If left to cynics and partisan naysayers, Kevin Martin’s legacy as chairman of the Federal Communications Commission might be one of delayed public meetings, agency mismanagement and a novel national commercial/public-safety license approach that bombed in the 700 MHz auction. And wh ile it’s true FCC meetings under Martin do not always run like clockwork and that Congress is investigating Martin’s stewardship of the agency and that no one ponied up the minimum $1.3 billion for the D Block, it would be hard – if not totally disingenuous – to deny the profound and unprecedented impact Martin has had on the wireless industry and public-safety community at a time when telecom policymaking has become complicated by fast-paced technological advances and post-911 homeland security demands.
The mobile-phone industry has not been altogether happy with Martin on public-safety rulings – enhanced 911 location accuracy and emergency backup power, in particular. Cellular carriers were miffed, too, about 700 MHz rules that created a public-private partnership to address first responders’ lack of interoperability/broadband capabilities and that attached an open-access condition to one-third of the 62 megahertz of spectrum – the C Block – put out for bid. But Martin would change hearts and minds on the latter, and he remains undaunted in his quest to do what Congress and other federal agencies have failed to do: arm police, firefighters, medics and other first responders with 21st century, life-saving communications tools.
Martin is controversial, but arguably no less so than previous FCC chairmen who grappled with their own complex telecom issues under the glare of a Congress ready to pounce at a moment’s notice and amid a swarm of persistent lobbyists anxious to argue why their companies should have a fair advantage.
In a candid interview, Martin talked about the why he believes the 700 MHz auction was a success and transformative, why cellular carriers must address rising expectations of subscribers, why consumers cannot be cheated on public safety, and more.
Auction impact
The recently completed 700 MHz auction raised a record $19.6 billion and laid the foundation for perhaps the most dramatic change in the cellular industry since its inception two-and-a-half decades ago.
“I think the 700 MHz auction is going to have an important impact on wireless industry in several ways,” Martin said. First, the spectrum in the 700 MHz auction is going to be much more conducive to broadband data services. The fact there were multiple winners and there’s going to be multiple providers that are going to be incorporating that spectrum in their services means we’re going to have a much more robust broadband mobile service.”
Although a new national wireless entrant did not emerge in the 700 MHz auction, Martin said he believes a wireless third pipe will be realized as landline telephone and cable TV giants that dominate the broadband market stray into markets outside their service areas to offer service. Martin also pointed out that the four national mobile-phone carriers, which not so long ago considered open access technically unfeasible and otherwise anathema to their business models, now say they’re on board, to varying degrees.
“All of these are signs and indications that the wireless mobile broadband platform is going to be more open to innovation, both in terms of applications in handsets and the traditional voice service that they provide,” said Martin.
D-Block woes
Martin acknowledged the FCC came up short on the D Block, but said he remains fully committed to trying to make the public-private partnership approach work and resolve an interoperability problem flagged by the special commission investigating the Sept. 11, 2001, terrorist attacks. In reality, the interoperability dilemma predated the tragic event.
“I think that obviously the commission needs to take into account and figure out what went wrong both in terms of making sure that there weren’t excessive demands that were being placed on the [prospective D Block] winner and in terms of making sure that the network expectations were reasonable enough to attract bidders,” said Martin. “So obviously we need to go back and re-evaluate that. But the fundamental premise of whether the FCC should sit back and do nothing to try to solve public-safety interoperability, or should we try to find a way to solve it with the tools that we have, I think I wouldn’t do anything different. I would still take that chance.
“Did we get everything perfect in it? Obviously not because no one was willing to end up taking on that burden,” Martin conceded. “So, do I wish that someone was willing to take on that burden? Yes. And do we need to restructure it in such a way that someone is willing to take on that burden? Absolutely. But absent somebody else coming up with some idea to solve this, this is the only way to solve what’s really a public-safety crisis.”
Martin said he wants to re-auction the D Block – subject to yet-to-be-determined rules – before the end of the year, given that rights to spectrum purchased in the 700 MHz auction will become available when TV broadcasters relinquish airwaves in February 2009. As such, Martin will have to move fast. But he’ll have to take heed of congressional input along the way. The House Commerce Committee has scheduled an April 15 hearing on the 700 MHz auction proceedings.
Public-safety holes
On another public safety issue, enhanced 911, Martin said the FCC will comply with a federal appeals court order to stay a new rule requiring carriers to meet location accuracy requirements at the public safety answering point level. Wireless carriers want E-911 location accuracy based on statewide averaging.
Martin also said the mobile-phone industry shouldn’t be so resistant to working with the FCC on backup power rules, prompted by communications outages caused by Hurricane Katrina and other major storms in 2005. At the same time, he said industry has made legitimate arguments in the debate.
“There needs to be some appreciation for increased consumer expectation of the use of wireless services during an emergency, whether you’re talking about a Katrina or during a personal emergency when you’re trying to dial 911,” stated Martin. “And I think that raises with it increased expectation for network providers.”
Importance of wireless
In fact, Martin said overall it is critical that the cellphone industry understand where it stands in the public eye.
“The broader theme is that the success of the wireless industry has raised consumer expectations about what to expect in terms of public safety,” said the FCC chairman. “The fact that more people now have wireless phones than wireline phones has changed the way they view their ability to communicate wirelessly. It’s no longer considered a luxury; it’s considered more of an important communication device for everyday needs. And as a result, I think that industry has an opportunity to come forward and try to work with the commission on things that are related to public safety, like 911. The time for the industry to just say, ‘We don’t want to comply with any greater expectations because we’re still viewed as luxury service,’ I think they’re a victim of their own success. And I think the wireless industry is incredibly successful. They provide a very valuable service that is in very high demand by everybody. . And all of that is exciting and great, but with that also comes increasing expectation of meeting some things like 911 capability, and I think that the industry needs to embrace those and help find a resolution, not just say no.”
Staying focused
Elsewhere, Martin said the cellular industry must understand that any national framework legislation that expands federal pre-emption could be a double-edged sword.
“I think there would be some benefits to a nationalized regime, but I do think it would require the industry and consumer groups to accept that the FCC would be saying that these are the consumer protections that are necessary,” stated Martin.
Martin defended his campaign to impose an interim cap on universal fund subsidies awarded to mostly cellular carriers for rural wireless deployment. Wireless carriers argue such a policy could hinder wireless buildout and competition – wireless and broadband alike – in sparsely populated locales.
“I’m more concerned that public resources that I’m responsible for managing are being used efficiently and effectively,” Martin said.
Does all the criticism he hears and reads about in the media ever get to him?
“You deal with it by trying your best to stay just focused on the substantive issues that you’ve got in front of you,” Martin stated.
Then he added: “I very often, very consciously try to work with all my colleagues, and at times that means I work to try to get 5-0 votes,” said Martin, noting unanimous FCC votes are more the rule than the exception. “The rest of the time I listen very intently to what the arguments being made by outside parties and by other commissioners. Sometimes, I agree with the two Republican commissioners; sometimes I agree with the two Democratic commissioners. I think I have been willing to agree with both sides on different issues. . And that is because I’m trying to work on the substance of the issues and recognize there are sometimes good arguments on both sides. These aren’t partisan issues. I think the downside, though, is that everybody only remembers when they lose, both the industries and the other commissioners. Everyone is always mad about when they don’t get to win. But I think it’s important to continue to try working with both sides on a whole host of issues. But I think that does make it more challenging.”
Martin, still facing other contentious wireless issues such as TV white spaces, pole attachments and Sprint Nextel Corp. 800 MHz rebanding, downplayed allegations that he is not running the agency properly. He noted FCC processes have been the same under prior Republican and Democratic chairmen.
