NCTA, AT&T Differ on Broadband Bill

Washington — The National Cable & Telecommunications Association is taking a different stand from its largest member — AT&T Corp. — on broadband legislation sponsored by House Energy and Commerce Committee chairman Rep. Billy Tauzin (R-La.).

Although AT&T is fighting the legislation, the NCTA has decided to remain neutral on the bill, according to a letter trade group president Robert Sachs sent Tauzin two weeks ago.

"AT&T's economic interests extend well beyond those of its broadband division," an NCTA spokesman said. "The letter to chairman Tauzin reflects the consensus position of the cable industry."

AT&T spokesman Jim McGann said the company did not view the NCTA's neutrality as a "significant change."

Under the Tauzin bill (HR 1542), which narrowly cleared a House subcommittee on April 26, the four Baby Bells would be allowed to transport Internet data across local phone boundaries prior to opening their voice networks to competitors.

The bill, which had a majority of House members as cosponsors last year but faced vocal opposition in the Senate, would also exempt all incumbent local-exchange carriers' data facilities and services from unbundling and resale requirements.

The phone industry claims these changes are necessary to promote broadband deployment, especially in rural areas.

AT&T countered, saying the bill would stifle competition in both the voice and data markets and reward the Bells for failing to fulfill their pro-competitive legal obligations under the Telecommunications Act of 1996.

In the letter to Tauzin, Sachs said the NCTA is concerned that a broad overhaul of the 1996 law would rattle financial markets and discourage investment in competitive networks.

"However, we do not oppose [the bill] in its current form," Sachs said.

Sachs ended the letter by saying the NCTA "would strongly oppose" legislation requiring cable operators to open their networks to competing Internet-service providers or comply with common-carrier regulations.

"We appreciate that [the bill] does not take such an approach," Sachs said.

Since he introduced the bill with Rep. John Dingell (D-Mich.) in July 1999, Tauzin said his goal with respect to broadband regulation was to make the Bells look more like cable operators, rather than making cable operators look more like the Bells, which face a panoply of open-access mandates.

Even though the measure includes unbundling and resale exemptions, Tauzin would require all incumbent local phone carriers to provide consumers with their choice of ISP.

But bill opponents said ISPs would be required to negotiate access rates with the phone carriers, instead of relying on nondiscriminatory rates established by the Federal Communications Commission.