Posted on 01/14/2003 2:58:57 PM PST by HAL9000
WASHINGTON (AP) -- The nation's top communications regulator told lawmakers Tuesday that upcoming decisions on local phone competition and media ownership will not take choices away from consumers."We will be guided exclusively by the public interest,'' Federal Communications Commission Chairman Michael Powell told the Senate Commerce Committee.
The agency's decisions this year could reshape the landscape of media companies and the telecommunications industry. All five of the FCC's commissioners testified before the committee.
The most contentious issue at the hearing involved an FCC review of rules involving the leasing of telephone networks. The regional Bell companies -- BellSouth Corp., SBC Communications, Verizon Communications and Qwest Communications -- have been required to provide parts of their local networks to competitors like AT&T Corp. and WorldCom Inc. at discount rates.
The Bells have argued that federal regulators are cheating them out of their sizable investments by limiting what they can charge. Bell rivals are worried that the FCC is moving toward giving the Bells what they want by undoing a seven-year-old rule intended to encourage competition.
Sen. Ernest Hollings, D-S.C., said "the cries of the Bells grow louder'' as competition increases.
"The FCC is considering radically revising the rules of the game,'' he said.
Powell said it would be better for the industry if competitors build their own phone network equipment. However, he added, "Nothing being contemplated by the commission is going to result in absolutely no access to'' the Bell's networks.
Courts have rejected the FCC's last two attempts to rewrite rules governing the leasing of phone networks. Powell said a third agency proposal must be made within weeks to meet a court deadline.
Both the Bells and their rivals were pleased with the hearing.
The United States Telecom Association, which represents the Bells and other phone companies, said it was encouraged by the commissioners' testimony. Existing rules "must be changed if investment is to return to this depressed sector of the economy,'' USTA said.
The Competitive Telecommunications Association, or CompTel, a Washington-based group of Bell rivals, said continued use of Bell networks by competitors can save consumers $9.2 billion a year on their phone bills. The group said it was happy that some FCC commissioners and senators appeared wary of lifting the requirements.
FCC Commissioner Kevin Martin, a Republican, said consumers benefit from competition when new phone companies can access the existing networks and facilities of the Bells.
The FCC's two Democrats -- Michael Copps and Jonathan Adelstein -- urged that the agency be cautious of radical changes.
The regional Bells and their rivals have been meeting privately to work out a compromise they can present to the FCC, said Robert Nelson, head of the National Association of Regulatory Utility Commissioners' telecom committee. He would not provide details.
The FCC is also studying whether decades-old media ownership restrictions are appropriate in a market changed by the Internet, satellite broadcasting and cable television. The review is expected to be completed within a few months.
It's widely believed Powell and the two other Republican commissioners are intent on loosening regulations. Critics say looser regulations could pave the way for more media mergers, putting a handful of giant companies in control of what people watch, hear and read.
"I don't believe anything coming out of the commission's decision is going to result in the ability of one person to own everything,'' Powell said. He said the FCC needs to revise the rules because they are antiquated and have repeatedly been defeated by legal challenges.
To get public opinion on the six media ownership rules under review, the FCC plans to hold a hearing in Richmond, Va., next month.
Commissioner Copps repeated his call for even more hearings across the country to consider the issue.
"We are on the verge of dramatically altering our nation's media landscape without the kind of national dialogue and debate these issues so clearly merit,'' he said.
Copyright 2003 by The Associated Press. All Rights Reserved.
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