COMMENTS ON THE REAL COST OF THE ‘MICHAEL POWELL EFFECT’

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Michael Powell, in my view, has not only been an unmitigated disaster as Chairman of the Federal Communications Commission, he has presided over the gutting and flattening of broadband and IT innovation in the country, that may only just barely survive his stewardship.
The economic cost of lost jobs, diminished rates of investment, and the monopolistic nightmare of empowered regional Baby Bells hostile to new competition will mean that for years forward a “Michael Powell Effect” will mean a big, fat drag on the information technology sector, the broad economy and nation.
Here is an editorial that ran in yesterday’s Boston Herald. I am convinced that it must be facetious praise for the Secretary of State’s son. But on the other hand, it may be earnest applause. If so, it is still hilarious.
I love the last two grafs:
“I’m a big believer in the First Amendment,” Powell has said, “but often I’m incredibly uneasy about lines we have to draw. No one takes pleasure in trying to decide whether this potty-mouth word or that potty-mouth word is a violation of the law.”
Finding a replacement with Powell’s intellect and sense of balance will be a real challenge for President Bush’s second term.
But here is the entire piece:
Boston Herald
Editorial — FCC chair’s shoes huge ones to fill
22 January 2005
Federal Communications Commission Chairman Michael Powell is one of those too-rare public officials who seem to be able to see around corners – in his case around the corners of new technology critical to the growth of the telecommunications industry.
His will be mighty big shoes to fill now that Powell has indicated he will leave shortly – and well before the 2007 expiration of his current term.
It’s understandable that a guy who has served four years as chairman and four years prior to that as a commissioner might be ready for new challenges. And it likely doesn’t help that Powell was largely undervalued by the Bush administration, which failed to fully support his efforts to bring media ownership rules into the 21st century.
Throughout his tenure, Powell understood the enormous economic power inherent in advances in telecommunications. At a meeting this fall with Herald editors and reporters he talked about his fascination with voice-over-Internet technology, previewing an FCC decision that would free it from the federal regulatory thicket.
And when he wasn’t occupied with taking on those enormous challenges, he was leading an effort to protect TV viewers from things like Janet Jackson’s Super Bowl night “wardrobe malfunction” with some of the largest fines ever levied in broadcast history.
“I’m a big believer in the First Amendment,” Powell has said, “but often I’m incredibly uneasy about lines we have to draw. No one takes pleasure in trying to decide whether this potty-mouth word or that potty-mouth word is a violation of the law.”
Finding a replacement with Powell’s intellect and sense of balance will be a real challenge for President Bush’s second term.

Powell will be on the prowl now for his next gig — and serving on corporate boards is a frequent next step for someone in his situation. Let’s watch and see where he goes first, second, and third. I want to see which Baby Bells jump for him first.
If this happens, the true corruption behind some of his decisions will be evident.
To be fair to Powell, he denies he is on the job hunt. This was reported in yesterday’s Washington Times:
Mr. Powell declined to discuss his plans, although he is believed to be interested in the presidency of his alma mater, the College of William & Mary in Williamsburg, Va., a job that will open when the current president, Timothy J. Sullivan, retires June 30.
Mr. Powell, a Fairfax Station resident, is a member of the school’s Board of Visitors. The moderate Republican also has been mentioned as a potential candidate for governor or senator in Virginia or for a federal judgeship.
“I really want to work until my very last day here, so it’s really not appropriate for me to be job searching,” he said.

I’m more worried about the job “positioning” he was doing at earlier points in his tenure — but I’ll be pleasantly surprised if Powell avoids the allure of Baby Bell enticements given all the favorable, anti-competition decisions he helped generate for them.
— Steve Clemons