Not surprisingly, most ex-FCC commissioners end up at law firms after their tenure ends, often doing communications law. However, former chairmen have tended recently to end up as executives of corporations in the telecom, media or Internet industries. But neither trend is universal. Some of them have faded into obscurity and others have moved into new businesses entirely. For example, former Comr. Rachelle Chong (1994-1997) now heads a retail jewelry business in San Francisco.
FCC ex-commissioners generally pass up the fame of high- profile govt. work to return to the private sector after they leave the Commission, according to our informal survey. Despite their prominence while they're at the FCC, in some cases it’s even hard to find them now, apparently indicating FCC seats aren’t necessarily good stepping stones. In general, ex-chairmen since 1980 seem to have more post-FCC success than commissioners, and there appears to be a growing trend toward both groups’ moving into the corporate world, rather than into law firms or other govt. jobs.
Senate Commerce Committee members will have an opportunity to vote on the 35% broadcast ownership cap, despite the fact that Committee Chmn. McCain (R-Ariz.) is likely to vote against it, he promised at a committee hearing Wed. that examined the FCC’s media ownership proceeding. McCain said he would let the committee consider a bill that would codify a 35% ownership cap, but he didn’t support the proposal. The bill (S-1046), by Senate Appropriations Committee Chmn. Stevens (R-Alaska) with considerable Republican support, will be on the agenda of the June 19 committee executive session. While McCain said he wouldn’t vote for a 35% cap, he said there should be some form of cap, but the difficulty was finding the right balance: “I am not sure that even an expert agency can predict with precision where the lines should be drawn.”
On the day after the FCC established new broadcast ownership regulations, companies, Wall St. analysts, consumer groups and others were picking apart the decision, and while some said they saw opportunities for deal-making, others said legal challenges to the decision might threaten those deals. All predicted increased consolidation, but there was some debate over whether the deal-making would begin immediately or would happen over time. Meanwhile, all 5 FCC commissioners were preparing to answer questions before the Senate Commerce Committee today (Wed.), where ranking Democrat Sen. Hollings (S.C.) was expected to be especially tough on the FCC’s 3-Republican majority.
The Minority Media & Telecom Council (MMTC) marked Sun. (May 25) as the 25-year anniversary of what it called “one of the most significant achievements in the history of communications policy.” In 1978, under then-Chmn. Richard Wiley, the FCC adopted its statement of policy on minority ownership in broadcast facilities, which included tax certificate and distress sale policies. The tax policy allowed companies selling stations to minorities to receive a deferral of capital gains taxes on the sale. The distress sale policy allowed a company facing an FCC license renewal or revocation hearing to avoid the loss of its investment by selling its stations to minorities for 75% or less of fair market value. MMTC said those policies were largely responsible for increasing the number of minority-owned broadcast properties to 320 by 1995 from 60 in 1978. “Few civil rights initiatives have been so effective,” the MMTC said. The tax policy was repealed by Congress in 1995, and the distress sale policy is rarely used today, MMTC said. The council noted that current FCC Chmn. Powell announced last week (CD May 20 p6) that he was forming a federal advisory committee to find new ways to create opportunities for minorities and women in telecom.
“The Vast Wasteland Revisited” is the subject of the spring Federal Communications Law Journal, published Wed., which reexamines then-FCC Chmn. Newton Minow’s 1961 speech at the NAB convention and includes articles by Minow and more than 2 dozen others, including present and former commissioners.
There’s no indication that the prominent Washington telecom law firm will change its name to Wiley Rein and Deep Throat. However, according to published reports, Fred Fielding, named partner in the firm, was determined by a U. of Ill. journalism study to be the legendary unnamed source in the Watergate scandal. Journalism professor Bill Gaines and a class of investigative reporters conducted a 4-year study into the identity of the unidentified source that helped Washington Post journalists uncover the Watergate scandal. Fielding didn’t comment on the report and Post reporter Bob Woodward has said he won’t reveal the name until the source has died. Fielding was a deputy White House counsel in the Nixon administration. Gaines was reported as saying that Fielding, as an assistant to Nixon’s chief counsel John Dean, was in a position to observe the cover-up without participating in it directly. Gaines said the study is based on investigation and documents, not guesswork. Published reports quote Gaines as saying: “There’s very little that we do not connect with him.”
Helgi Walker, ex-White House aide and ex-aide to FCC Comr. Harold Furchtgott-Roth, joins Wiley Rein & Fielding as of counsel… Rick Feldman, ex-USA Bcstg., appointed to replace Bruce Johansen as NATPE pres., effective April 28… Dale Smith named program dir., Urban TV Network… Jules DeVigne, ex-Accord Networks, and Mack Traynor of HEI elected to ACT Teleconferencing board.
A wireless industry challenge to the FCC’s retention of local number portability (LNP) faced tough questions Tues. from the U.S. Appeals Court, D.C. Attorneys for both sides sparred over the meaning of “necessary” as viewed by the agency in its rejection of forbearance on wireless LNP, which takes effect Nov. 24.
LAS VEGAS -- Speaking from audience in NAB DTV session here Sun., CEA Pres. Gary Shapiro accused industry of not aggressively pushing the conversion to digital, charging “broadcasters themselves” hadn’t promoted TV to consumers. Two broadcasters on panel rejected the claim. Samuel Matheny of WRAL-TV Raleigh -- on of the first stations to go digital -- said his company might be an exception, but it was promoting the transition heavily. Michael DeClue of Clear Channel said his company was committed to digital transmissions “100% of the time” and it would be “utterly foolish [for broadcasters] to not promote what is going to be our future lifeblood.” Responded Shapiro: “Would you tell that to the NAB?”