Martin: Hill Letters Won’t Delay Decision on McDowell Recusal
Hill oversight won’t delay FCC Gen. Counsel Sam Feder’s review of whether Comr. McDowell can vote on the AT&T- BellSouth merger, FCC Chmn. Martin told the news media Wed. after speaking at a Phoenix Center conference. Feder will “proceed with the normal course” of review while responding to letters from Hill Democrats (CD Dec 6 p1), Martin said in response to a question. He wouldn’t speculate on when Feder would finish the review. Asked whether the agency would be ready to vote by the Dec. 20 open meeting, Martin said: “I don’t know.”
Feder was asked to respond by Dec. 11 to a long list of questions posed by Commerce Committee Chmn.-designate Dingell (D-Mich.) and Telecom Subcommittee Chmn.-designate Markey (D- Mass.) about considerations in his decision about McDowell’s participation. The Democrats sent a letter to Feder Tues. saying the FCC should reach a conclusion on the merger “without compromising the ethical standards of the independent agency or the individual Commissioners involved.”
Senate Commerce Committee Chmn.-designate Inouye (D- Hawaii) separately chided Martin for “your decision to waive the ethical rules” by considering McDowell’s participation in the vote. Inouye said Martin’s comparison of the McDowell situation and the 2000 reversal of the recusal of FCC Chmn. William Kennard was “highly suspect.” Kennard’s previous involvement in the issue -- a petition to vacate the personal attack and political editorial rules -- had ended more than 15 years before the FCC vote, Inouye said. In addition, the FCC was under court order to act quickly on remand, he said.
Inouye said he also was “disturbed” by Martin’s conclusion that negotiations are at an impasse “given that the Commission spent more than 400 days considering issues related to the acquisition of the Adelphia cable systems.” It’s “only recently” that the current merger talks have focused on “meaningful conditions,” Inouye said in a letter sent Tues.
“I don’t anticipate further agreement” at the FCC, Martin said at the Phoenix Center event in response to an audience question about Inouye’s letter. He said he asked Feder to consider McDowell’s participation because “it appeared to me the Commission was unable to make progress.”
Martin gained support from outgoing House Commerce Committee Chmn. Barton (R-Tex.) and Telecom Subcommittee Chmn. Upton (R-Mich.) who weighed in with a letter Wed. saying 250 days have gone by since AT&T and BellSouth filed their merger application “and we share your concern that the Commission has reached an impasse.” There’s been plenty of time to reach a conclusion on the merger, the outgoing leaders said, but “unfortunately, it appears that certain Commissioners are attempting to effectuate industry-wide policy by imposing conditions on AT&T and BellSouth in exchange for approving the transaction.” They said “company- specific transactions should not be used to manipulate the Commission’s rulemaking process.” But since the FCC can’t act on the merger because of this, it’s appropriate for Feder to “examine whether the government’s interest would be served by permitting Commissioner McDowell to participate,” Barton and Upton wrote.
Medley Global Advisors said Hill Democrats were trying to pressure Martin into continuing negotiations with Democratic FCC Comrs. Adelstein and Copps, rather than bringing Republican McDowell in as a tiebreaker. “The conventional wisdom is that if McDowell were to participate, the Democrats would lose [the ability to add] safeguards to the framework governing net neutrality.” But McDowell might end up “brokering a compromise on special access,” another concern of Adelstein’s and Copps’, the investment advisors said. Medley said the Hill reaction is one hang-up en route to a vote. The vote may take place the last week of Dec., Medley said.