House Panel Approves Telecom Bill

Over the objections of Democrats who hope to preserve the government’s power to control foreign ownership of U.S. broadcast licenses and set cable TV rates, a House panel on Wednesday approved a controversial bill that would deregulate much of the booming telecommunications industry.

The House telecommunications subcommittee’s voice vote approving a sweeping overhaul of the nation’s 61-year-old communications laws came after members of the panel tacked on about a dozen amendments, including one that would repeal a longstanding federal law limiting foreign ownership of American radio, TV and telephone companies.

The measure would allow local phone companies to offer long-distance service as early as 18 months after the bill becomes law. It would also abolish cable rate restrictions for small cable operators immediately and for all others within two years.

Supporters of the measure say their aim is to eliminate restrictions that keep cable TV operators, local phone companies and long-distance carriers from invading one another’s markets.

But observers say the bill will probably undergo further change because controversial amendments that would change key provisions of the legislation were tabled and are likely to be taken up again by the full House Commerce Committee next week.

Wednesday’s vote sets the stage for a bitter partisan battle in both houses of Congress as lawmakers seek to fashion new ground rules for telecommunications competition. With billions of dollars of potential business at stake, industry representatives are continuing to lobby fiercely on anything that might give them an edge.

The Clinton Administration and many Democrats say the bill passed Wednesday would harm consumers by deregulating cable TV rates before subscribers have other viable viewing alternatives.