Net Neutrality in Michigan Mix Now
By Linda Haugsted -- Multichannel News, 12/3/2006 7:00:00 PM
The debate over a statewide franchising bill for Michigan is becoming more complicated, with proponents of net neutrality such as Google urging legislators to amend the bill to ensure that telecommunications providers will not become gatekeepers.
A version of the bill was approved in the state House on Nov. 14 by 80-21. Late last week it was before the Michigan Senate Technology and Energy Committee. At a hearing before that committee on Nov. 29, activists from both sides of the issue promoted their views.
Net neutrality advocates urged lawmakers to include language that would prevent beneficiaries of the bill, such as AT&T, from charging for access to Internet sites that are now free and to prevent blocking of such sites in favor of a provider's own version.
Groups such as Hands Off The Internet (which includes AT&T) countered that state-by-state, piecemeal regulation of the Internet would be a disaster for consumers and businesses.
AT&T stated early in the legislative process that it would spend $620 million to create facilities within the state, and generate 2,000 jobs, if the bill passed.
The version passed by the House differs from legislation in other states. Rather than assign franchise authority to a state agency such as a public utilities commission, HB 6456 would allow local communities to issue the franchises, but on terms set by the state.
FEW DEMANDS
Franchise demands would be few. For example, the applicant must identify officers and vow to comply with federal regulations. Applicants would pay 5% of their gross revenues as a franchise fee and match the public, educational and government channel support of the incumbent providers.
Cities would have 15 days to determine whether an application is sufficient and 30 days total to award the franchise. If a city doesn't act in that timeframe, the applicant automatically gets its franchise.
Franchises would last for 10 years and local governments would not be able to add other fees or conditions.
Incumbents could opt to operate under current agreements, or amend them to conform with the limited, state-dictated terms.
LOSS OF SUPPORT
The loudest opponents remain cities and counties that face the loss of financial support for locally required projects such as municipal interconnects.
Officials also argue the state bill doesn't do enough to guarantee that low-income areas will benefit from video competition. The bill as currently written would allow a new provider to use current technology, such as slower speed digital subscriber line service or satellite-delivered video, to meet the build-out requirements for low-income neighborhoods.
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