INTERESTING FCC DEVELOPMENTS, via the Political Diary email:
Did Nextel just get back from the federal government in spades whatever it spent last year to plaster its name all over the Nascar racing series, the cynosure of legions of red-state voters?
FCC Chairman Michael Powell threw his weight yesterday behind a deal to let the company trade its current cellphone spectrum for new spectrum that would interfere less with police and fire traffic. Mr. Powell, son of Secretary of State Colin Powell and once an emerging GOP star, said the battle produced “some of the most ruthless lobbying I have ever encountered.” Verizon, a Washington force with former Republican Attorney General Bill Barr as its chief counsel, pulled out the stops against what it called a multibillion-dollar giveaway. Jim Nussle, GOP House Budget chairman, wanted the new spectrum put up for auction. (Verizon offered a starting bid of $5 billion, which is well over twice the amount Nextel likely will end up paying.)
Of course, what Nextel will end up paying is not easy to figure out. The company will bear a cost to relocate its own operations on the spectrum, plus will contribute to upgrading those of the emergency agencies. But there’s a reason to suspect the deal wasn’t a value maximizer for the taxpayer. The Bushies were eager to finalize a plan that would please police and fire chiefs in an election year. In fact, you have to hand it to Nextel, which managed to drape its “public safety” argument in post-9/11 patriotism.
And Mr. Powell? Rumors abound that he’ll be leaving the FCC. Two years ago, his next stop would have been a Senate race in Virginia. Now he’s likely to disappear into grateful anonymity at some investment bank or advisory firm. His stormy tenure embroiled him in one issue after another that seemed to be peculiarly inflaming to the left, right and center: Media ownership rules. Broadcast indecency. The “F word” as verb, adjective and noun. . . .
Mr. Powell burned his fingers on too many hot buttons, all ripe to be thrown back in his face in whatever primary or general election contest he entered, regardless of opponent. Even the Bushies will be glad to see him go. Too bad, because he had the right agenda for the country and was a tireless and good-natured proponent of the Internet cornucopia.
I don’t think he was quite that tireless.