BUSH QUICKLY TURNS TO POWELL TO HEAD FCC

In much-anticipated announcement, President Bush tapped FCC Comr. Powell as chairman Mon., just days after departure Fri. of FCC Chmn. William Kennard. Powell, who has been on FCC since Nov. 1997, had been widely viewed as front-runner for post, although official word didn’t come until White House spokesman Ari Fleischer announced appointment at news briefing Mon. Separately, executive memorandum issued by Bush Chief of Staff Andrew Card began circulating more widely at FCC Mon. Though it wasn’t clear how much authority Executive Branch has over decisions of independent agencies like FCC, memo is intended to suspend regulations that agencies have approved recently but which haven’t yet been published in Federal Register.

Powell, whose designation as chairman drew immediate kudos from broad range of industry groups, earlier had been chief of staff for Dept. of Justice Antitrust Div. Chief Joel Klein. Announcement laid to rest rumors that decision on Powell’s spot on FCC wasn’t being made because he was holding out for another Administration post, possibly at DoJ. During Powell’s FCC tenure, he has overseen agency’s National Security Emergency Preparedness functions. He also was Commission’s representative to President Clinton’s Council on Year 2000 conversion. Before his stint at DoJ, Powell worked as associate at O'Melveny & Myers law firm. Powell had career as Army officer, including service with 3/2 Armored Cavalry Regiment in Amberg, Germany.

“His leadership, intelligence, character and sense of humor are qualities that will serve him, and the American public, well as he guides the FCC during this dynamic time of progress and change,” said Comr. Ness, who called him “great colleague.” Powell said in statement that he was “honored and privileged” to be designated chairman and that he looked forward to working with new Administration, Congress, commissioners and FCC staff. Before speech at ALTV convention in Las Vegas Mon. afternoon, Powell refused to comment further on his plans.

Industry reaction to Bush’s choice of Powell was predictably positive. SBC Senior Vp-Federal Regulatory Affairs Priscilla Hill-Ardoin said Powell had been “a consistent voice advocating market competition over regulation.” AT&T Gen. Counsel James Cicconi referred to Powell’s “keen intellect” and “commitment to the core principle of free and competitive markets.” NAB Pres. Edward Fritts called Powell “an outstanding choice.” NCTA Pres. Robert Sachs cited Powell’s “firm command of issues before the FCC.” CTIA Pres. Thomas Wheeler praised Powell’s grasp of marketplace competition issues and called him “outstanding.”

House Commerce Committee Chmn. Tauzin (R-La.), who has been long-time Powell supporter, applauded choice. He said watching FCC has been “like watching an old black-and-white movie. But now, with Michael Powell in charge, get ready for an FCC broadcast in HDTV.” Telecom Subcommittee Chmn. Upton (R-Mich.) agreed that Powell “was my first and only choice.” He compared Powell with Star Trek’s Captain Picard, saying “he’s going to bring the FCC into the next generation.”

Meanwhile, executive memorandum sent by Card over weekend to heads of executive agencies and departments was “to ensure that the President’s appointees have the opportunity to review any new or pending regulations.” Speculation had mounted last week that Bush would take such step following spate of regulatory actions and executive orders in waning days of Clinton Administration. Bush had expressed interest in placing hold on most recent round of rules to gain more time to examine final regulatory moves of outgoing White House. However, FCC isn’t part of Executive Branch, indeed is often claimed by legislators to be it’s agent.

Memo on regulatory reviews stipulated that: (1) Office of Management & Budget not send proposed or final regulations to Federal Register (FR) until dept. or agency head appointed by Bush reviewed action. (2) Regulations sent to Federal Register Office but not yet published be withdrawn for review and approval. (3) Regulations that had been published in Federal Register but hadn’t yet taken effect were postponed “temporarily” for 60 days pending agency review. Card’s memo said regulations that would fall under those stipulations but were adopted under statutory or judicial deadlines were excluded. Regulations cover final rules, notices of inquiry, advanced notices of proposed rulemaking and notices of proposed rulemaking, it said.