Senate Approves FCC Nominees Pai and Rosenworcel, Amid Critical Rulemaking Period

Having a full complement of FCC members means it will take more time for the agency to act on particular issues once an item is ripe for a vote, industry officials predicted. They said it means there are two more offices for stakeholders to lobby in ex parte meetings, and also more negotiations among commissioner staff before items are adopted. Having five FCC members won’t affect any cable issues per se, but adds commissioners and aides to lobby, said American Cable Association President Matt Polka. It’s “helpful” to have “additional staff and commissioners to talk to” on various industry issues, he said. Pai and Rosenworcel may start moving into the FCC’s eighth floor this week, but it may be a little while before they appoint permanent aides, a broadcast lawyer predicted.

Commissioner Robert McDowell said he looks forward to “rolling up our sleeves” with the new commissioners on new incentive auction legislation, USF contribution reform, opening the TV white spaces for unlicensed use, modernizing media ownership rules and “much, much more.” Chairman Julius Genachowski said he looks forward to working with Pai and Rosenworcel, who bring a “deep knowledge of our sector, and proven track records of accomplishment.” Copps said he'll be looking for the new commissioners to address the “enormously difficult challenges” that confront the FCC and urged them to close America’s broadband gap. Neither the FCC nor the Senate Commerce Committee would confirm the timing of when the new commissioners would be sworn in nor when they would take office.

The Senate Commerce Committee approved President Barack Obama’s nominations of Pai and Rosenworcel in December, but Sen. Chuck Grassley, R-Iowa, blocked a Senate vote on the nominations after complaining that the commission had not provided all the documents he requested related to LightSquared’s plan to offer terrestrial broadband service using satellite spectrum. Last month, Grassley lifted his hold on the nominees after he said the FCC showed a “good faith effort” by sending a batch of about 5,900 agency documents related to the commission’s decision-making on LightSquared to House Commerce Committee Republicans (CD April 27 p1). Grassley has “no objection” to the nominees, his spokeswoman told us Monday. “His concern was never about the nominees themselves,” she said. “His concern was about the FCC and the FCC’s decision making about the decision regarding LightSquared and to instill some more transparency from the FCC,” she said. “So really the nominees weren’t his focus.”

Rockefeller said he’s “elated” by the confirmation vote and that Rosenworcel’s understanding of complex communications policy is “unparalleled.” Rosenworcel may take a particular interest in spectrum issues because she worked on Capitol Hill when Congress passed legislation giving the FCC authority to hold a voluntary broadcast incentive auction, said communications lawyer Richard Wiley of Wiley Rein. She'll be able to speak firsthand to what Congress’s intent was on spectrum issues, he noted. It’s in the public’s interest and that of industry to have five FCC members with experience at the commission and in issues the agency regulates, said Wiley, a Republican chairman in the 1970s.

A full commission is critical, given the major rulemakings and initiatives going on, said NARUC Telecom Committee Chairman John Burke, who worked with Rosenworcel during her tenure as an aide to Copps a few years ago. Copps was one of the two FCC members on the USF Federal/State Joint Board. It’s been difficult to move things forward since the departure of Copps, who also sat on Federal/State Joint Conference on Advanced Telecom Services, Burke said. It’s “extremely important” for the FCC to act quickly on issues like USF contribution, which should have been tackled as part of the USF/intercarrier compensation order, Burke said. The program’s $4.6 billion a year funding isn’t sufficient, leaving rural America behind, he said. It’s uncertain which incoming commissioner would sit on the Federal/State joint boards on USF and separation, he said.

"The two biggest issues we hope to see the Commission decide this year are (1) reform of the USF contribution mechanism and (2) reassessment of the ‘broken’ retransmission consent process to enable our members to get access to video content on fair terms and rates,” Genny Morelli, president of the Independent Telephone and Telecommunications Alliance, told us by email. “I don’t expect that the new commissioners will make it more difficult for the Commission to reach decisions. I am hopeful that their expertise will assist the Commission in making thoughtful, well-reasoned decisions."

Five commissioners examining the issues instead of just three “will actually be very helpful to creating good public policy,” as five voices will lead to vigorous debate and the best discussion possible, said NTCA CEO Shirley Bloomfield. Because much of what commissioners are working on is congressionally driven, Rosenworcel’s perspective “will definitely help bring that congressional voice to the discussion, which is an important piece to have at the table,” because she can shed light on legislative intent, Bloomfield said. The new commissioners’ strong telecom backgrounds will be helpful, as there won’t be much time before the high-cost recovery caps start to phase in July 1, she said. “They'll be figuring out their office space and then they'll be doing a regression analysis!”