TAUZIN NEARS COMMERCE POST, STEARNS FAVORED FOR TELECOM PANEL

Subcommittee heads, including Tauzin’s replacement on Telecom Subcommittee, aren’t expected to be finalized for up to 3 weeks after that, but speculation centered on Rep. Stearns (R-Fla.) to replace Tauzin. We're told next Commerce Committee chmn. has power to appoint subcommittee leaders regardless of seniority, but few saw any reason Stearns, 3rd ranking GOP member on panel after Tauzin and Oxley, would be denied position. Some questioned position’s importance, however, given Tauzin’s expected continued intense interest in telecom issues, including several bills he has been waiting years to move. “Tauzin’s going to run the telecom show,” one source said. “I would extremely surprised to see him abdicate responsibility” to Stearns or anyone else.

Sources said Stearns has kept neutral on many contentious telecom issues, one source even going so far as to say he had been “mostly missing in action.” Telecom lobbyists said they frequently visited Stearns’s office when presenting their positions to Subcommittee. He’s “very involved in telecom issues,” USTA official said. ALTS Gen. Counsel Jonathan Askin said Stearns “has always given us a fair hearing.”

Stearns made his biggest splash in telecom world last year when he helped fight against FCC interpretation of noncommercial broadcasting rules that apparently would have limited religious broadcasters’ use of noncommercial frequency. He then sponsored appropriations amendment in summer to drastically cut budget of FCC’s media office. He also has been supporter of lifting restrictions on broadcast ownership and cap on spectrum ownership. Stearns is seen as somewhat less of Bell company supporter than Tauzin, particularly on question of letting ILECs into long distance data business, but he hasn’t shown signs of willingness of fighting Tauzin’s growing momentum on issue.

Meanwhile, several sources refrained from reading much into choice of Kevin Martin to head Bush Administration’s FCC transition team. Martin is former staffer for Comr. Furchtgott- Roth, who is considered more conservative than fellow Republican Comr. Powell. Powell still is front-runner for next chairman, sources said. Martin has been working for Bush campaign since July 1999 as deputy gen. counsel. “I wouldn’t necessarily say this a slap against Michael Powell,” one source said. “What it shows is that people really do respect the intellectual rigor and competence with which [Furchtgott-Roth] and his staff have been players.” Said one Powell supporter: “I still have every hope and expectation that Michael would be the choice.” In other transition news, House Commerce Committee Chief of Staff James Derderian is heading Commerce Dept. team’s examination of NTIA. Review of whole Dept. is led by Vinson & Elkins partner Theodore Kassinger. Justice Dept’s review is led by House Majority Leader Armey’s (R-Tex.) Chief Counsel Paul McNulty.

Bush and his advisers were to spend Wed. and Thurs. in Austin with business leaders at economic summit that’s expected to have large technology component. Among attendees will be GE CEO Jack Welch, Verizon co-CEO Ivan Seidenberg, Intel’s Craig Barrett and Cisco CEO John Chambers. “A lot of high-tech folks are going to be there,” source said. Bush staffers “are going to hear the importance of putting someone in place to ensure high-tech issues receive the priority that they need,” he said. We're told it’s looking less likely new Administration will appoint top-level technology czar, especially after Tues. appointment of leading candidate for that position, former Sen. Spencer Abraham (R- Mich.), as Energy Secy.