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AS FCC’S ONLY INCUMBENT, NESS WIELDS POWER AND EXPERIENCE

These are different times, good times for Susan Ness.

She’s the surviving member of the new-look Federal Communications Commission who, despite being denied the title of chairman, could still become the most influential regulator of the telecom industry in the next few years.

She’s got experience on the domestic and international telecom fronts and has staked out a leadership position on wireless policies that trumped former FCC Chairman Reed Hundt. That she was seen early on as a dependable Hundt vote irks her to this day.

Indeed, this was the woman who led the challenge against Hundt in holding the line against a massive bailout of heavily indebted C-block personal communications services licensees.

Even as the tempestuous Hundt was leaving office a few weeks ago, the war of words over the PCS debt restructuring plan continued when General Wireless Inc. joined Pocket Communications Inc. in bankruptcy court.

While the hard line taken by Ness, a former banker, scored big points in the eyes of small PCS firms and others who felt the FCC’s integrity was on the line, it is unclear whether her approach will doom scores of wireless licenses to years of what former Hundt Chief of Staff Blair Levin called “bankruptcy hell.”

Now the woman who many once believed would eventually occupy the FCC chair, finds herself in the company of a new crowd that includes fellow Democrats Bill Kennard, the new chairman, and Commissioner Gloria Tristani, and the GOP minority of Michael Powell and Harold Furchtgott-Roth.

Hundt opted for Kennard, who served as FCC general counsel and Hundt understudy, over Ness for the chairmanship position. For that and other reasons, Kennard needs Ness to be his best friend for next few years.

In fact, Ness’ vote will be so important to Kennard-already preoccupied with inherited controversies on telecom act litigation, The Portals investigation and auction bankruptcies-that Ness may come to co-chair the FCC on a de facto basis.

“As the commission’s only incumbent,” says Personal Communications Industry Association President Jay Kitchen, “it is extremely important for her to help drive the dialogue on issues such as tower siting, numbering and interconnection that are critical for the wireless industry.”

From every indication, the latter-stage policy battles with Hundt seemed to strengthen and embolden Ness. She came to find her public voice and no longer was hesitant about expressing it when in the public eye.

With Hundt’s departure, Ness is liberated and the look of self-confidence is stronger than ever these days. Make no mistake, Ness is now a power to be reckoned with. She knows it and so do the people around her.

“Now that I’ve got that experience under my belt, I am delighted to have four new colleagues to work with on many of the issues that I’ve spent considerable amount of time on,” said Ness in an interview with RCR.

At the same time, Ness does not appear bitter about being overlooked as FCC chairman. She offers lavish praise of Kennard in a way that sharply contrasts the present FCC chairman from the former one.

“Bill is the type of person who will work with others and try to bring about a sense of community amongst the parties on the eighth floor,” said Ness. “That, I think, is going to be a very good development.” She said she hopes that sense of community will permeate the commission.

Ness, 49, is not overly animated but it is clear she relishes the opportunity to mentor her younger and less experienced colleagues. Nevertheless, her towering stature in the new FCC is an undeniable fact.

“They’re (new FCC members) going to be fresh, they’re going to be thinking about it for the first time,” said Ness.

“I looking forward to having the opportunity to talk with my new colleagues and explore new avenues, new ways at looking at some of these issues, reinforcing or underscoring what we had done historically, why we did what we did, what it meant, what the implications are, and helping them to develop that level of expertise.”

But most of all, Susan Ness appears to be happier on the job than at any time before. “I looking forward to this. I think this is just great fun.”

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