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KENNARD CONFIRMED BY SENATE

WASHINGTON-The Senate last week confirmed Bill Kennard as chairman of the Federal Communications Commission and approved three other agency nominees, but immediately put the new leadership on notice that it will closely scrutinize implementation of the 1996 telecom act that to date has produced unprecedented telecom consolidation and litigation but little local competition.

The transition of power begins today, when the four FCC nominees will have an informal swearing-in, and is expected to culminate with a ceremony led by Vice President Gore Friday at the Old Executive Office Building.

However, there were rumblings that Gore’s participation might not square with swearing-in plans of the new Republican FCC members. Harold Furchtgott-Roth, an economist at the House Commerce Committee, and Michael Powell, chief of staff to Justice Department antitrust chief Joel Klein, could not be reached for comment.

The White House has been trotting Gore out more lately at low-risk events to keep him in the public eye while he takes political hits over his involvement in Democratic fund-raising irregularities.

Kennard will hold his first press briefing as chairman this morning. Staff appointments are expected to be announced early this week, said Liz Rose, a spokeswoman in the Kennard administration.

Building on this theme of telecom technology as a powerful unifying agent, Kennard said, “Those of us in public service should seek to make it easier for all Americans to use the tools of the 21st century to empower, enrich and draw together. I pledge today to roll up my sleeves and give my best effort in pursuit of these ideals.”

Senate lawmakers approved FCC nominees Gloria Tristani (Democrat), Powell (Republican) and Furchtgott-Roth (Republican) last Tuesday, but held off until Wednesday to vote and vent on the Kennard nomination.

The four new FCC commissioners will join Susan Ness, a Clinton Democrat, to make for a 3-2 Democratic majority.

Kennard was approved 99-to-1, with Senate communications committee Chairman Conrad Burns (R-Mont.) the lone dissenter.

But the overwhelming vote belies the angst of key lawmakers regarding whether Kennard, who served as general counsel to controversial outgoing FCC Chairman Reed Hundt, can work better with the GOP-led Congress to inject more competition in a telecommunications industry that now accounts for one-sixth of the U.S. gross national product.

“Obviously, I do not agree with Mr. Kennard on many issues,” said John McCain, chairman of the Senate Commerce Committee.

“I … am troubled by the fact that, when asked, he was unable to specify any particular issue with which he might have disagreed with the FCC’s current chairman-despite the fact the FCC had disposed of thousands and thousands of issues during his tenure as its general counsel,” McCain said.

Indeed, the Senate vote on Kennard was delayed several times, to the chagrin of Senate Majority Leader Trent Lott (R-Miss.), because of concerns raised by Sens. Burns, Ted Stevens (R-Alaska), Sam Brownback (R-Kan.) and Jesse Helms (R-N.C.).

Burns was highly critical of an FCC rule that leaves 75 percent of the universal service cost to states.

“I do not believe that this ruling is consistent with the intent of Congress in the Telecommunications Act of 1996,” said Burns. “Such a rule could have severe impacts on Montana and other rural states that are asked to make this contribution … It should further be noted that maintaining the universal availability of telephone service at reasonable and affordable prices is not just a vague goal but an explicit statutory mandate.”

Burns, McCain and several other lawmakers have been critical of the FCC’s decision to make paging carriers pay into the universal service fund despite their preclusion from drawing on funds to serve rural and low-income citizens.

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