Now Hear This Newsletter, November 6, 2008 Posted by Bob at 10/23/08 12:03 PM

There were some huge votes and non-votes at the Federal Communications Commission on Election Day this past Tuesday, all of which could have major implications for consumers.

In a meeting scheduled for some inexplicable reason on the day Americans headed to the polls, the commission packed the agenda with a whole host of controversial proposals in an apparent attempt to get them done before the election results began flowing in Tuesday night.

With one exception, the FCC approved all of the big proposals FCC Chairman Kevin Martin had put on the Election Day menu by the time the television networks began calling the earliest state contests Tuesday night.

Two of those proposals approved on Tuesday could hold long-term benefits for consumers.

The first will allow portable devices to use the airwaves between TV channels – commonly referred to as “white spaces” – for wireless broadband service. Backed by some odd allies including singer Dolly Parton and the National Football League, broadcasters were adamantly opposed to the proposal, saying it might interfere with their signals. But the proposal was backed by such technology heavyweights as Google, Microsoft, Dell and Hewlett-Packard.

Opening up those white spaces, which are located within one of the most sought after portions of the broadcast spectrum, could eventually lead to plethora of new communication devices and services.

Another merger approved by the FCC on Tuesday could also eventually result in some benefits for consumers.

It involved the merger of Clearwire and Sprint Nextel's Xohm unit. The companies, along with Intel, Google, Comcast, Time Warner and Bright House, agreed earlier this year to a partnership that proposes to create a nationwide broadband wireless network based on high-speed WiMax technology to compete with wireless leaders Verizon and AT&T.

It's hard to see how consumers will benefit from the other major item approved by the FCC on Election Day, however.

It was a controversial merger of Verizon Wireless and Alltel, a deal that will create the country's largest wireless phone company with more than 80 million customers. This kind of additional consolidation in a wireless phone industry that has already been reduced to just four big national players means there will be even less incentive for the remaining companies to compete aggressively against each other for consumer dollars.

To their credit, a bi-partisan block of four FCC commissioners banded together against a sweeping plan by Chairman Martin to overhaul the multi-billion dollar system phone companies employ to pay each other for use of their networks. Among other things, the Martin plan would likely have led to higher phone bills for both consumers and businesses. The biggest beneficiaries of the Martin plan were expected to be phone companies such as Verizon and AT&T, which had lobbied hard in favor of the plan.

comments (11)

1 Posted by Florence E. Portell at 10/23/08 12:35 PM

I think the FCC should suspend operations until after a new president takes office, not after the election! They are so infiltrated with doing for big business they no longer consider the American taxpayer and stockholder! We did hold Alltel stock until a buyout, not through choice but because Alltel sold out. Now Alltel is going after Verizon. Sounds as if all this irresponsible action is leading to a monopoly!

2 Posted by Gary Fadely at 10/23/08 12:58 PM

I agree with Consumer Union's concern and ask that a more transparent and careful due process be followed in order that the consumers' interest is heard and protected. Thank you for your consideration.

3 Posted by Joe at 10/23/08 01:44 PM

Kevin Martin must think his job is to protect the communications companies instead of the public. He's done this continuously on just about every front while he's been FCC Chairman. If the FCC Chairman is a political appointee, I hope that the new administration starts taking care of the public. Business rules in our country! Proof of that is the U.S Chamber of Commerce's record regarding illegals (cheap labor for businesses)! In Lee Iacocca's recent book "Where have all the Leaders Gone", he got it right when he said to "throw all the bums out" in Washington D.C.

4 Posted by (Ms.) Meryle A. Korn at 10/23/08 03:48 PM

I call on the Federal Communications Commission to put a moratorium on considering any proposals until every proposal has been opened to public comment for at least three months. This would allow the people - we, the Americans whom the FCC is responsible for protecting - time to study the pros and cons of each proposal and comment on them prior to any action being taken. Some have claimed the FCC is attempting to push through rule changes prior to a new President taking office in January, 2009. If this is the case, it would be far better and more honorable to set aside any new actions and decisions for the time being.

5 Posted by lynn at 10/23/08 04:02 PM

make this an on line petition and i'll sign.

6 Posted by Maclovio Diaz at 10/23/08 05:28 PM

I think if they merge one big company, The consumer in the future will paid more for services creating a monopoly.

7 Posted by JERRY CUMBIE at 10/23/08 08:04 PM

What in the world is wrong with these people to schedule all these important subjects in one hearing and on a national election day yet.
This appears to be just some more screw the American People tactics that we have seen for the last eight years.

8 Posted by 303-682-0005 at 10/24/08 10:27 AM

I thought competition was supposed to increase competition not promote monopolies.

9 Posted by david phelps at 10/24/08 01:16 PM

These telecoms need not do this behind closed doors, sinse it affects us all. Where is the tranparency?

10 Posted by Mary Lewis at 10/26/08 12:53 PM

This hearing should deffinitely be held after the new president takes office. There is too much at stakes to be crowded in on Election Day.
what ere the members thinking?

11 Posted by Tom at 10/31/08 01:49 PM

Shifting access charges from the large telcoms such as AT&T and Verizon to the consumer is just plain wrong! What has AT&T or Verizon done to get this type of windfall of profits. Imagine having your largest expense slashed from your budget, for most of us that would be our mortgage! Wouldn't that be nice? Yes, but for us it's a pipe dream. Why is this a possibility for AT&T and Verizon, and others? Do you think that somehow those profits will trickle down to the consumers? Not a chance. Stop the madness FCC. I suspect that if rash decisions are made, you will be faced with embarassing press, legal litigation, and many more enjoyable times, long after you've left the commission.