Hundt, Powell Clash Amid Presidential Race
Two ex-FCC chairmen went head-to-head on which presidential candidate has the better communications policy, in a Federalist Society forum Tuesday. Michael Powell endorsed Sen. John McCain, R-Ariz., while Reed Hundt backed Sen. Barack Obama, D-Ill. Tempers flared on Bell mergers as well as on broadband policy.
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McCain’s experience gives him an edge over Obama, Powell argued. “More than anyone else in the United States serving in government, [McCain] oversaw the most fundamental information technological revolution in the history of mankind,” Powell said. “What he’s come to conclude is that the most important thing the government can do is try to understand the magic of the conditions and the environment that produce innovation.” Obama is a fresh face in Washington, agreed Hundt, but he’s also a fast study: “I have never met anyone in politics who listens better, learns more quickly, and decides more resolutely.” McCain, despite his experience, has “bad ideas, and in some cases, no ideas” on information technology, he said.
The former chairmen’s temperatures appeared to rise most on the subject of Bell mergers. Hundt condemned McCain for allowing the gradual regrouping of Ma Bell, which he said has hurt competition and increased prices for consumers. McCain isn’t worried enough about the Bells buying up wireless spectrum and competitors, he said. Powell defended McCain, saying the senator hasn’t “glowingly” supported mergers. Hundt disagreed, citing the SBC-Ameritech merger. “John McCain wrote a letter to the chairman of the FCC urging that the FCC lower its standards of review,” he said. Then Hundt asked Powell to name one merger since 1986 that McCain has opposed. Powell called the comment “a cheeky argument.”
The chairmen also debated who has the best net neutrality policy. Obama was one of the original co- sponsors of net neutrality legislation, Hundt said. Neutrality violations are already happening, he said, citing Verizon Wireless’s refusal last year to issue a text messaging short code to abortion-rights group NARAL Pro-Choice America (CD Jan 16 p2). Legislation would apply to broadband providers the same type of regulation that has worked for common carriers, he said.
McCain has always supported a free, open Internet, Powell argued. But it’s “dangerous” to let government preemptively intervene, because it would authorize further invasive Internet regulation in the future, he said. Strong antitrust enforcement will stop violations, he said. Obama says carriers will be “tempted” to violate net neutrality policies without legislation, Powell said. But the next president should “leave the regulation of our temptations to preachers and pulpits and religion,” he said. McCain advocates a light regulatory touch, he said, because information technology’s “vibrancy depends on the speed of change.”
The next president must promote broadband deployment to advance energy-savings and other goals, but McCain doesn’t talk much about it, Hundt said. Under Obama, the Universal Service Fund would subsidize broadband, not just voice, he said. McCain integrates broadband into other policies, Powell said. “The biggest problem is that, for too long, broadband policy has been treated like utilities regulation,” he said. “There should not be broadband policy,” he said. “Broadband should be a component of the solution to healthcare” and other policies.
McCain’s policies take technological convergence into account, Powell said. On media, “Sen. McCain feels passionately that we have led ourselves to a rather irrational and incoherent regulatory regime,” Powell said. “We hear a lot of talk about ‘a bit is a bit,'” but that’s not the U.S. media policy, he said. McCain also has better background on media issues, Powell said, citing the senator’s support of minority ownership. Bad example, said Hundt. McCain hasn’t done anything on minority ownership since he voted for a bill in 1995, and that bill was blocked, he said.