Change Sweeping to the FCC

By Cecilia Kang
Washington Post Staff Writer
Wednesday, January 14, 2009

Julius Genachowski, technology adviser to President-elect Barack Obama, is poised to become chairman of the Federal Communications Commission at a time when communications policy lies at the intersection of sweeping changes in the high-tech business landscape.

With Genachowski's private-sector experience and ear to Silicon Valley, the appointment could signal greater focus on new Internet technologies for the agency, analysts said.

The 46-year-old is a Harvard Law School classmate and longtime friend of Obama and raised $500,000 for his campaign.

He worked as an executive at Barry Diller's IAC/Interactive and as a local venture capital investor. He has invested in "Web 2.0" companies like the social-networking site MyGameMug and the mobile game distributor MPowerPlayer through his incubator, LaunchBox Digital, based in the District.

Genachowski also served as general counsel to then-FCC Chairman Reed Hundt, as a Supreme Court clerk and as an aide for Sen. Charles E. Schumer (D-N.Y.).

Though his appointment hasn't officially been announced, sources in Obama's transition team said Genachowski is expected to be named chairman. His nomination would have to be approved by the Senate Commerce Committee, a process that could take several weeks.

Under the past few chairmen, the FCC has focused on policies of telephone and cable carriers like AT&T, Verizon and Comcast, analysts said. Reform of a $7 billion federal fund to bring phone service to rural and underserved areas, for example, has been wrangled over for years even as consumers increasingly cut their traditional wireline phone service for cellphones.

But high-tech Internet and software giants and start-ups have expressed more interest in communications policy, highlighting the expanded scope of an agency that was first formed to hand out broadcast licenses but now oversees wireless industry competition, the convergence of Internet technology with phone and televisions, and new uses for radio wave spectrum to bring high-speed Internet to urban centers.

Over the past year, the Internet search giant Google pushed more aggressively at the FCC and won a rule that forced Verizon to open part of its network to outside technologies. Microsoft founder Bill Gates has also lobbied the commission over the past year to free up unused radio waves for anyone to use for high-speed Internet access.

"The regulatory initiative is likely to shift some from incumbents . . . to new entrants and other nontraditional telecom and media players, including Internet application/content providers," Rebecca Arbogast, an analyst at the investment firm Stifel Nicolaus, wrote in a report.

That could mean greater opportunities for high-tech companies like Google, Yahoo and eBay and for nascent start-ups in social media and networking. Genachowski, who helped spearhead Obama's online strategy during the campaign, used the social networking site Facebook to spread campaign messages and organize volunteers. The Obama transition has also used the video-sharing site YouTube and applications on its transition Web site for weekly addresses. In a bid for greater transparency, documents and meetings between transition staff and lobbyists on education, health care and energy are tracked on the transition Web site.

"It used to be that communications policy was about voice and hardware. Now it's about voice, video, chat, conference calling and screen sharing," said Josh Silverman, president of Skype, a service that provides voice calls and video conferencing over the Web. "It's at the bleeding edge of where innovation is happening."

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