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.
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.”