======================================================================= FINS SPECIAL REPORT August 4, 1995 ======================================================================= INITIAL VOTES ON HOUSE TELECOM BILL OPEN NEW ROBBER BARON ERA Process and Provision Denounced as an Outrage by Opponents Washington, DC--The House of Representatives, this morning, agreed to a manager's amendment to the Communications Act of 1995 [HR 1555], by a vote of 256 yeas to 149 nays. Opponents of the amendment lead by Rep. John Bryant (D-TX), denounced the amendment, which included 42 significant changes to the bill approved in the originating Commerce Committee, charged that the amendment was "cooked up behind close doors" in defiance of members rights to participate fairly in the process. They also claimed that the amendment caved in to lobbyists for the Baby Bells, and would stifle competition while fostering greater monopoly consolidation of the local and long distance telephone, cable, and broadcast industries. An amendment offered by Rep. Bart Stupak (D-MI), to clarify local communities to manage public right-of way and require fair and reasonable compensation for the use of those rights-of-way, was agreed to by a vote of 338 yeas to 86 nays. An amendment offered by Rep. Conyers (D-MI), would have required Department of Justice review for Bell Operating Company entry into new markets. Approval of the Attorney General would be required unless the attorney General finds there is a "dangerous probability" that the Bell operating company or its affiliates would "successfully use market power to substantially impede competition." The amendment was "approved and appreciated" by Rep. Henry J. Hyde (R-IL), chairman of the House Judiciary Committee, despite the concurrence of Hyde in the manager's amendment, lacking such protections. Nevertheless, this amendment was defeated by a vote of 151 yeas to 271 nays. An amendment offered by Rep. Christopher Cox (D-CA), and Rep. Ron Wyden (D-OR), would provide liability protection for on-line service providers who take steps to clean up the Internet, and to bar the FCC from promulgating content standards for the Internet, thus leaving the responsibility to private industry. The amendment was unopposed during the debate. It was agreed to by a vote of 420 yeas to 4 nays. An amendment offered by Rep. Edward J. Markey (D-MA), and Rep. Christopher Shays (D-CT), would: (1) prohibit cable operators, without "effective competition" from increasing prices, on a per channel basis, by a rate larger than the percentage increase in the Consumer Price Index (CPI), (2) limit the exemption from price controls for "small cable operators" to systems with 10,000 or fewer subscribers, (3) lower the complaint threshold under which the FCC can trigger a rate review from 5 percent of all subscribers to 10 subscribers, and (4) require cable operators to charge uniform rates throughout their franchise area. Under the manager's amendment deregulating cable operators it was intended to concede to the operators their desire to increase rates to enable payment of high cost "junk bond" financing of capital improvements to their systems, thus assuring significant increases in rates. Nevertheless, the amendment was defeated by a vote of 148 yeas to 275 nays. We are witness in these proceedings to another of the consistent opening rounds, during the 104th Congress, controlled by the Republican majority with the close assistance of many Democrats, paving the way for the new feudalism, demanded by the Robber Barons of the Information Age. Vigdor Schreibman - FINS