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October 26, 2005

Business Week has an interview with FCC Chairman Kevin Martin.

As he waits for the White House to fill vacancies that will give him a Republican majority, the FCC chief is now set to approve the historic mergers of SBC and AT&T, and of Verizon and MCI, by as early as the end of October (see BW Online, 8/31/05, "So Long, AT&T? Not So Fast").

Then, he tackles an ever-thornier set of issues, ranging from indecent broadcasts to the rewrite of the telecom laws. Martin discussed upcoming issues with BusinessWeek's Washington correspondent, Catherine Yang, on Oct. 12. Below are edited excerpts of that conversation.

What do you want to accomplish most during your tenure?
The Commission's top priority is broadband deployment and to make sure other new technologies are deployed as quickly as possible.

Are you troubled that the U.S. ranks No. 16 in the world in broadband penetration?
It should be a concern of the Commission to make sure that broadband technologies -- both wire-line and wireless -- be deployed as quickly as possible.

When you compare where we stand internationally, you have to take into account that we have very large sections of the country that are rural and where it costs more to deploy (see BW Online, 6/28/05, "Good for Cable, Bad for America").

For example, Massachusetts and Japan have about the same population density. Massachusetts is ahead of Japan in broadband penetration. But that doesn't mean there's not more we can do.

Should broadband providers have to pay into the universal service fund, which taps long-distance fees to subsidize phone service for rural and low-income households?
What I advocate is moving to a technology-neutral way of collecting universal service funds. Telephone numbers are technology-neutral. Whether you're a wire-line provider, wireless provider, or new VOIP provider, [your customers] need a telephone number. [By assessing charges per phone number,] we're could [put a system in place to] collect money from consumers regardless of which technology they use.

One hot regulatory issue involves the efforts of phone companies to win approval from local cable-franchising authorities to provide TV services over fiber networks. Do you favor a broad granting of authority allowing phone companies to go ahead?
Local franchising authorities have the responsibility of granting access to their communities. But the 1992 Cable Act says local franchising authorities are not allowed to [unreasonably prevent] second entrants [in a market] from coming (see BW Online, 9/28/05, "Verizon's Muddy TV Picture"). The Commission may hold a proceeding to see if we have a role in [the franchise approval process].

Why have you taken such a strong stand to require Internet phone providers to link up to 911 operators -- at a time when many warn of saddling new technologies with too much regulation?
There's nothing we can do that's more important than making sure new communications services don't leave people unconnected with emergency personnel.

Many of the FCC policies completely baffle me.

The Bush administration says they want to offer ubiquitous broadband and plans to open of 90 Mhz of spectrum (see DW: President Wants 90MHz), which will be auctioned next June. The spectrum, at 1710-1755 MHz and 2110-2155 MHz, will be broken up in smaller geographic portions in order for smaller carriers to bid on them. Sounds good. But duplex 5Mhz channels sound like a sweet deal for UMTS-based Cingular. How does that help inexpensive broadband wireless? It sounds like a bad play.

The buyout and elimination of 2.3 GHz broadband wireless by XM radio is another issue. Then there's the domination of licensed 2.5 GHz by Sprint/Nextel, the power limitation of 5.4GHz (made available by the efforts of Senator Barbara Boxer), the elimination of telco DSL competition, the limitations of 3.5GHz, silence on attempts to ban virtually all municipal networks, the elimination of unlicensed 700 Mhz, a screwed up DTV system, and the general lack of affordable broadband and competition in the United States.

What kind of broadband policy is that?
Sucking up to SBC is good for America?


Originally posted by samc from Daily Wireless, remediated by yatta on Oct 26, 2005 at 06:56 PM