Teapot Dome Revisited?
Earlier this century, Washington politicians successfully conspired behind closed doors, with oil-industry robber-barons, to give away huge federal oil reserves at Teapot Dome - property of the People - to some of the Seven Sisters, as the combine of the largest global oil monopolists were then called.
If the "reliable rumors" at press-time are reasonably accurate, the Teapot Dome give-away was peanuts compared to these allegations: Reportedly, the RBOCs (regional Bell operating companies that are about to lose their local-loop telecom monopoly) and other big communications conglomerates will have a massive rewrite of telecom law introduced and will steam-roller it through by early March - or earlier - without any adequate public review.
Secret Meetings Verified
This new Telecommunication Act was being hammered out in closed-door, off-the-record meetings, January 19th and 20th, between a few selected members of Congress and the CEOs of major communications corporations. Consumer-advocates, user-representatives and small innovators need not apply.
Speaker Newt Gingrich - in his January 19th press meeting carried on C-SPAN - verified that such meetings were in progress. Gingrich also proudly emphasized that no campaign funds were being solicited during the meetings, and they were being held in Washington, rather than during Florida junkets like the Democrats had previously organized (i.e. funds-hustling occurred outside of these particular meetings).
The Appalling Alleged Details
As usual, the devil's in the - alleged - details:
+ The feds will preempt all state control of all communications policies - rates, access, services, wiring, switching, caller-id, privacy-protection, etc.
+ To avoid looking like the federal power-grab that it is, state oversight will be "protected" by creating an "ombuds panel" under the FCC, with authority to settle federal-state disputes. It will have the power to disregard current public-notice requirements, bypass the Administrative Procedures Act, etc. Special interests are already maneuvering to assure their representation on the panel-to-be. It's much easier to load one federal panel, than it is to load 50 state Public Utilities Commissions.
+ Numerous current restrictions on the RBOCs will be removed.
+ The Justice Department will be precluded from pursuing communications-related anti-trust allegations.
+ Universal service will be guaranteed - about like it is now. But consider the "service": Residential, suburban, small-town and rural local-access will be (or remain) a permanent monopoly by a single "service" provider. AT&T; will back out of the local-loop and stick to manufacturing, long-distance, high-profit business users and possible radio services. The cable operators will take whatever they can get. So much for competition.
+ Residential "service" will focus on voice communication and low-speed data-feeds for interactive games. It's widely alleged that the RBOCs don't see significant profits in facilitating home-based businesses - e.g., robust, diverse information services originated by innovators working from their homes. (Remember the long-lost "promise of television" envisioned in the 1950s?)
Former Senate Majority Leader Howard Baker has been named chairman of the "Competitive" Long Distance Coalition, and will lobby for this "reform" legislation.
Congressional incumbents are depending on the cable operators and RBOCs to avoid raising rates until after the 1996 elections are over. Just like the recent post-election postal-rate increase.
By controlling access to the home, the RBOCs hope they can control many other things - telecommuting workers, at-home information workers, etc.
In exchange for tolerating federal preemption of states' communications oversight, "important" states - California, New York, Florida, etc. - will receive some really strange temporary pork perks. Remember last year's insurance-industry media-blitz against federal health-care proposals? By the time you read this, there should an RBOC blitz supporting their telecom legislation well under way - or, sadly, already concluded.
No Substantive Public Deliberation
If this deal can't be rammed through Congress and signed into law fast, it's likely to unravel. Thus, it will be stampeded through minimal hearings for public posturing by carefully-selected speakers. According to January 18th e-mail from CyberWire reporter Brock Meeks, MCI Chairman Bert Roberts said in a press conference that, "At this point in time, we see things on a fast track."
Congress can totally avoid substantive deliberation and refuse to allow time for careful public consideration of this complex legislation. E.g., last year, HR 4922, that mandated and funded our new, half-billion-dollar National Wiretap System was introduced on August 9th - 20 years to the day after Nixon's resignation - and passed by Congress in less than two months, after almost no public hearings and no substantive public deliberations.
Do Something!
Whatever passes will pervasively impact all of us - at home and work - for decades!
If we are to encourage and have access to the most innovative, highest-quality, lowest-priced information and telecom services that are possible, then it is crucial that a level playing field of competitive access - not merely "universal" access - be assured in local-loop, residential, suburban and rural communications.
If the "reform" bill hasn't already been signed into law by the time you read this, you can make a difference:
As local and state officials - and as citizens - immediately demand that your representatives in Congress slow down this bill and permit full opportunity for substantive state, local and citizen review of the devilish details in this complex federal give-away.
The day after I transmitted this column, I received additional "reliable rumors" via the net: Federal preemption of state control will virtually be guaranteed, but the RBOCs' target date for passage is reportedly July 4th. A telecom policy proposal from Senate Republicans has allegedly just been released, which proposes fundamental reorganization of agencies supervising telecom. The notion of a single line to the home may or may not be in legislation that is actually introduced. Restrictions on foreign ownership may be relaxed, perhaps due to GATT.
So, the greatest local, state and public need continues to be adequate time for public access to and review of all telecom legislation, and adequate time for input to the legislative process and complete public deliberations - with no secret deals done in smoke-filled rooms.
This is, after all, the future of a modern nation that's being decided.
Jim Warren received the Northern California Society of Professional Journalists' James Madison Freedom-of-Information award, the Hugh M. Hefner First-Amendment Award, and the Electronic Frontier Foundation Pioneer Award in its first year. He founded the Computers, Freedom & Privacy conferences and InfoWorld magazine. He lives near Woodside, Calif. E-mail: jwarren@well.com
[March Table of Contents]
