WASHINGTON-For the second straight week, Commerce Committee Chairman Thomas Bliley (R-Va.) hammered the Federal Communications Commission over questionable wireless licensing activity and opened a new probe into the proposed merger of Lockheed Martin Corp. and Comsat Corp.
Bliley’s Sept. 13 letter to FCC Chairman William Kennard came just two days before the agency was set to vote on the transfer of licenses from Comsat to Lockheed Martin and less than a week after the Virginia lawmaker blasted the FCC and Justice for trying to arrange the sale of bankrupt NextWave Telecom Inc.’s licenses to Nextel Communications Inc. for $2.1 billion.
The FCC must respond to questions from Bliley on the NextWave and Comsat-Lockheed Martin matters by Sept. 27.
Bliley last week also wrote Attorney General Janet Reno and Nextel Chairman Daniel Akerson for more information about a deal widely criticized by the wireless industry. Bliley directed Reno and Akerson to answer questions by Oct. 1.
As he did in his letter to Kennard on the FCC-Justice-Nextel transaction, Bliley took the agency to task over FCC process and potential policy ramifications.
“Good public policy requires that such a change in the ownership structure of Comsat only occur in the context of broader satellite reform, such as that which passed the House by a margin of 403-16 last year and which I am working to introduce in this Congress. Thus, the commission’s potential action on this matter raises a number of questions,” said Bliley.
Comsat, the U.S. signatory to Inmarsat and Intelsat, provides global mobile communications. Lockheed is a major wireless vendor and defense contractor. Both high-tech firms are headquartered in Bethesda, Md.
Bliley warned the FCC that approving the Comsat-Lockheed license transfers could undermine congressional policy goals, violate FCC license transfer rules and overstep foreign ownership restrictions.
Bliley made a similar point in criticizing the FCC for agreeing to the transfer of NextWave licenses to Nextel before the agency had received a license transfer application or received public comment on the matter.
Stepped-up criticism of FCC licensing activities, combined with congressional displeasure with the agency’s implementation of the 1996 telecom act, could prompt lawmakers to curtail the Kennard’s powers in FCC reform legislation being crafted in the House and Senate.
The wireless industry is angry with Kennard for not embracing more deregulation.
Rep. Paul Gillmor (R-Ohio), head of a House FCC reform task committee, was expected to deliver recommendations to revamp the agency to House telecom subcommittee Chairman Billy Tauzin (R-La.) last week.
Senate Commerce Committee Chairman John McCain (R-Ariz.), who does not share key House members’ empathy for NextWave’s plight, nonetheless wants to revamp the FCC.
Legislation to restructure the FCC is expected to be introduced this fall, with a vote likely next year.
