by Ron Thaniel
May 22, 2006

The U.S. Senate Committee on Commerce, Science and Transportation held its first hearing May 18 on the Communications, Consumer’s Choice, and Broadband Deployment Act of 2006 (S. 2686).

Conference of Mayors Vice President Dearborn Mayor Michael A Guido spoke on behalf of seven different local government organizations. Guido told the Committee that as currently crafted, “The bill would severely restrict the authority of local governments through unreasonable streamlined measures that would undermine local franchising enforcement and compliance, threaten local budgets, limit the benefit of broadband-video competition to a few well-to-do neighborhoods, weaken provisions that ensure that video providers meet each community’s needs and interests, and undermine the ability of local governments to protect their residents.”

“While the bill ostensibly preserves local franchising authority, the net effect is that it strips local authority and grants it to the FCC to determine virtually all franchise terms,” Guido added.

“The bill would send all rights-of-way disputes to the FCC, not the courts, which is the current practice,” said Guido.

Guido said that the bill abandons commitments to keep localities financially whole, and would result in a significant loss of financially support to local governments.

“By excluding advertising and home shopping revenues from the mix, the rent paid for the use of public property will surely decrease,” he continued.

On the digital divide issues raised by the bill, Guido told the Committee that he “…regrets that the bill’s attempt to prevent red-lining will not accomplish that goal. Video programmers will be able to pick and choose the neighborhoods they serve, while bypassing others entirely.”

“Providers will decide where to extend service based on which neighborhoods promise the greatest return for the smallest outlay,” said Guido.

Guido also noted that, “The bill appears to undermine the taxing authority of state and local governments in areas that have nothing to do with compensation for the use of public rights-of-way.”

Responding to the concerns raised by Guido, Committee Chair Senator Ted Stevens (AK) announced that he plans to delay a markup of the measure while he revises the bill to address concerns raised by local governments. The markup was originally scheduled for the second week in June.