THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Saturday, August 5, 1995 TAG: 9508050271
SECTION: FRONT PAGE: A1 EDITION: FINAL
SOURCE: FROM WIRE REPORTS
DATELINE: WASHINGTON LENGTH: Long : 161 lines
The House approved a landmark overhaul of the nation's telecommunications laws Friday that would free competition in the telephone, cable and broadcasting industries, as well as mandate a technology allowing parents to block violent and sexual programming on their TV sets.
The bill was approved by a 305-117 margin after five hours of sometimes heated debate that resulted in substantial changes to the final bill, but leaving so many differences with the Senate version of the bill that a whole new political battle is looming over a compromise.
At stake is the blueprint for the future of the U.S. communications industry. For the first time, the legislation would allow TV networks and cable, telephone and newspaper companies to cross into each other's once-guarded territory and set up their own services or buy up other companies.
Supporters say the bill spurs competition in an industry where monopolies now rule, and it makes way for the information explosion of the 21st century - a world of 500 TV channels and a host of electronic, video, telephone and computer online services.
``Technology is so far ahead of regulators and courts that we can't hold it back,'' said Pacific Telesis Group Chairman Phillip J. Quigley. ``If it finally becomes law, this legislation will cement the United States' position as the acknowledged leader in the new age of global information.''
Critics, however, say consumers would quickly pay the price with higher cable and local telephone service charges.
``Congress has reached deep into consumers' pockets, opened their wallets and taken out their money,'' said Bradley Stillman, director of telecommunications policy at the Consumer Federation of America.
President Clinton has threatened to veto the bill unless it is significantly altered to benefit consumers.
The bill would give local phone companies - the so-called Baby Bells - something they have been seeking for years: the right to enter the long-distance market.
Cable TV companies, meanwhile, would be allowed to offer their own telephone services.
But in a setback to the television networks, House Democrats curbed some of the legislation's strongest elements of deregulation, winning key amendments to limit media ownership and to mandate that all new television sets include ``V-chip'' technology that would allow parents to block out programs with violence or sexual content.
The so-called V-chip had appeared destined to fail. Lawmakers first passed a much weaker version ``encouraging'' the broadcast industry to study the issue. That proposal was designed to keep the broadcast industry happy and give members political cover from angry constituents who want their kids watching less sex and violence on television.
Then Rep. Ed Markey, D-Mass., a V-chip proponent, caught the Republican leadership by surprise. Using an arcane parliamentary procedure, he forced a vote solely on the V-chip. Lawmakers switched their votes, and his amendment passed 224-199.
But the House left room for broadcasters to develop an alternative blocking technology. Whatever the technology used, it would be up to the broadcasting and cable industries to develop a rating system.
Republican leaders said the wide margin of victory Friday, and the Senate's 81-to-18 vote in June approving a similar measure, guaranteed that they could override a threatened veto from Clinton. To override a veto, both houses must muster a two-thirds majority.
But while the House Republicans marshaled a seemingly veto-proof advantage, both Markey and White House officials insisted that they had already corralled about a dozen votes from Democrats who voted for the bill but said they would support a presidential veto.
Markey said that the back-to-back ABC and CBS deals announced earlier this week prompted both Democrats and Republicans to vote for stricter ownership limits.
``The members are now much more aware of what could happen if they don't pay attention,'' Markey said. MEMO: HOW THEY VOTED
A ``yes'' vote is to approve the telecommunications law.
Herbert H. Bateman, R-Va. Did not vote
Owen B. Pickett, D-Va. Yes
Robert C. Scott, D-Va. No
Norman Sisisky, D-Va. Yes
Eva Clayton, D-N.C. No
Walter Jones Jr., R-N.C. Yes
HIGHLIGHTS
A comparison of the major provisions in the House and Senate
telecommunications bills.
The Senate passed a bill in June. The bills will be reconciled in a
House-Senate conference committee this fall, then sent back to each
chamber for approval. The final bill goes to the president.
Cable television
Both bills immediately deregulate rates of small systems. House bill
deregulates the rest of the systems after 15 months. Senate bill
deregulates rates of companies that don't exceed a national average.
Existing law regulates virtually all rates.
House bill requires that at least three percent of a system's
customers in a franchise area complain about a cable rate before the FCC
may review it. Existing rate complaints at the FCC would be held until
they amount to 3 percent. No similar provision in the Senate. Existing
law triggers review after one complaint.
Television and radio
Both bills let one company own an unlimited number of TV stations
nationally, covering up to 35 percent of all U.S. viewers. Current cap
is 12 stations. Existing audience cap is 25 percent.
Both bills let one company own unlimited number of radio stations
nationally. Current limit is 40 stations.
House bill retains existing laws and regulations barring one company
from owning both a local TV station and cable system. Senate bill lifts
law.
House bill lifts existing local ownership restrictions to allow
company to own newspaper and TV, newspaper and radio, newspaper and
cable, multiple TV stations, TV and radio. No provision in the Senate
bill. Current laws bar such combinations.
Local telephone service
Both bills pre-empt state barriers to permit cable companies and
long-distance companies to provide local phone service. Existing state
laws and regulations either bar or restrict competitors in the local
phone business.
Long-distance service
Both bills remove a consent decree that broke up AT&T in 1984,
freeing Bell companies to provide long-distance service. Both bills
require Bells to comply with check list to ensure competition and to
obtain FCC approval.
Senate bill requires FCC to determine that Bell entry into
long-distance market serves public interest. No provision in House
bill.
House bill forbids Bell company from providing long-distance service
until competitor provides local phone service to some residential and
business customers. Competitor must provide service using some of its
own plant and equipment - switches and wires, for example - and can
provide the rest of the service through resale. No provision in the
Senate bill.
Both bills require Bell companies to provide long-distance service
through a separate subsidiary. But House bill ends separate subsidiary
requirement after 18 months. No such provision in Senate bill.
Buyouts
Both bills essentially let local phone company buy local cable system
in rural communities of less than 50,000 people. House bill allows local
phone company to buy up to 50 percent of cable company anywhere. No
provision in Senate bill.
Electric utilities
Senate bill frees the biggest electric utilities to provide an array
of telecommunications services - from cable to telephone. Existing law
bars that. No provision in House bill.
TV violence, sex
Both Senate and House bills require TV set makers to install a
computer chip in new sets enabling people to block shows electronically
labeled by cable networks and broadcasters for violence or other
content. No current federal requirements. by CNB