[Chairman of the FCC] Powell on Internet service, media rules

Newsobserver ^ | March 6, 2004 | JONATHAN B. COX

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In an hourlong session Friday, Michael Powell, the chairman of the Federal Communications Commission, answered questions from News & Observer reporters and editors as well as some submitted by readers. Below are the edited highlights:

Q. The FCC last year enacted controversial changes to media ownership rules. Where is that debate headed?

A. I think there will be a little bit more noise and action in Congress, but I think they've probably done what they're going to do. I think the court case is the next thing. This thing could go all the way to the Supreme Court. ... The Supreme Court hasn't spoken to media ownership in decades, and that's the big reason regulation is kind of a mess right now. We've kind of lost our moorings.

I, to this day, maintain that the rule-making we did was absolutely consistent with the law and was well-done. Do I regret the controversy? Yes. But I don't think the substantive decisions are off at all.

Q. What are your thoughts about the impact of technology changes on employment?

A. I have a lot of strong views about that. I'll start with being really flip. Very popular today is the very understandable anxiety about the outsourcing of white-collar software jobs to India. That's a legitimate thing to be concerned about. I want to say, "Why aren't we outsourcing to Appalachia or the Mississippi Delta?" There's only one reason: We haven't got the infrastructure there to do it. We should.

I don't think there's anything super-special about other places. Part of it is a cheap labor issue, but that is, I think, overstated as the compelling thing. It's that education systems in other parts of the world are dedicating much more effort to computer literacy, technology capability ... and graduating substantially more young adults who are prepared to work in the information economy. ... The United States right now is 11th in broadband [deployment]. It should be first. That's a problem.

Q. A court ruling this week called into question rules that let companies such as MCI lease gear from big rivals including BellSouth to sell local-telephone service. Is that type of competition dead?

A. I think it will go away ultimately just because technology will take it away. It isn't going to be the best way to offer competitive services. Is it going to go away as a matter of law and policy? No. Is it going to be probably more restricted than it is today? Yes. ... Consumers don't want you to bug them at dinnertime just to sell them a look-alike service that costs the same and really has no difference other than your bill will be a different color. ... All you're doing is selling the Bell's stuff over again. ... I question whether we're spending an enormous amount of money, energy and resources on something that really isn't the key to our future anyway.

Q. Amateur radio operators worry that electric companies will interfere with their signals if allowed to deploy high-speed Internet services over power lines. What do you say to them?

A. We've never said we would let it go on and interfere with critical services. The question is whether it does, and to what extent, and what limits can be placed to make sure it doesn't. We've been fully committed to only allowing things within the range of what we're convinced won't create impermissible interference. ...

Let's say this works, broadband over power lines. Then every person in every building has broadband because of the electrification of this country. There is a plug everywhere. ... We're not going to be easily dissuaded from doing something that has that much potential.