Scott Diener, ex-WCPO-TV Cincinnati, named vp-news, KNTV San Jose… Richard Agostinelli, ex-Continental Graphics, appointed COO-CFO, NeTune Communications… Adrienne Lavalle, ex-Commerce Dept. Office of Gen. Counsel, moves to Mintz, Levin, Cohn, Ferris, Glovsky & Popeo… Changes at Everest Broadband: Philip Veneziano, ex-Juno Online, become CFO; Christopher Dalrymple, ex- Interliant, appointed gen. counsel… James Anderson, ex-Peak Productions, named Cable Center dir.-development… Ben O'Connell will leave job as spokesman for Sen. Burns (R-Mont.) soon to do production at C-SPAN.
E-rate supporters are preparing concerted opposition to provision in President Bush’s education reform package that would roll e-rate into larger technology plan and potentially alter its funding structure. Program to subsidize school and library Internet connections currently is funded at $2.4 billion annually through surcharges on long distance bills, called “Gore tax” by its detractors since former Vice President pushed hard for its inclusion in Telecom Act and for program to be funded at high level by FCC. Moving program into Education Dept. and requiring annual appropriations “would be a major step backwards, and I will fight it aggressively,” Sen. Rockefeller (D-W.Va.) said. “It would utterly change the program,” said spokesman for Sen. Snowe (R-Me.).
House Ways & Means Committee ranking Democrat Rangel (D-N.Y.) will soon introduce bill to provide tax credits for minority ownership of telecom and broadcast companies, but not until he has “bipartisan agreements” in place, spokesman told us. Spokesman said Rangel has “some disagreements” with Senate Commerce Committee Chmn. McCain (R-Ariz.), who plans similar bill on Senate side, particularly about “scope” of program and “who would qualify.” However, he said “we're fairly optimistic” in what’s “good political environment,” adding that bill could be “good test of bipartisanship.” McCain spokeswoman said he’s “working on a bill” but “we don’t have details yet.” She added that McCain “is pleased that the House is also working on this issue.” Tax certificate program for minority ownership was repealed in 1995, but with recent Commerce Dept. report finding just 4% of TV stations owned by minorities there’s pressure for new program. Rangel spokesman said it’s important that program be done right this time, and that there be no repeat of earlier problems of large companies using minorities as front men to get discounts. “We want to make sure we close those loopholes,” he said. Former Ways & Means Committee Chmn. Archer (R-Tex.) was public opponent of tax certificates. Views of new Chmn. Thomas (R-Cal.) are unknown, although he voted for repeal in 1995.
LAS VEGAS -- Broadcasters and other regulated industries can expect from new FCC “a greater feel for the law… and a more humble approach,” FCC Comr. Furchtgott-Roth said here. Commission will regulate “only what the law requires… and it will be a greater day at the FCC,” he told ALTV panel Mon. afternoon. Michael Powell, who had been FCC chairman for just a few hours, deferred first question from ALTV’s David Donovan -- on what changes broadcasters could expect under Bush Administration -- to his Republican colleague, after which Powell said “my final sincere hope” is that agency would become “more efficient and responsive” to needs of those it regulated: “The greatest enemy of regulation is… uncertainty.” After panel, longtime Washington lawyer told us: “We're in for a sea change of deregulation if you follow their comments to their logical conclusion.”
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.
Speculation about replacement for FCC Chmn. Kennard continues. Among latest rumors: (1) One telecom source speculated Thurs. that Bush might name Republican Comr. Powell interim FCC chairman while also appointing Texas PUC Chmn. Pat Wood to Commission. Under this scenario, Powell would eventually move to high antitrust enforcement post in administration, allowing Wood to take over as FCC chairman. Besides role in Dept. of Justice, source said, Powell could become new FTC chairman, replacing Clinton appointee Robert Pitofsky. Source also speculated that Republican Comr. Furchtgott-Roth would leave Commission soon, opening another seat for Bush nominee. (2) Another source said one of FCC’s Democratic seats may be filled by Ivan Schlager, former Democrat staff dir. on Senate Commerce Committee and now at Skadden, Arps, at request of Sen. Hollings (D-S.C.), ranking minority member of Committee.
As FCC Chmn. Kennard departs today, he leaves legacy as extremely decent man who might have been more effective if he were more of a politician, industry officials told us. “He is a prince of a man, honorable, honest,” said one telecom lobbyist. “But I don’t believe he’s a politician at heart and it’s hard for that kind of person to survive the political cauldron in Washington.” No one we talked with disputed Kennard’s honorable nature. Even his ideological opposite, Comr. Furchtgott-Roth, said Thurs. that he viewed Kennard’s departure to make way for Republican as “somewhat bittersweet” because Kennard was “one of the finest, most decent individuals I've ever met.”
NTIA, in notice of proposed rulemaking (NPRM) Wed., outlined changes for how private sector would carry out mandates for reimbursing govt. agencies that relocate from spectrum after frequency reallocations are made. NTIA Dir. Gregory Rohde outlined details of NPRM at Commerce Dept. meeting with industry on upcoming 3rd-generation wireless decisions. Govt. officials stressed proposed framework for reimbursing federal entities that were relocated to other spectrum berths could play “critical” role in upcoming 3G decisions. FCC and NTIA are examining possibility of 2 bands for additional spectrum for 3G and other advanced services: 1755-1850 MHz now used by military systems and 2500- 2690 MHz used by Multichannel Multipoint Distribution Service and Instructional TV Fixed Service licensees. At meeting, some industry representatives also raised concerns that more information was needed from govt. on issues such as relocation cost estimates for private sector to complete its own analyses of different 3G spectrum scenarios.
Citing U.S. World Trade Organization (WTO) promises, former Commerce Secy. and U.S. Trade Representative Mickey Kantor urged FCC to approve license transfers for proposed $34-billion VoiceStream-Deutsche Telekom merger. VoiceStream submitted Kantor statement before close of comment period on merger Mon. “This FCC proceeding is about more than the acquisition of a U.S. common carrier by a foreign company,” he said. “It is a test of the United States’ compliance with binding international legal obligations which were negotiated and entered into in good faith.” In acting on VoiceStream-DT application, FCC must move in way that’s consistent with U.S. obligations under WTO Basic Telecom Agreement (BTA), he said. “Failure to do so could invite initiation of a WTO dispute settlement action against the U.S. government and would establish for other WTO members an unwelcome precedent of noncompliance,” Kantor said. He warned that scope of sanctions under General Agreement on Trade in Services (GATS) wasn’t limited to sector in which violation was found. That means, Kantor said, that if U.S. were found to have violated GATS, “it could be liable for trade sanctions in any sector.” Also, if U.S. were to act in way that indicated backtracking on trade commitments, it could damage its negotiating power in current talks, such as GATS services negotiations, he said. FCC shouldn’t restrict access to U.S. telecom market “based on market conditions in other countries that do not affect competition in the United States,” he said. Binding U.S. commitments under BTA don’t hinge on other countries’ implementation of their own duties, he said. In other reply comments, Organization for International Investment rebutted concerns raised by Sen. Hollings (D-S.C.) and DT competitors such as Global TeleSystems and Novaxess. Hollings, ranking Democrat on Senate Commerce Committee, last month had renewed his call to FCC to reject application, underlining his opposition to telecom assets bought by companies with majority foreign govt. investment (CD Dec 18 p6). In other comments, Siemens advocated approval of merger, saying it would increase U.S. telephony competition. Transaction still awaits approvals of Dept. of Justice, FCC and Committee on Foreign Interests in U.S.
Effectiveness of U.S.-Europe safe harbor agreement on Internet privacy is in question for telecom carriers because FCC hasn’t agreed to enforce U.S.-Europe privacy agreement, source in Commerce Dept. (DoC) told us. DoC is in talks with Commission in effort to bring it aboard safe harbor agreement, although some sources said European Union (EU) wouldn’t recognize FCC as legitimate enforcement agency. Telecom and common carriers can join safe harbor agreement, but only as it relates to functions outside realm of common carriers, sources said. Agreement reconciles strong European privacy rules with U.S.’s self- regulatory stance, guaranteeing that U.S. companies can do business in Europe.