DSL Prime: The New FCC

DSL Prime revises its nominations to the FCC in response to the overwhelming Republican victory on election day.

by Dave Burstein of DSL Prime and Future of TV [November 17, 2004]

Editorial: Dick Notebaert for FCC Commissioner
Pick a pro, not a trainee
After the well-funded election, the Bells act like they have a veto on some appointments to the FCC. Accepting that reality, DSL Prime urges a compromise on a Bell candidate who's competent and knowledgeable, instead of the usual gang of "policy people" with no depth on the real issues. The FCC is typically overloaded with lawyers Bob Pepper has to teach telecom on the job, while carefully deferring to their egos and busy schedules. Even the best, like Bill Kennard and Kevin Martin, typically take two or three years to see through the fog of lobbyist controlled D.C. discussions that avoid the real issues.

Dick Notebaert is the highly effective CEO of Qwest and previously CEO of Ameritech. At Qwest, he's done a remarkable job putting off a bankruptcy that seemed inevitable and keeping the company running without cash to spend. He's a far better politician than almost any of the "professional" pols in our field. I've watched him charm a crowd of Wall Street sharks, tell only the truth in his comments, and manage to keep an hour's discussion firmly on the path he preferred and the audience charmed.

Notebaert hasn't been good for Qwest customers, perhaps, with twice as many unserved by broadband than any other large U.S. telco, and numerous price increases on the table. But that's not his job, which is to make money for the owners of the company, particularly Anschutz.

Notebaert made tens of millions at Ameritech, and came out of retirement for a generous offer from Anshutz. He's at a stage in life where he can afford public service, and his skills and industry knowledge could make him a strong commissioner. Joe Kennedy and Dick Levitt at the SEC have proven those who once served Mammon can later serve the public. Alternately, his CFO, Oren Shaffer, another old pro, knows the business.

I've written before independent businessmen like my friend Jeff Pulver or industry leaders like Dave Clark or Dave Isenberg would be inspired choices. If that's not possible in Bush's second term, at least the Bells could offer some experts, CTOs like Bill Smith or experienced operators like Keiko Harvey. A commissioner who knows which supplicants are fools and who is telling the truth would better serve both the country and the companies.

Becky Klein for Dogcatcher
A symbol of corrupt election finance
Becky Klein's political career should have ended August 17th when Steve Labaton in the N.Y. Times reported she was fundraising funds from the bells and television companies because she expected to become an FCC commissioner. She resigned as a Texas Commissioner because the party needed a strong candidate to run for Congress against Lloyd Doggett, to keep busy in district even though she was likely to lose. Verizon, SBC, and similar responded with tens of thousands for her campaign. The day after the election, Verizon's Tom Tauke urged Bush to nominate her.

American politics is like that; Democratic Bill Clinton essentially sold invitations to sleep in the Lincoln bedroom for campaign funds. I'm told Klein is a hardworking, intelligent woman, no better or worse than the typical policy lawyer. But nominating Klein after she took all the money is sending a clear signal the FCC is for sale.

Earl Comstock, former aide to Republican Senator Stevens, is a much stronger candidate who has spent years looking at telecom issues from inside D.C. I urge Bush to be creative; as election winner, he's entitled to nominees who share his beliefs. But he should find someone ethical and competent.

Copyright 2004 Dave Burstein.
The DSL Prime Newsletter is reprinted with permission.

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