His elevation to the slot -- the chairmanship of the House Energy and Commerce Telecommunications and the Internet Subcommittee -- could create more headaches for telephone and cable giants that want regulatory relief.

Markey's decision to take the top slot at the telecom subpanel -- rather than utilizing his seniority to chair the House Resources Committee -- was announced Thursday evening in a press release. It comes as the newly elected Democratic majority on Capitol Hill prepares to take a fresh stab at major telecom legislation in 2007.

Deregulatory telecom bills supported by the dominant Bell firms were not enacted this year with the Republicans in control of both the House and the Senate.

"For the Bell companies, there's no question it's bad news," one industry observer said of the Markey move. This year, Markey voted against a deregulatory telecom bill after the Energy and Commerce panel had rejected his amendments -- which the Bell companies opposed.

But, in a statement via e-mail, U.S. Telecom Association President Walter McCormick heaped praise on Markey, calling him a "longstanding leader" on high-tech issues.

"We look forward to continuing to work with him as chairman to ensure that the U.S. remains technologically competitive in today's rapidly evolving global economy," McCormick wrote. His group represents the four remaining Bell telecommunications companies and other local phone providers.

Commenting on the Markey decision to take the subpanel chairmanship, Art Brodsky, a spokesman for the watchdog group Public Knowledge, said, "It's obviously very good for those of us who favor an open and neutral Internet." Public Knowledge supports Markey's efforts to enact Internet regulations.

Markey was faced with a tough choice after Democrats retook Congress -- to remain focused on a high-profile subject that he relishes, albeit at the subcommittee level, or to inherit a large staff and more authority as chairman of the full Resources Committee.

His choice also could be a blow to cable giants such as Comcast and Time Warner. Markey is the primary author of the 1992 Cable Act and has long railed against skyrocketing pay television rates.

He also is at odds with the cable industry on Internet regulation, though cable providers have backed his positions on some other matters.

"We look forward to continuing to closely working with Chairman Markey as the new Congress convenes in January," said Brian Dietz, a spokesman for the National Cable and Telecommunications Association.

Markey has been on the telecommunications subcommittee since first being elected to Congress in 1976. He previously chaired the subpanel prior to the Democrats losing control of the House in 1994, and has served as its ranking minority member for the past 12 years.

He was instrumental in passing the 1996 Telecommunications Act and laws mandating children's television programming and v-chip technology that blocks unwanted programming.

The panel historically has played a major role in initiating and shaping telecom legislation, making it central to lobbying activity that erupts whenever lawmakers try to move communications bills.

"All things being equal, I think that subcommittee is incredibly lucrative from a fundraising standpoint," an industry source noted.

Had Markey opted to chair the Resources Committee, Rep. Rick Boucher, D-Va., considered much friendlier to the Bell companies, would have headed the telecom panel.

Both Markey and Boucher support network neutrality restrictions designed to ensure that phone and cable providers of high-speed Internet service do not block or degrade competing Web content.

But, this year, Boucher sided with the Bells in opposing requirements that new video providers build out their infrastructure to all residents in served areas.

Boucher ultimately voted for the bill sponsored by current House Energy and Commerce Chairman Joe Barton, R-Texas -- which Markey opposed -- after Markey and other Democrats failed to toughen the net neutrality provisions or add a build-out mandate.