FCC Gets Quick Start in Implementing National Broadband Plan

The FCC’s April 21 meeting will start the agency on the long road to implementing the National Broadband Plan. The FCC will take up items touching on the future of the Universal Service Fund, data roaming, an area discussed by the plan, and two media items on network-gateways and CableCARD rules, also in the plan (CD April 1 p4), officials said. Dozens of other plan-related items await commissioner attention. Industry and FCC officials expect an active year as the agency moves forward on implementing the plan.

FCC members are still awaiting a schedule of rulemakings and other follow-up items from Chairman Julius Genachowski, which is to be discussed further at the April meeting. Eric Garr, general manager of the FCC’s Omnibus Broadband Initiative, is expected to stay on for awhile at the FCC to coordinate follow-up efforts.

"The big enchilada for them and the thing their base is waiting for is net neutrality,” said an FCC official. “I agree they're going to start implementing the broadband plan, but they're furthest ahead on the net neutrality proceeding beyond anything that would be implemented in the broadband plan.” In some cases including the items in the plan may have slowed down commission action, the official said. For example, the FCC could have acted on the 700 MHz D-block without another rulemaking teed-up by the plan, the official said. The data roaming notice “didn’t have to be in the broadband plan -- that deal was cut in December."

"If there’s any pressure to start moving on broadband items, it’s mostly driven by the deadlines the chairman set in the plan rather than pressure from outside groups,” said analyst Paul Gallant of Concept Capital. “So it’s not surprising to see that USF and gateway devices are both getting launched at the April meeting. There are a number of important items on the April meeting agenda, which is ambitious coming on the heels of the broadband plan. It suggests there will be a regular flow of significant policy items in the coming months to actually implement the plan.” The roaming item will likely be the “marquee” item at the April meeting, since it will lead to a rule change, he said. “It should be a nice boost for companies like T-Mobile, MetroPCS and Leap by giving them a bit more negotiating leverage with the largest carriers."

Randolph May, president of the Free State Foundation, sees warning signs in the agenda announced for the April meeting. “With net neutrality already on the platter, I fear the NBP is a table-setting for what will be revealed to be an overly zealous Genachowski regulatory agenda. … Unfortunately, it is likely to confirm a proclivity by this commission to think it can ‘manage competition’ better than markets can.” Limiting the in-market exception in the roaming item could deter investment in new networks, May said. “Starting a new proceeding looking to manage the navigation device market could discourage innovation in what already is a dynamic video marketplace."

There will be lots of pressure on the FCC to move forward quickly on some items “and ongoing controversy on others,” said a wireless industry attorney. “The April agenda reflects a balance of items from different bureaus at different stages -- some are new proposals, whereas others are ready for final decision. The FCC is likely to continue to move forward on a wide range of implementation items -- some will take longer and could be uphill fights, whereas others may be straightforward to implement.” It’s good the commission “is moving forward on both types of items, not merely taking the easy route of moving forward with the least controversial decisions,” the lawyer said.

Genachowski has made the broadband plan the “signature item” of his chairmanship, said Public Knowledge Legal Director Harold Feld. “I think he’s certainly going to want to move on it and to be seen as moving on it as quickly as possible,” he said. “As they narrowed things down over the months, even as they were tweaking the details of plan, staff knew they were going to do various NPRMs or orders on pending matters to try to follow up. I would imagine they have a bunch of stuff in the can ready to go.”

The tough part will be getting commissioner support for all of the items teed up by the plan, Feld said. Genachowski will have to decide where he’s satisfied with 3-2 votes to move forward and where he needs to seek more unanimity, he said. “It was clear at the [March] meeting that the [other] two Democrats want the commission to go further on some of these matters than the National Broadband Plan folks felt comfortable with and some of the Republicans are already uncomfortable with some of the things that are more aggressive with regard to stimulating competition and consumer protection."

The FCC has a big job ahead, said analyst Jeff Silva of Medley Global Advisors. “The FCC needs to ascertain what actions it can take sooner rather than later and follow through in that regard,” he said. “Otherwise, the agency is likely to attract the unfriendly glare of Capitol Hill. With Democrats controlling Congress and the White House, the FCC should be motivated to enact as many broadband plan recommendations as swiftly as possible. The political landscape is ripe for change, beginning with this November’s midterm elections.”