FCC Meeting Igniting Intense Lobbying
FCC Chairman Kevin Martin’s push to act on a complex Nov. 4 agenda has fueled intense lobbying, letter writing, phone calls and meetings with advisors, according to interviews with analysts, lobbyists and Hill staffers. The activity level, common in administrations whose ends are near, is heightened by high-profile issues affecting a wide array of players. The “order of magnitude” is big in a compressed time period, said Stifel Nicolaus analyst Blair Levin.
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A visit to the 8th floor is “fun,” Levin joked, because “everybody is over there.” Levin said the frenzy recalls what the FCC faced after enactment of the 1996 Telecom Act, when the commission needed to implement dozens of rulemakings. Now the commission is focused on finishing work under a tight timetable on issues affecting a “wide spectrum of parties,” Levin said.
“It’s telling how everyone wants their meetings to be as covert as possible but they also want to know what everyone else is doing,” said one industry lawyer. One explanation is that no one has a copy of the items on circulation, putting all under pressure to learn what they can through phone calls and meetings with advisors. Agency processes, such as advance access to draft orders, are likely to be targeted for change under a new administration, with a push for more openness if Sen. Barack Obama, D-Ill., wins, the lawyer said.
Martin “wants to get a lot done” before his tenure ends, said Greg Rohde of e-Copernicus, who represents some emergency services companies that could be hurt if proposed changes in universal service fees are implemented. “This is a true lame duck administration and everyone knows it,” Rohde said. Martin “has a lot of free rein that he didn’t have when Congress was here” because there’s no time for oversight hearings, and he put together an ambitious agenda, Rohde said. “I say that as a compliment to the chairman,” he said, adding that the gesture has the effect of “throwing a lot at the other commissioners” in a brief time.
Hill input has been unusually high on the intercarrier and white spaces proceedings, especially since many members are in the last days of campaigning. Sen. Hillary Clinton, D-N.Y., sent Martin a letter Tuesday asking Martin to consider how implementing his USF proposal would affect rural areas. The new compensation structure could put “significant stresses” on jobs, she said. Ten other senators representing rural states separately advised the FCC to seek comment on its USF proposals before adopting an order. The National Governors Association and National Association of Counties also counseled delay on USF rules in letters they sent to the commission.
“The volume of lobbying on intercarrier compensation isn’t that surprising,” said Stanford Group analyst Paul Gallant. “It’s real money and the impact on carriers is very direct.” As for white spaces, “broadcasters feel their service is genuinely threatened here, and the tech companies see a major opportunity to sell more wireless devices and services,” Gallant said. He likened the activity level to that seen during 2003 proceedings on media ownership and UNE- P. “The high level of interest simply reflects the very high stakes.”
Some exchanges are testy. The New America Foundation Wednesday faulted NAB lobbying on white spaces issues in an article headlined “The Lobby that Cried Wolf.” The foundation accused broadcasters of making “doomsday pronouncements” about anticipated FCC action to prevent competition and keep their “exclusive control over the valuable, but grossly under-utilized broadcast spectrum.” NAB did not return a call or e-mail seeking comment on the criticism.