Critics of broadband bill to march in Washington

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By Matt Berger

(IDG) -- Critics of the so-called Broadband Bill are headed to Capitol Hill to protest the proposed legislation just one week before Congress is expected to vote on it.

Industry and consumer groups plan to hold what they call The Internet Freedom Rally on the west steps of the U.S. Capitol in Washington, D.C., on Sunday. The march is to challenge a bill that would allow local telecommunication carriers to bypass legislation that requires them to open up their local networks to rivals before they can offer long-distance data services. The debate is currently being hashed out by the House of Representatives.

Supporters of the rally want the public to get involved in a debate that has so far been fought primarily by deep-pocketed lobbyists, said Daniel Berninger, chairman of the Internet Freedom Rally and managing director for Pulver.com, which offers consulting services and hosts conferences for the IP communications industry.

"The genesis of the Internet Freedom Rally was to give consumers a venue to essentially do their own lobbying to Congress," Berninger said.

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Independent Internet service providers and industry groups have challenged the bill, H.R. 1542, which they say will give major telecommunication companies formed by the 1984 breakup of AT&T more control over the market for high-speed data services. The bill would allow Baby Bells to provide long-distance high-speed Internet access without having to give competitors access to their local networks.

Supporters of voice over IP have also expressed concern. Pulver.com, which is backed by independent IP communications providers and is a key sponsor of the rally, argues that the bill will hinder the use of data lines to send voice packets. If the bill becomes law, argues CEO Jeff Pulver, all of the existing VoIP traffic will become regulated by the Federal Communications Commission.

"H.R. 1542 will lead to higher prices for telecom consumers and even slower deployment of advanced services," Pulver said in a statement.

Sponsored by Reps. Billy Tauzin (R-La.), and John Dingell (D-Mich.), the legislation would eliminate requirements that force the so-called Baby Bell carriers to lease their local lines to competitors before launching high-speed Internet services. Supporters of the bill, including SBC Communications and Verizon Communications, say it will break down the financial barriers that have kept the Baby Bells from deploying broadband.

Two leading senators who oversee the telecommunications industry came out against the bill Tuesday. Arizona Republican Senator John McCain and South Carolina Democractic Senator Ernest Hollings raised doubts that the proposed bill would do anything to promote competition among the Baby Bells. Holling said it would help "extend their monopolies," according to published reports.

Signs that the dominant local telecommunications carriers are crippling the high-speed Internet market with their industry weight have already surfaced, Berninger said. Independent DSL provider NorthPoint Communications Group filed for bankruptcy in January after Verizon backed out of an acquisition deal that would have kept it alive. Also, Covad Communications and Rhythms NetConnections are both facing financial problems. Rhythms was recently de-listed from the Nasdaq.

"The irony is there has been a great deal of broadband deployed because of these guys. But even given the success, the capital markets have said, 'Well, the Bells have sufficient power in D.C. to put these guys out of business,'" Berninger said.

With a generally divided House expected to vote on The Internet Freedom and Broadband Deployment Act of 2001 as early as next week, he said it will take public criticism to stall any action.

"Without consumers voicing their opinions, this bill would definitely sail through the House," he said.