Powell's wireless legacy
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He might eventually be remembered more as the FCC chairman who oversaw a record number of broadcast indecency fines in the wake of the Janet Jackson-fueled “Nipple-gate,” but Michael Powell, who announced last month that he will resign his chairmanship in March, also reigned over wireless rulings both famous and infamous.
During Powell's four-year tenure as chairman, he led the commission that came to a swift and fairly straightforward approval of the largest merger in the history of the wireless industry: the acquisition of AT&T Wireless by Cingular Wireless.
This huge deal was one of the first moves in what seems likely to be a wave of consolidation across the industry. Since the FCC approved the Cingular acquisition last fall, Sprint and Communications have proposed a merger, and Alltel has bid to acquire Western Wireless. Though Powell is leaving and fellow FCC Commissioner Kathleen Abernathy is rumored to be following him out the door, industry analysts have suggested that the departures will not affect the FCC's evaluation of these deals.
Powell's most-publicized work in the wireless realm came in the 800 MHz spectrum proceeding designed to prevent commercial wireless carriers from interfering with other users in the band — specifically, public-safety entities. After being disparaged for not moving on the issue sooner, Powell eventually led the negotiations on a unanimously approved order that called for Nextel to pay for the rebanding of 800 MHz frequencies, provided Nextel with contiguous spectrum that many believe led to its merger announcement with Sprint and secured additional spectrum for public safety.
Also, the Powell FCC was credited with having an open-minded attitude toward Wi-Fi operators and other broadband wireless carriers using unlicensed spectrum. Though such operators are not regulated by the agency, Powell oversaw the easing of restrictions on unlicensed spectrum that will give these operators access to more airwaves.
At press time, a new FCC chairman had not been named.
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