It is a shame that Chairman Powell has waited so long to set an agenda for the FCC.  Some of these issues would be of interest to EBS, but I am afraid the timing may be too late.

-----Original Message-----
From: Pisciotta, Aileen [mailto:APisciotta@KelleyDrye.com]
Sent: Tuesday, October 23, 2001 6:16 PM
To: Petrochko, Mona L.
Cc: Leibman, Lara; 'sburns@enron.com'
Subject: Powell Doctrine -- Read This One


Mona -- Sorry; I sent the wrong clipping the first time.  Here's the
relevant excerpt.  Aileen.


****************************************************************
POWELL OUTLINES 5-POINT 
AGENDA FOR COMMISSION

FCC Chairman Michael K. Powell today said he would apply his
deregulatory, market-based philosophy to address a host of issues,
the most important of which will be spurring deployment of
broadband services.  "The widespread deployment of broadband
infrastructure has probably become the central communications
policy objective today," he said at a press briefing in Washington.

He stressed the importance of the FCC taking actions to spur the
"digital broadband migration."  That could be an "arduous" process,
he said, but is "essential to survival."  He outlined five areas
that he said would drive the FCC's agenda for the next several
years:  (1) broadband deployment, (2) competition policy, (3) spec-
trum allocation policy, (4) a reexamination of the foundation of
media regulations, and (5) homeland security measures.

Shortly after he took over as chairman, Mr. Powell said he didn't
have a list of specific regulatory objectives that he planned to
pursue.  But today he sounded a different note.  "It really
stresses me that we don't have a more coherent, cognizant vision of
what we're doing here," he said.  "We're just running around
reacting to the latest" issues.  The initial work to act on his
agenda will be started within six months and will be "substantially
underway" within a year, he said.

Various proceedings will be used to address his agenda, he said. 
"What we're going to try to do is create clearly identifiable
vehicles where key policy issues will be debated."  Otherwise, he
said, "the agency gets machine-gunned" with petitions and other
filings from companies, trade groups, and other interested parties
trying to get action on particular issues.

Regarding broadband services, Mr. Powell stressed the importance of
limiting regulations that inhibit deployment.  "It is clear that
substantial investment is required to build out the new networks,
and we should limit regulatory costs and regulatory uncertainty,"
he said.  "Our focus should be on demonstrable and competitive
risks and discriminatory provisioning."

As it mulls broadband regulations, the FCC plans to continue
studying the market and working with states, he said.  The agency
will "clarify regulatory classification and access obligations
expeditiously," he said.  He cited three proceedings that would
focus on broadband services:  (1) the ongoing new networks pro-
ceeding, (2) the cable open-access proceeding, and (3) the third-
generation (3G) wireless spectrum allocation proceeding.

Regarding competition, Mr. Powell said the Commission needed "to
make prudent course corrections in our policies" to spur
competition.  "Facilities-based competition is the ultimate
objective," he said.  He stressed the need for "simplified
enforceable connection rules."

More specifically, the chairman said the Commission would conclude
outstanding "phase I" pricing flexibility proceedings and initiate
a set of new proceedings over the next six months "that will pro-
vide vehicles for rethinking our current framework."

He said a "triennial review" would provide the principle docket for
evaluating unbundled network elements policy.  The Commission will
initiate a proceeding focusing on performance measurement and
enforcement in an "attempt to streamline the essential performance
measures used for making judgments about compliance with the local
competition provision," he added.

He also said the agency would initiate a "dominance and non-
dominance" proceeding to "ask how do we develop a framework that
might be used to deregulate on a carrier-specific or service-
specific basis, depending on the level of competition and market
power."

On spectrum allocation, Mr. Powell found plenty of fault with the
way the government doles out valuable frequencies.  "The nation's
approach to spectrum allocation is seriously fractured," he said,
adding it was "a politicized, reactive process."  He called for a
more comprehensive, market-driven policy that would allow spectrum
users to decide the best uses of bands.

The chairman said the Commission should encourage the development
of secondary spectrum markets, improve interference protection
standards, back the development of unlicensed frequencies, map out
the uses and users of all spectrum, promote spectral efficiency,
and protect frequencies used for public safety.

-- Paul Kirby, pkirby@tr.com


Aileen A. Pisciotta
Kelley Drye & Warren LLP
1200 19th Street, N.W. Suite 500
Washington, D.C. 20036
Tel:  202-955-9771
Fax: 202-955-9792
apisciotta@kelleydrye.com



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