Senate Commerce Committee Members Size Up New FCC

Senate Commerce Committee members evaluated the FCC’s positions on wireless competition, the E-rate program, net neutrality, spectrum incentive auctions and broadband deployment, during the agency’s first oversight hearing in three years. The commissioners would not say whether they planned to start an investigation into allegations of News Corp. misconduct, but said they were monitoring the situation. Newly minted FCC commissioners Ajit Pai and Jessica Rosenworcel were largely silent at the Wednesday hearing, and primarily deferred to established agency talking points.

Senate Commerce Committee Chairman Jay Rockefeller, D-W.Va., explicitly asked FCC commissioners not to funnel funds from the E-rate program to the FCC’s digital literacy efforts. Rockefeller also asked what the agency’s plans are for broadening broadband access through the Mobility Fund. FCC Chairman Julius Genachowski said he’s expecting “broad participation” in the reverse auction for the Mobility Fund and said the commission is “very committed on the goal of getting mobile broadband to parts of the country where people want but don’t have it.”

Ranking Member Kay Bailey Hutchison, R-Texas, scolded the commission for overstepping with its net neutrality regulations, something which she said she was in “complete disagreement with.” Hutchison said the FCC’s coming spectrum incentive auction is a “very important effort” and asked whether it is the commission’s priority to keep the future spectrum auctions free from restrictions. Genachowski said yes. “Spectrum is complex. The best, simplest model to drive growth and opportunity is the focus we will all have."

Senate Communications Subcommittee Chairman John Kerry, D-Mass., asked whether the commissioners are content with what he called a lack of competition in the wireless space. “There really are only two dominant wireless service providers … is it the commission’s fundamental view that two” is acceptable? Genachowski said no, “a duopoly is not the ideal outcome.” Sen. Jim DeMint, R-S.C., said competition is strong in the wireless marketplace and argued for lighter regulation of the market. “We hear monopoly and duopoly talked a lot,” he said. “But we have a pretty remarkable and dynamic competitive marketplace.” He urged the commission to conduct research and publish a competition report in order to help lawmakers understand the realities of the market.

The “single most promising area” to free up additional spectrum is within the federal government rather than the commercial side, said Genachowski in response to a question from Sen. Roy Blunt, R-Mo. “We need the federal government to relinquish spectrum they have” or speed up the sharing of certain spectrum, Genachowski said. Commissioner Robert McDowell said there are a lot of different ways to approaching the sharing concept but it is not a “cure all.”

Sen. Frank Lautenberg, D-N.J., asked whether the FCC plans to conduct an investigation into allegations of misconduct by News Corp. “Some action here is absolutely required and we ought to get going on this,” he said. Though none of the commissioners would confirm whether an investigation is planned, Genachowski said “these matters may come before the FCC.”

McDowell said in his written remarks that the nation is in the “early days of the golden age of mobile broadband.” He advocated regulatory restraint in the implementation of spectrum law, urged state and federal governments to relinquish more spectrum and simplify the ability to deploy technologies that enhance spectral efficiency. He also said the commission must conclude its proceeding on USF contribution reform “as soon as possible.” “This silent and automatic tax increase is eating into consumers’ wallets. It has been as high as 18 percent, and it must be abated as soon as possible.” McDowell advocated modernization of media ownership rules and said the 1975 newspaper broadcast cross-ownership ban is “as out-of-date in today’s highly competitive and dynamic digital marketplace as the wide lapels, long sideburns and disco music of its birth year.” He also said it’s important to prevent the ITU from “swallowing the highly successful, non-governmental, private sector, multi-stakeholder model for Internet governance.”

Commissioner Mignon Clyburn touted in her opening remarks the agency’s work to lower the barriers to broadband adoption, tackle wireless bill shock issues and satiate the demand for mobile broadband solutions. Clyburn called the implementation of the 21st Century Communications and Video Accessibility Act the “most important piece of disability legislation since the passage of the Americans with Disabilities Act.” On public safety, Clyburn said it’s a “top priority” to transition spectrum to the First Responder Network Authority, or FirstNet.

Pai said in his written remarks that spectrum auctions will be “foremost” among the commission’s responsibilities this year. He said the federal government has control over too much spectrum and needs to “accelerate efforts to identify and free up as much additional spectrum as is feasible for commercial use.” USF reform is a “necessity, not a luxury,” said Pai, and the FCC’s efforts on media ownership “must reflect the changing nature of our nation’s media landscape.” With spectrum auctions on the horizon, the commission will have “no shortage of challenging issues to address,” said Rosenworcel. “I am confident that with the right mix of engineering and economics, with these new auctions the commission can once again serve as a pioneer.”