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June 16: Let the Hearings Begin

Posted by Barlow Keener

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Obama was voted in with lots of talk about reform.  Democrats could not wait to make change.  However, with other priorities like the economy teetering on the edge of the cliff and GM filing for bankruptcy and the $787 billion Recovery Act, more was on the agenda plate that could be handled in one walk through the change buffet.   No doubt, wheeling and dealing at the Senate led to the FCC’s changing of the guard being put on hold by concerned opposition.  Julius Genachowski was designated as the new FCC Chairman as early as January 13, 2009.  Obama officially named Genachowski to the position on March 3, 2009, and submitted the position to the Senate Commerce Committee, Chaired by Jay imageRockefeller (D-WV), on March 25, 2009 for approval.  First the hearings were scheduled for after Memorial Day and now they have moved to June 16, tomorrow.  It is possible, some pundits claim, that the hearings may not be concluded until after the August recess.  The stated  reason for the delay is that the Committee is seeking to approve all the candidates — two Democrats  (Mignon Clyburn) and two Republicans (McDowell and, as yet to be nominated, Meredith Attwell Baker, formerly at the NTIA) — at one time.

Certainly, there are some industry leaders that will not be happy with the new chairman.  Politics may seem to be a strange beast but politics are simple at the heart imageof the matter.   Senators work to serve their supporters and constituents.   It is unusual for a newly nominated chairman from a change of guard political party to wait so long to begin initiating change.  Republican Michael Powell, for example, who was already serving as an FCC commissioner, was nominated for the chairmanship on January 21, 2001 by Bush and within days was serving as Chairman.  

Genachowski has a long history of supporting competition and is a strong backer of network neutrality (See Huffington Post article).  He served as General Counsel at the FCC until 1996 under for former Chairman Reed Hundt.  Hundt as we all know was responsible for architecting and delivering UNE-P, which did not make many of the incumbent local exchange carriers happy and was subsequently removed by the Republican FCC.   It is highly likely, therefore, that Genachowski will bring back support for more “choice” for the consumer and more competition as well as pushing for network neutrality.  There are certain local exchange companies that may not favor such a policies.   Even though almost all carriers have publically spoken in favor the nomination, it is IMG_6718conceivable that some may be working to slow it down.  However, with so much else on Obama’s plate like the Recovery Act and banking reform, moving the nomination quickly through the Senate may be a lower priority.   In the meantime, the hearings will begin and these issues will be explored by the Senators.

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