Copyright 2002 Daily News, L.P.  
Daily News (New York)
February 28, 2002, Thursday SPORTS FINAL EDITION
SECTION: BUSINESS; Pg. 32

LENGTH: 302 words

HEADLINE: HOUSE OKAYS DEREGULATION OF HIGH-SPEED NET SERVICE

BYLINE: By RACHEL SCHEIER DAILY NEWS BUSINESS WRITER

BODY:
The House passed a key piece of legislation yesterday that could determine how customers get high-speed Internet service in the future and at what cost.

The Internet Freedom and Broadband Deployment Act, which still must clear the Senate, is one of the most hotly debated telecom measures in years. It would loosen regulation on the so-called Baby Bells in the market for high-speed Internet access over phone lines - a market that is expected to explode in coming years.

If passed, the bill would lift requirements imposed on the local phone carriers by the 1996 Telecommunications Act, which deregulated the industry. The act said the Baby Bells could enter the long-distance market only after opening their monopoly local lines to competitors.

The Baby Bells hailed passage of the first hurdle for the Tauzin-Dingell bill - named for its sponsors, Reps. Billy Tauzin, (R-La.) and John Dingell (D-Mich.) - saying it would provide a financial incentive to build their high-speed Internet networks more quickly, allowing for speedy expansion of DSL, or digital subscriber line, service.

Verizon, SBC Communications, Qwest and BellSouth have spent heavily on campaign contributions and lobbying efforts to get the bill passed.

The legislation is deeply opposed by long-distance phone giants like AT&T and WorldCom, competing high-speed Internet providers like Covad Communications, cable companies, consumer groups and many state utility regulators, who argue the bill would strangle competition.

Mark Cooper, research director of the Consumer Federation of America, said the bill effectively eliminates high-speed Internet players who don't own their own phone lines.

"This really does change the entire economic framework of the high-speed Internet and that's a disaster for the consumer," he said.

LOAD-DATE: February 28, 2002