House Votes to Ease Cable TV Licensing for Phone Companies

The House of Representatives yesterday passed a bill making iteasier for phone companies to offer video programming, bringingconsumers a step closer to having more choices for their cable TVservice.

The bill, which passed by a 321 to 101 vote, would allow companiessuch as Verizon Communications Inc. to get television franchises byapplying to the Federal Communications Commission rather than bynegotiating them one by one with thousands of municipalities.

The vote, a defeat for the cable industry, shifts attention to theSenate, where telecom analysts believe it will be harder to passsimilar legislation this year.

"We think it's going to be a problem getting it out of the Senate.It's certainly possible, but we think it's more likely going to betied up there," said Blair Levin, an analyst with Stifel Nicolaus &Co.

The House bill would allow new video providers to obtain cable TVfranchises 30 days after they file a request with the FCC. Currently,it can take months to negotiate franchises with municipalities.

Critics of the bill include cities and other localities, whichresent the loss of control over the franchising process, as well as"net neutrality" proponents, who argue that the measure does not gofar enough to preserve consumers' ability to get whatever contentthey want over the Internet.

"Net neutrality" advocates believe that phone and cable companiesshould be barred from blocking, slowing down or otherwisediscriminating against the Internet content that flows over theirnetworks. They fear network owners will cut deals to give somecontent providers priority delivery, putting those who don't pay forthis at a disadvantage.

Phone and cable companies say they will not block Web sites butshould be allowed to manage their networks -- which handle an ever-increasing amount of traffic -- and to charge more to those whowant guaranteed fast delivery.

The House rejected by a vote of 152 to 269 an amendment sponsoredby Rep. Edward J. Markey (D-Mass.) that would have required phone andcable companies to run their networks in a "nondiscriminatory"manner.

Instead, lawmakers adopted a weaker provision that would seek fullaccess to content for consumers but would not explicitly forbidnetwork owners from giving some content favorable or unfavorabletreatment. The provision also bars the FCC from writing detailedrules to enforce "net neutrality."

"The telephone companies have made clear that they can create afast lane that will require extra payments and a slow lane foreveryone else who can't afford it. That is a fundamental change inthe history of the Internet, and it will adversely affect millions ofInternet users across our country," Markey said in an interviewbefore his amendment was voted down.

During the debate, Rep. Joe Barton (R-Tex.), chairman of the HouseCommerce Committee, said the bill sought to "strike the right balancebetween ensuring that the public Internet remains an open, vibrantmarketplace and ensuring that Congress does not hand the FCC a blankcheck to regulate Internet services.

"We don't need anybody to be the first secretary of the Internet,"he added.