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Jan. 17, 2009

After having been found guilty of deception and distrust, and with all the bad publicity surrounding FCC Chairman Kevin Martin, he has announced publically that he is resigning.

Martin is set to become a senior fellow at the Washington-based think tank Aspen Institute, according to various reports.

The move is simply a formality, as Martin was an appointee of President Bush, moving up to the chairman’s seat in Bush’s second term. His replacement in the Barack Obama administration will be Julius Genachowski, although that is not yet confirmed by the transition team.

Kevin Martin, summarizing his tenure, cited nationwide progress in improving the availability and reducing the overall cost of both wireless and landline communications.

Genachowski is already endorsed by the CTIA and public advocacy groups. It’s likely that current FCC commissioner Michael Copps will serve as interim chairman until Genachowski is confirmed by Congress and the Obama administration.

“During this period, we have seen a telecommunications industry undergoing rapid and unprecedented change."

"As a result of the market-oriented and consumer-focused policies we have pursued, the American public are now reaping the rewards of convergence and the broadband revolution, including new and more innovative technologies and services at ever-declining prices,” Martin wrote in an official resignation letter to Bush.

All eight FCC divisions presented public overviews of their work under Martin’s leadership yesterday.

However, Martin’s tenure ends with a lot of controversy and some very unfinished business. A recent report by House Democrats focused on his allegedly abusive and improper management.

Technological issues, such as the change from analog to digital television, are also somewhat chaotic, depending on who you ask, while the role of auctions for public-safety purposes is still under a lot of debate.

Also in Washington this week, the House began drafting a new bailout report – The American Recovery and Reinvestment Act – which contains a little over $2.82 billion in funding for the NTIA.

The wireless industry would get $1 billion of those funds for unserved and underserved regions, helping with “the deployment of basic broadband service or advanced broadband service,” the report states.

“Factors in grant award decisions by the NTIA will include public safety; state reports on priorities; increases in affordability and subscribership; service enhancement for health care delivery, education, or children; enhancement of computer ownership and computer literacy; and state or local matching funds."

"Grant recipients must also meet buildout requirements and adhere to open access principles,” it continues.

Last month, the U.S. House Committee on Energy and Commerce concluded in a year-long investigation that FCC Chairman Kevin Martin was guilty of deception and distrust.

House Members John Dingell and Bart Stupak, both Democrats from Michigan wrote in the report “there are specific instances in which Kevin Martin manipulated, withheld, or suppressed data, reports and information with the clear intent of seriously affecting congressional decision-making.”

Additionally, FCC matters simply weren't treated openly and transparently the report notes as well. The Federal Communications Commission failed to carry out important responsibilities and Martin alienated other commissioners as well, the 110-page report states.

Also, Martin is accused of retaliating against other FCC employees who disagreed with his policies and cites no less than 22 exhibits of evidence.

The House report also states that T-Mobile USA may have received a favor from Martin, who reduced a do-not-call fine against the wireless carrier from over $1.3 million to just under $100,000. Martin's intervention was "highly unusual" and "a mystery," the report suggests.

Martin now faces even more congressional pressure, a development that could jeopardize a scheduled vote on a free wireless broadband plan. Senator Jay Rockefeller and Rep. Henry Waxman who are in line to chair the Senate and House Commerce committees next year urged Martin in a letter to concentrate on the upcoming digital TV transition.

The letter came only 48 hours after the Bush administration registered its opposition to Martin’s advanced wireless services-3 (AWS-3) initiative. The vote is to decide on the controversial AWS-3 spectrum auction.

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Source: The FCC.