Telecom Bill Passage Said Unlikely This Year

U.S. lawmakers have been promising to begin overhauling the nation’s telecommunications laws to keep up with advancing technologies, but analysts say the odds of passing a bill this year are slim. Although there were predictions that legislation would be completed in the House by August, only the first public drafts of reform bills are expected to be unveiled this week, a congressional aide and industry lobbyists said.

Telephone companies such as Verizon Communications and SBC Communications Inc. are pushing Congress to ease regulations so they can quickly deploy high-speed Internet services such as video, voice and data. Lawmakers may also consider curbing some states’ oversight of the industry and are likely to consider revamping the program that offers subsidies for telephone service to low-income homes and rural areas.

Cable and telephone companies are battling to boost their bottom lines by signing up as many customers as possible for a suite of communications and entertainment services.

Verizon, SBC, BellSouth Corp. and Qwest Communications International Inc., called the Baby Bells, are expanding beyond traditional phone service to high-speed Internet services, known as broadband. But the Bells complain that they are at a disadvantage because they must abide by laws for phone service.

“I think this is an effort to try to actually move the ball in terms of having regulation today in this industry match much better the actual competitive environment than we see today,” BellSouth Chief Executive Duane Ackerman told Reuters.

Yet, higher on the priority list for Congress is a bill to finish the transition to digital television airwaves. The old analog airwaves will be sold for wireless services and could bring billions to plug the federal budget deficit.

“It’s tough. There’s a chance that they might move something [on telecommunications] in the House, but it’s certainly not a slam-dunk,” said Paul Glenchur, a Stanford Washington Research Group analyst. “The Senate side is a little more complicated because not everybody will have the same priorities.”

Sen. John Ensign (R-Nev.), chairman of the Senate Commerce subcommittee on technology, innovation and competitiveness, plans to unveil his bill this week, and a House bill may also be introduced, the aide and lobbyists said.

The primary goal of the Senate bill is to apply the same rules to services, like broadband, regardless of the provider, they said. But lawmakers probably will have to balance the desire for limited rules to avoid stifling innovation with demands for consumer protections.

In February, Rep. Fred Upton (R-Mich.), chairman of the House telecommunications subcommittee, said he planned to have a bill done in the full House by summer break, which begins Friday. His spokesman declined to comment.

From Reuters

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The Week Ahead

Today

* National Assn. of Realtors reports on existing-home sales for June.

* Sentencing of former WorldCom accountant Betty Vinson.

* Quarterly earnings reports expected from Netflix Inc. and American Express Co.

Tuesday

* The Senate Foreign Relations Committee holds a hearing on energy trends in China and India and their implication for the United States.

* The Conference Board reports its monthly consumer confidence index.

* Sentencing of former WorldCom accountant Troy Normand.

* Quarterly earnings reports expected from Lockheed Martin Corp., Amazon.com Inc., Biogen Idec Inc., Electronic Arts Inc., Safeway Inc. and Sun Microsystems Inc.

Wednesday

* The Commerce Department reports on durable goods orders and new-home sales for June.

* Quarterly earnings reports expected from Boeing Co., Hilton Hotels Inc., Time Warner Inc., WellPoint Inc. and Starbucks Corp.

Thursday

* Sentencing of former WorldCom accounting director Buddy Yates.

* Quarterly earnings reports expected from Northrop Grumman Corp., MGM Mirage, ExxonMobil Corp. and DaimlerChrysler.

Friday

* The Commerce Department reports on gross domestic product for the second quarter.

* Quarterly earnings report expected from Chevron Corp.