House Republicans Officially Make Upton Commerce Committee Chair

Upton’s office said he has made no decisions about who will chair House Commerce’s subcommittees, except for naming Rep. Joe Pitts of Pennsylvania to head the Health Subcommittee. They said the communications subcommittee will play a major role in what telecom issues come up, more so than usual perhaps because the congressman made other issues, including rolling back healthcare legislation, a centerpiece of his Commerce Committee campaign. “The administration’s rampant spending and unfettered, two-year assault on the health, energy, and telecommunications sectors is now over,” Upton said Wednesday.

Upton’s letter to colleagues Tuesday night seeking their vote for that role didn’t mention any communications issue other than indecency. “I have fought to curb indecency in public broadcasting with the passage of the Brownback/Upton Broadcast Decency Enforcement Act of 2005,” Upton wrote colleagues. He said he also has worked hard to “protect our kids from online predators.” Upton’s reference to indecent content on broadcast TV worried an industry executive. But Congress likely won’t act soon on the issue and instead will watch developments in appeals against the FCC’s policy of censuring broadcasts for containing a single swear word or brief instance of nudity, the executive predicted.

Upton received a minimal amount of his campaign donations from telecom, records show. In the most recent election, he got $153,500 in donations from political action committees run by telcos, broadcasters or technology companies, Federal Election Committee records show. He received another $22,871 from individuals with ties to telcos, broadcasters or technology companies, the records show. The total -- more than $176,000 -- represents less than 9 percent of the personal and PAC donations he received in 2009-10, they show. About 11.5 percent of his overall donations that came from PACs in the period came from telcos, broadcaster or tech PACs, the records show.

Viacom and its employees were the most generous to Upton, giving him $8,000 through its PAC and another $4,800 each from company CEO Philippe Dauman and Chief Financial Officer Thomas Dooley, records show. Dauman’s and Dooley’s donations were the biggest single donations to come from individuals in the 2009-10 election cycle, FEC records show. Verizon gave $10,000 through its PAC, and an additional $1,000 came from Senior Vice President Howard Woolley and $250 came from Vice President William Senn, FEC records show. PACs controlled by Comcast, the National Telecommunications Cooperative Association, NCTA and T-Mobile each gave $10,000, FEC records show. Time Warner gave another $8,500 through two different PACs and AT&T’s PAC gave $7,500, the records show.

'Net Neutrality Will be Central'

Issues likely to arise next year before the House Commerce Committee or the Communications Subcommittee include net neutrality, the reallocation of spectrum from TV and other sources for wireless broadband spectrum, and online privacy, predicted officials including President Matt Polka of the American Cable Association. “We know net neutrality will be central.” It’s hard to predict what telecom issues will arise and at what time given Upton’s focus on healthcare and other issues and that many communications matters aren’t partisan in nature, said officials including President Gary Shapiro of the CEA. “A lot of things in telecom come up in a surprising way, so it’s not that predictable.” Though Upton has never been a champion of rural matters, it doesn’t mean he won’t look into issues like the Universal Service Fund, an industry analyst said.

Spectrum probably will get attention, because of the money the U.S. Treasury could get as a cut of proceeds raised by voluntary auctions by broadcasters and perhaps others of airwaves to be reallocated for wireless, Shapiro said: “The biggest, hottest issue is spectrum.” Issues like retransmission consent deals between TV stations and subscription-video providers also could arise, predicted Polka and Shapiro. On net neutrality, sure “to come up, too,” Shapiro thinks “most people are satisfied with the status quo,” when asked about the draft FCC net neutrality order. “Consensus makes sense to people,” he said.

On net neutrality, Upton has repeatedly opposed FCC Internet regulation. After news leaked out that FCC Chairman Julius Genachowski was drawing up a net neutrality order for the December meeting (CD Nov 22 p1), Upton told the chairman to “cease and desist.” He said any net neutrality order would be “wholly unacceptable” and an “overt power grab” by the FCC. After the Comcast court decision, Upton sent a letter to Genachowski urging him not to reclassify broadband Internet under Title II.

Upton hasn’t been completely hostile to Washington intervention in telecom issues. In 2007, he co-sponsored a bill that would have allocated a nationwide 211 short code to reach human services providers. That year, he and outgoing Telecom Subcommittee Chairman Rick Boucher, D-Va., sponsored a bill that would have allowed cities, towns and counties to create their own broadband networks if industry wasn’t able or willing to do so. Upton also had a close, working relationship with Boucher. Upton “is deeply knowledgeable about telecommunications issues,” Boucher told us. “I think Fred is terrifically well positioned to be an outstanding chair of the committee. He has a grasp of telecommunications issues that is unparalleled on the committee.” Major wireless players welcomed the new chairman.

Upton’s district has both rural and urban aspects and he understands rural issues, President Steven Berry of the Rural Cellular Association said. It’s unlikely there would be major shifts in the committee’s approach to spectrum because it’s a bipartisan issue, he said. It’s good to have a fresh look at spectrum use issues like D-Block and auctions, he said. “He will be very open to thorough review of the facts.” Ensuring 700 MHz interoperability will be a top issue that RCA will take up with the new chairman and other new members of the committee, he said. Coming from a manufacturing state, Michigan, Upton understands challenges of the vendors, President Grant Seiffert of the Telecom Industry Association said.