Now that he occupies the big seat at the Federal Communications Commission, what should we expect from Chairman Michael Powell? The answer could be in how he handles several early tests on the wireless front.
We probably shouldn’t draw any conclusions from the fact that the day after President Bush named Powell to head the FCC last Monday, the agency proposed doing away with the spectrum cap. In fact, the initiative was adopted on Jan. 19, the last official day of former FCC head Bill Kennard.
Just the same, chances are good the Powell FCC will relax the spectrum cap at the end of the day. Powell’s faith in free markets is as strong as his suspicion of government regulation.
Chances are good, too, that Powell will be a willing partner in FCC reform, a matter high on the agenda of House Commerce Committee Chairman Billy Tauzin (R-La.) and Senate Commerce Committee Chairman John McCain (R-Ariz.).
Surrounded by a Republican president and a GOP-led Congress, Powell is now free to give full expression to his deregulatory philosophy.
In trying to shape his wireless agenda, Powell will have to balance difficult competing interests in a way that may not fit neatly into the Bush framework.
Take the spectrum cap, for example.
As the FCC considers whether to lift, modify or retain the cap, Powell will have to balance calls by some large mobile-phone firms to repeal the cap in order to free up spectrum for 3G wireless systems with the goal of keeping the industry competitive.
No doubt, lifting the cap will unleash a new wave of consolidation. It is interesting to note that the end of the Kennard era at the FCC was punctuated with bellyaching stories on how small firms not backed by wireless giants are getting pummelled in the latest auction of wireless licenses.
How will Powell-FCC defense commissioner and son of the newest secretary of state-react if the Pentagon decides it will not surrender spectrum for 3G wireless carriers?
What will Powell, the second African American to be FCC chairman, do to promote interests of minorities, women, small businesses, rural residents and others in the Digital Divide?
How about wireless access for disabled citizens? Powell, who was seriously injured in a highway accident when serving overseas in the Army a decade and a half ago, can relate. The hearing impaired community has waited for a market solution for five years and now wants the FCC to reopen a rule-making with an eye to mandating hearing-aid compatibility for mobile phones. Can an FCC chairman appointed by a president self-described as a compassionate conservative turn his back on these Americans?
