Save Access

from: Technology Daily

Sen. DeMint Pessimistic On Chances For Market-Based Telecom Reform

By Andrew Noyes

(Tuesday, November 14) Chances for market-based communications reform in the Democratic-controlled Congress that convenes in January are "slim to none," Sen. Jim DeMint, R-S.C., said.

But in the next few years, DeMint said administrative changes at the FCC and "incremental legislation" could thwart more burdensome regulations on industry.

DeMint's comments came as the Progress and Freedom Foundation unveiled a report by a working group focused on the foundation's proposed Digital Age Communications Act, or DACA. Last year, DeMintmaker introduced a bill nearly identical to the free-market think tank's model legislation.

Under the proposal, the FCC would be transformed into an agency that is more focused on antitrust and consumer protection. DACA rejects the agency's traditional state-empowered regulatory regime and would reshape it to look more like the FTC.

"Playing defense" will be a major part of free-market proponents' strategy in the 110th Congress, DeMint said. He urged PFF and its allies to continue to lobby the FCC.

It is "more important than ever" to push for "the right way" to reform communications laws, he said.

DeMint added that he may be surprised by some Democratic newcomers on Capitol Hill who ran their campaigns on "conservative principles." They may support the DACA, he suggested.

Viewing communications as a state-based regulatory issue is a "huge mistake," he said. Although states depend on telecommunications tariffs to fill their coffers, communications is a global, interstate commerce issue, DeMint said.

"Tell the states to get their revenue somewhere else," he advised.

The PFF's report proposes a "split agency" structure under which adjudications and enforcement matters would be performed by a multi-member commission similar to the current FCC. A single administrator in the executive branch would conduct the rulemaking function.

But telecom attorney Jonathan Nuechterlein was skeptical about the split-agency model.

"Simplicity is better than complexity," he said, expressing doubt about the line the report draws between adjudicatory and rulemaking functions.

Nuechterlein, who formerly served as the FCC's deputy general counsel, said many cases "cannot be easily characterized as one or the other," and merger proceedings are an example.

And Stanford University economics expert Roger Noll was pessimistic about changing the FCC's oversight of the telecom sector.

"There is no good, strong historic evidence that rearranging deck chairs on the Titanic prevents it from sinking," he said. "If you have a bad statute, it doesn't matter what kind of agency you have. It's going to collapse."

Noll blasted the 1996 Telecommunications Act and said "no reorganization of the FCC can fix the problem." That is evidenced by rulemakings in the last decade that have been slow and cumbersome, he said.

Bryan Tramont, a onetime chief of staff to former FCC Chairman Michael Powell, defended the agency. Those who complain of the FCC's divisiveness and slowness are misinformed, he said.

About 95 percent of FCC decisions are unanimous, and most are decided within 30 days of their arrival at the agency, he said. Most rulemakings are resolved in 12 to 18 months, and countless "more routine" rulings are made daily, Tramont said.