Telecom Bill Overhaul Proposed

A bill has been introduced in the U.S. House of Representatives that is intended to update the country's telecommunications laws and accommodate new technologies, a congressional aide said on Thursday. The House Energy and Commerce Committee introduced the bill and hearings could be held as early as next month.

The bi-partisan bill was introduced by three Republicans and two democrats and is aimed at helping foster new technologies such as Internet video and voice, as well as broadband, bill co-author Rep. Joe Barton said.

"We need a fresh new approach that will encourage Internet providers to expand and improve broadband networks, spur growth in the technology sector and develop cutting-edge services for consumers," Barton explained in a statement.

The bill would limit state powers in putting regulations on broadband, and allow telephone companies to offer video services without having to get the permission of local authorities if they already offer phone service in the community.

However, local authorities would still be able to charge companies for offering video services.

The bill would allow the FCC to collect fees from VoIP carriers for the Universal Service Fund much like standard telephone carriers. The USF subsidizes phone service in low income and high cost areas to even out the price of service.

What would be made illegal through the bill is ownership of both a cable and telephone company that offer high speed services within the same market.

It is unlikely, however, that the bill will be passed anytime soon. The focus in Congress right now is relief for the Gulf Coast in the wake of Hurricane Katrina, as well as other technology legislation that is still outstanding.