FTC appointed ex-FCC official Dale Hatfield as its monitor trustee to oversee AOL-Time Warner merger, as expected. Monitor authority was part of consent decree companies signed in Dec. (CD Dec 15 p1), which requires merged entity to add at least one independent ISP to its cable systems before adding AOL, and 2 more after. Trustee also will deal with other technical issues, such as capacity constraints. Hatfield recently restarted his Boulder, Colo., consulting business after retiring as chief of FCC Office of Plans & Policy. He’s also ex-staffer of Commerce Dept.
FCC should act quickly on point system to select among applicants for noncommercial educational broadcast licenses (MM 95-31), Media Access Project said in ex parte filing. Although participants may disagree on details of selection system, group said they all agreed decision was needed to allow Commission to begin eliminating backlog of mutually exclusive applications, some of which have been waiting nearly 6 years. Separate filing said freeze on new applications had added to problem, since many stations couldn’t apply for Commerce Dept. funding for upgrades.
ORLANDO -- Panel of Washington insiders told CEOs of competitive telecom companies here Mon. that they must become more involved in lobbying against Bell-sponsored data LATA relief because there was better chance than ever that such legislation could pass. Speaking at CompTel’s annual convention, panelists came close to pleading with competitive entrepreneurs, who traditionally are less likely than Bell CEOs to get involved in policy issues. They warned that their businesses could be at stake; that House, at least, was likely to pass data deregulation legislation this session and that Bells were very good lobbyists. “You need to make clear why this legislation could be a danger to this industry,” said Gary Slaiman, Washington attorney and former aide to Senate Judiciary Committee. Earl Comstock, Washington lawyer and former legislative counsel to Sen. Stevens (R-Alaska), told group, “Bell CEOs are engaged, they come to Washington. Your industry CEOs don’t often come to Washington and you have a complicated message.”
Mike Copps took step toward becoming next Democrat on FCC, we're told, when Senate Minority Leader Daschle (D-S.D.) sent letter to White House endorsing former Commerce Dept. staffer for post. Daschle’s office hadn’t returned call by our deadline. Daschle once had been seen endorsing former NTIA Dir. Greg Rohde, but Rohde always had been considered long shot to fill seat now held by Comr. Ness until successor is confirmed. Copps has backing of Senate Commerce Committee ranking Democrat Hollings (D- S.C.) and is widely considered front-runner for next Democratic seat. We're told Andrew Levin, staffer for House Commerce Committee ranking Democrat Dingell (Mich.), probably will have to wait for next Democratic vacancy -- which could be soon, if Comr. Tristani leaves by end of year (CD Feb 16 p4). Although some questioned Copps’s familiarity with telecom issues after years of working on international trade at Commerce, Hollings spokesman assured us that Copp’s portfolio included emphasis on telecom trade issues.
President Bush nominated three 2nd-tier Commerce Dept. officials, although not NTIA dir.: (1) Lawyer Theodore Kassinger, who’s now at Vinson & Elkins and has been staffer on Senate Finance Committee and adviser for State Dept., as gen. counsel. (2) Kenneth Juster, ex-Arnold & Porter and ex-State Dept., as undersecy. for Export Administration. (3) Faryar Shirzad, ex- Senate Finance Committee, as asst. secy. for Import Administration. Meanwhile, it was rumored that Bush soon would appoint Jones, Day, Reavis & Pogue lawyer Charles James as head of Justice’s Antitrust Div., position he held for short time in first Bush Administration.
Minority Media & Telecom Council plans seminar on FCC’s FM auction, scheduled to begin May 9. March 7-9 seminar is at Commerce Dept. hq in Washington -- 202-332-0500.
“ALTS is going on the offensive,” Pres. John Windhausen announced at Thurs. news conference, as he and others in CLEC industry began campaign for tougher enforcement of rules on local phone competition. ALTS members said they would ask Congress to consider strict penalties for Bell companies that failed to comply with Telecom Act’s market-opening provisions, or even splitting Bells into separate wholesale and retail units.
Strict satellite export controls cost U.S. commercial satellite manufacturers revenue, jobs and market share in 2000, according to survey released by Satellite Industry Assn. (SIA) Tues. Survey concentrated on Cal., home of 4 largest satellite manufacturers in U.S., including Space Systems/Loral and Boeing. Study said manufacturers building telecom satellites lost $1.2 billion in contracts and more than 1,000 jobs in year as result of controls. U.S. companies lost 30% of global market share, dropping to 45% with 13 new orders for U.S.-built geostationary satellites vs. 16 new orders for European-built birds.
Look for new FCC Chmn. Powell to act fairly early in his tenure to institute measures to improve Commission’s operations, his senior adviser Peter Tenhula said Thurs. at ComNet’s annual “Town Meeting” panel moderated by attorney Richard Wiley. Asked by Wiley what regulatory initiatives Powell would undertake first, Tenhula said question was hard to answer because Powell’s first priority may be to improve agency’s operations. He said some 80% of FCC’s agenda is “reactive instead of proactive,” such as responding to petitions for rulemaking or acts of Congress, and Powell thinks agency “should be prepared to act on those quickly and efficiently.” Nearly everyone who came in to see Powell and his staff in his first week complained about “process,” such as delays in getting action or items becoming “stuck” in pipeline, Tenhula said.
There’s no dearth of candidates for 3 vacancies on FCC -- with more than half dozen Republicans seeking 2 spots, while members of Congress push their favorites for Democratic vacancy. Third seat opened for sure Wed. when Comr. Furchtgott-Roth announced he wouldn’t seek reappointment to term that expired June 30. One of other vacancies is that of departed Chmn. Kennard. Comr. Ness is filling other one under recess appointment.