Senate Telecommunications Reform Bill Advances Amid Industry Feud

Strategic Insights -

Negotiators in the Senate have settled a feud between phone companies and the cable television industry, paving the way for a bipartisan telecommunications reform package that could pass by the end of the day. The bill aims to update the country's 1934 telecommunications law, which was established before the advent of television, computers, and satellite transmission. Industry experts and government officials agree that the current law restricts competition and subsidizes monopolies, but a larger fight is brewing over proposals to deregulate the cable TV industry.

Key Takeaways:

  • The Senate is moving forward with a plan to update the country's telecommunications laws, which were established in 1934 and are deemed "ancient" by industry experts.
  • The current law restricts competition and subsidizes monopolies, with Eli Gnome, director of the Tele-Information Institute at Columbia University, stating that it surrounds many telecommunications businesses like "moats" that need to be rewritten.
  • A bipartisan telecommunications reform package almost made it to the president's desk last fall, and another bipartisan bill might be introduced in the Senate by the end of the day.
  • Key Senate Republicans, including Senate Majority Leader Robert Dole, favor deregulating the cable TV industry, but consumer groups are opposed, citing concerns that higher cable bills will result in angry consumers.
  • Negotiations continue over whether to include cable deregulation in the reform bill, with the White House promising to veto legislation that contains it.

Statistics:

  • $billions in potential rate increases for consumers are at stake if the current laws are not updated.
  • 1934: The year the fundamental law of telecommunications was established as a New Deal piece of legislation.
  • 10: The number of years since a similar reform bill was killed due to feuding between rival industry groups.
  • 100 years: The amount of time since rules applied to railroads were generated, which were later adopted for the telecommunications industry.
  • 1 day: The estimated time frame by which a bipartisan bill might be introduced in the Senate.

Sources:

  • NPR's John Nielsen
  • Eli Gnome, director of the Tele-Information Institute at Columbia University
  • Bradley Stillman, telecommunications specialist with the Consumer Federation of America
  • Senate Majority Leader Robert Dole