Bill launched to overhaul broadband rules
A debate over upgrading U.S. telecommunications laws for the digital era began in earnest Wednesday with a proposal aimed at substantially deregulating broadband, satellite and cell phone services.

Sen. John Ensign, a Nevada Republican, introduced a bill that reopens a national dispute that has been simmering, but not fully engaged, since the 1996 Telecommunications Act was enacted. The drafters of the law did not envision the explosive growth of the Internet, wireless and broadband technologies over the last decade.

Ensign's 72-page measure takes a broadly pro-business approach. It says, for instance, that local governments wishing to provide broadband service to residents must allow an "open bidding process" in which private companies may participate. Also, companies such as Verizon Communications that would like to provide video, but have been stymied by the need to obtain permission from local governments, would receive a regulatory reprieve.

"We must not allow government regulations to be an anchor on the advance of technology if we want America to lead the world in the information age," Ensign said when introducing the bill. It "will create jobs, stimulate the economy and increase consumer choice," he added.

Underlying Congress' revamping of the 1996 law, which could take a year to complete, are competing philosophies of how the government should treat telecommunications providers. Are consumers better served through price-setting by regulators--or by letting competition flourish? Is it wiser to mandate that companies permit rivals to use their networks, or will that discourage investment in fiber links?