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DATE | 2006-06-23 |
FROM | Ruben Safir
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SUBJECT | Subject: [NYLXS - HANGOUT] Legistlative front
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ntelligent Infrastructure The Incredible Hulk Versus Google Jessica Holzer 06.22.06, 6:00 AM ET
U.S. Sen. Ted Stevens pic
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Washington, D.C. -
Ted Stevens doesn't make a likely media mogul or telco titan. The 82-year-old senator from Alaska wears cowboy boots under his pin-stripe suits, and he looks like he'd be more comfortable talking about oil pipelines instead of iPods, voice-over-Internet Protocol (VoIP) phone calls or concepts like "net neutrality."
Yet Stevens, a Republican and a 37-year veteran of the Senate, has long been a powerful force shaping telecom policy in Washington. And, as the chairman of the Senate Commerce Committee, he is pushing a bill that will have a huge impact on the telecommunications and media industries for years to come. The legislation faces a key hurdle today with a vote by the Commerce Committee.
The bill is nothing if not ambitious. It aims to shore up the massive fund that pays for telephone service in rural areas, create a $500 million slush fund to bring broadband access to underserved areas and speed the entrance of telephone companies into the subscription TV business. But wait, there's more: It would issue new rules for the conversion to digital television, institute a "broadcast flag" to prevent digital broadcast content from being redistributed online, and it even tackles child porn.
But don't make the mistake of telling Stevens he wants to overhaul the nation's telecom laws. "It's not telecommunications anymore," he snaps. "You must call it communications...We want them judged by what they do, not by what they're called."
This isn't a semantic difference to Stevens, who seems determined to not repeat the errors of the 1996 Telecom Act. The now-antiquated legislation made scant reference to the Internet and handed down different rules for technologies based on whether they were called "information" or "communications" services. Stevens, who was involved in crafting that law, now acknowledges its flaws.
"It didn't really work the way we thought it would," he said recently in an interview in his Capitol Hill office. "Technology came at us so fast."
A desire to undo past mistakes partly explains why Stevens is pushing sweeping legislation during an election year. But more important is his perspective as a senator from a state where a surprising chunk of the population still lacks an Internet hookup, and where telephone service is subsidized by people living in more densely populated states--what Stevens calls the "South 48."
"I think communications have become a right for all Americans," he says. "There are people who live in isolated areas who cannot have access to the modern types of communications unless there is an adjustment provided by the industry."
Alaska is one of the chief beneficiaries of the Universal Services Fund, which is financed mainly through long-distance phone taxes. But worried about grumblings from telco users and telco companies, Stevens wants to shift more of the burden onto other technologies, such as cable Internet providers and wireless services, which currently don't put much into the fund.
Yet there is a growing risk that this goal might elude him. His legislation is facing an uphill fight in the Senate, where it is imperiled by the rapidly diminishing floor time before lawmakers become distracted by the midterm elections. And it has also been slowed by the ruckus over network neutrality.
Under the banner "Save the Internet," a noisy coalition of mainly Democratic groups and tech firms like eBay (nasdaq: EBAY - news - people ) and Microsoft (nasdaq: MSFT - news - people ) is pressing for language that would require cable and telephone companies to give equal treatment to all Internet traffic flowing on their networks. The concept is anathema to the telcos and cable companies, who argue that they ought to be able to charge Internet companies for things like faster delivery on their networks or service quality.
For Stevens, the net neutrality fight has morphed from an irritant to a genuine obstacle. His friend and co-chair on the Commerce Committee, Sen. Daniel Inouye, D-Hawaii, has blasted the final draft of his bill as far too weak on the issue. Sens. Olympia Snowe, R-Maine, and Byron Dorgan, D-N.D., both members of the committee, have introduced legislation that would bar network operators from charging for service quality and faster delivery speeds.
Stevens once described himself as a "mean, miserable SOB" and is known to don an "Incredible Hulk" tie when he is bruising for a fight. Last fall, he shut down an attempt by fellow Republicans to de-fund his state's infamous "bridge to nowhere"--a proposed piece of pork that would connect two barely populated towns--by threatening to resign. "This amendment will not pass. If it does, the bill will not pass. If it does, I’ll be taken out of here on a stretcher," he declared on the Senate floor. The bridge kept its funding.
Stevens is no less opposed to any language in his bill that would appease the net neutrality crowd, arguing that such legislation would protect " Google and Gates" rather than consumers. His bill merely instructs the Federal Communications Commission to study the issue and institutes an "Internet Consumers' Bill of Rights" that critics have disparaged as worthless. It also pointedly forbids the agency from handing down new regulations to enforce net neutrality.
All this bickering over the future of the Internet may not matter in the end if Stevens does not pare down his bill to a reasonable size. The word in telecom circles is that the bill is too cumbersome to pass. "He's never to be underestimated, but the clock is not his friend," said Scott Cleland, president of the Precursor Group, a telecom consultancy.
After decades in the Senate, Stevens no doubt has plenty of legislative tricks up his sleeve. At the very least, he hopes that he can shame some Democrats into voting for the bill based on the $1 billion it would dole out to first responders, just as hurricane season has begun. "If they want to kill this bill, they are going to prevent the first responders from getting that money," he says.
But if all else fails, there's always the Incredible Hulk tie.
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