Another Telecom Act Coming?

By Gary Kim, Contributing Editor

With the caveat that not every initiative begun in Congress succeeds, in fact that few actually do succeed, Democrats in the U.S. House and Senate said they will consider proposals starting next month to update communications law as it has existed since the Telecom Act of 1996.

Nothing better illustrates the huge impact that regulation has on the communications business than such efforts, which determine not only 'who' can be in the business, but 'how' and 'how much.'

It has been about 14 years since the last major revision, the Telecommunications Act of 1996, which notably did not mention the Internet at all.

The hope, or fear, depending on one's perspective, is that it might be wireless and the Internet which now will come under the microscope in any revision.

The lawmakers will begin "a process to develop proposals" to revise the 1934 Communications Act, which was last rewritten by Congress in 1996, say Senator Jay Rockefeller of West Virginia, chairman of the Commerce Committee, and Representative Henry Waxman of California, chairman of the Energy and Commerce Committee.

A drive to rewrite the law in 2006 died in the Senate, in large part, observers say, because that bill did not enforce 'network neutrality' rules. In the wake of the appeals court decision that struck down the Federal Communications Commission's ability to regulate Comcast (News - Alert) network management practices, many have expected some new direction from Congress that would supply the FCC the authority it says it needs.

FCC Chairman Julius Genachowski (News - Alert) has claimed authority under Title II rules governing common carrier services, but that is going to be a bruising battle, as broadband services never have been regulated under the common carrier rules. Specific direction from Congress would take care of that problem, assuming specific and targeted direction can be given.

Under the circumstances, it is unlikely Congress can do anything 'surgically.' So if the effort proceeds, get ready for yet another lengthy period of uncertainty and investment hesitancy. Hundreds of billions of dollars were lost by investors in the investment boom following the passage of the Telecom Act and the emergence of the Internet. You can be sure investors will not be fooled again.

So despite the obvious need for expedited and robust investment in new broadband facilities, that will become the first casualty of any new drive for more regulation.

(source: http://4g-wirelessevolution.tmcnet.com/broadband-stimulus/topics/broadband-stimulus/articles/86432-another-telecom-act-coming.htm)