Sunday, October 24, 2004

 

U.S. Chamber of Commerce Study in Telecom Reform

Lobbying over the next Telecom Act is cranking up. The U.S. Chamber of Commerce hired the esteemed Tom Hazlett and others to write this report. The summary recommendations are
1. Phase out mandatory network sharing rules and, more immediately, end regulated wholesale rates set at theoretical costs.
2. Make 438 MHz of prime radio spectrum available for commercial wireless operators.
3. Exempt high-speed cable modem and digital subscriber lines from common carrier regulations.
4. Exempt Internet services from state telephone service regulations.
5. Raise funds for universal service directly from general tax revenues, rather than from hidden costs that penalize telecommunications competition and the growth of network services.
6. Distribute universal service funds directly to targeted consumers.
I'm in favor of 4, 5 and 6! #2 is completely wrong-headed; what are they going to do next, privatize oxygen? (At least there should be an equivalent chunk of unlicensed spectrum made available -- without mediation! -- to citizens.) Proposals #1 and #3 should be subject to a market dominance test, as MCI's Richard Whitt proposes here.

Oh well, what'd I expect? They're not calling themselves the U.S. Chamber of Citizens.

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