Senate panel rejects broadband bill

JEFFERSON CITY, Mo. -- A Senate committee on Tuesday rejected a House-passed bill prohibiting state and local regulation of high-speed Internet service -- a protection that SBC Communications has called crucial to expansion of its Missouri broadband network.

The 5-5 deadlock by members of the Commerce and Environment Committee stopped the measure from moving to the full Senate for debate.

High-speed Internet service, known as broadband, is typically offered either by cable companies via special modems or by a local telephone company through DSL or "digital subscriber line" technology.

Cable companies are not regulated by the state. But the Missouri Public Service Commission does regulate phone companies and could try to oversee DSL service unless a law prevented it from doing so.

Opponents of the bill promoted by SBC feared it would lead to deregulation of telephone service and give phone companies already doing business in Missouri an advantage over competitors.

Sen. Pat Dougherty initially leaned in favor of the bill but voted against it in committee, saying he had too many unanswered questions.

"I do not want to do anything that would upset the current regulations over the voice part of the telephone system," said Dougherty, D-St. Louis.

But Sen. James Mathewson, after initially opposing the bill, said he decided to vote for it because regulators indicated it was less extreme than some first thought. Still, he was not troubled by its rejection.

"In fact, it's probably the best thing for the situation," said Mathewson, D-Sedalia. "We can come back next year and see where we are."

SBC Communications, formerly Southwestern Bell, has sought freedom from regulation in other states where it provides local phone service, saying it needs assurance that it can make a reasonable return on money spent to expand its broadband network.

The company now provides broadband in about 70 Missouri communities and planned to move into about 30 more if the bill passed, SBC Missouri president Cynthia Brinkley said last week.

Brinkley issued a statement after Tuesday's committee vote saying that "Missouri consumers and the Missouri economy will be disadvantaged as a result of today's action."

The measure's House sponsor, Rep. Tom Dempsey, also expressed disappointment.

"I believe the problem with the legislation lies with the Senate," said Dempsey, R-St. Charles.

But PSC chairman Kelvin Simmons said the legislation was unnecessary. Simmons said the Federal Communications Commission issued a decision this year essentially deregulating broadband networks like the one operated by SBC in Missouri.

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High-speed Internet bill is HB142.

On the Net

Missouri Legislature: www.moga.state.mo.us

SBC Communications: www.sbc.com