Obama’s new FCC chairman to face a range of difficult issues: Analysts: Genachowski to push for open Internet, network neutrality in FCC wireless regulations

President-elect Barack Obama plans this week to nominate former telecom policymaker and tech entrepreneur Julius Genachowski as the next chairman of the Federal Communications Commission, according to knowledgeable sources.
Genachowski, a Harvard Law School classmate of Obama’s who is a tech adviser on the presidential transition team, is well-regarded in telecom circles because of his intellect, policy knowledge and a personality described as easy-going and well-grounded. His anticipated nomination would require Senate confirmation by the Democratic-controlled Senate.
“Julius Genachowski is an outstanding choice for FCC chairman,” said Gigi Sohn, president and co-founder of Public Knowledge. “As the architect of President-elect Obama’s Technology and Innovation Plan, it is clear that he understands the importance of open networks and a regulatory environment that promotes innovation and competition to a robust democracy and a health economy … Julius also understands that in a democracy, government must be transparent and give the people the tools to participate actively. Thus, I am certain that he will seek to restore public confidence in an agency that has had a long history of opaqueness, industry capture and a lack of data-driven policymaking. His collegial management style will also help rebuild morale at the agency.”
A full plate
Genachowski would face major wireless policy and administrative challenges in a severe economic downturn at the FCC, which under outgoing Chairman Kevin Martin has been criticized by Congress and industry as secretive, demoralized and dysfunctional generally. The wireless industry, which has undergone dramatic consolidation the past eight years, is saddled with controversies involving spectrum and license concentration, roaming, open access, universal service fund/intercarrier compensation reform, carrier equipment exclusivity arrangements, the 700 MHz D-Block public safety/commercial re-auction, advanced wireless services-3, backup-power rules, migratory birds and towers and privacy, among other issues.
It is possible that Obama could name one of the two FCC Democrats – Michael Copps or Jonathan Adelstein – to serve as acting chairman until the Senate acts on the nomination of Genachowski. The first big test for the next FCC chairman is expected to be the troubled digital TV transition, currently set for Feb. 17. Obama has asked Congress to postpone the DTV switch-over because of various problems, a prospect that troubles mobile-phone carriers that paid nearly $20 billion for licenses in the 700 MHz band from which broadcasters will depart.
“Julius Genachowski is an outstanding choice to chair the commission,” said Ken Ferree, president of The Progress & Freedom Foundation. “He is knowledgeable, experienced and presumably will have the ear of the most influential people within the administration. PFF looks forward to working with Mr. Genachowski and the agency under his leadership.”
Genachowski was chief counsel to former FCC chairman Reed Hundt, who during the Clinton administration injected competition into the then-duopoly wireless industry by conducting the first-ever spectrum auctions. Genachowski is co-founder of Rock Creek Ventures and LaunchBox Digital, which invest in digital media firms. He also has served a special adviser to General Atlantic L.LC., a global growth equity company.
Possible agenda
“We would expect Mr. Genachowski to pursue the Obama communications agenda (which he helped develop) of promoting greater broadband deployment and access, an open Internet and network neutrality, competition and innovation, and media diversity, among other broad goals,” said analysts at Stifel, Nicolaus & Co. Inc.
The analysts added: “While it remains to be seen how that agenda will play out in specific policies and industry impact, we believe the regulatory initiative is likely to shift some from incumbents – and the Bells in particular – to new entrants and other non-traditional telecom and media players, including Internet application/content providers. . We suspect Mr. Genachowski would seek to spur and protect competition from wireless carriers and others as a counterweight to telco/cable wired broadband dominance; for example, by being more open to wireless and CLEC (competitive local exchange carrier) concerns about Bell ‘special access’ rates and terms, and more skeptical of incumbent telco phone deregulation/forbearance efforts. How he would deal with intercarrier compensation and universal service is unclear, but we suspect he would seek a rough compromise that spreads potential pain around.”