Powell Wants Less Obtrusive FCC

Communications Today, Feb 7, 2001

By Rodney L. Pringle, rpringle@phillips.com

WASHINGTON - In his first "meet and greet" session with reporters yesterday, new FCC Chairman Michael Powell said the marketplace, not government regulation, should determine competition.

"I don't believe deregulation is like the dessert that you serve after people have fed on their vegetables, like a reward for competition," Powell said. "I believe deregulation is instead a critical ingredient to facilitating competition, not something to be handed out after there is a substantial number of players and competitors in the market."

Powell, 38, has taken over the reins at a time when the agency is trying to figure out how best to ensure competition in the communications marketplace as the Internet, telecommunications and cable industries all converge.

Powell said he sees his agency's role as "more often responding to change rather than driving it."

He lauded the 1996 Telecommunications Act as a success not only in leveling competition, but also in fostering a broadband explosion and opening up the capital markets.

Powell said the FCC needs to become more efficient, decisive, technologysavvy and must focus on innovation.

When asked about how he felt concerning so many DSL companies struggling against many of the Baby Bells to supply service, Powell said that's a sign that competition is taking place.

"A lot of people showed up at the [Gold Rush], but not everybody went home with the gold," Powell said. "That is just the reality of the markets

[today]."

On the "so-called digital divide," Powell said history has shown that the wealthy are often the first partakers of technology's advances.

"I think there is a Mercedes-divide," he joked. "I'd like to have one, but I can't afford it."

The Bottom Line

Powell's "survival of the fittest" approach was probably greeted with cheers from the incumbent local exchange carriers and jeers from competitive local exchange carriers and struggling DSL-companies. Expect an agency that will be less inclined to meddle in mergers and the marketplace.

When asked by a Communications Today reporter how he would like to be remembered after his tenure, Powell said, "History will judge my legacy and the Lord Almighty will judge my works."

Well, Michael, don't be surprised when we put our two cents in as well.