Status of Telecom Rewrite The full House Commerce Committee chaired by Barton (R-TX) is scheduled to meet next Wednesday (4/26/06) to mark up a rewrite bill for the House floor. It will be similar to the version that was approved by the Telecoms and Internet subcommittee with strong video franchise provisions that favor ILECs and weak net neutrality exhortations. One point still in negotiation with the cities is their authority over franchising. Understand that they are equally if not more interested in revenue and ROW than approval authority. It is not clear when or if the rewrite bill will reach the House floor. The Senate version is still caught up in Commerce Committee. There is still no agreement or near consensus on net neutrality or universal service notwithstanding strong efforts by the Senate majority staff to push it through the Committee. Without good prospects for Senate action, it is problematic that the House will act as cable rates are not a high profile political issue notwithstanding USTA’s advertisements though it is still possible that the House leadership will pass legislation to increase pressure on the Senate to act. Such additional pressure from House passage, however, is likely to be marginal. Political dynamics are complicating the matter. The ILECs’ prospects are much better under a Republican Congress than a Democratic one as is increasingly likely (at least as regards one or both houses of Congress), and they will fade if one house is retaken by the Democrats. In that event, their hopes will shift to the FCC where they are quite good though the ILECs must still face one pro-competition Commissioner (Robert McDowell, whose nomination is being held up by Sen. Landrieu of LA). Eric H. M. Lee, Lee and Associates 1730 M St., NW, Suite 911 Washington, DC 20036 (202) 293-4763 ericlee@dupontgroup.net