Pai Expected to Secure FCC Chairmanship After Trump Inauguration

Industry lobbyists and officials told us Friday that Commissioner Ajit Pai, the FCC's senior Republican, is being tapped to lead the agency as chairman on a permanent basis. Spokespeople for President Donald Trump didn’t confirm the reports. The FCC was reduced to three commissioners Friday, as expected, with Tom Wheeler stepping down as chairman and no longer listed on the FCC website among commissioners. Pai has been seen as nearly certain to become chairman on at least an interim basis, and personally met with Trump in New York City less than a week before Friday's inauguration.

Pai was a critic of many of Wheeler’s policies such as net neutrality, and FCC Republicans are expected to act to roll back Wheeler’s agenda. Pai's term expired last year, which means the Senate will need to reconfirm him this year if he's to remain at the commission. Senate GOP leaders sought to include his reconfirmation last month as part of a nominations deal that never happened. Pai, at the agency since 2012, is expected to face a busy agenda (see 1701180066).

News of Pai’s likely ascent made waves among watchers of the industry, who took to social media to voice their reactions. Pai “will be an excellent chairman and steward of the public interest,” David Quinalty, telecom adviser to Senate Commerce Committee Chairman John Thune, R-S.D., tweeted of what he called “excellent” news. The elevation “means big changes at the FCC,” tweeted Kevin Werbach, professor at the University of Pennsylvania’s Wharton School and a member of the Obama administration’s FCC transition team. “He understands the agency, has an agenda & Congressional support.” Pai “would be a truly excellent choice for Chairman,” tweeted former FTC Commissioner Josh Wright. American Commitment President Phil Kerpen added his endorsement on Twitter: “Even more winning!” Trump “naming an FCC Chairman that hasn't been a big campaign bundler would be a very good departure from past practice,” tweeted American Cable Association Senior Vice President-Government Affairs Ross Lieberman.

“Could not be more proud of @AjitPaiFCC!” tweeted Rep. Lynn Jenkins, R-Kan. “Labette County native and one of the Second District's finest!”

Free Press President Craig Aaron lashed out at initial reports about Pai. “Ajit Pai has been on the wrong side of just about every major issue that has come before the FCC during his tenure," Aaron said in a statement. "He’s never met a mega-merger he didn’t like or a public safeguard he didn’t try to undermine. He’s been an inveterate opponent of Net Neutrality, expanded broadband access for low-income families, broadband privacy, prison-phone justice, media diversity and more." He predicted the millions of backers of the FCC's open internet order "will rise up again to oppose his reactionary agenda.”

Trump's inaugural speech yielded few details on his plans for telecom policy and federal regulation, consistent with recent past inaugurations. Some stakeholders took the opportunity to let their own priorities be known.

“We are facing a challenging political climate that threatens fundamental consumer protections as well as a free and open internet,” Public Knowledge President Gene Kimmelman wrote in a long open letter on the group’s concerns on telecom and cable affordability and intellectual property practices he called monopolistic. “Public Knowledge has fought hard to ensure a creative and connected future for all Americans -- one that secures regulatory safeguards, such as reliability of communications networks in an emergency. The Trump administration may jeopardize the [FCC]'s ability to make networks more open, affordable, and available to all of us, and may risk the agency’s capability to maintain consumer rights and protections on the internet. Please join us in the ongoing fight for fairness in the digital age.”

The FCC is down to three commissioners with Wheeler’s departure, with Pai and Mike O’Rielly holding a 2-1 majority over Commissioner Mignon Clyburn, the sole remaining Democrat. “Upon my @FCC departure, I would like to sign off with 3 words of wisdom that guided me well: competition, competition, competition,” Wheeler tweeted Friday.

NARUC has several telecom objectives that “align well with the objectives of the incoming Administration” and recommends Trump consider sitting or former state commissioners to fill open seats on the FCC and at NTIA, President Robert Powelson wrote in a letter to American Enterprise Institute scholar Jeff Eisenach, a member of Trump’s FCC transition team. “NARUC can help you identify suitable candidates.” He said states should play a bigger role in telecom and criticized FCC moves to handle enforcement at a national level that could be done on a state level. NARUC wants “widespread reform of the FCC,” Powelson said, citing a February 2016 resolution with its recommendations. The agency should assess the impact of its activities on state authority and policies and participate in association meetings, NARUC recommended, noting its meeting in Washington next month.

Trump in his inaugural speech referred to his plans for a large infrastructure package, which in the past he has said could be $1 trillion. A cabinet nominee said last week that broadband is an “essential” part of the plans, drawing praise from USTelecom (see 1701180069). “We will bring back our jobs,” Trump said Friday, not citing any specific intentions on broadband. “We will build new roads, and highways, and bridges, and airports, and tunnels, and railways all across our wonderful nation.”

The revamped White House website didn’t list any Trump executive orders issued by our deadline Friday. He's expected to take many regulatory overhaul actions early in his administration, and his aides have said Monday will be considered his first business day. The Senate was expected to be in session Friday and likely confirming at least some of Trump’s cabinet nominees. Trump signed into law Friday a waiver allowing James Mattis to lead his Department of Defense. Mattis is a former general whose service was too recent to allow him to take that position without congressional authorization. As of our deadline, the full Senate had not voted on Mattis’ confirmation.