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US Senator Seeks To Introduce Market-Oriented Telecoms Regulation

by Glen Shapiro, LawAndTax-News.com, New York

30 December 2005

Earlier this month, Senator Jim DeMint (R-S.C.), Senate Commerce Committee member, introduced the Digital Age Communications Act (DACA).

The bill aims to create a communications regulation system that is market-oriented and competition-based.

"We can no longer force a modern, dynamic industry to operate on archaic rules that destroy job creation, limit consumer choice, and needlessly raise prices," explained Senator DeMint, continuing:

"Congress must wake up. These regulations originated when rotary telephones were our only way to communicate. Today, cable, phone, and wireless offer consumers similar services, but each one is bound by a different set of confusing and burdensome regulations. At a time when communication technologies are exploding, and mediums are merging, we must create a system that protects consumers while allowing businesses to thrive."

Under the proposed new legislation:

  • The communications industry would be regulated like other businesses, by protecting consumers and ensuring businesses do not engage in unfair competition.
  • Services that are alike from a consumer's perspective would be treated alike. For example, phone service, whether offered by a cable, land-line, or wireless company, would have to comply with the same regulations.
  • The Universal Service Program would be reformed to make all service providers contribute equally and make the distribution of the funds more efficient, transparent, and technologically neutral.
  • Cable television franchises would be phased out over 4 years.
  • Each state would continue to play an important role in enforcing federal rules and would retain the authority to protect consumers and manage public rights-of-way.

However, there has been opposition to the bill from telecoms industry organisations, which are concerned that Voice over Internet Protocol may lose the tax exemption afforded to it as an 'information' service.

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