The Telecom Act of 2006 – What Should It Look Like?

Although we don’t always agree, I have a lot of respect for Tim Wu of the University of Virginia Law School and he’s doing some interesting guest blogging over on the Lessig Blog this week. He recently made a post about the principles that should guide the next Telecom Act and lists many that I agree with, some that I do not. Anyway, here’s my own short sketch of what the next Telecom Act should include:

A Simple Framework for The Next Telecommunications Act

First, in general, keep it simple!
* focus on a few simple themes / goals
* cut out unrelated matters entirely
* try to keep it at no more than 10 pages, not 110!

Preamble of Act:
1) a clear statement of the deregulatory purpose of the new Act;
2) reiterate the commitment in the previous Act to a national policy framework in order to provide legal clarity; and,
3) acknowledge the reality of technological convergence and the radically changing nature of this marketplace in light of recent developments

Take a few issues off the table to make the job easier:
* Decide what to cover, and what NOT to cover in the bill
– might want to consider dividing the bill into two or even three measures
– ex: forget about broadcast / HDTV / media ownership / indecency issues

Comprehensive Deregulation Plan for:
(a) wireline voice telecom access mandates
– greatly curtail list of shared items; pare it back mostly to the local loop
– include a clear sunsetting plan for any remaining infrastructure-sharing rules

(b) address universal service subsidies / and access charge reform
– try to devise a devolution plan for remaining universal service needs

Immediate Freedom or Continued Regulatory Forbearance for:
* cable (just leave them alone; they are the model here for where we need to go)
* wireless (ditto, but consider expanding auctions and determine unlicensed set-asides)
* high-speed broadband networks (formally firewall it off from traditional telco regs)
* VoIP (same as above + consider limiting state and local tax powers)

Jurisdictional Clarifications:
* Sort out the jurisdictional issues and consider a fairly sweeping pre-emption of state and local regulation on this front just as we did when we deregulated airlines, trucking and railroads.
* Leave states with most or all universal service responsibilities.

Regulatory Classification Issues:
* regulatory parity: consider a “MFN clause for communications” to help level playing field (no carrier should be regulated more stringently than its least regulated rival)
* eliminate distinct Titles and regulatory classifications
* consider allowing common carriers to opt for private carriage status (or vice versa???)
(ex: current “Info Services” debate is taking us in this direction anyway)

Procedural Reforms:
* Expanded forbearance requirements or sunsets (2 to 5 years) for any remaining rules
* Scaling back of FCC size and funding (recall CAB example under Dems)

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