President Obama followed through on expectations today in nominating wireless industry veteran and former lobbyist Tom Wheeler as chairman of the Federal Communications Commission. Wheeler would be replacing current FCC Chairman Julius Genachowski, who announced today that he will be leaving by the middle of the month.
Genachowski announced in late March plans to step down as chairman having served in that capacity since 2009. The move followed a similar announcement from Commissioner Robert McDowell, who was originally appointed to the FCC in 2006 by then President George W. Bush. Many have noted that it’s not unusual for both a democrat and republican member of the FCC to be replaced on the commission at the beginning of a new presidential term.
In the interim, Obama has designated current FCC Commissioner Mignon Clyburn to serve as acting chairman while Wheeler’s nomination goes through the confirmation process. That process is expected to take several months, in which time the FCC is expected to rule on Softbank’s pending acquisition of Sprint Nextel as well as AT&T’s pending acquisition of 700 MHz spectrum assets from Verizon Wireless. More importantly, the FCC will be tasked with executing the highly contentious incentive auction of spectrum assets in the 600 MHz band that is set to have proceeds funneled to help build out a nationwide public-safety network through the FirstNet initiative.
As for the McDowell position, Jeff Silva, senior policy director of telecommunications, media and technology at Medley Global Advisors, noted various names have surfaced as a possible replacement, including Michael O’Rielly, an aide to Sen. John Cornyn (R-Texas); and former tech policy advisor to ex-Sen. John Sununu (R-N.H.).
As for what a Wheeler-led FCC might mean for the wireless industry, Silva predicted a “tough love” approach for players.
“Our sense is Wheeler’s agenda will be mission-driven in terms of reconciling federal regulations with fast-moving telecom, media and technology sectors and seeking complementary legislative fixes where needed, all within the context of a still-evolving IP-based, multi-platform broadband universe that the administration would like to expand and leverage in furtherance of economic growth and job creation,” Silva wrote in a research note. “If telecom, media and tech firms believe they have a reliable handle on how they might fare under a Wheeler FCC, based on his resume, they likely will be forced to reconsider in time. Of this we are confident, however: Wheeler will make the trains run on time and he will strive to keep regulatory uncertainty at a minimum. He is decisive, does not shy from controversy and is not averse to correcting mistakes in short order.”
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