Communications lawyers on Washington Legal Foundation panel on FCC and Communications Policy split 2-2 on whether major revamp of FCC is needed immediately. “It’s hard to disagree about the need to overhaul the FCC,” according to attorney Nick Allard of Latham & Watkins. Moderator and former FCC Chmn. Richard Wiley did disagree, sharply, with Allard -- who called for abolishing 4 of 5 commission seats and actively involving Commerce Dept. and NTIA in regulation of various communications industries. What FCC needs, countered Wiley, is more delegation of authority to staff and more rapid decisions -- something that can be accomplished with present structure -- and “Chmn. Powell can get it done.” Because of Congressional respect for Powell, any agency reform “is going to come first from the FCC itself,” rather than from Hill, Wiley predicted. Panelist Charles Kennedy of Morrison & Foerster generally agreed with Allard, while David Poe of LeBoeuf, Lamb, Greene & MacRae partly sided with Wiley. Commission doesn’t need revamping for short term, Poe said, but major overhaul may be necessary in long term. Kennedy said FCC operations were “outmoded… We are going to have to make some fundamental changes… if things don’t turn around.” Allard listed 10 questions that must be answered on FCC’s future, including whether competition was prerequisite for deregulation or was it other way around and did Commission’s current organizational structure make sense. Poe said Powell had shown “he’s not afraid to grapple” with tough issues and that there are many “ambiguities and contradictions” in 1996 Telecom Act. “Statutory reform” of FCC is needed, he said, but it will be very hard to get Congress to pass legislation on issue. On digital TV, Poe said FCC had tried to push broadcasters into new technology but “you can’t make a market if the market isn’t there.”
LAS VEGAS -- FCC Chmn. Powell stressed need for national spectrum planning at CTIA Wireless 2001 show here Tues., while acknowledging importance of policy role of Dept. of Defense for frequencies used for military operations. “We can’t trivialize uses of spectrum for national defense,” he said in response to series of questions from CTIA Pres. Thomas Wheeler. Meanwhile, parade of high-tech executives ranging from Yahoo Co-founder Jerry Yang to Intel Pres.-CEO Craig Barrett stressed that mobile Internet shouldn’t be seen as surpassing fixed-line Web because multiple devices would provide access to Internet.
Commerce Dept.’s International Trade Administration is arranging “schedule of tailored prearranged one-on-one appointments with qualified business contacts” and meetings with “key Russian government and industry decision-makers” May 12-19 during telecom/information technology trade mission to Russia. Executive level mission costs $2,900 and application deadline is April 6. -- 202-482-0573.
E-rate program won’t be folded into block grants to states along with Education Dept. technology programs in Bush Administration’s initial proposal to Congress, but that doesn’t mean it won’t meet that fate later, Education Dept. spokeswoman told us. E-rate supporters were cheered this week by Education Secy. Roderick Paige’s comments at House hearing that e-rate wouldn’t be included. But spokeswoman told us that was just for logistical reasons, since e-rate wasn’t funded by Education Dept. and no final policy decision had been made. “We are considering - - and continue to consider -- if the e-rate can or should be consolidated with other technology grant programs,” she said. “The fact that the e-rate is not in the Department’s jurisdiction makes the considerations different.” Several House Telecom Subcommittee members defended e-rate at Thurs. hearing. Ranking Commerce Committee Democrat Dingell (Mich.) said tinkering with e- rate would be “disaster for schools and libraries everywhere, but particularly those in the neediest areas of the country who have come to rely so heavily on this program.” However, Dingell also renewed his concerns that some telecom carriers might be over- collecting for e-rate and pocketing the difference. Subcommittee ranking Democrat Markey (Mass.) also backed e-rate, as did several witnesses. Meanwhile, Dingell said he would reintroduce his bill to use money from phone excise tax (estimated $6 billion per year) to pay for digital divide trust fund while excise tax was phased out over period of several years. He said some of that money could be used to strengthen NTIA’s Technology Opportunity Program (TOP), which is favored by Subcommittee Chmn. Upton (R-Mich.). Dingell said he would reintroduce bill with Rep. Towns (D-N.Y.) “in the near future” and hoped to work with Upton on it. He also took indirect swipe at FCC Chmn. Powell, who has questioned existence of meaningful digital divide. He said Powell’s father, Secy. of State Colin Powell, was member of board of PowerUp, “whose explicit mission is to close the digital divide. So it appears that at least the elder Powell would agree the digital divide issue is an important one.” Upton said he would focus on several education technology programs this year, not just e-rate and TOP. He singled out Instructional TV Fixed Service (ITFS) licenses, saying they were “very much on our Subcommittee’s radar screen as our nation grapples with spectrum management issues.” Full Committee Chmn. Tauzin (R-La.) said he wanted “every child in Louisiana to have access to the Internet” before he leaves Congress. However, he also said it was “important to understand” that closing digital divide “is not strictly dependent upon federal support,” praising companies such as WISH-TV that make voluntary contributions of Internet access.
Bush Administration support for changing export controls gives Aerospace Industries Assn. (AIA) hope of bringing change in policy on selling satellites overseas, Pres. John Douglass said in briefing Wed. in Washington, where Assn. proposed 16 changes in current export control system. Export controls require companies to obtain export licenses for satellites, rockets and component parts in process that treats parts as munitions, process that has taken average of 100 days, Vp-International Affairs Joel Johnson said. Items on U.S. munitions list requiring export license include “widely available” components such as “nuts, bolts and screws,” he said. Controls also leave components vulnerable to military sanctions and require foreign countries to get permission from U.S. to sell components to 3rd party if percentage of U.S. supplies exceeds 20%.
Satellite Industry Assn. (SIA) understands national security argument for maintaining State Dept. oversight of satellite launch and missile technology exports, but it says State export licensing of commercial satellites lacks logic and puts U.S. companies at competitive disadvantage with terrestrial capacity providers and foreign manufacturers. SIA Exec. Dir. Clayton Mowry sees this year possibility that some congressional defense hawks may support satellite export bill (CD March 6 p2) being drafted by Rep. Berman (D-Cal.) if it strikes balance between national security and competition concerns. Although still in early development stage, Berman bill would return most commercial satellite licensing authority to Commerce from State while incorporating State and Defense Dept. special review process on satellite exports to China.
Rep. Berman (D-Cal.) is drafting legislation that would return U.S. commercial satellite export licensing jurisdiction to Commerce Dept. from State Dept. while incorporating State and Defense Dept. special review process on satellite exports to China. Staffer said Berman was gauging potential co-sponsors’ responses before introducing bill, which he said would be finalized at unspecified date.
Luisa Lancetti named vp-regulatory affairs, Sprint PCS, Washington…. Deborah Kilmer, ex-Commerce Dept., named vp-govt. relations, CPB… Changes in NAB board: Alex Snipe, Glory Communications, representing district 6 (N.C., S.C.) and John Barger, Victoria Radio Works, representing district 18 (southern Tex.) join board, replacing David Alpert and John Cullen respectively… James Neissa, ex-Credit Suisse First Boston, appointed co-head, mergers and acquisitions, UBS Warburg… Changes at North American Bcstrs. Assn.: Jose Suarez, TV Azteca, elected pres., replacing Bruce Cowie, CTV; Andrew Setos, News Technology Group and Peter Smith, NBC, appointed vice pres… Madie Gustafson, ex-AT&T Broadband, named partner, Cole, Raywid & Braverman… Douglas Butler, ex-Post Perfect, appointed dir.- engineering, A.F. Assoc.
Congressional telecom leaders heavily criticized spectrum policy changes contemplated by President Bush’s budget blueprint (CD March 1 p1), with some saying they seemed motivated more by attempts to free up money for tax cuts than sound telecom policy. They predicted quick defeat in debacle that probably would teach Administration lesson about talking with them before assuming such far-reaching proposal would gain quick acceptance. “Once Congress kills it, they'll remember to call us next time,” said Ken Johnson, spokesman for House Commerce Committee Chmn. Tauzin (R- La.). “They're just looking for extra money to pay for their excessive tax cuts,” said aide to House Telecom Subcommittee ranking Democrat Markey (Mass.): “The job for Telecom Subcommittee members is to make sure these plans make sense for telecom.” Another staffer said chances of plan’s passing Congress were “infinitesimal” and predicted that it would be greatly scaled back when full budget book is released in April.
Wireless and broadcasting industries and their regulators were caught offguard Wed. when Bush Administration seemed to propose mysterious multibillion-dollar initiative to hasten broadcasters’ departure from analog spectrum. White House buried section in tables in back of “budget blueprint,” which otherwise didn’t mention FCC or telecom issues even once. By end of day Wed., our sources still were trying to figure out exactly what policy shift was being contemplated. White House and OMB didn’t return calls for explanation. Fuller budget book with line items and explanations isn’t expected until April.