Wheeler Endorsements Generate Buzz Amid Administration’s Silence

Tom Wheeler’s potential candidacy to become the next FCC chairman may benefit from a recent endorsement letter (CD April 12 p10) signed by nearly a dozen former White House, FCC and Capitol Hill advisers (http://bit.ly/17tN754). Some industry observers said the letter will almost certainly bolster his chances of becoming President Barack Obama’s pick to replace outgoing Chairman Julius Genachowski. But public interest groups said the letter was cooked up by the White House in an effort to gain support for a controversial candidate.

These “helpful endorsements” will cover Wheeler’s “left flank” and keep him on the “inside track” to become Obama’s nominee for FCC chairman, said a Stifel Nicolaus report by analysts Christopher King and David Kaut. Public interest groups had expressed concern that Wheeler’s lobbying background could potentially disqualify him as a candidate (CD March 26 p1). Wheeler, managing partner at Core Capital Partners, was president of CTIA from 1992 to 2003, and CEO of NCTA from 1979-1984. Stifel said Wheeler is now “likely to be nominated to become FCC chairman, absent some unexpected snag, including vetting.”

The letter is “a positive development for Wheeler as frontrunner and presumably Obama’s preferred choice to succeed Genachowski,” said Jeff Silva, analyst at Medley Global Advisors. The letter was signed by “an interesting mix of folks and I think it bodes well for his standing as a prospective nominee for chairman,” said Silva. “My sense is that this could give the White House added confidence about going forward with the Wheeler nomination.” The White House had no comment.

The letter was particularly interesting, said Silva, because it carried the signature of Susan Crawford, Obama’s former special assistant for science, technology and innovation policy. She had earlier been cited by industry officials as a potential candidate to replace Genachowski. “With her signature attached to the pro-Wheeler letter, one could assume and imply that there is a clear indication that she is not in the running,” said Silva. Crawford’s endorsement on the letter is also a “very good sign for Mr. Wheeler, as it gives him backing from somebody with impeccable public-interest credentials,” Stifel said.

Public interest lawyer Andrew Schwartzman’s signature on the letter is also notable, said Silva. “Andy’s signature serves as a counterbalance to some of the blowback by Free Press and public interest groups that have criticized a Wheeler nomination.” The New America Foundation released a letter last month, along with 14 other public interest groups, asking Obama to nominate a public interest advocate instead of Wheeler. Schwartzman said his signature “speaks for itself” and added “there are several terrific candidates for the job,” in an email Friday. The letter endorsing Wheeler was also signed by Phil Weiser, former senior adviser for technology and innovation; Phil Verveer, former U.S. ambassador and deputy assistant secretary of state for international communications and information policy; Larry Irving, former NTIA administrator; Decker Anstrom, former U.S. ambassador and head of delegation for the 2012 World Radio Conference, as well as an ex-NCTA president; Terry Kramer, former U.S. ambassador and head of delegation for the World Conference on International Telecommunications; and Kevin Werbach, former co-leader of the Obama-Biden transition team on the FCC, among others.

"It’s clear that this is a White House response to the fact that dozens of groups raised concerns about having a head lobbyist for cable and telecom companies be the regulator over those industries,” said Sascha Meinrath, director of the New America Foundation’s Open Technology Institute. “Just looking at the letter it’s obvious that the White House went out to former aides in support of the administration’s nominee for FCC chairman. This is D.C. politics,” he said. “Unfortunately the letter does nothing to address the concerns that public interest groups have,” said Meinrath. “We want an FCC chairman that champions the interest of the general public, not one that has represented cable and telecom corporations for years and years.”

Former RUS Administrator Jonathan Adelstein “doesn’t buy” the idea that the White House had a hand in gathering signatures for Wheeler’s endorsement letter, he said. “I absolutely don’t think that White House would do that directly,” said Adelstein, now president at PCIA. “That is not the way they work. The letter just serves to demonstrate the depth of support for Tom,” said Adelstein, a former FCC member. “He has a grasp of the details at the micro and macro levels, and that is what the people who wrote the letter are saying."

"A lot of people are focused on personalities, but we are focused on principles,” said Free Press Policy Director Matt Wood. “Whoever the next chairman is will have to focus on doing a better job than the current chairman has done on protecting public interest.” Free Press was one of the public interest groups that endorsed the letter urging Obama not to tap Wheeler for FCC chairman.

Another vocal opponent of Wheeler’s nomination, Sen. Jay Rockefeller, D-W.Va., told reporters that he had not heard back from the White House regarding his letter signed by 37 senators endorsing Commissioner Jessica Rosenworcel to be FCC chairman (CD April 10 p3). Rockefeller has not warmed to the idea of Wheeler’s candidacy, and left no question as to his impression of Wheeler, telling reporters Tuesday that “a lobbyist is a lobbyist, is a lobbyist.” A spokesman for Rockefeller declined to comment further.