Michael Powell: Industry Reaches Regulatory Crossroads

“We are sitting at the most important crossroad in 100 years of telecom regulatory policy,” said FCC Chairman Michael K. Powell, speaking at the USTA Telecom 03 conference in Las Vegas. Powell said his greatest concern at this point is how the nation will develop a new regulatory framework for broadband IP services rather than simply stumbling upon a policy that results from many haphazard efforts to regulate new IP voice and video offerings. What is clear is that while the Telecom Act of 1996 sought to promote competition, it did not provide a framework for new services that defy the boundaries by traditional telecom, cable, wireless or satellite providers. Powell advocates a “clean slate” and fresh start for developing new rules for new services. He said that Congress probably will need to act in setting this framework but that in the short term the FCC had sufficient tools to set a course. Powell believes market forces are the best guide but warned that the road to the broadband regulatory framework would be bumpy. In particular, Powell questioned the role of state regulators and local franchise/tax authorities in a world where IP packets deliver content and services across many geographic boundaries. The question arises in the issue of how state commissions should treat Vonage and other broadband phone services, whether open access for ISPs should be preserved on cable networks, or whether telco triple play video services require local franchise licenses. At some point, Powell believes federal interstate commerce rules will trump the ability of local municipalities to collect fees associated with such services, making it even more critical to have a national policy in place to ensure that the Universal Service Fund and other public interest safeguards are preserved into the new era.
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