IP Democracy: Democrats to Float Anti-Redlining Amendment

A group of Democratic Congressional leaders sent a letter to their colleagues today announcing their intentions of introducing an anti-redlining amendment to the telecom reform bill, H.R. 5252, which is up for a floor vote this week (the National Journal’s Drew Clark reports that the bill will hit the House floor on Friday, unusual given that voting usually occurs Tuesday through Thursday.)

The bill as it stands today does not require new video service providers to build out the entire communities that they enter. Critics, which include cable operators and some civil rights groups, have contended that the telcos will bypass poor areas in favor of the most lucrative communities with their new video networks. Represneatives John Dingell (D-MI), Ed Markey (D-MA), Hilda Solis (D-CA), and Diane Watson (D-CA) said in their “Dear Colleague” letter:

The lack of a buildout requirement in H.R. 5252 may cause some consumers to lose cable service altogether because once cable companies switch to a national franchise they may choose not to continue serving all of the households they are currently required to serve. Even if service is not withdrawn, the bill allows operators to avoid maintaining or upgrading facilities in certain neighborhoods, which could result in differing levels of service depending on the demographics of a neighborhood. Also, cable operators may raise cable rates in non-competitive areas to compensate for lower rates in competitive areas.

The amendment, which has garnered the support of the National League of Cities, the U.S. Conference of Mayors, the Communications Workers of America and the Consumers Union, among others, would require new video entrants under a national franchise to build out entire communities according to a phased-in approach, allowing them to hit the more lucrative markets first before moving on to the less profitable areas.

Posted by Cynthia Brumfield on June 6, 2006 4:16 PM to IP Democracy