Industry lauds FCC restructuring plan
By Margaret Quan
EE Times
(08/13/99, 4:39 p.m. EDT)
WASHINGTON — The communications industry is hailing the Federal
Communications Commission's plan to recreate itself for the 21st century, but
wonder whether the agency can complete its work under its self-imposed
five-year time frame. The industry has been asking for changes in the FCC
since the enactment of the Telecommunications Act of 1996.
The plan, which FCC chairman William E. Kennard delivered to Congress on
Thursday (Aug. 12), includes the agency's commitment to restructure itself
for the digital age in order to function better, facilitate vigorous competition in
all communications markets, manage the nation's airwaves, and ensure that
consumers benefit from the communications revolution.
The FCC's goal is to make a smooth transition from "industry regulator to a
market facilitator," Kennard said in the plan's executive summary.
In five years, the U.S. communications market will be "characterized
predominantly by vigorous competition that will greatly reduce the need for
direct regulation" as Internet-based and other new technologies drive
communications services that erode the traditional regulatory distinctions
between the sectors that characterized the communications industry in the
past, Kennard said in the plan's summary.
Two key points in the plan hit home with communications industry
executives, according to Grant E. Seiffert, vice president of government
relations for the Telecommunications Industry Association (Washington).
One is the intent to reorganize the FCC according to functional tasks, rather
than technology. (The agency's current organization is divided for wire,
wireless, satellite, broadcast and cable technologies.) Second is its goal to
hire 5 to 15 percent more engineers and to increase the expertise of FCC
staff.
Seiffert called the plan "a positive move in the right direction." But a major
question remains: "Can they execute the plan and follow through with their
goals?" he asked.
"The [telecommunications] industry has been asking for changes for a long
time," Seiffert said. "The agency is operating in 19th century fashion at a time
when the competitive environment demands that telecommunications industry
operate in the 21st century."
The FCC's plan to hire more engineers is "critical," Seiffert said, and must
happen in a timely manner. "The plan to make changes is a good one, but five
years to make these changes is too long. We need quick, decisive change
Speed is critical at this time. We can't afford to wait for someone to sign a
pink sheet of paper and pass it along to someone else," he said.
Other industry executives shared Seiffert's concerns.
The Personal Communications Industry Association (PCIA) is "pleased that
there is thoughtful work going on to determine the FCC's role in the 21st
century, both at the Commission and on Capitol Hill," said Mary McDermott,
senior vice president and chief of staff of government relations for PCIA
(Alexandria, Va.), in a prepared statement. "The FCC and Congress now
need to agree on what the Commission's mission should be in the 21st
century. Once that is accomplished, it should be easier to determine what
organizational structure best suits that mission."
McDermott said the PCIA will continue to review the plan, especially its
performance measures and goals.
The Cellular Telecommunications Industry Association (CTIA; Washington)
called the plan "positive," and cited the FCC's effort to "move away from the
structures that were established to regulate in a monopoly environment."
The CTIA said it hopes the FCC will "rapidly move away from the
monopoly-think of yesterday and evolve into an agency that embraces the
benefits of competition in telecommunications."
A spokesman for the Electronics Industry Association (Arlington, Va.) said
the plan will bring "welcome" changes to the communications industry.
"Anything that improves the processes of the agency and updates its ability to
recognize technological changes and adapt to them is good for the industry
and it makes sense to us," the EIA spokesman said.
David S. Turetsky, vice president for law and regulatory issues at Teligent
Inc. (Vienna, Va.), a communications services company currently building its
own digital wireless network, said the plan is good but believes it may take
more than five years to create vigorous competition in all communications
markets. Turetsky said he is also concerned that the FCC's intention to get
involved in consumer issues — such as making sure that customer bills are
clear and easy to understand — will be moot once the industry becomes
more competitive.
Chuck Hewitt, president of the Satellite Broadcasting Communications
Association, (Alexandria,Va.), said the association is pleased about the
overall plan to improve efficiencies, but is concerned about a point in the plan
that calls for similar bureaus to deal with services that are a substitute for
one another.
Hewitt said he hoped the restructuring will not "jeopardize" the international
bureau the FCC created to address domestic and international satellite issues.
"The satellite industry benefited greatly" when the international bureau was
created, Hewitt said. |
