Rinaldo's Departure Signals More Changes Coming at NTIA
NTIA acting Administrator Diane Rinaldo's exit (see 1912160022) about seven months after former Administrator David Redl’s abrupt departure likely means more turmoil ahead, industry observers said Monday. Rinaldo will apparently be replaced by Treasury Department acting Deputy Assistant Secretary-International Affairs Edward Hearst, lobbyists and observers said. It's unclear whether Hearst would be taking over as acting administrator or would be nominated to the role. The White House, NTIA, the Commerce Department and Treasury didn't comment.
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Hearst started at Treasury earlier this year. He was an FCC lawyer 1993-95 and at the State Department 1989-93. Hearst was senior GOP counsel on the House Communications Subcommittee 1995-2000. He was BlackBerry vice president-government relations 2013-18 and SAP VP-global government relations 2003-12.
“My main goal ... was to be a champion and bullhorn for all of the good work you do,” Rinaldo emailed staff Monday. “Accomplishments we've made over the past two years are truly remarkable: The American Broadband Initiative, the Minority Broadband Initiative, federal spectrum regulator ... privacy, 5G, supply chain integrity, FirstNet, public safety."
Industry officials said Rinaldo's departure was a surprise and noted she was developing a good reputation at NTIA. Larry Strickling was administrator through almost the entire Obama administration, but there has been little stability under President Donald Trump. Rinaldo recused herself from spectrum deployment issues because her husband works as a lobbyist for T-Mobile focused on 5G security (see 1905140063). The Trump administration is still working on a national 5G policy.
Rinaldo’s departure “strikes me as not good news” given the ongoing spectrum policy disputes among the FCC, NTIA and other federal agencies, R Street Institute Tech Policy Manager Tom Struble told us. It’s perhaps “less jarring” than Redl’s sudden exit earlier this year because Rinaldo was “only the acting administrator” and because her recusals meant she couldn’t fully lead all the agency’s proceedings. He noted NTIA’s recent letter to the FCC in opposition to Ligado's planned broadband terrestrial low-power service (see 1912090011), among other controversies.
“I’m still hopeful” the Trump administration will nominate a permanent NTIA leader, but “the longer” the White House takes to name someone, “the less optimistic I am,” Struble said. When Redl left, “there was still time” for a new NTIA nominee to go through the Senate confirmations process, but the window for that chamber to plausibly consider nominees is rapidly closing. If Hearst moves to administrator as “someone to do [Commerce Department Deputy Chief of Staff and Policy Director Earl Comstock’s] bidding at NTIA, that’s going to be a source of concern,” Struble said. Comstock's positions have conflicted with goals of FCC Chairman Ajit Pai (see 1906120076). Others also raised concerns Comstock is seeking Hearst’s appointment to consolidate his Commerce power base.
"There is enough time for [Rinaldo's] replacement to come in and for the U.S. government at the senior political levels to be able to do everything that needs to be done in 2020, as long as things move forward quickly," said Wiley Rein telecom and internet governance lawyer David Gross. "It's not bad timing. It's after" this year's World Radiocommunication Conference "and before the important international meetings" in 2020, he said. "It'll be important that whoever replaces [Rinaldo] comes in quickly and with full authority to represent NTIA."
American Enterprise Institute visiting fellow Shane Tews said Hearst is a “good choice.” He “knows the ins and outs” of both the policy issues NTIA handles “and the politics” underlying them, Tews said. “He could probably do a damn fine job” given his experience at the FCC, House Commerce Committee and in the private sector. She expects Hearst or another successor to sign on as only an acting administrator given the limited time left before the 2020 election. “Nobody wants a nomination fight” so close to the campaign, especially given the amount of time that’s already elapsed since Redl left, Tews said.
“One of NTIA’s most important functions today is overseeing the use of government spectrum at a time when there is rapidly increasing demand,” emailed Free State Foundation President Randolph May. “More than ever, NTIA needs a leader who is knowledgeable regarding spectrum matters, and who also has the standing and ability to get the Administration to direct the various federal agencies not to hoard or hold onto spectrum."
House Commerce Committee ranking member Greg Walden, R-Ore., praised Rinaldo. "Her expertise on supply chain security, broadband deployment, public safety, and more was essential in advancing open and secure communications in the U.S. and beyond," Walden said in a tweet from House Commerce Republicans.
“During her almost two year tenure at the Department of Commerce, Diane has led NTIA to multiple successes on 5G, supply chain security, broadband and public safety communications,” said Commerce Secretary Wilbur Ross.