Congress fails to pass Net neutrality bill in 2006

IDG News Service - The U.S. Congress adjourned last week without passing a much-debated broadband bill or strengthening Net neutrality rules.

The wide-ranging broadband bill would have streamlined the franchising process that telecom companies such as AT&T Inc. and Verizon Communications Inc. need to go through to offer IP-based television service in competition with cable TV. But advocates of Net neutrality rules pressed Congress to hold on to the broadband bill unless it included a provision prohibiting broadband providers from blocking or slowing competing Internet content.

Congress' failure to pass the broadband bill "shows the power of the issue with Net neutrality," said Jim McGann, a spokesman for the It's Our Net Coalition, a group calling for a Net neutrality law. "Some lawmakers ignored Net neutrality at their peril."

Democrats take control of the Senate and the House of Representatives when Congress reconvenes in January, and the prospects for a wide-ranging broadband bill may be diminished. Republicans have generally pushed for the bill, while many Democrats have raised objections based on concerns about the lack of Net neutrality rules and about provisions that they said would allow the telecom providers to skip poor areas when offering new television services.

The House version of the broadband bill would have required VoIP providers to offer customers the Enhanced 911 emergency dialing service. It also would have allowed municipal governments to offer broadband data and video services. The Senate version would have permanently extended a tax moratorium on Internet-only taxes, such as access taxes.

Net neutrality advocates will continue to press Congress to pass a law protecting open access on the Internet, McGann said, although he declined to speculate on its chances in the new Congress. "We're going to, as much as we can, educate members about the issue," he said.

The broadband bill will also lose a major champion in Congress next year. Verizon, one of the large broadband providers pushing for streamlined video-franchising rules, will refocus its efforts on state legislation next year, a company spokesman said. Verizon is also watching the Federal Communications Commission, which may act on broadband regulations, said David Fish, a Verizon spokesman.

"The federal campaign raised the issue to a higher visibility," Fish said. "We've made big strides toward video choice this year and expect continued progress in 2007."

Beyond the broadband bill, some tech groups said Congress' postelection, lame-duck session produced mixed results. In its final days, Congress approved an extension of a research-and-development tax credit that allows U.S. companies to get a tax break of up to 10%  of R&D spen