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MCCAIN WARNS KENNARD NOT TO TAKE ALL TO COURT

WASHINGTON-Senate Commerce Committee John McCain (R-Ariz.) warned Federal Communications Commission chairman-designate Bill Kennard against continuing the agency’s penchant for litigating 1996 telecom act rules that have been overturned by the courts.

“The commission must not pursue litigation merely to vindicate its reading of the law,” said McCain in an Oct. 20 letter to Kennard, the FCC’s general counsel.

McCain added that “further litigation entails uncertainty and ill-will that will delay the growth of competition in the provision of local exchange services.”

The FCC, however, believes the requirement that local telcos re-bundle unbundled network elements at the request of competing carrier (a rule a federal appeals court recently struck down) furthers competition. As such, the agency predicted the issue will be resolved in its favor by the Supreme Court. Kennard’s response to McCain’s letter and a follow-up missive from the Arizona Republican were not immediately available.

Despite the exchange, it did not appear Kennard’s nomination would be held up by McCain, Sen. Jesse Helms (R-N.C.) or Sen. Ted Stevens (R-Alaska). All three have been vocal critics of the FCC that Kennard advises.

There was an outside chance late last week the Senate would confirm Kennard, fellow Democrat Gloria Tristani and Republicans Michael Powell and Harold Furchtgott-Roth.

On a related note, FCC Chief of Staff Blair Levin leaves the agency later this week to join KnowledgeBase Marketing Inc., of Chapel Hill, N.C.

Levin will be a partner in the new enterprise, which will link new digital telecommunications technologies with advanced databases.

FCC Chairman Reed Hundt said that if Kennard is not confirmed by Levin’s date of departure, Jackie Chorney will become chief of staff and Gretchen Rubin will serve as senior legal adviser. Chorney previously worked in the Wireless Telecom Bureau.

Hundt had high praise for Levin, whom the FCC chairman has known since Yale law school and depended on as both confidant and top political strategist at the commission. In doing so, Levin became as controversial as his boss.

“Countless times in the past four years I asked Blair to make the impossible inevitable,” said Hundt. “He recruited the best talent the FCC ever had, molded them into a world-class team, and taught them to withstand pressure, think outside the box and serve the public.”

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