts it, "the other side of the tracks." Still the bill as passed has language that requires telephone companies getting into video service to eventually serve all of a franchise, rather than allowing them to choose which parts of an area to offer service to, as the bill passed out of the Telecommunications Subcommittee allowed. That anti-redlining addition sat well with the cable industry, which had been pushing for it, but was not enough for Rep Markey and others who wanted build-out requirements as well. Also pleasing the cable industry was an amendment that was adopted that will allow cable companies to seek national franchises immediately if they currently have competition from an overbuilder. The committee voted 34-22 not to adopt an amendment toughening "network neutrality" provisions in the bill, an issue that has gained major traction and could resurface on the House floor and will almost certainly do so in the Senate version. Rep Markey, who spearheaded the amendment, had argued that without the amendment, the bill would spell the "end of the Internet as we know it," allowing telephone companies to discriminate in Internet service and fundamentally change the character of the Internet. He and others warned during mark-up of the bill Wednesday that there would be backlash from constituents. Chairman Barton strongly opposed the amendment, saying the bill already contained sufficient protections for Internet access -- through FCC adjudicatory powers -- and that anything more specific would be unnecessarily preemptive. The bill must still pass the full House, where amendments can be reintroduced, then be reconciled with a Senate bill that will contain a lot more elements.
http://www.broadcastingcable.com/article/CA6328577?display=Breaking+News

Links to more coverage --
* Net Neutrality Amendment Defeated
http://www.broadcastingcable.com/article/CA6328479?display=Breaking+News

* Democrats lose House vote on Net neutrality
http://news.com.com/Democrats+lose+House+vote+on+Net+neutrality/2100-1028_3-6065465.html?tag=html.alert

* Panel Vote Shows Rift Over `Net Neutrality'
http://www.latimes.com/business/printedition/la-fi-neutral27apr27,1,4838491.story?coll=la-headlines-pe-business

* Municipal Net Bans Won't Be Grandfathered
The House Commerce Committee has defeated an amendment that would have grandfathered 14 states that have bans on municipal broadband networks. The new national video franchising bill the committee is marking up allows municipalities to offer broadband in competition to commercial interests.
http://www.broadcastingcable.com/article/CA6328555?display=Breaking+News

* Telecom Bill Gets Cable-Friendlier
http://www.broadcastingcable.com/article/CA6328434?display=Breaking+News

* Commerce Debates Network Neutrality
http://www.broadcastingcable.com/article/CA6328472?display=Breaking+News

* Commerce Defeats Anti-Discrimination Amendment
http://www.broadcastingcable.com/article/CA6328336?display=Breaking+News

* Build-Out Amendment Defeated
http://www.broadcastingcable.com/article/CA6328316?display=Breaking+News

* Rep Dingell (D-MI) Praises Tweaked Telecom Bill
http://www.broadcastingcable.com/article/CA6328302?display=Breaking+News

* Democratic Amendments Fail To Fly In House Telecom Markup Session
http://www.njtelecomupdate.com/lenya/telco/live/tb-CBLI1146081231280.html

Reaction to the votes --

* House Ignores Public, Sells Out the Internet
http://www.savetheinternet.com/=press3

* Net Neutrality Defeated -- Telcos and Cable Win
http://www.tpmcafe.com/node/29242

* USTelecom Applauds House Passage of Consumer Privacy Bill
http://www.ustelecom.org/news_releases.php?urh=home.news.nr2006_0426_1

* House Panel Vote Leaves Low-income, Rural Consumers Further Behind in Digital Divide
http://www.hearusnow.org/other/newsroom/tvradiocable/housepanelvoteleaveslowincomeruralconsumersfurtherbehindindigitaldivide/

* Bill fails to ensure that consumers benefit from new video competition
http://www.consumersunion.org/pub/core_telecom_and_utilities/003387.html

* Public Knowledge Condemns House Committee’s Net Neutrality Vote, Sees Progress in Result
http://www.publicknowledge.org/pressroom/releases/pressrelease.2006-04-26.5685438334

* "NAB is pleased the House Commerce Committee withdrew consideration of the Deal amendment in today's video franchising legislative mark-up. By undercutting the current retransmission consent system, the Deal amendment would impose a new federal mandate by disrupting private program carriage negotiations between broadcasters and cable companies. NAB thanks thousands of radio and TV broadcasters and the 50 state association executives who weighed in with lawmakers on this issue of critical importance to free, over-the-air television's future. Working together, this seamless display of unity has served our industry well."
http://www.nab.org/newsroom/pressrel/statements/042606_DKR_statement_Deal.htm

Commentary --
* COPE-ing nicely, thank you
"Well, I'm not happy with COPE so far, but I think it turned into a good day for democracy, with better days to come."
http://www.wetmachine.com/

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