Tom Wheeler, considered the frontrunner to be the next FCC chairman, saw his candidacy hit two potential roadblocks this week. Thirty-seven Senators, led by Commerce Committee Chairman Jay Rockefeller of West Virginia, asked President Barack Obama to name Commissioner Jessica Rosenworcel as chairman. Fifteen public interest groups, led by the New America Foundation, released a letter Wednesday calling Obama to nominate a public interest advocate instead of Wheeler, former president of NCTA and CTIA. The public interest group letter was expected (CD March 27 p6), but industry officials said the senators’ letter was a surprise.
Like President Calvin Coolidge, the next chairman of the FCC should “more highly value restraint over regulatory action,” former Commissioner Deborah Taylor Tate said in a Free State Foundation piece Tuesday (http://bit.ly/ZVfswC). Tate said the commission should “return to a time when individual commissioners could bring an item before the body for a vote in order to eliminate outdated or unnecessary regulations or rules more efficiently.” She applauded Commissioner Ajit Pai for proposing internal shot clocks and a “dashboard” to give the agency more transparency (CD Feb 22 p6). The FCC should show regulatory restraint in the still-pending Title II proceeding, the addition of extraneous “voluntary conditions” to mergers, and the imposition of overly restrictive rules for spectrum auctions, Tate said. The Title II proceeding looked at reclassifying broadband as a Title II common carrier service, which could subject it to more FCC regulations. “The FCC should be doing everything possible to enable innovation, entrepreneurship, investment, and job creation by removing unnecessary regulatory barriers and refraining from instituting new obstructions to this impressive progress,” she said. “The FCC should remember that every action -- every regulation -- has a cost, which is usually passed on to the consumer."
FCC Chairman Julius Genachowski said Friday he will leave the FCC in a matter of weeks. Industry officials told us they expect an announcement from the White House as early as this week on a replacement, with former CTIA and NCTA President Tom Wheeler still considered the likely front runner. In the interim, industry and government officials expect the White House to designate Commissioner Mignon Clyburn as the first woman to chair the commission, until a new permanent chairman is confirmed and in place.
Internet stakeholders will need to participate in the debate over this Congress’s Internet policies if they want to win on issues like e-commerce sales taxes and cybersecurity, Sen. Ron Wyden, D-Ore., said Tuesday at an Internet Association event. Grassroots opposition to the Stop Online Piracy Act (SOPA) and the PROTECT IP Act (PIPA) was a turning point in the dialogue on Capitol Hill over Internet-related issues, Wyden said. “For the first time, the technology sector had beaten the middle man,” he said. “We've got to find a way to build on that, and that’s why your work is so incredibly important today.” Regulators and other lawmakers also outlined how upcoming policy discussions would involve the Internet community.
The Senate’s most senior statesmen pledged to protect the nation’s broadcasters from any FCC effort that would force them to relinquish spectrum for the incentive auctions, Tuesday at the NAB state leadership conference. Senate Judiciary Committee Chairman Pat Leahy, D-Vt., and former Judiciary Committee Ranking Member Orrin Hatch, R-Utah, touted the importance of broadcasters in communicating lifesaving information to local communities during emergencies and put a spotlight on the importance of retrans consent. The Judiciary Committee will attempt to pass a reauthorization bill this session to extend the Satellite Television Extension and Localism Act (STELA), which expires Dec. 31, 2014 (CD Jan 17 p1). On a separate panel, FCC commissioners Ajit Pai and Jessica Rosenworcel discussed their decision-making processes on media issues.
Prices in FCC spectrum auctions have been on the rise since the mid-2000s, but factors beyond the tradeoff between supply and demand make it difficult to say that rise is evidence of what the government says is a “spectrum crunch,” said Scott Wallsten, senior vice president-research for the Technology Policy Institute (TPI), at a TPI-led event Friday. In a report released Tuesday, Wallsten examined FCC data from the 69,000 spectrum licenses it has sold through auctions since 1996. The agency has been holding spectrum auctions since 1994. The data included in the report shows that while spectrum prices are continuing to rise, “the rate of price increase has probably been slowing” (http://bit.ly/WmcTWk)
MetroPCS was forced to contemplate a merger with T-Mobile after MetroPCS found itself unable to buy enough spectrum either in FCC auctions or on the secondary market, MetroPCS said in a filing at the SEC Monday, made in preparation for a shareholder vote on the deal. MetroPCS, which is to report Q4 earnings Tuesday, said the shareholder vote will take place March 28 in Richardson, Texas. Under the deal unveiled in October (CD Oct 4 p1) Deutsche Telekom will buy the smaller carrier to merge it with T-Mobile USA, its U.S. subsidiary.
4G Americas marked the one-year anniversary of the 2012 spectrum law Friday with a letter urging the FCC to move forward on an auction of the 1755-1780 MHz band, long viewed by carriers as one of the most valuable bands for wireless broadband. Commissioner Robert McDowell said Friday he shares the group’s concerns.
The FCC said it updated the portion of its website dedicated to providing resources about the incentive spectrum auctions to broadcasters. The new Learn Everything About Reverse Auctions Now (LEARN) site features a staff summary of the broadcast incentive auction process, the agency said. “The new and improved LEARN website provides easy access to current, clear, concise and accurate information designed to help the nation’s broadcasters make informed business decisions about participating in the incentive auction,” said Gary Epstein, the FCC’s incentive auction task force chair. View the site here: www.fcc.gov/learnprogram.
Policymakers and telecom industry leaders must ensure opportunities for small, minority-owned business are created and that the openness and proliferation of innovation aren’t stifled by regulation, said current and former members of Congress. The way broadband and mobile devices will be used in the future is “mindboggling,” said Cliff Stearns, former chairman of the House Commerce Oversight and Investigations Subcommittee. “There’s convergence, yet there is sort of a digital divide,” he said Wednesday at a Minority Media & Telecom Council event. Mobile broadband and other technologies are creating enormous opportunities for individuals and economies around the world, said David Grain, Grain Communications CEO. Over the next five years global mobile data use and higher speeds are expected to grow, he said. “We should recognize that the picture isn’t universally bright."