Ensign seeks changes in telecommunications law

Wednesday, July 27, 2005 | 10:58 a.m.

BLOOMBERG NEWS

Sen. John Ensign proposed scrapping parts of the telecommunications law that apply to telephone, cable and Internet services to spur competition and company spending.

The measure, introduced today, would keep some requirements on phone companies, such as consumer-protection guidelines and government control over rates for basic service, Ensign, the Nevada Republican who chairs the Senate Commerce Committee's technology subcommittee, told reporters in Washington today.

Ensign's bill is the first of what are expected to be several broad proposals in Congress to overhaul telecommunications law for the first time since 1996.

Ensign said a telecommunications overhaul was long overdue. He plans to begin seeking bill co-sponsors today.

Ensign said the federal government's regulations restrict growth of communications companies. Current laws need to change with the industry, he said, noting that traditional cable companies have moved into voice technologies, and phone companies are now offering video technologies.

"We're still regulating these companies based on ancient history -- on how the companies grew up," Ensign said.

Ensign said his bill would help U.S. companies compete in markets where foreign companies have an advantage. He cited the example of Skype, a peer-to-peer voice service based in the Netherlands, which already has 10 million U.S. customers, Ensign said.

Ensign also said his bill would allow companies to compete more equally with cities in offering low-cost communications services.