BUSH TEAM SAID TO BE TIGHT-LIPPED ABOUT FCC PLANS, EVEN WITH ADVISERS

“They didn’t name any names or give any timing” on chairmanship, one source said. Participants were asked to submit written documents week or so ago on specific policy priorities that they backed for FCC, but one source said: “I have no delusions that it has been read yet by a single person.” Another source reported being urged to keep document to single page, necessitating considerable editing. Source said Bush team asked 6 similar questions, “all variations of the theme, ‘What do you see as being the major issues?'” Questions didn’t reveal any particular knowledge of or leanings regarding FCC, source added: “They could have been applied to virtually any agency.”

Participants told transition officials that it was important to have at least acting FCC chmn. in place, if only for administrative purposes, officials said. “There’s still an awful lot going on” at FCC, one participant said. But another source said it seemed policy transition was “on a separate track” from personnel transition, and Transition Advisory Team had been told little more about Bush Administration’s thinking on personnel matters than had any others in industry. Advisory Team has swollen to 34 members from initial 5 and now represents virtually all major industries before FCC as well as several conservative think-tanks.

It’s not that Bush officials “are being lazy,” one source said, blaming slow transition on contested election that led to late start. “There certainly didn’t seem to be any clear decisions, even in terms of a timetable.” Source praised FCC transition leader Kevin Martin, as well as other members of team, Bush’s Tex. policy dir. Becky Armendariz and former Wiley, Rein & Fielding lawyer and current Capitol Coalitions partner Amy Mehlman. “They seem very open to chat, but indecisive about providing information,” source said. “This is the most informal of all informal transition processes.” Also in room Wed. was former Rep. Bill Paxson, who is higher-up in transition process.

One 8th floor staffer said FCC could function without chairman awhile in same way it functioned when Kennard went to Africa or took week off to be with new infant son. However, he conceded that agency shouldn’t go leaderless for too long. “Sooner rather than later would be nice,” he said.

Former FCC aide said Commission can’t function long without chairman. “Every Monday morning there’s a meeting of the bureau chiefs, chaired by the chairman’s chief of staff,” he said. That meeting won’t occur without a chairman, he said. Not appointing chairman within few days would be “irresponsible” and probably illegal, aide said. However, he also said chairman can’t be named officially until Bush becomes President on Sat.

Lack of action on chairmanship could raise questions about conventional wisdom that Comr. Powell would become FCC chmn., one source speculated: “If he is the guy, what are they waiting for?” However, another remained confident Powell would get nod, saying Bush transition, which has had half as much time as normal transition, simply hadn’t focused on FCC yet: “Right now they're worried about getting a Deputy Secy. of Defense and of State. This is a big government and they can’t get to everyone right away. We think of this as the center of the universe, but they've got some bigger things to deal with.”

More than one industry official wondered out loud whether Powell really wanted to be FCC chmn. Conventional wisdom, they said, was that Powell had his eye on higher office, and they wondered whether different govt. slot would better suit that goal. One source said FCC chmn. typically was “nicked up” politically because of type of issues FCC was forced to deal with. None would speculate, however, what other slot he might be interested in.

One theme that emerged at Wed. meeting was that “the timeliness of the decision-making process at the FCC needs to be corrected and corrected in a big way,” industry source said, with length of merger reviews cited as example. Another “across-the- board issue” was concern about imposition of conditions on licenses that had been granted, source said.

PCIA Pres. Jay Kitchen, member of advisory team, said importance of privacy issues related to wireless Internet were among priorities that group raised in paper submitted to FCC advisory team. Other issues cited in response to question of top 5 issues facing FCC included: (2) Allocation of sufficient spectrum for developing 3G services. (3) Ensuring that impact of FCC decisions on marketplace were considered. (4) Easing way for consistent and efficient antenna and tower siting process for wireless networks. (5) Ensuring wireless carriers had “fair and effective interconnection rights.” PCIA also cited exhaustive reviews of requests for transfers or assignments of licenses and “intense focus on consumer protection.” Paper said: “Unfortunately, in concentrating on these issues, the Commission has hurt its own regulatees not only by creating undue regulatory delays, but also by steering its attention away from critical issues such as the development of a comprehensive spectrum policy.” Paper said FCC had relied on “seemingly random process” to select transactions that required more extensive review. Group is recommending that timelines for license transfer reviews be accelerated.