Genachowski was chief counsel to former FCC Chairman Reed Hundt in the mid-1990s, during the period when Congress approved the Telecommunications Act of 1996, which deregulated that industry. The legislation helped produce an era of , leading to a from some smaller companies that claimed they were squeezed out of the market. In addition, Obama criticized the outgoing Bush administration during the presidential election campaign for allowing too much consolidation in the industry.

The selection of Genachowski to head the FCC has yet to be officially announced. But his nomination wouldn't be a surprise. Obama and Genachowski were classmates at , and more recently Genachowski served as the Obama campaign's

Nonetheless, if Genachowski's work at the FCC was the highlight of his resume, he likely would seem an odd choice to shepherd Obama's goal of promoting communications diversity, given the commission's of approving big telecom mergers.

In the years since he worked at the FCC, though, Genachowski has fostered the development of various start-ups through the Washington-based investment firms Rock Creek Ventures and LaunchBox Digital, both of which he co-founded. The two firms have helped fund businesses such as Socialmedian Inc., Heekya Inc. and the online travel site Away.com.

Peter Dailey, a program manager at 's Stratecast telecommunications forecasting division, said Genachowski's experience with start-ups "may mean a shift in focus from incumbent carriers to emerging companies" at the FCC. But if Genachowski is nominated and confirmed as FCC chairman, his policy vision ultimately would be determined by Obama, according to Dailey.