Broadband Reports, November 8, 2006

Democrat John Dingell (MI) and Democrat Ed Markey (MA) have both been avid supporters of net-neutrality laws and are expected to take command of telecom policy when Democrats reclaim power in the House next January. Dingell will be appointed chairman of the Energy and Commerce Committee, which oversees phone & cable operators. Markey will lead the Telecommunications and the Internet Subcommittee, which could apply pressure to change tactics at the FCC.

Obviously this means a renewed interest in neutrality laws, but it may also damage telco efforts to pass legislation giving them a nationwide video franchise. Telco lobbyists had argued such a franchise would allow them to speed up next-generation network deployment by eliminating negotiations with towns and cities. Opponents were concerned the change would allow them to cherry-pick only the nation's densest and most affluent areas for broadband network upgrades while eroding local authority.

Despite Republican control and the Senate Commerce Committee directly circulating incumbent astroturfing materials, Senator Ted "Tubes" Stevens still had a hard time getting the 60 votes needed to pass his Communications Act of 2006. The Act, which now has little chance of passing, contained numerous provisions beneficial to incumbent providers but primarily focused on video franchising.

Sensing the sea change, incumbent broadband providers like AT&T and Time Warner have flipped their financial allegiances accordingly. What will be interesting to watch is how Markey's renewed position (he held this same post in 1994) impacts the FCC's media consolidation push, as well as the AT&T and BellSouth merger approval process. AT&T and Republican FCC chief Kevin Martin had hoped to see the merger approved before the elections without conditions.

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