Subject: [NEXTEL-1] WSJ.com - New FCC Member Wants To Help Telco Industry Out of Slump

From: Marcel <[email-masked]>
Date: Wed, 11 Dec 2002 16:48:29 -0500

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New FCC Member Wants To Help Telco Industry Out of Slump

By MARK WIGFIELD

Of DOW JONES NEWSWIRES

WASHINGTON -- The newest member of the Federal Communications Commission wants the agency to help get the telecommunications industry out of its slump.

Jonathan
Adelstein
, 40, a Democrat, told reporters gathered in his office that promoting widespread high-speed Internet access, or broadband, might be one way to do that. Competition policy and so-called "universal service" subsidies are possible tools the FCC could use, he said.

"We've got big challenges facing the telecommunications sector and I don't think we can afford to sit back and hope it all works itself out," he said. "We need to actively engage in trying to move this economy forward and restore prosperity to this sector in order to make sure that America maintains its leadership in telecommunications."

"If we don't have the investor confidence that would allow these companies to get the capital they need to invest in their systems, we're going to see America's traditional leadership in telecommunications eroded," he said. "We can't let that happen."

Adelstein wouldn't comment on ongoing proceedings at the FCC that could shape broadband competition policy in the years to come. But he said that competition should be both between different modes, such as cable and telephone lines, and on the same mode of delivery, such as two companies competing to sell service over the telephone line.

That's a key issue before the FCC, which is examining whether cable companies should be required to grant access to unaffiliated Internet service providers, and whether the Baby Bell telephone companies should be forced to lease at discounted prices elements of their network used for broadband.

Adelstein says he also wants to "dive into" an ongoing rewrite of media-ownership rules. He said that the agency must decide what ownership rules can pass tough scrutiny by the courts while still preserving diverse media viewpoints.

Adelstein was sworn in on Dec. 3 after his nomination had been delayed for nearly a year due to partisan struggles in the Senate over judicial nominations. Adelstein, a South Dakota native, was recommended by outgoing Senate Majority Leader Tom Daschle, D-S.D., making the nomination one of the more visible pawns in the fight.

Now, he faces having to go through the process all over again because he is filling out a term that expires next June. Adelstein said he won't have to pull any punches to win votes again on the Hill.

"The beauty of this job is it's independent, " Adelstein said. "It's designed that way. So I'm not going to feel under any pressure in any way."

He added that there is little consensus on Capitol Hill regarding the many telecom policy issues facing the agency. Adelstein worked on Capitol Hill for 15 years.

"It's tough to find consensus on the Hill on these issues because of competing constituencies," he said. "When you have that kind of pressure, it's very difficult for the Hill to reach consensus. So I think they do look to the agency to make some of these decisions."

The FCC is an independent agency whose five members are nominated in staggered terms by the president and confirmed by the Senate. No more than three members can be of the same political party, while the chairman is named by the president, generally assuring control by the party that holds the White House.

-By Mark Wigfield, Dow Jones Newswires; 202-828-3397;
[email-masked]

Updated December 10, 2002 2:10 p.m. EST

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