WASHINGTON-While the returning Republican-led Congress intends to enforce deregulation next year, the Federal Communications Commission claims the wireless telecom industry is being slowed by regulatory reform legislation passed earlier this year.
The effect of the 60-day congressional review in the Contract with America Advancement Act of 1996, according to Wireless Telecommunications Bureau Chief Michele Farquhar, has been to delay spectrum auctions that raise billions of dollars for the U.S. Treasury and promote wireless competition. Moreover, she said other wireless rules-many deregulatory-are being delayed by the act.
Farquhar said the statute requires “a lot of additional staff resources” and that she would like the legislation re-examined.
An aide to FCC Chairman Reed Hundt noted that in addition to the 60-day congressional review, there are various reporting and compliance requirements of the act that add time to get rules on the books.
A congressional staffer to David McIntosh (R-Ind.), chairman of a House Government Reform and Oversight subcommittee, said the FCC view “shows an ignorance of the law.” He said the FCC can seek waivers, but instead has chosen to argue before other committees that the act doesn’t apply to auction rules.
“They don’t want Congress looking over their shoulder,” the staffer said.
While delaying FCC auctions and wireless rules, the 60-day congressional review has yet to result in a regulation being struck down. The Capitol Hill aide said he suspects the reason no regulations have been overturned since the new law’s inception is because agencies held off announcing controversial rules until after the presidential election to spare the White House any grief.
The legislation, enacted into law in March and designed to relieve business of burdensome rules, prevents major FCC actions-those with an impact on the economy annually of $100 million or more-from taking effect until after a 60-day review period.
The Republican stance that the problem lies with the FCC, not Congress, is shared by Teledesic Corp., the multibillion dollar global satellite venture spearheaded by cellular and computer pioneers Craig McCaw and Bill Gates.
After the FCC approved the 28 GHz band plan in July, Teledesic believed it would receive a license after two-and-a-half years of waiting. But the FCC balked, claiming the Contract with America Act prevented the agency from issuing a permit to Teledesic.
The commission refused Teledesic’s request to grant a conditional license.
Teledesic, in an Aug. 20 letter to FCC General Counsel Bill Kennard, said the FCC’s interpretation of the act “is a disastrous public policy which can only delay the introduction of new services, injure the U.S. position negotiations, and threaten the viability of the most innovative (and therefore vulnerable) new services.”
Kennard said he believes auctions should not be subject to the act, but that in the meantime delays are being factored into FCC rulemakings.
