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City input needed in telecommunications debate Ann Higgins The U.S. House of Representatives is supporting private industry's design of the new telecommunications infrastructure (information superhigh- way) while denying cities authority to regulate cable companies or telephone industry delivery of video program - ming/cable services. The House rushes to promote competition By a nearly unanimously vote, the House indicated support for competi- tion among telecommunications providers. As adopted, H.R. 3636 would: Override state regulations to allow local telephone competition; Give competitors equal access and connections to local phone facilities and wires; • Allow cable and phone companies to compete in their own services areas; Deny phone companies permission to purchase cable systems in their own service area, except in rural areas with populations of less than 10,000; Establish a federal/state board which would determine universal service issues. In the rush to promote competi- tion, Congress is poised to allow private, for - profit interests to take charge of the design of revolutionary changes in telecommunications. These changes will transform the ways in which individuals and communities will communicate and receive informa- tion. Many believe the private interests are advocating changes without regard for the public interest in how and at what cost these new services will be provided. Congress needs to hear from you The League urges city officials to contact Senators Durenberger and Wellston now and express concern over the House preemption of local franchising authority for cable /video services, whether carried by current cable operators or the local (or long distance) phone company, or any other provider. The Senate Commerce Committee was expected to vote this week on S. 1822, a bill authored by committee chair, Senator Ernest Hollings (D -SC). The bill maintains local cable franchising authority and provides that phone companies that carry video programming are cable operators and subject to local regulation. We also ask city officials to strongly encourage Minnesota's senators to support S. 2195, authored by Senator Daniel Inouye (D- Hawaii). The bill would require providers to reserve capacity on all telecommunica- tions networks to guarantee delivery of public services. The League agrees with Senator Inouye's objectives of providing interconnected communica- tions that will allow the public to gain knowledge; participate in government decision - making; and obtain cultural, civic, and educational programming. Senator Inouye's proposal would ensure diversity of interchange and creativity in the operation of informa- tion networks throughout the nation. Members of Congress have said they are not hearing from citizens or community groups who have access to community, educational, and govern- ment information through local cable franchise systems. Local elected officials need to explain the importance of giving cities a voice in the design and operation of the electronic infor- mation networks. Communities and individuals should be guaranteed access to this powerful electronic network to promote local interests and to produce educational, government, and public programs and services that the electronic information technologies make possible. It will be critical to know where and at what cost the public will be able to get information and entertainment services available over these systems. There is a role for local government to play to see to it that there is public capacity on systems operated by telcos, cable companies, or other providers of electronic informa- tion services. Cities best able to regulate telecommunications Cities are in the best position to hold telecommunications providers accountable for providing new services throughout the community, not just to the most profitable locations. They can also protect the use of public rights of way. Transmission of video signals and information services by telephone companies should be carried out with the same concern for local interests as in the 1992 federal cable act. City officials must strongly urge both Minnesota senators to support provisions in S. 1822 that provide for universal service and local franchising and tax authority, and to argue for final committee recommendations on measures in the bill that: • Retain local cable franchising authority and define a phone company that provides video programming as a cable operator; • Allow phone companies to compete with cable operators in their own service areas; Require all telecommunications operators to contribute to a universal service fund to assure that electronic information (video, voice, and data) services are widely available at an affordable price and guarantee low -cost (basic) services to all; • Provide access for local govem- ment to intrastate and interstate telecommunications services without charge (for system operators using local rights of way). 0 July 22, 1994 Page 1 Page 11