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Bush Appoints Martin Next FCC Chmn.

President Bush named Comr. Martin FCC chairman. He succeeds Chmn. Powell, expected to leave office at week’s end. Martin was a leading contender (CD Feb 23 p6), though NTIA Dir. Michael Gallagher seemed a comer to some. “I look forward to working with the Administration, Congress, my colleagues, and the FCC’s talented staff,” Martin said in a statement.

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Praise for Martin poured forth from the telecom, cable and wireless industries, Capitol Hill and telecom lobbying groups. Only a few public interest groups expressed concern about the appointment, saying Martin’s views on indecency could mean more focus on regulating programming -- relegating media ownership oversight to the back burner.

“It is, sadly, a victory for the forces of so-called ‘decency.’ They have succeeded in establishing a new ‘litmus’ test for the FCC chair -- someone who will be at the forefront of monitoring programming,” said Jeff Chester, Exec. Dir. of the Center for Digital Democracy. “Given Mr. Martin’s partnership with FCC Commissioner Copps, and a supportive White House and Congress, there could be a serious chilling effect on radio and TV.”

Even those who have disagreed with Martin cheered: “While we don’t always agree, he has always given careful attention to the states’ concerns and recommendations. I'm looking forward to continuing that relationship with Chairman Martin, and his excellent staff,” said NARUC Telecom Committee Chmn. Robert Nelson.

FCC commissioners and Chmn. Powell congratulated Martin, pledging cooperation in the transition. “Martin’s knowledge of telecommunication policy issues and insight into the rapidly changing nature of communications technology will serve the agency well,” Powell said: “Ultimately, everything the FCC does must serve the public interest and benefit consumers, and I am confident he will be vigilant in pursuing these goals.”

Martin, sworn in as an FCC commissioner in 2001, gained notoriety in 2003 when he deviated from Powell to side with Commission Democrats in the UNE ruling. His stance caused a rift with Powell; experts said he'd hurt his career, but over time the predicted damage did not occur. Martin’s close ties with the Republican Party are an asset: He was on the Bush-Cheney transition team and was the Bush campaign’s deputy general counsel.

Capitol Hill leaders saluted Martin’s ascendancy: “Commissioner Martin’s appointment comes at a critical juncture as Congress looks to update the nation’s outdated telecommunications laws,” said Rep. Upton (R-Mich.). “I look forward to working with Chairman Martin and the President in the months ahead as Congress looks to remove the regulatory barriers that are suffocating the telecom sector.”

Comr. Martin “has demonstrated a keen understanding of the issues before the FCC,” said Sen. Stevens (R-Ark.) He added: “Kevin’s promotion will now create a vacancy on the Commission, and it is my continued hope and recommendation that Earl Comstock be named to fill the now vacant seat.” Another strong contender for Martin’s old seat is Rebecca Klein, ex-Tex. PUC chmn.

Cable and broadcast groups hailed Martin’s appointment, with a few reminders of their goals. “We look forward to continuing to work closely with Chairman Martin to maintain a deregulatory environment for competitive telecommunications services, said NCTA Pres. Kyle McSlarrow. “Kevin has a passion for public service and a deep understanding and appreciation for the value of local broadcasting,” said NAB Pres. Edward Fritts. Assn. of Public TV Stations Pres. John Lawson said Martin has long been a friend of public TV. “We appreciate his innovative and thoughtful approach to complex issues. We look forward to working with him as stations conclude their transition to digital.”

BellSouth Vp Govt Affairs Herschel Abbott praised Martin’s ability to “work in a collegial fashion with fellow commissioners.” “His focus on enabling the rollout of broadband for consumers demonstrates a 21st Century view of the communications marketplace,” Abbott said. TIA Pres. Matthew Flanigan said Martin is a good choice because he is familiar with complex issues facing the FCC and has endorsed regulations aimed at deploying broadband facilities.

CEA Pres. Gary Shapiro said Martin’s philosophy would serve the Commission well as it faces the disposition of new technologies. “Kevin has consistently supported competition, deregulation and the advancement of new technologies,” Shapiro said.

SBC said it is optimistic that Martin “will lead the agency in resolving the central policy issue of our new century -- advancing innovation and investment in broadband and IP networks, applications and equipment,” said SBC Senior Vp James Smith.

“Mr. Martin’s record of public service demonstrates that he is the right person to guide the agency and the industry through the difficult issues that currently confront the industry as new technologies transform the marketplace,” said AT&T Gen. Counsel Jim Cicconi.

Cingular CEO Stan Sigman said Martin’s well-rounded resume will serve him well as chairman. “He brings to the chairmanship a thorough understanding of telecommunications policy issues and an appreciation for the importance of wireless technologies and services to America’s economy and consumers,” Sigman said. In the age of “megamergers,” Martin’s leadership will be critical, said Qwest Senior Vp Gary Lytle: “More than ever before, when megamergers could potentially lead to troubling concentration in the telecommunications industry, his vision and leadership will be essential.

Legg Mason said a boon to Martin’s rise is timeliness: As a commissioner, he does not need Senate confirmation, meaning to no time wasted in transition. A Gallagher nomination, on the other hand, the Legg Mason report said, “might have been caught in the looming Senate battles of judicial and other nominees.”

The Legg Mason report spun a sports analogy to compare the contenders: “In what might be seen as a possible leading indicator of the NCAA finals, FCC Comr. Kevin Martin (native Tar Heel and a graduate of both No. 1 seed UNC and No. 1 seed Duke) apparently has bested NTIA head Michael Gallagher (from the state of No. 1 seed Washington).”