Powell's Hot Potatoes

On the job at the FCC for nine months, Chairman Michael Powell's job gets more charged by the day. Ignoring cable and TV broadcast demands, just heeding the needs of the wireless industry easily could turn into a full-time job.

Three hot potatoes lead his list of wireless initiatives. If they aren't resolved, they could jeopardize the future of wireless.

Spectrum for next-generation wireless services is the most critical.

“Most U.S. carriers are in a mess because there hasn't been a long-term spectrum-management policy,” said Richard Siber, Accenture partner. “Sprint PCS is perhaps in the best position, but the remaining carriers are going to be challenged.”

Identifying the spectrum, managing the issues of relocating the incumbents and developing a reasonable timetable all need to be addressed quickly.

What's at stake if they are not?

“The future competitiveness of wireless players and generations of Americans,” according to Siber.

It's not just about making wireless phone calls. Siber said the wireless platform is about societal change, including improving health care, financial services, education and government.

Second, the spectrum cap needs to be addressed and resolved. Without lifting the cap, which many analysts call “out-of-date,” U.S. carriers always will have limited bandwidth. Siber believes competition will not diminish if this restriction is lifted.

“The arguments that were used to put it in place no longer have merit,” he said.

The third hot potato is the successful resolution of the NextWave situation, which was in negotiations at press time.

“The FCC needs to facilitate this transaction to make sure that NextWave gets what is legitimately fair market value for the battles they have had,” Siber said. “Of course, speedy settlement also helps many of the carriers gain access to spectrum that's much needed for today's services.”

Perhaps if these three issues constituted the whole of the FCC's wireless agenda, it wouldn't be as daunting. However, Powell and his commissioners also must wrestle with other wireless conundrums such as privacy, transaction security and E-911.

“While other FCC chairmen wanted to leave their marks on public policy, Chairman Powell needs to clean up some of their mistakes and worry about broader issues that will affect the future competitiveness of generations of Americans,” Siber said.