[1st-mile-nm] BusinessWeek looks at Genachowski role at FCC

[Carroll Cagle]

July 2, 2009

BusinessWeek


A New Signal from the FCC


Incoming Chairman Genachowski is likely to act on President Obama's
objectives for broadband penetration, net neutrality, and diversity 


By Tom <http://www.businessweek.com/bios/Tom_Lowry.htm>  Lowry 

After years of dealing with a regulator many considered an autocrat and
ideologue, executives in media, telecom, and technology say they are
encouraged by President Barack Obama's newly confirmed chairman of the
Federal Communications Commission. 

Julius Genachowski, like most FCC chiefs, is a lawyer. But there the
similarities with his predessors end. Genachowski helped media mogul Barry
Diller build his e-commerce empire and worked as a venture capitalist. Those
experiences arguably give him a broad view of the industries he will
regulate. Genachowski is also considered fair and pragmatic. Executives
believe his ascension will be a welcome change from predecessor Kevin
Martin, who they say targeted certain industries and turned an obsession
with what he deemed smut on TV into a moral crusade. 

Genachowski, 46, declined to be interviewed and has so far offered few
specifics about his regulatory philosophy. But he seems to share with Obama,
a former Harvard Law School classmate, a conviction that U.S. communications
policy needs to be dragged into the 21st century. "Julius and the President
are passionate about technology. You might even say they are techno-geeks,"
says Ken Ferree, a former top FCC official. "They know how important it is
to make technology as accessible to as many people as possible. That passion
will make a huge difference." Here, say FCC insiders, are three of
Genachowski's top priorities: 

Broadband Deployment. Obama is determined to bring speedy Web access to more
Americans and, in doing so, improve the nation's global competitiveness.
(The U.S. currently ranks 15th in broadband penetration.) The President
expects the FCC to help stimulate the economy and create jobs by bringing
broadband to unserved regions. Genachowski may well use a fund originally
set up to expand phone service to do the same for the Web. The FCC chief
also may push for faster broadband so it can better handle such modern needs
as video and corporate data. Genachowski is supposed to have a broadband
plan on the boss's desk by early next year. 

Net Neutrality. In recent years, a battle has raged over the issue. Web
service providers want the option to charge users according to how much
bandwidth they use and to give priority to certain services over others. A
legion of digerati argue that such restrictions would limit freedom of
expression on the Internet. Obama has put himself squarely in the latter
camp, and the big question is whether Genachowski will push for legislation
mandating so-called net neutrality. 

Media Diversity. Obama wants to make it easier for minorities to own TV and
radio stations and to push distributors to offer programs with more diverse
viewpoints. To make that happen, Genachowski could use a carrot and stick,
says veteran communications lawyer Andrew Lipman: on the one hand reducing
the length of broadcast licenses if programming isn't deemed sufficiently
diverse and offering tax credits to broadcasters who sell to minorities. 

It will be several months before the business community gets a clear reading
on Genachowski's FCC. But executives already know one thing for certain: The
new guy will have far more clout than Martin. Not only did Genachowski
advise the Obama campaign on telecom policy, he is among the enviable few
who participate in the President's Sunday pickup basketball games. Even if
he can't match Obama's on-court moves, Genachowski has the big man's ear. 

 

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