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Dear Reader:

We wanted to let you know that, after nearly three years of operation on the World Wide Web, National Journal's Insider Update: The Telecom Act ceased publication as of January 1, 2008.

We took this step at a time when the National Journal Group is moving to increase technology coverage -- including reporting on telecommunications and broadcasting issues -- in several of its other publications. In particular, National Journal's CongressDaily -- our twice daily publication for Capitol Hill insiders -- will be adding staff in the coming weeks for this purpose.

CongressDaily will feature the kind of detailed coverage of telecom issues, both on Capitol Hill and at the Federal Communications Commission, that you are accustomed to seeing in Insider Update -- plus a lot more.

If you are interested in a trial subscription to CongressDaily, please call 800-424-2921 or e-mail us at memberships@nationaljournal.com. Thank you for your readership and support of Insider Update, and please don't hesitate to write to me at lpeck@nationaljournal.com if you have any questions or concerns.

With best regards,
Lou Peck Editor In Chief

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McDowell: FCC To Act On Video Rules Soon

By Heather Greenfield

(Tuesday, August 21) ASPEN, Colo. -- FCC Commissioner Robert McDowell said his agency's action to protect cable firms from "unreasonable" demands by county governments is coming soon. He said he expects the FCC to take action next month to give cable operators the same protections it gave telecommunications companies at the end of last year.

In December, the FCC approved a video-franchising order designed to foster new entrants into the video market. It put local governments on a "shot clock" in which they have 90 days to approve or reject video-franchising applications.

The goal was to streamline the video-franchising system and speed the entrance of telecom companies into the TV market to create more competition. At the Progress and Freedom Foundation summit here, McDowell said in an interview with Tech Daily that the order also was designed to prevent county governments from imposing onerous requirements on would-be cable competitors, such as helping build recreation centers.

In March, the FCC agreed that it should consider the same protections for existing cable firms. During questions at PFF, Comcast government affairs director Sena Fitzmaurice asked McDowell when that would move forward.

McDowell said his agency's Media Bureau is writing a draft order to be circulated about Sept. 5. "We should see that order apply the same deregulatory relief to incumbents," he said.

The commissioner acknowledged that states have sued the FCC for the earlier ruling about new video providers. They say that only Congress has the authority to make rules about the demands the FCC can place on video franchises.

But McDowell said, "We're confident in our legal position" and are willing to go forward and expand the agency's order.

McDowell offered more of his thoughts and leanings on high-speed Internet expansion in a Wall Street Journal article last month, in which he wrote, "When it comes to broadband policy, let's put aside flawed studies and rankings, and reject the road of regulatory stagnation."

He said he believes there will be "a tremendous explosion of entrepreneurial brilliance" in the broadband market -- "if the government doesn't micromanage" it with too much regulation.

In Aspen, he elaborated on his views by saying: "Regulation is for market failure. Competition obviates the need for regulation." He said he sees his role as helping "create competition both within and among platforms."


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