Communications Daily is a service of Warren Communications News.

VICTORY TO LEAVE NTIA AUG. 15, FOLLOWING GALLAGHER OUT DOOR

NTIA Dir. Nancy Victory plans to step down from the agency next month after nearly 2 years in the post, she confirmed Thurs. Hers is the agency’s 2nd major departure since May, when Deputy Dir. Michael Gallagher left to become deputy chief of staff for policy to Commerce Secy. Donald Evans. Gallagher hasn’t been replaced, and plans for an interim successor to Victory or as deputy weren’t clear. In an unrelated development, a House subcommittee omitted any funds in the Commerce Dept.’s Technology Administration (TA) FY 2004 budget approved Wed.

Sign up for a free preview to unlock the rest of this article

Communications Daily is required reading for senior executives at top telecom corporations, law firms, lobbying organizations, associations and government agencies (including the FCC). Join them today!

Victory told us Thurs. she planned to focus between now and Aug. 15 on wrapping up loose ends, including making sure a work plan was fully in place in conjunction with an executive memorandum President Bush recently signed that created a task force to recommend how to stimulate more efficient spectrum use by govt. The federal govt. spectrum task force held its first meeting Thurs. to discuss next steps and what its requirements were. The representatives of federal agencies that are part of the task force also organized a working group “to move forward expeditiously,” she said. The executive memorandum directed the Commerce Dept. to form a federal interagency task force to examine issues directly related to federal management of spectrum and come up within a year with recommendations for improving processes, procedures and policies. Victory said she has no immediate plans following her departure.

Victory’s departure also comes as the Bush Administration is planning to merge NTIA, TA and the e- commerce duties of the International Trade Administration. Connie Correll, counsel to TA Undersecy. Phil Bond, said TA within 2 weeks would send to Congress draft legislation to consolidate NTIA under TA. She said TA officials had been discussing the bill with members including House Majority Whip Blunt (R-Mo.)

The proposal has raised problems on Capitol Hill. Both Senate Commerce Committee Chmn. McCain (R-Ariz.) and House Commerce Committee Chmn. Tauzin (R-La.) have said they were unlikely to support the change. Concerns have been raised in the House that moving NTIA under the TA would shift authority over spectrum issues from the House Commerce Committee to the Science Committee. The reorganization plan proposed for NTIA would have kept Victory as asst. secy. of commerce for communications & information, but she would have reported to Bond, instead of directly to Evans. The Senate confirmed Victory, a former partner at Wiley, Rein & Fielding, as NTIA dir. in Aug. 2001.

Victory began informing staff Wed. that her last day at the agency would be Aug. 15. She said the accomplishment she was most proud of in her time at NTIA was “fostering a very cooperative relationship between NTIA, the FCC and the State Department on spectrum matters and telecommunications issues in general.” NTIA and the FCC signed an agreement during her tenure in which they updated and expanded on the terms of cooperation between the 2 agencies. “I'm very big on relationship-building and I believe you can accomplish more through cooperation rather than clashes,” she said.

In terms of the timing of her decision to leave, Victory said: “I've been here for 2 years and accomplished a lot.” She said her post required a high energy level and “I felt that I had accomplished many of my objectives.” The lining up of the federal govt. spectrum task force appeared to be a good transition time in terms of her departure, she said, noting that much of that work was just getting off the ground. News reports have indicated that the Bush Administration has asked appointees who don’t plan to stay in their positions through the end of his term in 2004 to step down in Aug.

During Victory’s tenure, the NTIA, along with the FCC, brokered a deal with the Defense Dept. to free up additional spectrum for 3G services. However, she received headlines earlier this year for a party that lobbyists hosted at her home in Great Falls, Va., in Oct. 2001. In response to updated advice from the Office of Govt. Ethics, Victory reversed an earlier decision and decided to report as a gift contributions that the lobbyists made to the party.

A Commerce Dept. spokeswoman wasn’t available for comment on an interim dir. Industry speculation is rife because there’s no permanent 2nd in command to be move up to acting chief. Fredrick Wentland, assoc. administrator of spectrum management at the agency, has been serving as acting deputy dir. since Gallagher stepped down. “To leave the agency rudderless would be the height of folly,” an industry observer said.

Significant portions of TA were designated as unfunded Wed. for FY 2004 when the House Appropriations Commerce- Justice-State Subcommittee voted not to fund the Office of Undersecy. of Commerce, now held by Philip Bond, or the Office of Technology Policy, Correll said. The other agencies under the TA -- the National Institute of Standards & Technology and the National Technical Information Service - - retained their funding, she said. However, NTIA’s budget was proposed to increase to $20 million, from $18.9 million, for salaries and expenses.