This Communications Daily Special Report, "Assessing Wheeler's Legacy," shows how the FCC under Chairman Tom Wheeler has operated, controversies, plaudits and all. Subscribers also can now access these seven stories online at www.communicationsdaily.com.
The FCC Wireline Bureau received generally good marks on its productivity from communications industry representatives we interviewed for this Communications Daily Special Report, even amid gradually declining budgets and staff sizes at the agency overall (see 1512150011). The bureau is seen by most as working hard to generate a large number of regulatory actions on a wide array of complex and contentious issues, with progress in addressing some backlogs. “I can’t think of any specific areas where the Wireline Competition Bureau is lagging,” said Micah Caldwell, ITTA vice president-regulatory affairs. Caldwell was the only person interviewed for this article willing to be cited by name; the rest either requested anonymity or declined to comment altogether on the bureau’s output and performance.
The FCC has had some success in reducing processing backlogs even as its head count has continued to decline, according to the most recent available agency data. As of year-end 2014, the total number of items pending at the commission for more than six months dropped by more than 37 percent since May 1, 2014, said Chairman Tom Wheeler in a Jan. 21 letter to two key lawmakers. Over that period, the volume of license-related items pending more than six months dropped by 33 percent and the number of applications for review and petitions for reconsideration pending more than six months dropped by more than 12 percent, he said. An FCC spokesman had no comment on the overall performance, but pointed us to some public documents with agency information.
Concerns remain about FCC Enforcement Bureau field office closings, fives months after the agency approved a compromise proposal that avoided some of the closings initially proposed by Chairman Tom Wheeler, who said in July that after five years of flat budgets the agency had little choice.
The FCC held some dozen events for news media that weren't on the record in the first half of this year, more than any other communications-related federal body. Such commission media events, often "on background" where officials couldn't be identified, numbered twice as many as were fully on the record. Partisan politics (see 1510280062 and 1512150011) and a divided FCC (see 1512150030) appear to be making commission officials more cautious in what they say when their names are attached, said experts who reviewed a Communications Daily database. They said such politics partly reflect a politically divided Washington. That's apparent to a lesser degree at NTIA and the Office of the U.S. Trade Representative.
The partisan divide on net neutrality complicates congressional funding of the FCC and has made the annual task of appropriating much harder over the past several years, veteran appropriators of both parties on Capitol Hill told us in recent conversations. The appropriations process for the agency is now intensely political, they said, citing the very different perceptions among Republicans and Democrats of the agency and its missions.
There have been many more party-line 3-2 votes at FCC meetings under FCC Chairman Tom Wheeler than under former Chairmen Kevin Martin and Julius Genachowski, a comparison of such votes shows. Using records on the FCC's website and in the Electronic Comment Filing System, Communications Daily tallied votes at FCC meetings in 2008, 2012 and 2014. It found that in 2014, the Wheeler-led commission approved items at FCC open meetings with a party-line vote 11 times, compared with two such votes under Martin in 2008 and just one under Genachowski in 2012.
This Communications Daily Special Report "a Portrait of the FCC in a Partisan Era" shows the impact of recently flat FCC budgets and a long-shrinking overall staff, as well as partisanship, on agency operations and more. Subscribers also can now access these six stories online at www.communicationsdaily.com.
A wave of mergers and acquisitions in the European telecom market is raising concerns about competition and service prices, analysts, regulators and attorneys said. Questions include how many mobile operators are needed for a competitive national market; whether M&A is necessary to spur investment; and whether European Commission antitrust decisions are undermining national regulators, they said. Some see the EC as moving to crack down on M&A through conditions, possibly benefiting consumers by averting price increases that consolidation often brings. Others contend deals eventually benefit customers by boosting companies' network investments.
A clause about the sale or transfer of data in the event of a merger, acquisition or bankruptcy should be included in every company’s privacy policy, lawyers and other experts said in interviews. Data often is a firm's most valuable asset, across online and more traditional industries, said International Association of Privacy Professionals (IAPP) Vice President-Research and Education Omer Tene. A privacy policy is a legally binding document and companies need to be aware of what their privacy policy says and how it restricts their business, said CEO Rebecca Herold of privacy consultant The Privacy Professor.