JANUARY 14, 2009

Obama's Pick for FCC Signals Change

By AMY SCHATZ and SHIRA OVIDE
Wall Street Journal

http://online.wsj.com/article/SB123189367347579431.html


President-elect Barack Obama's choice of Julius Genachowski to lead the 
Federal Communications Commission signals that issues affecting 
telecommunications and media companies will take a high profile in the 
administration.

Mr. Genachowski, one of Mr. Obama's Harvard Law School classmates, 
sometime basketball teammate and adviser during the presidential 
campaign, would bring a background both as a technology-industry 
executive and regulator to the position.

Industry and consumer groups are scouring a nine-page technology plan 
released by the Obama team in 2007 for indications about what Mr. 
Genachowski -- who masterminded the plan -- might do at the agency.

Mr. Obama pledged in his plan to revamp government programs to expand 
the reach of high-speed Internet service. Mr. Obama also expressed 
support for "network neutrality," which prohibits carriers from moving 
some Internet traffic faster at the expense of other traffic. The latter 
is a contentious issue for big Internet, cable and phone companies, as 
well as start-ups.

Broadcasters are keenly interested in whether Mr. Genachowski will take 
a more moderate approach to enforcement of indecency standards. 
Thousands of complaints backed up at the FCC over the past few years 
after the agency's tougher enforcement policies -- and multimillion 
dollar fines -- were challenged in court by broadcasters.

Mr. Obama's plan advocated using technology to help "protect our 
children while preserving the First Amendment." Hollywood and 
broadcasters interpreted those statements as code that an Obama FCC 
would revert to its pre-Bush-administration days of restrained 
enforcement and smaller fines.

Mr. Genachowski's expected appointment to the FCC is a homecoming of 
sorts. He served as the top policy attorney to former FCC Chairman Reed 
Hundt during the early years of the Clinton administration, when it held 
major cellphone-airwave auctions and infuriated broadcasters by 
suggesting they pay for the digital airwaves they now use.

A former Supreme Court clerk for Justices David Souter and William 
Brennan, Mr. Genachowski is described as warm, smart and tireless by 
former co-workers -- "a perpetual motion machine," said his former 
colleague Dara Khosrowshahi, who now is chief executive of Expedia Inc.

For the past decade, Mr. Genachowski, 46 years old, has been out of 
government serving on corporate boards, working his way up the ladder at 
Internet and media conglomerate IAC/InterActiveCorp from general counsel 
to head of business development and, later, forming his own venture 
capital firm. Mr. Genachowski didn't return calls for comment.

"The Obama campaign and administration has just lucked onto the fact 
that they have someone this talented," said IAC founder Barry Diller.

Industry and consumer groups were quick to praise Mr. Obama's choice 
Tuesday. The National Association of Broadcasters, which sparred with 
Mr. Genachowski during his FCC days, called him a "superb" choice, for 
example. Verizon Communications Inc. called his selection "a great boost 
for the nation's drive to be the world leader in all things broadband."

The Obama tech plan called for the U.S. to increase its definition of 
"high speed" Internet and reform a $7 billion federal phone-subsidy 
program to help cover the costs of offering broadband in rural areas. It 
also called for encouraging diversity in media ownership, a signal that 
efforts by big media companies to expand their empires could face 
tougher scrutiny.

"I'd say to people who see this really genial guy, don't underestimate 
him. He can be tough when he needs to be," said Gigi Sohn, president of 
public-interest group Public Knowledge. She served on a board that wrote 
digital-television public-interest rules with Mr. Genachowski, who was 
then at IAC.

Mr. Genachowski, if confirmed, could become point-man for fixing the 
transition to digital-only television.

-- 
================================
George Antunes, Political Science Dept
University of Houston; Houston, TX 77204 
Voice: 713-743-3923  Fax: 713-743-3927
Mail: antunes at uh dot edu

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