HOLLINGS CALLS POWELL BETTER SUITED AS CHAMBER OF COMMERCE CEO

Powell responded that communications law conferred obligation on Commission to implement rules when statutes were ambiguous. Law allows FCC “to use market economics” to determine what action is needed to ensure public interest, he said: “As always, the Commission’s efforts are guided by its commitment to protect consumer welfare… The FCC has demonstrated during the past calendar year a commitment to its regulatory purpose.” He said FCC’s “fundamental mission” was to implement telecom law “in a manner that promotes competition, innovation, deregulation, and the availability of high quality communications for all Americans.”

Ranking minority member Gregg (R-N.H) asked him for his analysis of Tauzin-Dingell, to which Powell responded: “I think that the Tauzin bill is an effort to modify the statute itself” with goal of encouraging “dramatic stimulus” for infrastructure deployment. As for broadband policy in general, Powell said Commission should clarify regulatory environment for benefit of consumers. That clarification of “regulatory categories of new and emerging communications” is allowed by statute and is necessary to answer questions about technological convergence as they arise, he said: “I think we are operating within the statute.” Powell said it was wise to craft regulation that focused on services provided rather than systems used to deliver those services.

Sen. Stevens (R-Alaska) asked Powell whether he planned to ask Congress to help resolve NextWave case, which now is heading to U.S. Supreme Court. Court agreed this week (CD March 5 p1) to hear oral argument in FCC’s appeal of D.C. Circuit ruling that agency erred in cancelling bankrupt carrier’s licenses for missed payment. Stevens said case probably wouldn’t be addressed until next session, and could remain unresolved until 2003. Powell emphasized that FCC last year had agreed to proposed settlement that would have gotten spectrum back into hands of public. He said agency had raised question that public interest might be served if Congress modified law to effectuate settlement.

Although proposal was criticized as being too generous to NextWave, Powell said that “money is not the only point. Putting spectrum into use is just as important.” He reiterated his disapproval of Appeals Court’s decision, saying it “failed to show appropriate deference to the Telecom Act” and interfered with FCC’s ability to reclaim property. Hollings suggested FCC could have avoided dilemma if it had stuck to its job of allowing for private sector use -- not ownership -- of publicly owned spectrum.

Efforts are continuing to upgrade FCC communications equipment testing facilities and improve agency engineering training, Powell said. Last year’s request to provide greater resources in those areas is beginning to pay off, he said: “We have hired 18 mid- and senior-level and 5 entry- level engineers, more than has been hired in 20 years. We instituted training programs to keep current and future engineers up to date in their profession. And we have improved the environment for engineers by purchasing equipment to facilitate the spectrum management process, and to upgrade the Columbia, Maryland, laboratory’s testing facility.”

TIA Vp-External Affairs & Global Policy Grant Seiffert affirmed Powell’s comment that engineering personnel and facility improvements had benefited industry. He said Powell’s personal interest and involvement in that segment of agency operations was unparalleled when contrasted to previous administrations. He applauded Powell’s entreaties to Congress to provide greater funding for those activities, since it had had positive impact on ability of equipment manufacturers to get their products to market: “Our [member] companies right now are not complaining about new equipment sent to the FCC for approval. About a year ago there was a 14-week backlog. That’s been pretty much cleared up.”

Proposed FY 2003 FCC budget includes $268.3 million in operational costs, which Powell described as “bare minimum needed to allow us to continue the progress made in the past year.” He said that in order to stay abreast of continuing developments in communications sector, agency was requesting additional $15 million for “programmatic initiatives” that would include: (1) Slightly less than $5 million for employee training, enforcement and spectrum management. (2) $1 million for internal security. (3) $9 million for information technology upgrades. Powell said agency also is requesting that it be allowed to use excessive regulatory fees collected in previous years to address current security needs. Total budget request includes $9.76 million to fund White House proposal to fund govt.-wide retirement costs in each agency’s budget.