TELECOM CHIEF SAYS NET TAX BAN IS CRITICAL
[SOURCE: Technology Daily 6/8, AUTHOR: David Hatch]
National Telecommunications and Information Administration head John Kneuer,
the top telecommunications adviser to the Bush administration said it is
"absolutely critical" that Congress temporarily or permanently extend the
Internet tax moratorium. The ban, set to expire Nov. 1, prohibits states and
localities from taxing Internet access or imposing discriminatory fees on
service providers. It was originally adopted in 1998 and was last extended in
2004. Bills have been offered in both chambers to maintain the prohibition.
During a speech at a broadband policy conference, Assistant Commerce Secretary
Kneuer said continuing the moratorium would enable companies to recoup their
investments in high-speed Internet infrastructure without facing "legacy"
regulations. He also rejected the view that the broadband marketplace is
dominated by a telecom-cable duopoly, instead arguing that emerging
technologies such as broadband over power lines will ensure multiple "pipes"
into homes. Regarding telecom networks run by municipalities, Kneuer said, "If
you're going to put public capital in competition with private capital, you
ought to have a really good reason to do that." Noting that some municipal
networks have not met expectations, he emphasized that if localities decide to
offer communications, they should not receive special regulatory treatment.
http://www.njtelecomupdate.com/2007/06/telecom_chief_says_net_tax_ban.html
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