HCS HB 142 -- HIGH-SPEED INTERNET ACCESS

SPONSOR:  Rector (Dempsey)

COMMITTEE ACTION:  Voted "do pass" by the Committee on
Communications, Energy, and Technology by a vote of 15 to 5.

This substitute allows telecommunications companies to elect to
provide high-speed Internet access or broadband service without
regulation by the Public Service Commission.  The substitute also
requires incumbent local exchange telecommunications companies to
provide unbundled access to network elements used to provide
high-speed Internet access or broadband service only to the
extent required by federal regulations.  Telecommunication
companies offering services to Internet services providers must
make the services available to all on a nondiscriminatory basis.

FISCAL NOTE:  No impact on state funds.

PROPONENTS:  Supporters say that high-speed Internet access is
critical for economic development, especially in rural areas.
The bill will increase competition and expand the availability of
high-speed Internet service by encouraging businesses to invest
in broadband equipment.  Currently, investment by incumbent
service providers is financially questionable because they must
share the lines they install with competitors.

Testifying for the bill were Representatives Dempsey and Wright;
SBC Missouri; Ozark Regional Economic Partnership; St. Louis
Minority Business Council; National Association of Women Business
Owners; Communications Workers of America; Paraquad, Inc.;
Century Tel; Missouri AFL-CIO; Sullivan County Memorial Hospital;
Associated Industries of Missouri; St. Louis Regional Chamber and
Growth Association; and Missouri Cable Telecommunications
Association.

OPPONENTS:  Those who oppose the bill say that it will limit
competition, increase rates, and discourage broadband
development.  As voice and data communications are increasingly
combined on the same network, the bill may also deregulate voice
communication services.  Further, the bill violates the network
sharing agreement in federal law that was reached when incumbent
service providers were allowed to offer long-distance services.

Testifying against the bill were Show Me Competition; Birch
Telecom; AARP Missouri; Sprint; Socket Internet; Covad
Communications; Nuvox Communications; CGI; Valu Line of St.
Joseph, Inc.; Big River Telephone Company; Poplar Bluff Internet,
Inc.; AT & T; MCI WorldCom; XO Communications; and Small Local
Telephone Companies.

Other witnesses testifying on the bill was Missouri Public
Service Commission.

Terry Finger, Senior Legislative Analyst

Missouri House of Representatives
Last Updated July 25, 2003 at 10:10 am