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Dear Reader:

We wanted to let you know that, after nearly three years of operation on the World Wide Web, National Journal's Insider Update: The Telecom Act ceased publication as of January 1, 2008.

We took this step at a time when the National Journal Group is moving to increase technology coverage -- including reporting on telecommunications and broadcasting issues -- in several of its other publications. In particular, National Journal's CongressDaily -- our twice daily publication for Capitol Hill insiders -- will be adding staff in the coming weeks for this purpose.

CongressDaily will feature the kind of detailed coverage of telecom issues, both on Capitol Hill and at the Federal Communications Commission, that you are accustomed to seeing in Insider Update -- plus a lot more.

If you are interested in a trial subscription to CongressDaily, please call 800-424-2921 or e-mail us at memberships@nationaljournal.com. Thank you for your readership and support of Insider Update, and please don't hesitate to write to me at lpeck@nationaljournal.com if you have any questions or concerns.

With best regards,
Lou Peck Editor In Chief

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Pressure On FCC Spurs Changes At Agency

By David Hatch

(Thursday, December 6) Increased FCC oversight by Democratic lawmakers in both chambers is beginning to prompt changes at the Republican-led agency, as evidenced by two announcements that preceded a high-profile hearing this week before a House panel.

On the eve of the session, the agency said that for the first time it would begin publicly disclosing regulatory proposals that are "on circulation," meaning that they are being reviewed by the FCC's five regulators. Circulated items originate with FCC Chairman Kevin Martin, a Republican, and are shared with his colleagues, two Democrats and two Republicans.

In a Tuesday statement, the FCC said it had informed Congress on Nov. 30 that it plans "to take steps to ensure equal access to information."

The agency acted in response to an October Government Accountability Office report that reprimanded the FCC for media leaks. Massachusetts Democratic Rep. Edward Markey, chairman of the House Energy and Commerce Telecommunications and the Internet Subcommittee, had requested the report. An FCC spokesman said the roster would be updated weekly.

But questions were being raised about the value of the disclosures because few details are provided, rendering the information useless to some.

Speaking to reporters following his appearance at a telecommunications conference sponsored by the Practicing Law Institute, Martin acknowledged the shortcomings. "For example, enforcement items have some redacted information," he said, conceding it would be impossible for non-FCC personnel to decipher portions of the list.

The development also followed a Monday announcement by Energy and Commerce Chairman John Dingell, D-Mich., of an investigation into the agency's regulatory procedures. Martin testified alongside his agency colleagues Wednesday before the telecom subcommittee and will appear with them Dec. 13 at a Senate Commerce hearing.

Watchdog sources, meanwhile, suggested that the agency's unanimous rejection Tuesday of Verizon Communications' request for regulatory relief in six markets was a bow to opposition from Markey and other Democrats. But Martin strongly disagreed, telling journalists that the agency faced a Tuesday deadline and based its decision on standards applied to previous requests.

At the same venue Wednesday night, Martin was the featured guest at the annual FCC Chairman's Dinner sponsored by the Federal Communications Bar Association. Alluding to the pressures he faces from Capitol Hill, Martin deadpanned: "This year I can say I'm actually thrilled to be here. In fact, if I weren't at this dinner, I'd still be testifying before Congress."

Also at the PLI conference:

-- Meredith Baker, the new head of the National Telecommunications and Information Administration, said NTIA "hopes" to begin issuing coupons in February that will lower the cost of digital-to-analog converter boxes. The devices will enable television viewers dependent on over-the-air analog reception to continue using their sets after Feb. 17, 2009, when the switch to digital occurs.

-- And Vinton Cerf, the chief Internet evangelist for Google, spoke about the Internet's potential, including super-fast downloads of television programming and an emerging crop of Internet-enabled devices. But he also warned of pitfalls, including the potential for "bit rot," the inability of future Internet protocols to recognize older digital content.


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