House panel staff unveil draft new telecom bill

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WASHINGTON (Reuters) - U.S. House Energy and Commerce Committee staff on Thursday unveiled draft legislation aimed at overhauling U.S. telecommunications laws to address new technologies, such as Internet video and voice services.

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The House Energy and Commerce Committee lawmakers will likely discuss the draft measure over the next few weeks and likely try to hold hearings on it in October, a congressional aide said, declining further identification.

The draft was prepared by staff for Republican Chairman Rep. Joe Barton (news, bio, voting record) of Texas, fellow Republicans Fred Upton of Michigan and Chip Pickering of Mississippi and Democrats John Dingell of Michigan and Ed Markey of Massachusetts, the aide said.

Telephone and cable companies have been competing to sign up subscribers for high-speed Internet services, including voice and video, and they have been pressing lawmakers and regulators to set the rules of the road.

The draft bill would limit state regulation of high-speed Internet services and make it easier for telephone companies to offer subscription television services, according to a summary of the measure.

Verizon Communications and SBC Communications Inc., the two biggest local telephone companies, have been eager to avoid having to get permission from local authorities in every town and city to offer video service. Cable companies have had to get franchises from each city where they want to offer service.

Under the measure local authorities would be allowed to charge a fee on video providers that offer service. Phone companies have been willing to pay a fee but have worried that it would take a long time to get permission from thousands of local cities to offer video.

The measure would require providers to permit subscribers to access any legal Internet content they sought, addressing a key concern among some content and technology companies.

Analysts have said the chances were slim that Congress would approve telecommunications legislation this year, particularly since lawmakers are now focused mostly on the rebuilding of the Gulf Coast area after Hurricane Katrina.

Additionally, lawmakers are trying to finish legislation that would set a final date for completing the transition to digital television. A telecommunications bill has been introduced in the Senate as well.

The House draft legislation would permit the Federal Communications Commission to collect contributions from Internet telephone providers for the Universal Service Fund, which subsidizes phone service in rural and high-cost areas.

The measure also would order the FCC to establish national consumer protections, such as billing accuracy and other consumer disclosures.

It would also bar cross-ownership of a telephone company and cable company that offer high-speed Internet and video services in the same local market, according to the draft.

Telephone carriers praised the move forward.

"While we have not yet reviewed the draft in detail, we are encouraged by its overall direction, particularly in promoting investment and competition in advanced services," said Walter McCormick, head of the U.S. Telecom Association, the trade group that represents most big local telephone carriers.

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Congress releases draft broadband bill

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