Congressional Leaders Blast FCC Chairman for AT&T/Bellsouth Ploy Posted by Bob at 12/06/06 10:31 AM

Three top congressional leaders expected to be the most influential voices on telecommunications in the new Congress are lambasting a controversial gambit by Federal Communications Commission Chairman Kevin Martin to gain approval of the megamerger of AT&T and Bellsouth.

Declaring negotiations on the proposed $82 billion merger of the two communication giants at an “impasse,” Martin has asked the agency’s general counsel to determine if Commissioner Robert McDowell – a former telecom industry lobbyist who has thus far recused himself from the issue due to a conflict of interest – should be given special dispensation to vote on the deal.

McDowell’s recusal has left the FCC deadlocked on the deal. On one side is Martin and Commissioner Deborah Tate, both Republicans, who want the deal to move forward unconditionally. On the other side are the FCC’s two Democrats, Michael Copps and Jonathan Adelstein, who have refused to approve the merger without substantial consumer protection guarantees.

It is expected that McDowell, a Republican, would vote with Martin and Tate to approve the merger unconditionally, although he has not indicated publicly how he might go on the deal.

The Democratic congressional leaders set to take over telecommunications policy and oversight of the FCC are warning they are not pleased with Martin’s maneuver, however.

Sen. Daniel Inouye, incoming chair the the Senate Committee on Commerce, Science and Transportation, did not mince words in a letter he sent to Martin on Tuesday.

“Regrettably, I write to express my disappointment with your apparent willingness to waive government recusal rules in order to enable Commissioner Robert McDowell’s participation in this proceeding,” wrote Inouye. “I urge you to reconsider such drastic action and return to constructive negotiations with your colleagues.”

The agency also received a letter from Rep. John Dingell, incoming chairman of the House Committee on Energy and Commerce, and Rep. Ed Markey, incoming chairman of the House Subcommittee on Telecommunications and the Internet.

Dingell and Markey did not engage in direct criticism of Martin’s tactic in their letter to FCC General Counsel Sam Feder. Instead, they asked Feder to answer a long list of questions on how he would evaluate Martin’s request and justify any decision.

Markey also issued a statement criticizing the Martin maneuver.

“I believe that forcing a Commissioner to participate in a proceeding in which he or she would otherwise be recused is an extraordinary notion for an independent, impartial regulatory agency,” the statement said.

He also urged McDowell to abstain from voting on the merger should he be unrecused.

“If the FCC General Counsel takes action to compel Commissioner McDowell’s participation, I strongly urge Commissioner McDowell to announce his intention to vote to abstain as a matter of principle,” said the statement.

For his part, McDowell on Tuesday told an investment conference in New York he could up to speed quickly on the agency’s review of the merger if called upon.

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