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Disrupted By Protesters

Genachowski Says FCC Aims to Adopt New USF System by August

MOUNTAIN VIEW, Calif. -- The FCC aims to adopt a universal service overhaul by August, Chairman Julius Genachowski said. “Over the next few months, we'll be able to significantly reform this program,” he said Thursday night at the Commonwealth Club civic forum. Genachowski mentioned the Universal Service Fund (USF) more than intercarrier compensation. But the matters are intertwined in a February rulemaking notice and a blog post last month by the commissioners that he discussed.

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Genachowski emphasized political and substantive reasons for gradual change, in addition to stressing the FCC’s progress toward a revamp. “To transition on a dime would be very disruptive to companies that depend on the system and often have an interest in slowing” change, he said. The chairman also acknowledged that he hadn’t won broadcasters over with a speech at the NAB Show in Las Vegas about the commission’s plan for voluntary auctions of TV spectrum for reuse in mobile broadband (CD April 13 p5). “The broadcasting industry continues to study the issue,” he said jokingly.

Genachowski sounded unreceptive to suggestions by AT&T that its proposed purchase of T-Mobile is part of the solution to a forecast spectrum shortage. “The spectrum crunch relates to the overall demand for spectrum capacity ... against the overall supply of spectrum,” he said. “That gap exists and can only be closed by freeing up more spectrum.” Genachowski said in response to a question that the deal and the FCC’s work on it won’t hold up the USF overhaul. He deflected other questions about the purchase on grounds that it awaits evaluation by the agency. The forum’s moderator said 90 percent of the written questions submitted by audience members concerned the deal.

The chairman defended how often he goes to the White House, trips that Chairman Darrell Issa, R-Calif., has said his House Oversight Committee will continue looking into (CD April 15 p2). “It’s important for the FCC to be a resource” to the administration and Congress, since the commission is the expert federal agency on communications, including in public safety, Genachowski said. “It’s appropriate."

Genachowski said his FCC had “really inherited a mess around net neutrality” from a predecessor administration that tried to enforce Internet principles without making them specific or formalizing rules and was slapped down by a federal appeals court. The new rules, themselves facing attacks in Congress and the courts, “bring certainty and predictability to an area that was a mess,” he said. The protection of Internet content and services stokes demand that benefits access providers, creating “a virtuous cycle of private investment throughout the broadband economy,” Genachowski said. “We're seeing ongoing increases in private investment. ... The framework we adopted is a great success.” The commission would “fail” if it based its policy on political expedience, the chairman said. “You can’t make everybody happy."

Genachowski’s appearance was disrupted for more than a minute by chants and outcries from protesters against what they called inadequate protection from health risks of RF emissions from smart meters and cellphones. Five people, some of whom approached the stage, were escorted from the hall, including, the Mountain View Police Department said, by one uniformed and one plainclothes officer. No one was hurt or arrested, the department said. The Stop Smart Meters group took responsibility for the disruption and posted a video at http://stopsmartmeters.org. The chairman didn’t acknowledge the protest.

Genachowski answered multiple questions from the audience on the subject by saying the FCC bases its radiation standards on the findings of experts at the FDA and the World Health Organization. “I'm confident that our standards are protecting people’s health,” he said. Those arriving at the meeting at the Computer History Museum had been greeted at the main driveway by 18 demonstrators supporting groups such as Stop Smart Meters and the Environmental Health Trust.

Much of Genachowski’s appearance was devoted to extolling economic and other virtues of broadband and Silicon Valley; discussing basics of the FCC’s universal service overhaul, National Broadband Plan and spectrum policy, including promoting the use of unlicensed bands; and renewing a theme that U.S. faces an “innovator’s dilemma” in trying to overcome established rules, practices and business interests to move forward on communications policy.