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Purge, Tweets, Industry Ties?

Eisenach's Status as FCC Point Man for Trump Transition Team in Question

Rumors and speculation swirled about Jeffrey Eisenach's status on the transition team of President-elect Donald Trump. Eisenach could be out or on his way out as leader of the Trump transition's FCC agency action team, or his position could simply be under review, various Republicans and other contacts told us Thursday. Nobody knew for sure.

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"Eisenach may be out," said a Republican industry representative. "I've heard he might be out," said Matt Wood, Free Press policy director. "I'm told he's been canned, but it's hard to know," said a conservative advocate. At a minimum, some of the FCC transition plans appear to have been held up as the Trump team reviews personnel, said an informed source.

Eisenach, a managing director at NERA Economic Consulting and a visiting scholar at the American Enterprise Institute, declined comment. The transition team didn't comment. A note we sent to Eisenach's email address at the Trump transition team didn't bounce back, which seemed to indicate his account was still active.

If Eisenach's leadership role is in trouble, it could be because he's gotten caught up in a "purge" of officials after Vice President-elect Mike Pence took over the Trump transition team from Gov. Chris Christie, R-N.J., some transition watchers said. Eisenach's communications industry consulting ties -- as the Trump team seeks to "drain the swamp" by imposing lobbyist restrictions -- as well as his apparent negative tweets about Trump in the past could also be a factor, some said. "I can confirm he had Never Trump tweets" before they were deleted, said the conservative advocate.

Pence is looking to "scrub" transition personnel, said the Republican industry representative. "This is not unusual in a transition. We've reached the end of phase one of the transition. Now that the campaign apparatus is shifting to the transition, they could be saying let's take a pause."

Transition Team

Trump recently dismissed speculation about his personnel choices in general. "Very organized process taking place as I decide on Cabinet and many other positions. I am the only one who knows who the finalists are!" he tweeted.

The first of the transition landing teams that will work with the White House and various agencies to facilitate transition launched Thursday, the transition team said in a media briefing. The team covers national security, including DOJ, and its membership will be made public Friday, they said. The economics team, which includes the FCC and Commerce Department, will be launched Friday, with its membership being made public Monday.

There is a lobbying ban on transition team and landing team membership, with team members having to certify they aren't lobbyists or agree to terminate that status as a registered lobbyist, the Trump team said. They also will be prohibited from lobbying for five years once leaving government service and be under a lifetime ban on representing a foreign government, the officials said. The transition team will announce cabinet recommendations and key staffers “when those decisions have been made,” Trump spokesman Jason Miller said during the briefing.

Lobbying Ban Fallout

The question is how the Trump transition team policy change is going to affect Eisenach, an informed source said. "Did they mean only registered lobbyists are covered or anyone who appeared before the agency? That's what everybody's pondering."

Eisenach doesn't currently appear to be a registered lobbyist, but he was one from 2003 to 2006 for The CapAnalysis group. He also has done more recent telecom and media consulting work, including for Verizon and the Economic Opportunities for Broadcasters Coalition.

"There are tons of people in town who don't register because they don't have to," said Meredith McGehee, strategic adviser for the Campaign Legal Center. She said the problem for Eisenach is he has consulted for industry parties at the FCC. "This is always the dilemma: you have to find people that are knowledgeable ... but at the same time, if you reach out to people with clients, the conflicts are plain to see," McGehee said. "How is the public going to have faith that he has his eye on the public interest and not on the interest of his clients?"

The conservative advocate was pessimistic about Eisenach's prospects: "They have to know it's going to be an ongoing liability that's not going to go away. The politics seem really clear. ... His whole business model is paid consulting work, though it doesn't happen to meet the technical definition of lobbying under the rules."

Will Rinehart and Mark Jamison are also on the Trump FCC transition team, and Rinehart is on the FCC landing team, two informed sources said. Rinehart is director of technology and innovation policy at the American Action Forum and previously worked at TechFreedom. Jamison is a director of the Public Utility Research Center at the University of Florida. Neither commented.

Some contacts said the Trump transition team doesn't have much to do to prepare the way for the GOP takeover at the FCC. The commission already has two seasoned Republican commissioners, Ajit Pai and Mike O'Rielly, with Pai expected to be the acting chairman once Trump is inaugurated, and possibly the more-permanent chairman (see 1611140066). “You got two guys over there that don’t need a lot of tutoring. We got a landing crew right there, built in,” said a Republican attorney. Aides to Republican FCC commissioners declined comment.

Cooley attorney Robert McDowell told us he wasn't interested in the FCC chairmanship. “It hasn’t been offered and I wouldn't take it if it were because I have three very expensive children," the former FCC commissioner quipped.

Hershman to FCC?

One name being floated for possible membership on the GOP-run FCC is Indiana State Sen. Brandt Hershman, an industry executive and a Republican industry representative told us Thursday. Hershman has worked closely with Pence as a legislator, but before his time in the state legislature worked on telecom issues on Capitol Hill, an informed person said. Hershman worked on the 1996 Telecom Act on the staff of then-Indiana Republican Rep. Steve Buyer, and worked on telecom issues after becoming a state senator in 2000. Hershman didn’t comment.

Hershman has tended to support legislation that rolls back regulations, including a 2006 telecom deregulation law in Indiana, said an informed person. Hershman is quoted in a July news release from AT&T praising the company for investing in network infrastructure in Indiana. “In order for Indiana to continue to thrive and serve its residents, it’s imperative we have companies that invest through thoughtful innovation,” said Hershman then. “AT&T is making on-going investments in its fast, reliable network. With this, our residents and businesses have the tools to compete and grow.” In an August tweet, Hershman praised telecom deregulation for spurring economic growth in Indiana. "Telco dereg works and Indiana leads," Hershman wrote.

The selection process for new FCC members should focus on the issues rather than “who held the most fundraisers,” said ex-Commissioner Mike Copps on an episode of C-SPAN’s The Communicators to be televised later. McDowell, who appeared on the show with Copps, said that all the commissioners at the FCC during the 2008 transition had worked with the Obama transition team. Members of the team visited McDowell to discuss policies such as FCC process reform.

FCC Chairman Tom Wheeler said Thursday that he has been in contact with members of the Obama administration’s transition staff but not Trump’s team. He spoke following the commissioners' meeting where only a single item was voted on (see 1611170054). High-profile items were removed from consideration amid Republican overseers in Congress asking for such a hold on controversial issues.

You should have a fair, open and transparent process in the interim” period before a full commission is seated, McDowell said. As an independent commission, the FCC shouldn’t have to hold off on rulemakings it has concluded as an expert agency just because of a political shift, Copps said. “The American people voted,” McDowell said. The FCC should put its pencils down, he said. McDowell said he hopes the FCC restores its image as an independent agency. Copps pointed to the stalled confirmation process of Commissioner Jessica Rosenworcel (see 1611170061) as evidence that such change is unlikely. Rosenworcel is an expert on the commission’s issues, but has gotten caught up in a “partisan nasty politics,” he said.