Dell joins telecom bill fight

By Kurt Johnson

Dell founder urges lawmakers not to limit CNETs

TaylorCNET and other municipally-related organizations that provide free public Internet access must feel like ping pong balls as the omnibus telecommunications bill bounces its way through the Texas Legislature.

But an influential voice has been added to the discussion.

Michael Dell, founder and president of Dell, Inc., has been making phone calls to key legislators and advising them not to prohibit cities and community networks from offering the service.

The bill, HB 789 sponsored by Phil King, R-Weatherford, initially prohibited cities and community networks from offering free public Internet access. King's intent was to prevent subsidized competition with private service providers.

While moving to a vote on the house floor, the prohibition was watered down and then grandfathered so that networks like TaylorCNET could continue offering the services already being provided.

But the final verdict for cities and community networks is still out.

After being passed in the House, the bill moved to the Senate, where it is now being considered. Once it passes with expected changes, it will go to a conference committee to reconcile the differences, and in that volatile, end-of-session environment, anything could happen.

What cities and community networks fear most is the power of the telecommunications lobby, which wants to preserve as much of the Internet market as possible for commercial providers.

Early in the session, Kathy Grant, vice president of the Texas Cable & Telecommunications Association, said going up against SBC was a major battle.

"SBC is very influential in the legislature," Grant said. "It is represented by a very powerful lobby."

However, cities and community networks suddenly have found a powerful ally. Sources at the capitol have confirmed that Dell made personal phone calls to Speaker Tom Craddick, King, Rep. Todd Baxter of Austin and other legislators.

"I guess you could say that when Michael Dell speaks, people listen - or at least they had better listen," said Debbie Kiewit, director of TaylorCNET.

In addition, wi-fi industry sources say that other representatives of wi-fi technologies are making their opinions known to legislators through their trade associations.

Regulating free public Internet access is only part of the omnibus telecom legislation. King's bill, which deregulates local phone service when combined with extras such as caller ID, requires telecommunications companies that own infrastructure to lower the access fees they charge competitors to use their networks. King said the legislation will provide enough competition in the market to keep rates down.

Senator Troy Fraser of Horseshoe Bay said after the passage of the House bill that he thinks the legislation gives the phone companies too much.

Another amendment to the House bill killed a surcharge on phone bills that previously funded the Telecommunications Infrastructure Fund Board (TIFB), the state agency that administered the grant program providing technology to hospitals, libraries, schools and community networks. The TaylorCNET program was launched with a TIFB grant.

The amended bill that passed the House includes a new section that prohibits municipalities from charging for wireless services. However, cities would be able to set up public-private partnerships in which a private Internet service provider offers service for a fee. Cities would have until Sept. 1, 2006 to set up these partnerships or until June 15, 2006 to inform the Public Utilities Commission about their plans to set up a partnership.

Other non-Internet amendments to the bill would require the Public Utility Commission to continue to be involved in handling complaints about "slamming," in which a consumer's phone service is switched without authorization. King's original version of the bill removed that consumer protection provision.