FCC Chairman Tom Wheeler's legacy on cybersecurity remains up for considerable debate in what are likely the closing months of his chairmanship, stakeholders said in interviews. Wheeler's stated focus on improving sector cybersecurity through public-private partnerships generated early progress, but more-recent FCC actions stemming from Communications Act Title II reclassification of broadband as a telecom service raise uncertainty about that commitment, experts said. The FCC announced in 2014 that it would be making cybersecurity a bigger public safety focus (see report in the Feb. 19, 2014, issue). Wheeler that year began calling for what he called a “new paradigm” on cybersecurity risk management in which the private sector would lead development of standards on cybersecurity issues (see report in the June 13, 2014, issue).
The FCC Wireline Bureau received generally good marks on its productivity from communications industry representatives we interviewed for this Communications Daily Special Report, even amid gradually declining budgets and staff sizes at the agency overall (see 1512150011). The bureau is seen by most as working hard to generate a large number of regulatory actions on a wide array of complex and contentious issues, with progress in addressing some backlogs. “I can’t think of any specific areas where the Wireline Competition Bureau is lagging,” said Micah Caldwell, ITTA vice president-regulatory affairs. Caldwell was the only person interviewed for this article willing to be cited by name; the rest either requested anonymity or declined to comment altogether on the bureau’s output and performance.
Concerns remain about FCC Enforcement Bureau field office closings, fives months after the agency approved a compromise proposal that avoided some of the closings initially proposed by Chairman Tom Wheeler, who said in July that after five years of flat budgets the agency had little choice.
The FCC has had some success in reducing processing backlogs even as its head count has continued to decline, according to the most recent available agency data. As of year-end 2014, the total number of items pending at the commission for more than six months dropped by more than 37 percent since May 1, 2014, said Chairman Tom Wheeler in a Jan. 21 letter to two key lawmakers. Over that period, the volume of license-related items pending more than six months dropped by 33 percent and the number of applications for review and petitions for reconsideration pending more than six months dropped by more than 12 percent, he said. An FCC spokesman had no comment on the overall performance, but pointed us to some public documents with agency information.
The partisan divide on net neutrality complicates congressional funding of the FCC and has made the annual task of appropriating much harder over the past several years, veteran appropriators of both parties on Capitol Hill told us in recent conversations. The appropriations process for the agency is now intensely political, they said, citing the very different perceptions among Republicans and Democrats of the agency and its missions.
There have been many more party-line 3-2 votes at FCC meetings under FCC Chairman Tom Wheeler than under former Chairmen Kevin Martin and Julius Genachowski, a comparison of such votes shows. Using records on the FCC's website and in the Electronic Comment Filing System, Communications Daily tallied votes at FCC meetings in 2008, 2012 and 2014. It found that in 2014, the Wheeler-led commission approved items at FCC open meetings with a party-line vote 11 times, compared with two such votes under Martin in 2008 and just one under Genachowski in 2012.
This Communications Daily Special Report "a Portrait of the FCC in a Partisan Era" shows the impact of recently flat FCC budgets and a long-shrinking overall staff, as well as partisanship, on agency operations and more. Subscribers also can now access these six stories online at www.communicationsdaily.com.
The FCC held some dozen events for news media that weren't on the record in the first half of this year, more than any other communications-related federal body. Such commission media events, often "on background" where officials couldn't be identified, numbered twice as many as were fully on the record. Partisan politics (see 1510280062 and 1512150011) and a divided FCC (see 1512150030) appear to be making commission officials more cautious in what they say when their names are attached, said experts who reviewed a Communications Daily database. They said such politics partly reflect a politically divided Washington. That's apparent to a lesser degree at NTIA and the Office of the U.S. Trade Representative.
Service glitches, billing errors and product changes are all but assured as multichannel video programming distributors (MVPDs) digest a record spree of mergers and acquisitions, many experts said. Some said already-low customer satisfaction for broadband and pay-TV service will worsen during integration of M&A worth about $166 billion. That includes AT&T's now-completed (see 1507240055) takeover of DirecTV, Charter Communications' planned buys of Time Warner Cable and of Bright House Networks, and Altice buying control of Suddenlink. At stake for broadband and video subscribers of these and other ISPs and MVPDs is whether their experiences ever improve from levels that some research finds are lower than any other U.S. industry.
As telecom consolidation proposals abound, one constant presence is lawmakers on Capitol Hill ready to scrutinize proposed mergers and acquisitions, despite lacking authority to approve or deny. One House member and former antitrust staffers told us of the balance between Judiciary committee members taking the lead in reviewing deals and those on Commerce, who sometimes also have an interest in proposed deals. Personality of individual lawmakers was seen as one highly influential factor in this relatively bipartisan oversight environment where little has changed institutionally, despite much M&A activity in recent years.