Martin, Klein, Gallagher Head List to Succeed Powell

Powell announced he would leave at what was essentially the earliest opportunity after the election, given political sensitivities. The White House had made it clear that while dept. heads could leave earlier, agency heads and assistant secretaries should wait until after the inauguration. Powell, whose designation as chairman came 2 days after the first inauguration, didn’t waste any time.

A further complication is that Comr. Abernathy’s departure may also be near. Medley Global Advisors cited reports she may announce she’s leaving next week. If Abernathy leaves, Martin would be the only Republican left on the Commission and would at least be the most likely choice for interim chairman.

“Those of us who have been doing this for a while really know the difference an effective chairman can make,” said a top telecom attorney. “Even though the ideology may be similar between 2 chairmen, if you have one that is able to command a clear majority and is aggressive you get a Commission that acts very differently.”

The choice is likely to be made at the highest levels of the Administration, sources said, with President Bush, Vice President Cheney, Chief of Staff Andrew Card and adviser Karl Rove likely to play a part. While various groups will likely support one or more candidates, lobbying at that level is difficult and the results can be unpredictable.

Several sources noted that extreme, nearly naked ambition is almost a requirement for seeking the job. “The FCC chairman is in the hot seat,” said one analyst. “They get the issues that Congress and the White House don’t want to touch with a 10-foot pole and they get the messes that the courts throw at them.”

Martin, as a sitting Republican with personal ties to the White House, would be the clear favorite if not for Bell opposition. The Wall St. Journal editorial that broke the news of Powell’s departure Fri. did its best to sink Martin’s candidacy because of his vote in favor of maintaining UNE-P as a temporary spur to competition. “Mr. Martin is gunning for Chairmanship, but his decision in the unbundling fight to put personal ambition above good policy split the Commission and helped extend the telecom depression,” said the unsigned editorial.

Martin, meanwhile, issued a statement praising Powell: “Over the last 4 years, I have been impressed by his tireless efforts to promote the nation’s communications industry.”

Klein has a definite political advantage as a Hispanic woman from Tex. very knowledgeable about telecom. She has also been a “good soldier” politically, pursuing a congressional race against a popular Democrat last year with little chance of victory. Four years ago Bush made another former Tex. regulator, Pat Wood, chmn. of the Federal Energy Regulatory Commission, though he has proven unpopular with many large energy companies.

Gallagher has been a high-profile NTIA dir., who has taken stances similar to Powell’s on competition and technology issues. During Dec.’s FCBA Chairman’s Dinner he poked fun at himself over his pursuit of the FCC chairmanship. He’s also reportedly well regarded by departing Commerce Secy. Evans, who’s considered Bush’s best friend in the Cabinet. But Gallagher has the disadvantage of being a white male, and the Commission that will be dominated by white men. Other candidates often mentioned include former NTIA Dir. Janice Obuchowski, who has Defense Dept. and wireless industry support and is considered by some a top dark horse candidate.

Meanwhile, Senate Commerce Committee Chmn. Stevens (R-Alaska) injected himself into the race, asking the White House to consider his former staffer Earl Comstock. A Senate Commerce Committee spokeswoman said Stevens has already informed President Bush he would like Comstock to be considered for the next open Republican FCC seat. But Stevens’ spokeswoman said the senator didn’t specifically ask that Comstock be nominated for the chairmanship.

Comstock was Stevens’ chief counsel and legislative dir. during the writing of the Telecom Act of 1996, and several sources said Stevens and Comstock would “be on the same page” as the Committee begins telecom reform. An industry source said Comstock would likely be sympathetic to competitive telecom carriers, much as his former boss Stevens is said to be. Comstock “loves the ‘96 Act,” said the source, who described Comstock as “competitive.”

Klein recently collected thousands of dollars in campaign donations for her failed run against Rep. Doggett (D-Tex.), a 5-term incumbent. While Doggett won 68% of the vote, Klein won the support of telecom firms, according the Federal Election Commission documents and the Center for Responsive Politics, which tracks campaign donations and operates the OpenSecrets.org Web site. OpenSecrets reported that Klein received $31,000 in support from “telecom utilities.” SBC was the leading contributor with $17,000, according to OpenSecrets.

Donations to Klein’s campaign included $10,000 (made in 3 contributions) from the SBC Employee PAC; $2,500 each from the MCI PAC and the Verizon “Good Government Club”; $2,000 each from the Qwest PAC, Deloitte & Touche PAC and Halliburton PAC; $1,500 from the Time Warner Telecom PAC; $1,000 each from the USTA PAC, Time Warner PAC, Allegiance Telecom PAC, Comptel/Ascent Alliance PAC and Northrop Grumman PAC; and $500 each from the BellSouth PAC and Cingular Wireless PAC. Rep. Goodlatte (R-Va.) also donated $1,000 to her campaign through the Bob Goodlatte for Congress Committee.

Klein also received several noteworthy individual donations. SBC Chmn. Edward Whitacre gave Klein $1,000 in campaign contributions but was topped by SBC-Tex. Pres. Jan Newton, who gave Klein $1,750. SBC CFO Randall Stephenson gave Klein $500, SBC Senior Vp James Shelley $250, and former FCC Chmn. Richard Wiley $500. Janis Obuchowski, also rumored to be a Commission candidate, gave Klein $500. FCC Comr. Abernathy gave Klein $250, as did her aide Matthew Brill. Media companies weren’t left out, as Clear Channel Chmn. Lowry Mays and Clear Channel Pres. Mark Mays each gave Klein $1,000.

The potential candidates have also given their share in donations. Klein donated $1,000 to President Bush’s campaign. Comstock gave Sen. Stevens’ PAC, called the Northern Lights PAC, $7,500 in donations since 2003. Comstock gave the campaigns of President Bush $2,000, Sen. Murkowski (R-Alaska) $4,000 (spread over 5 contributions), and made donations to Sens. Burns (R-Mont.), Dodd (D- Conn.) and Bond (R-Mo.). Comstock also gave Rep. Nethercutt (R-Wash.) $4,000 in campaign donations. - Howard Buskirk, Terry Lane