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WITH PRESSLER’S DEFEAT, MCCAIN WILL WEAR D.C. TELECOM CROWN

WASHINGTON-Maverick Arizona Republican John McCain will reign as top telecommunications policymaker in the Senate as a result of Commerce Committee Chairman Larry Pressler’s (R-S.D.) defeat.

Despite accumulating a huge war chest in a pricey re-election campaign, Pressler could not hold off Tim Johnson, a Democratic congressman from South Dakota.

Pressler has served since 1978 in the Senate, was that chamber’s architect of the historic telecom bill and was a driving force for spectrum reform. A bill drafted earlier this year by Pressler to deregulate the airwaves was expected to go forward next year. It still could, but under new sponsorship.

McCain will succeed Pressler as chairman of the Commerce Committee, one of Congress’ most powerful posts that accords the gavel holder with jurisdiction over a broad range of U.S. industries such as telecommunications, transportation, aviation and fishing.

Sen. Ted Stevens (R-Alaska) has more seniority than McCain, but is believed more interested in another plum slot: the appropriations committee. Stevens is in line to head that panel with the retirement of chairman Mark Hatfield (R-Ore.).

Pressler’s loss also could spark competition among lawmakers for chairmanship of the Commerce subcommittee on communications. After former Sen. Bob Packwood (R-Ore.)-who chaired the panel and ranked behind Pressler in full committee seniority-resigned over sexual harassment charges, the subcommittee post was left vacant and Pressler took full charge of telecommunications industry oversight.

One candidate mentioned for the communications subcommittee is Conrad Burns (R-Mont.), an active participant in telecom legislation generally and rural issues particularly. Full committees do much of the business in the Senate, unlike in the House where subcommittee work plays a bigger role. For that reason, the Senate communications subcommittee chair is important, but not a towering issue.

McCain presents an interesting challenge for the Republican leadership. A former prisoner of war with a bull dog-like tenacity, McCain was closely aligned with defeated GOP presidential candidate and former Senate majority leader Bob Dole (R-Kan.).

Dole and McCain met opposition within their own ranks from new Senate Majority Leader Trent Lott (R-Miss.) and from key House telecom lawmakers when the two pushed for digital TV auctions.

In fact, Lott and other GOP leaders (Pressler the exception) welshed on an agreement with Dole not to license digital TV licenses until after a thorough review of spectrum policy. Dole accepted the offer and released his hold on the telecommunications bill, enabling the measure to be passed and signed by President Clinton.

Thus, McCain could cause problems for Lott and for the telecommunications industry if he decides to revisit the telecom bill that he opposed and take other activist turns.

“The deregulatory environment … is what’s best for American consumers,” McCain told CNN. “I worry about the strengths of some of the interests in Washington,” he added, possibly alluding to a legal fracas involving warring industry and state regulatory factions over the Federal Communications Commission’s interconnection implementation of the telecom act of 1996.

It potentially could hurt McCain’s chances for the post. On the other hand, Lott may want McCain on board to shore up his power base in the Senate. Lott also serves on Commerce.

Ernest Hollings (D-S.C.), who was not up for re-election, will continue to be the most powerful Democratic voice on telecommunications in the Senate as ranking minority member of the Commerce Committee. He’ll be joined by Daniel Inouye (D-Hawaii), Jay Rockefeller (D-W.Va.), John Breaux (D-La.) and John Kerry (D-Mass.), who survived a tough challenge by GOP Massachusetts Governor William Weld.

Committee membership and chairmanship slots will be firmed up after lawmakers meet briefly later this month before departing until late January or early February to begin the 105th Congress.

Mark Warner, the Democratic multimillionaire wireless investor, lost his bid to unseat Sen. John Warner (R-Va.) in a contest that turned out closer than expected.

Chuck Hagel, who also cashed in on cellular during the 1980s, had better luck and defeated Democrat Nebraska Gov. Ben Nelson to win the Senate seat vacated by retiring Commerce Committee member James Exxon (D-Neb.).

With the American electorate voting for the status quo-a Democratic White House and a GOP-led Congress-incumbents were the beneficiaries of Election ’96.

As a result, the makeup and leadership of telecom, judiciary, budget, appropriations and other committees (Senate Commerce excluded) that touch the wireless industry, remain largely unchanged.

In the House, Commerce Committee Chairman Thomas Bliley (R-Va.) breezed to victory. Billy Tauzin (R-La.) succeeds retired Jack Fields (R-Texas) as head of the telecommunications subcommittee. The chemistry between Bliley and Fields worked in public, but was more explosive in private. Bliley leaned toward long-distance carriers in the great telecom debate; Fields sympathized with Baby Bells.

It will be interesting to watch how Bliley and Tauzin get along. Tauzin, a wily lawmaker who left the Democratic Party for the GOP, has exhibited the same kind of head-strong, independent streak that surfaces in McCain now and then.

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