By David Hatch
(Tuesday, July 24) Several House Democrats urged FCC Chairman Kevin Martin to embrace more consumer protections for a major upcoming spectrum auction while many Republicans warned that his proposals already go too far. But Martin's compromise, which would impose consumer-friendly requirements on a portion of the frequencies, also elicited praise from members in both parties and encouraging words from some agency colleagues.
During an FCC oversight hearing before the Energy and Commerce Telecommunications and the Internet Subcommittee, Rep. Joe Barton of Texas, the ranking Republican on the full committee, said Martin, a Republican, appears to have secured the minimum three votes needed to adopt the plan at the five-member agency. The FCC is expected to vote in the coming weeks.
The auction of airwaves to be relinquished by analog broadcasters as they shift to digital television signals is viewed as a rare opportunity to create a new nationwide service offering wireless high-speed Internet access. The topic dominated the hearing, which tackled more than a dozen subjects. It marked the second time this year that all five FCC regulators appeared before the panel.
Rep. Edward Markey, D-Mass., the subcommittee chairman, commended Martin for seeking to create "a beachhead for consumer choice and innovation." Nevertheless, he criticized the plan as "quite modest" because it only requires about a third of the spectrum to be accessible to unaffiliated devices and software. The mandates would not affect the remaining frequencies slated for auction or existing wireless licensees, he said.
But Rep. Fred Upton of Michigan, the subcommittee's ranking Republican, called Martin's proposal -- which meets two of the four conditions cited by Google as preconditions for its participation -- a "gamble." Noting that Google has a market capitalization of $160 billion, trumping wireless incumbents such as Verizon, he said the FCC should not "rig" the auction for one bidder. "The government shouldn't be in the business of subsidizing entry into a competitive marketplace," he said, noting that winners can set any parameters.
Martin countered that consumers would welcome the ability to switch carriers while retaining their phones, something his proposal allows. He noted that wireless providers objected when the FCC permitted subscribers to retain their phone numbers when switching services -- a move now welcomed by consumers.
"The conditions that I've proposed aren't designed to help any particular bidder," Martin emphasized during an exchange with Barton, a critic of the chairman's approach. "I think the reason I proposed that is not about any particular companies, but about the consumers."
Meanwhile, Rep. Bobby Rush, D-Ill., bemoaned the lack of minority and women owners of media and telecom properties, calling the situation "shameful." Minorities comprise 35 percent of the population but own only a fraction of the nation's communications properties, he said.
Also Tuesday, members raised concerns about so-called "forbearance" petitions that incumbent telecom carriers have filed at the FCC to reduce their regulatory obligations. And Markey expressed opposition to an FCC proposal to temporarily cap a massive federal fund subsidizing telecom connections in rural and impoverished areas.