Wheeler’s Management Experience Called Unusual for an FCC Chairman

FCC Chairman Julius Genachowski still has not said when he will leave the agency, a spokesman said Wednesday. The latest remains he will leave “in the coming weeks,” the spokesman said. “For more than 30 years, Tom has been at the forefront of some of the very dramatic changes that we've seen in the way we communicate and how we live our lives,” Obama said of Wheeler. “He knows this stuff inside and out."

White House Press Secretary Jay Carney defended Wheeler’s lobbying background during his daily press briefing. Wheeler “has not worked for the wireless industry in a decade -- nearly a decade, and his representation for the cable industry is nearly three decades old,” Carney told reporters. “It’s important to know that when he worked for the wireless industry -- and this is how much the world has changed -- he represented smaller companies that thrived on innovation and competition.”

"I worked for the guy for six years and got to see him in the worst of times and best of times,” said Steve Berry, president of the Competitive Carriers Association and a former top official at CTIA under Wheeler. “He is a very bright sort of doer. He asks a lot of questions. The thing I think you're going to see is he is comfortable in his own skin. He knows the subject matter. He knows the industries. But he realizes everyday there is a new challenge and a new informational point, a dot that you have to connect. He knows that you never learn it all.” Berry also noted that the FCC has never had a chairman with as much management experience as Wheeler. Wheeler “understands what incents business to take risks and provide new innovative services,” Berry said.

"He’s decisive, he’s a good manager,” said Brian Fontes, former senior vice president at CTIA under Wheeler and now president of the National Emergency Number Association. “He has a clear sense of direction,” said Fontes, also a former FCC chief of staff. “From a public safety perspective, he knows 911 very well."

Outgoing Republican Commissioner Robert McDowell told us Wheeler brings a lot to the table. “Tom has a long and deep background in the private sector representing competitive industry,” McDowell said. “He at 67 is a grownup who theoretically doesn’t need to prove anything to anybody. He has strong leadership skills that are well proven and that all points to an independent minded chairman who can stand up to various pressure groups."

Former FCC Chairman Dick Wiley of Wiley Rein said Wheeler’s experience as a manager is unusual for a chairman. “In terms of FCC chairmen, I think he’s got unparalleled experience and know-how in the communications field, which will be a big asset to him and the agency,” Wiley said.

Meetings of the FCC’s Technological Advisory Council, which Wheeler chaired, provide a window into his management style. In contrast to many of the Federal Advisory Committee Act committees at the FCC, TAC meetings started on time and often finished early. Wheeler repeatedly asked questions and prodded the group to reach conclusions. More so than is true at any other FACA committee, Wheeler took control as chairman and the committee appeared to reflect his personality. The TAC focused on big issues Wheeler will face as chairman, including the Internet Protocol transition, broadband infrastructure deployment and spectrum sharing. At the TAC’s March 11 meeting, its most recent, Genachowski credited TAC with doing the groundwork that led to an NPRM on small cell deployment in the 3550-3650 MHz band in December and the creation of the agency’s Technology Transitions Policy Task Force (CD March 12 p1).

Wheeler explained his philosophy on staying ahead of events at the March meeting, saying the TAC should emulate hockey great Wayne Gretzky. “All of these topics are very real today,” he said: “We're trying to, however, do a Gretzky and skate to where the puck is going to be on these issues” rather than where it’s already been. At a 2011 TAC meeting, Wheeler emphasized the importance of keeping the emphasis on expediency. “What the TAC has been is saying: ‘What is it that we can recommend that the commission can do now’ … rather than have some long, drawn out administrative proceeding,” he said (CD April 26/11 p1).

Obama Wednesday described Wheeler as the “Jim Brown … or the Bo Jackson of telecom,” in his speech. “If anybody is wondering about Tom’s qualifications, Tom is the only member of both the cable television and the wireless industry hall of fame,” he said. Wheeler was CEO of NCTA from 1979 to 1984 and was president of CTIA from 1992 to 2004.

Obama commended Clyburn’s work as “an incredible asset to the FCC for the last few years.” Going forward, Clyburn and Wheeler have “a very important mission -- giving businesses and workers the tools they need to compete in the 21st century economy, and making sure we're staying at the cutting edge of an industry that again and again we've revolutionized here in America,” said Obama. “And as technology continues to shape the way that we do business and communicate and transform the world, we want to make sure that it’s American ingenuity, American innovation, and that we're setting up legal structures and regulatory structures that facilitate this continued growth and expansion that can create good jobs and continue to grow our economy.”

Obama gave a nod to his “old buddy from law school,” Genachowski, whom he called “an extraordinary FCC chairman.” Obama said the agency has “made extraordinary progress” on Genachowski’s two priorities: Making broadband available everywhere and keeping it open to everyone. “We are helping millions of more Americans connect to high speed Internet, we are unleashing the airwaves to support the latest in mobile technologies, we are protecting the Internet as an open platform for innovation and free speech and we are poised to do even more thanks to Julius’ efforts,” said Obama.

A handful of lawmakers, many of whom were in their districts this week, commended Wheeler’s nomination, while one was skeptical about Wheeler’s lobbying background. Wheeler is a “good choice for the FCC during an exciting and tumultuous time for communications policy,” said Sen. Mark Warner, D-Va. He will “bring a deep understanding of the wireless industry” and his “longtime innovative leadership in the communications industry will be a great asset,” Warner said. Sen. Frank Lautenberg, D-N.J., said Wheeler’s “vision to expand broadband services will be critical to families and businesses.” House Communications Subcommittee Ranking Member Anna Eshoo, D-Calif., said Wheeler is a “smart choice” for the post. “His more than three decades of industry experience and expert policy know-how will be invaluable as we work to advance a 21st century telecommunications landscape guided by the core principles of competition, consumer protection and diversity,” she said.

Senate Commerce Committee Chairman Jay Rockefeller, D-W.Va., was silent about the announcement. Rockefeller has repeatedly criticized Wheeler’s former work as a CTIA and NCTA lobbyist (CD April 10 p3). At our deadline, his spokesman had no comment. Sen. Bernie Sanders, I-Vt., said he was troubled by Wheeler’s prior lobbying experience and is particularly interested in hearing Wheeler’s views about media consolidation. “Before the Senate votes on Mr. Wheeler’s confirmation, the American people deserve to know where he stands on one of the most important issues facing our nation: the fact that more and more of our media are owned and controlled by fewer and fewer multi-national media conglomerates,” Sanders said in a news release. “The head of the FCC should be looking out first and foremost for the public interest and may have to stand up to some of our nation’s biggest media and telecom companies.” House Commerce Committee Ranking Member Henry Waxman, D-Calif., said Wheeler’s telecom experience will be a tremendous “asset to the agency.” Waxman said the FCC “will be in good hands” with Clyburn as acting chairman. “She has been a dedicated advocate for consumers and competition during her tenure,” he said.

"Tom is old enough that this could be his swan song,” said Howard Liberman, a communications attorney at Drinker Biddle who has known Wheeler for over 30 years. “This is the culmination of his career.” If you ask the people who know him, the response would be that Wheeler is fair, Liberman said. His past life as head of NCTA and CTIA doesn’t mean a lot since those associations were so new when he ran them, Liberman said. “It’s not like he’s beholden to some industry. Those agencies have changed so much since he was head of the association, it almost doesn’t mean anything other than he has knowledge of the industry.”

What’s particularly interesting is that Wheeler isn’t an attorney, Liberman said. It’s been nearly 50 years since there was an FCC chairman who wasn’t at least a member of the bar, if not a practicing attorney, he said. It probably won’t be that significant because “whatever name you come up with can’t really be as experienced as Tom in the communications industry.” But in comparison to Genachowski -- a Harvard Law School graduate who clerked for two Supreme Court justices -- Wheeler “will have to rely more heavily on his legal advisors than a lawyer would,” Liberman said.

"I am confident that Tom Wheeler will make a great chairman of the FCC,” said John Nakahata of Wiltshire and Grannis by email. “When Tom was at CTIA, he was known for being forward-looking, creative, and solution-oriented. He built and led a great team. Those are key qualities always needed in an FCC chair.” Other telecom attorneys and industry observers we spoke to touted Wheeler’s breadth of knowledge, both substantively and politically. Economist Joseph Gillan of Gillan Associates, who has worked for CLECs, said Wheeler’s role on the TAC particularly gives him a “unique exposure to the importance of the IP transition.”

When Wheeler takes the helm, there will be three “buckets” of tasks for him to delve into, said Blair Levin, Gig. U executive director. First are the things that everyone’s expecting, such as the incentive auction and the Internet Protocol transition, said Levin. “Then there are the things that he’s going to have to react to,” such as an “unexpected merger” of some sort, Levin said. That “could prove both interesting and problematic,” as some deals might not be preferable before the auction, he said. The third bucket is the priorities that Wheeler will bring himself, Levin said. “Tom has an opportunity to take on certain challenges and really make a difference.” For instance, ex-Chairman Reed Hundt was successful in revamping the E-rate program, and ex-Chairman Kevin Martin brought focused attention and analysis to the potential of a la carte bundles, Levin said. “I actually don’t know, nor do I think there’s any public document that would suggest, what he has in mind,” Levin said of Wheeler. “But this is one on which he would strive not to be a weather vane, but really create the weather."

Free State Foundation President Randolph May said Wheeler’s experience running CTIA and NCTA should help him as chairman. “To be as successful as he was during his tenures with the trade associations, he not only had to have a keen understanding of the policy issues, but he had to be a good manager as well,” May said. “I hope he'll bring those managerial skills to the FCC in a way that makes the agency function more effectively and efficiently. But, for me, his regulatory approach certainly will be as important as his managerial style. To be successful, he needs to be considerably more modest that Genachowski has been in thinking the commission can ‘create’ additional competition by micro-managing markets. The commission’s record in regulatory micro-management is not good.”

Guggenheim Partners analyst Paul Gallant said it appears unlikely Wheeler will be confirmed before August. Wheeler will likely bring a “balanced approach” to telecom and media policy, Gallant said in a research note. “In particular, we believe that under Mr. Wheeler wireless operators (Verizon, AT&T, Sprint, T-Mobile) should benefit from a focus on their economic health. And cable operators (Comcast/NBCU, Time Warner Cable, Cablevision, Charter) may face reduced risk of ‘Title II’ reclassification if the FCC loses the net neutrality court case."

"Tom Wheeler is a respected veteran of telecommunications policy, with decades of experience in the field,” said former FCC Chairman Reed Hundt. “He is well-suited to address the challenges facing the FCC. I hope the Senate approves Tom’s nomination quickly so he can begin leading the FCC to ensure that America’s technology continues to lead the world.”