How will change of the FCC guard impact big telecom issues?

16.01.2009

Genachowski's most immediate challenge will be to oversee a successful transition from the old analog television broadcasting system to the new digital system that is due to officially switch over on Feb. 17. So far, President-elect Obama has to delay the switch in order to give U.S. consumers more time to educate themselves about the transition and to learn what equipment they may need to buy in order to receive digital signals on their old analog televisions. Outgoing FCC Chairman Kevin Martin, however, has said that it would be a to delay the DTV transition and has instead proposed extending the deadline for consumers to purchase discounted digital converter boxes through the government's converter box coupon program. No matter whether Congress decides to extend the DTV deadline, the switch is certain to consume the first few months of the FCC's time as the commission works to figure out how many Americans are still in the dark about how to purchase a DTV converter box.

After this, the FCC will likely turn its attention to two topics that have generated a lot of headlines in recent years: 'Net neutrality and universal broadband. In the former case, 'Net neutrality is the principle that ISPs should not be allowed to block or degrade Internet traffic from their competitors in order to speed up their own. Several consumers' rights groups, as well as large Internet companies such as Google and eBay, have led the charge to get Congress to pass laws restricting ISPs from blocking or slowing Internet traffic, so far with little success.

The major telcos, meanwhile, have uniformly opposed 'Net neutrality by arguing that such government intervention would take away ISPs' incentives to upgrade their networks, thus stalling the widespread deployment of broadband Internet. In order to keep maintaining and improving network performance, say 'Net neutrality opponents, ISPs need to have the power to use tiered networks to discriminate in how quickly they deliver Internet traffic.

'Net neutrality advocates have been quick to praise Genachowski's nomination, as they see him as someone who will be a reliable ally in their cause.

"Expect Genachowski to turn his attention to bringing more choice to a broadband market controlled by a cartel of phone and cable companies," Tim Karr, the campaign director for media advocacy group Free Press. "He's also expected to pry open valuable spectrum to broadband innovation and access, something his predecessor, the current FCC Chair Kevin Martin, said was a part of his own legacy at the agency."