New Telecom Legislation - What's in it for the Public?

As telephone companies start to offer video services, the industry is pushing for legislation that supposedly lowers rates and gives consumers more choice and competition.

In June, most of the members of the U.S. House of Representative were seduced by these promises and passed the COPE Act of 2006 (Communications Opportunity, Promotion and Enhancement), hailed by the telephone industry as major telecom reform.

Unfortunately, there isn’t much reform in sight.

The telephone industry wrongly claims that obtaining local franchises – as cable companies have done historically – is an impediment to their ability to compete against cable. Instead of local franchise agreements, the telecom industry is pushing for a national framework.

However, this one-size-fits-all plan is the right size for only one group – the telephone industry itself.

What Happens to the Consumers?
Deregulation brings higher rates. After passage of the 1996 Telecom Act, telephone rates went up 23% and cable rates went up 46%.

A national franchise reduces local government’s ability to protect local residents. It forces the FCC to answer to hundreds of thousands of consumer complaints each year.

A national franchise allows telephone companies to pick and choose markets based on profitability, not equity, leaving poor communities without the benefits of competition.

When a telephone company comes into a community, the cable provider in that community can adopt the national framework too and abandon all previous commitments.

What Happens to Public Access TV?
While some funding is set aside for public access in the COPE Act, the amount is less than what many centers around the country now receive.

The Senate can still make sure communities do not risk losing resources devoted to the public’s only local, noncommercial television channels offering diverse political, arts and educational programming.

Still Chance to Serve Public Interest
Competition and choice is certainly welcome in Chicago, but the legislation the telephone industry proposes is not the answer. The Senate can best serve the public interest by putting real reform into its upcoming telecom legislation (The Communications, Consumers’ Choice & Broadband Deployment Act of 2006).

It is crucial that the key points below are included in the legislation:

• The greater of standardized minimum public access television
  funding and channel capacity or a match of existing support
• Local design and control of public access television
• Protections for public access funding and channels if video migrates to new internet protocol delivery systems (IPTV)
• Build-out requirements to assure all communities are served

Click here to find out what you can do to protect public access.

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