Little New Expected in Congressional Agenda After Republican Victory
The commanding Republican victory Tues. isn’t likely to result in significant changes in communications and technology policy on Capitol Hill, sources said Wed. With stronger majorities in both houses, Republicans are likely to continue to push for free trade and a more deregulatory approach to telecom, sources said. And proponents of stronger media ownership rules will likely have a harder time getting Congress to roll back more lenient FCC rules as President Bush has shown support for the FCC’s ownership changes.
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In Congress, the most noteworthy changes will likely occur in the Senate Commerce Committee, where Tues.’s results left at least 3 open seats. With Senate Commerce Committee ranking Democrat Hollings (S.C.) retiring, Sen. Inouye (D-Hawaii) is expected to lead the Democrats on the panel. Committee Chmn. McCain (R-Ariz.) must resign the chairmanship and current Senate Appropriations Chmn. Stevens (R-Alaska) is expected to become full committee chairman. McCain will still have seniority on the panel and has expressed interest in taking the Senate Communications Subcommittee chairmanship from Sen. Burns (R-Mont.). Industry sources said Stevens and Inouye will likely keep reform of the Universal Service Fund a top committee telecom priority.
Financial analyst Scott Cleland said he sees the Senate Commerce Committee assuming more power on telecom issues, especially on universal service -- a strong interest of Sens. Stevens and of Inouye. The 2 “are a very close and powerful duo with a universal service kinship, neither of them being from a Lower 48 state,” he said. Cleland said he expected the focus of telecom debate to change as well, partly because of the Senate’s expected interest in universal service: The past 4 years have been spent “wrestling in the mud over competitive access,” Cleland said: “The next 4 years will be spent wrestling in the mud over subsidies -- intercarrier compensation and universal service.”
Though 3 vacancies occurred on the Senate Commerce Committee, it’s unclear how they will be filled. With Republicans taking control of 55 Senate seats, the ratio of Republicans to Democrats on the panel could change. It currently has 13 Republicans and 12 Democrats, with Sen. Fitzgerald (R-Ill.), Hollings and Sen. Breaux (D-La.) retiring. Democrats could find themselves with only one seat to fill on the Committee if their representation is scaled back. One industry source said Stevens has made the case in the past for smaller committees. But another industry source said the Committee could be expanded by a Republican seat, instead of eliminating a Democrat seat. A spokesman for McCain said such decisions on committee size will be made by the leadership next year.
It’s also unclear who would take seats on the Senate Commerce Committee. Several industry sources said Sen. Clinton (D-N.Y.) is anxious to get on either the Appropriations or Commerce committees. Sen. Talent (R- Mo.) is also thought to covet a Commerce Committee seat, industry sources said. It’s unclear whether any new senators could receive a Commerce Committee appointment, but one industry source said it “wouldn’t be without precedent” to put a freshman on the committee. Some speculated that Richard Burr (R-N.C.), a former House Commerce Committee member who won an open Senate seat Tues., could be considered for the opening. Burr is probably most notable for bucking House leadership and advocating retention of the 35% broadcast ownership cap. His views on media ownership are similar to those of committee member Sen. Lott (R-Miss.). A source speculated that Burr could get tapped for the committee because of N.C.’s importance on tobacco issues that the Commerce Committee could take up next year.
Rural telecom advocates were disappointed by Senate Minority Leader Daschle’s (S.D.) loss to John Thune (R). Tom Wacker, NTCA dir-govt. affairs, said Daschle was an advocate for rural telecom issues and would be missed on the Hill. Senate Minority Whip Reid (D-Nev.) has said he will seek the leadership position, but could be challenged by Sen. Dodd (D-Conn.). Industry sources said Reid had left few fingerprints on communications policy; they struggled to recall any communications issues where Reid took a leadership role. Sen. Dorgan (D-N.D.), who does have extensive telecom experience, is speculated on as a potential successor to Reid as Minority Whip. Sen. Durbin (D-Ill.) is also a potential whip.
There was little change in House Commerce Committee leadership, as there were no significant loses on either side of the aisle. Rep. Wilson (R-N.M.) keeps her seat. Rep. Burr’s (R-N.C.) victory in the Senate race creates a Republican opening on the Committee, and at least 3 openings on the Democrat side were created as Reps. Deutsch (D-Fla.), McCarthy (D-Mo.) and John (D-La.) left the committee. Former House Commerce Committee Chmn. Tauzin’s (R-La.) son, Billy III, will face a Dec. 4 runoff with Charles Melancon for his father’s old seat.
TechNet Pres. Rick White said strengthening the Republican majority would probably benefit technology policy. Republicans will likely continue to push for free-trade policies that will help the tech sector. Republicans will also likely enact class action lawsuit reforms that could help tech firms. White said newly elected Sen. Jim DeMint (R-S.C.) has supported free trade policies and will be a good ally on the Hill on such issues. White also said President Bush will support “pro- innovation” policies that would help grow the tech sector.