The Powell era is over. Michael Powell, chairman of the Federal Communications Commission, said he is leaving the agency within the next couple of months.
“Having completed a bold and aggressive agenda, it is time for me to pursue other opportunities and let someone else take the reins of the agency. During my tenure, we worked to get the law right in order to stimulate innovative technology that puts more power in the hands of the American people, giving them greater choices that enrich their lives. Evidence of our success can be seen increasingly in the offices, the automobiles and the living rooms of the American consumer,” said Powell in a statement. “The seeds of our policies are taking firm root in the marketplace and are starting to blossom. The use of cell phones, digital televisions, personal video recorders and digital music players, is exploding. These devices are increasingly connected anytime, anywhere by a wide variety of broadband networks enabling a host of competitive services and new applications. Our children will inherit this exciting future.”
Those mentioned to replace Powell include FCC Commissioner Kevin Martin; Michael Gallagher, assistant Commerce secretary for information and telecommunications; and Becky Armendariz Klein, former chairman of the Texas Public Utilities Commission.
None of these names point to a change of direction, said Legg Mason Equity Research in a note to investors.
“Whoever his replacement, we do not expect fundamental changes in FCC policy that has generally been moving in a deregulatory direction,” said Legg Mason.
Rural wireless carriers will be looking for a more favorable roaming environment, said Jessica Bridges, chief executive officer of Rural Telecommunications Group.
The White House will have the opportunity to choose two Republicans because Commissioner Kathleen Abernathy’s term expired last June, and she must leave if she is not reconfirmed by the end of the year. FCC Commissioner Michael Copps’ term expires in June.
The confirmation process for Powell’s replacement should serve the wireless industry well, giving it a glimpse of what issues will top an expected re-write of the Telecommunications Act of 1996.
When Powell became a commissioner in 1997, words like wireless broadband didn’t exist. Now they are a major part of his legacy.
“Wireless policy innovation has been at the core of his agenda. The wireless broadband future is bright thanks in part to the policies the chairman advanced during his tenure,” said Bryan Tramont, FCC chief of staff.
Spectrum reform meant spectrum flexibility, which has allowed the wireless broadband industry to flourish, said Andrew Kreig, president of the Wireless Communications Association.
“He has been a steadfast advocate of policies that the wireless broadband industry believes are vital to bringing benefits to consumers. Chief among them is making more commercial spectrum available with flexible use, relying on market forces. This has had a highly beneficial impact for both license-exempt and licensed providers, and ultimately their customers,” said Kreig.
The New America Foundation said spectrum reform would be his “one positive legacy.”
“Powell left only one significant positive legacy, which was to encourage experimentation with the sort of unlicensed wireless broadband technologies that have generated the Wi-Fi productivity boom,” said Michael Calabrese, NAF vice president and director of spectrum policy. “More than most others at the FCC, he understands that open access to the public airwaves for community broadband will extend high-speed Internet access to rural and low-income communities far faster than burying fiber wires.”
Abernathy highlighted spectrum reform in her statement.
“When it comes to managing this country’s valuable spectrum resource, Michael Powell was the first chairman to engage in a comprehensive reform of outdated spectrum allocation rules. He implemented rule changes that are already yielding more efficient and productive uses of this critical resource,” said Abernathy.
If you like less regulation-although some in the wireless industry would disagree with this assessment-then you liked Powell.
“He was a very aggressive deregulator to the point that there have been serious fault lines with his colleagues that had an impact on his ability to build consensus on successive issues,” said Jessica Zufolo, analyst with Medley Global Advisors.
Powell was an antitrust lawyer before coming to the FCC and moved quickly upon becoming chairman in 2001 to remove the spectrum caps he believed were holding back the wireless industry. He moved almost as quickly to agree to the acquisition of AT&T Wireless Services Inc. by Cingular Wireless L.L.C.
For wireless carriers, all was not always rosy. Powell pushed the wireless industry kicking and screaming to accept local number portability.
“While Powell instinctively sided with industry, one of the few times he stood up and fought against the big telecommunications behemoths was to allow consumers to keep their cell-phone numbers when they want to switch phone companies. This is an important achievement and is one that will lead to increased competition and better service for all cell-phone users,” said Sen. Charles Schumer (D-N.Y.)
On wireless enhanced 911, he assessed fines when carriers dragged their feet.
A known gadget geek, Powell was constantly praising the advancement of technology and the impact of his deregulatory approach on high tech. CTIA shared this view.
“Michael’s obvious and contagious passion for new technology is rooted in his belief that all consumers should have the ability to access innovative telecommunications services. This passion, combined with his commitment to a forward-thinking, commonsense regulatory framework, has marked his successful tenure,” said CTIA President Steve Largent.
Powell became an FCC commissioner in November 1997. At the time, his only claim to fame was being the son of a famous general. Later his father, Colin Powell, would be named secretary of state, and Michael Powell would be elevated to FCC chairman. His father also chose to exit his job with the start of the second term of President George W. Bush.
