FCC
Michael Powell Chosen by Bush to Head FCC (WP)
OPEN ACCESS
Top Court Takes Cases Questioning Local Telecom Network
Usage Fees (WSJ)
SPECTRUM
Auction Fails to Open Airwaves (WP)
RADIO
'Brother,' Where Art Thou? (WP)
FCC
MICHAEL POWELL CHOSEN BY BUSH TO HEAD FCC
Issue: FCC
President Bush named Michael K. Powell, son of Secretary of State
Colin L. Powell, as chairman of the Federal Communications Commission
yesterday. Powell, 37, has been on the five-member commission for
the past three years. While his position is neither a cabinet position,
nor requires Senate confirmation, it is nonetheless an extremely
powerful berth with its ability to shape the direction and future of the
Internet economy. Already, some expect that Powell's chairmanship will
reshape the regulatory balance to favor the large industries the
commission oversees -- broadcasting, cable and Bell telephone companies
-- and away from upstart telecommunications companies. Bell telephone
companies could benefit from a chairman who believes that the market,
not regulatory structure, should drive the shape of competition. The
Bells could benefit by an FCC that would make it easier for them to enter
long-distance-telephone and Internet-traffic markets. Major television
broadcasters expect Powell will take steps to relax or even eliminate
the cap on the number of stations broadcasters may own. "The oppressor
here is regulation," Powell said during a recent speech before the
Progress & Freedom Foundation. "We must foster competitive markets,
unencumbered by intrusions and distortions from inapt regulations."
While Powell is generally well respected on both sides of the aisle,
his popularity will not protect him from scrutiny during his chairmanship.
Andrew Schwartzman, president of the Media Access Project, has criticized
Powell's unwillingness to challenge media consolidation. But he
does not criticize Powell's grasp of the issues. "He is thoroughly qualified
by virtue of his competence for the job," he said.
[SOURCE: Washington Post (E01), AUTHOR: Goodman and Stern]
(http://washingtonpost.com/wp-dyn/articles/A31352-2001Jan22.html)
OPEN ACCESS
TOP COURT TAKES CASES QUESTIONING LOCAL TELECOM NETWORK USAGE FEES
Issue: Open Access
The Supreme Court agreed to resolve a complex regulatory brawl that
ultimately could decide how soon -- and at what cost -- most residential
consumers will be given a choice among competing telephone companies.
The court agreed to determine how to calculate fees that local phone
companies charge new competitors for using their phone networks. Under
the 1996 Telecommunications Act, local phone companies have to let rivals
use their networks to offer competing services. But the rivals must pay
for use of the transmission networks. Without such an arrangement, it
would be too costly for competing local phone companies to build brand-new
networks. The Supreme Court also agreed to review a case that pits the
FCC and cable operators against major utilities. The utilities, which charge
cable-TV companies for use of their telephone poles or underground
facilities,
argue that the FCC lacks authority to regulate these charges when the cable
companies also provide high-speed Internet access. The utilities have
challenged the FCC in court, and the FCC and the National Cable Television
Association appealed to the high court for review.
[SOURCE: Wall Street Journal (A3), AUTHOR: Robert S. Greenberger And Jill
Carroll]
(http://interactive.wsj.com/articles/SB980174457905930015.htm)
(requires subscription)
See Also:
JUSTICES TO REVIEW TELECOM CASES
[SOURCE: New York Times, AUTHOR: Stephen Labaton]
(http://www.nytimes.com/2001/01/23/technology/23TELE.html)
(requires registration)
HIGH COURT TO REVIEW RULING ON PHONE LINES
[SOURCE: Washington Post (E01), AUTHOR: Peter S. Goodman]
(http://washingtonpost.com/wp-dyn/articles/A31127-2001Jan22.html)
SPECTRUM
AUCTION FAILS TO OPEN AIRWAVES
Issue: Spectrum
The nation's biggest mobile phone companies are sharing virtually all of the
bounty in the largest auction of airwaves in U.S. that was supposed to be a
boon for smaller companies trying to secure a role in the next generation of
wireless telephone services. In a contest that has attracted bids nearing
$17
billion, six of the eight companies that have secured the biggest chunks of
the radio spectrum are largely unknown entities that have won licenses set
aside for small companies. Documents filed with the Federal Communications
Commission show that each is backed substantially by some of the largest
names
in the industry: AT&T Wireless, Sprint PCS, VoiceStream and Cingular, a new
national partnership forged by local telephone giants SBC Communications and
BellSouth. "The notion that this was designed to promote smaller businesses
turns out to be an absolute fraud," said Gene Kimmelman, co-director of the
Washington office of Consumers Union. "We're not seeing any increased
competition. Money wins."
[SOURCE: Washington Post (A01), AUTHOR: Peter S. Goodman]
(http://washingtonpost.com/wp-dyn/articles/A19616-2001Jan19.html)
RADIO
'BROTHER,' WHERE ART THOU?
Issue: Radio
The soundtrack to the Coen brothers' most recent movie, "O Brother, Where
Art
Thou?," was the No. 2 best-selling country album in the Washington Metro
area
last week, but don't expect to hear any of its songs on the radio. The album
is full of fresh arrangements of old bluegrass music. It has become the No.
1
best-selling album on Amazon.com, bumping the Beatles from their place. But
country music radio isn't playing the songs because country music program
directors
don't see "hillbilly" country fitting in with the likes of Shania Twain, Tim
McGraw,
the Dixie Chicks or Alan Jackson. In fact, the more slickly produced
hit-making
music of modern day Nashville doesn't even acknowledge any diversity within
the
country music genre - a decision that is reflected in the narrow offerings
they
put on the air. Even acknowledging that most of the Depression era music
really
_wouldn't_ fit on modern country stations, there is at least one that might:
"I Am a Man of Constant Sorrow." In fact a rock version of the song charted
in 1971.
But this isn't 1971, now is it? Jon Anthony, assistant program director at
WMZQ (98.7),
Washington's longtime country powerhouse, puts it this way: "In the
corporate
environment these days, you're looking for indicators first rather than
going
with your gut" when deciding whether to play a song, Anthony says. "You
watch
to see how it sells." So who will take a chance on an "unproven" song: Radio
veteran
Ray Davis, of public radio station WAMU (88.5) has been playing the
soundtrack. It's
too bad that traditional music has no place on commercial stations such as
WMZQ, he says.
"I guess it just doesn't fit what they do over there," says Davis.
[SOURCE: Washington Post (C03), AUTHOR: Frank Ahrens
(http://washingtonpost.com/wp-dyn/articles/A32217-2001Jan22.html)
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