Telecommunications Reform

For over a decade, Congress has attempted to update the Communications
Act of 1934 to reflect the evolving technological and economic changes
in the communications infrastructure.  In June and in August, the
Senate and House passed telecommunications reform legislation that
will radically restructure the current regulatory regime that promotes
a more competitive marketplace for telecommunications services.
H.R.1555 and S.652 fundamentally change how and what services industry
will provide and what consumers including libraries may use in the
years ahead.  A House-Senate conference committee has been appointed
to resolve differences between the two bills.  If the conference is
successful, a bill will be sent to the President for his
consideration.  Until the conference committee completes its work, it
is not clear whether the President will support or veto this
legislation.

H.R.1555 and S.652 seek to address cable, telephony, broadcasters, and
other service providers' interest, indeed, determination to enter new
lines of business due to the convergence of technologies.  Key
elements of both bills include:

-- massive deregulation for differing industries, cable in particular;
-- reduced restriction on concentration of media ownership; 
-- reliance on marketplace solutions to ensure access to current and
future telecommunications services; and
--differing approaches to regulation of the Internet with regard to content.

Of particular interest to the library community are those provisions
relating to universal service, content restriction, PEG (public,
educational, and governmental) access, and anti-redlining.

Universal Service: Whereas the Senate bill defines the principles and
goals of universal service, there is less guidance in H.R.1555.
Provisions in both bills call for a Joint Federal-State Board to
provide recommendations to the Federal Communications Commission (FCC)
on universal service.  It is important to note that S.652 sees a
continuing role for the Board to review the implementation of the
definition of universal service.  H.R.1555 calls for the abolishment
of the Board five years after enactment of the legislation.  S.652
includes provisions that would ensure universal service in rural and
high cost areas and to those with disabilities.

S.652 also advances several other important principles including
preferential rates for schools, libraries, and rural health care
facilities.  Libraries that are eligible for LSCA Title III funds are
entitled to preferential rates (Snowe-Rockefeller-Kerry-Exon
amendment).  Comparable provisions for libraries and health care
providers are not included in the House bill.  In addition, the Senate
bill explicitly acknowledges that "citizens in rural and high cost
areas should have access to the benefits of advanced
telecommunications and information services for health care,
education, and economic development, and other public purposes."

Content Restriction: With a vote of 64-18, the Senate signaled its
strong support for the imposition of content restrictions on the
Internet and other interactive media.  An amendment to S.652 (Exon)
would prohibit access to sexually explicit materials via the Internet
and would impose fines and penalties for transmitting obscenity and
pornography via advanced telecommunications services.  Countering the
Senate action, the House bill would prohibit the FCC from imposing
content regulations on the Internet or other interactive media
(Cox-Wyden).  H.R.1555 would also remove liability for service
providers who make good faith efforts to restrict minors' access to
obscene or indecent materials.  There remains some problematic
restrictions with regard to criminal penalties.

PEG Access: The House bill recognizes in a favorable light, "capacity,
services, facilities, and equipment for public, educational, and
governmental use."  S.652 takes a different approach and requires that
PEG stations not be charged at fees higher than incremental cost-based
rates of carriage for access to the video platform service.

Anti-redlining: These provisions are of interest to institutions in a
rural or high-cost area and thus could have implications for those
providing distance education services and related services.  Whereas
the Senate includes a more broadly-based provision that prohibits a
service provider from denying a service based on location, the House
bill applies only to those industries providing video platform.

ARL is actively working in support of the Snowe-Rockefeller-Kerry-Exon
amendment and for changes to the Exon, Cox-Wyden provisions.  Additional
information on this important piece of legislation is available in ALAWON:
ALA Washington Office Newsline, volume 4, no. 89, October 24, 1995
(alawash@alawash.org).


-------  
ARL 182
A Bimonthly Newsletter of Research Library Issues and Actions
Association of Research Libraries
October 1995