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<div class=Section1>
<p class=MsoNormal><span class=date><font size=3 color=black face=Arial><span
style='font-size:12.0pt'>July 2, 2009<o:p></o:p></span></font></span></p>
<p class=MsoNormal><span class=date><font size=3 color=black face=Arial><span
style='font-size:12.0pt'>BusinessWeek</span></font></span><o:p></o:p></p>
<h1><b><font size=6 face="Times New Roman"><span style='font-size:24.0pt'><!--HEADLINE-->A
New Signal from the FCC<o:p></o:p></span></font></b></h1>
<!--/HEADLINE-->
<h2><!--DECK--><b><font size=5 face="Times New Roman"><span style='font-size:
18.0pt'>Incoming Chairman Genachowski is likely to act on President Obama's
objectives for broadband penetration, net neutrality, and diversity <o:p></o:p></span></font></b><!--/DECK--></h2>
<p class=byline><font size=3 face=Verdana><span style='font-size:12.0pt;
font-family:Verdana'>By <a href="http://www.businessweek.com/bios/Tom_Lowry.htm">Tom
Lowry</a> <o:p></o:p></span></font></p>
<p><font size=3 face=Verdana><span style='font-size:12.0pt;font-family:Verdana'>After
years of dealing with a regulator many considered an autocrat and ideologue,
executives in media, telecom, and technology say they are encouraged by
President Barack Obama's newly confirmed chairman of the Federal Communications
Commission. <o:p></o:p></span></font></p>
<p><font size=3 face=Verdana><span style='font-size:12.0pt;font-family:Verdana'>Julius
Genachowski, like most FCC chiefs, is a lawyer. But there the similarities with
his predessors end. Genachowski helped media mogul Barry Diller build his
e-commerce empire and worked as a venture capitalist. Those experiences
arguably give him a broad view of the industries he will regulate. Genachowski
is also considered fair and pragmatic. Executives believe his ascension will be
a welcome change from predecessor Kevin Martin, who they say targeted certain
industries and turned an obsession with what he deemed smut on TV into a moral
crusade. <o:p></o:p></span></font></p>
<p><font size=3 face=Verdana><span style='font-size:12.0pt;font-family:Verdana'>Genachowski,
46, declined to be interviewed and has so far offered few specifics about his
regulatory philosophy. But he seems to share with Obama, a former <st1:PlaceName
w:st="on">Harvard</st1:PlaceName> <st1:PlaceName w:st="on">Law</st1:PlaceName> <st1:PlaceType
w:st="on">School</st1:PlaceType> classmate, a conviction that <st1:country-region
w:st="on"><st1:place w:st="on">U.S.</st1:place></st1:country-region>
communications policy needs to be dragged into the 21st century. "Julius
and the President are passionate about technology. You might even say they are
techno-geeks," says Ken Ferree, a former top FCC official. "They know
how important it is to make technology as accessible to as many people as
possible. That passion will make a huge difference." Here, say FCC
insiders, are three of Genachowski's top priorities: <o:p></o:p></span></font></p>
<p><strong><b><font size=3 face=Verdana><span style='font-size:12.0pt;
font-family:Verdana'>Broadband Deployment.</span></font></b></strong><font
face=Verdana><span style='font-family:Verdana'> Obama is determined to bring
speedy Web access to more Americans and, in doing so, improve the nation's
global competitiveness. (The <st1:country-region w:st="on"><st1:place w:st="on">U.S.</st1:place></st1:country-region>
currently ranks 15th in broadband penetration.) The President expects the FCC
to help stimulate the economy and create jobs by bringing broadband to unserved
regions. Genachowski may well use a fund originally set up to expand phone
service to do the same for the Web. The FCC chief also may push for faster
broadband so it can better handle such modern needs as video and corporate data.
Genachowski is supposed to have a broadband plan on the boss's desk by early
next year. <o:p></o:p></span></font></p>
<p><strong><b><font size=3 face=Verdana><span style='font-size:12.0pt;
font-family:Verdana'>Net Neutrality.</span></font></b></strong><font
face=Verdana><span style='font-family:Verdana'> In recent years, a battle has
raged over the issue. Web service providers want the option to charge users
according to how much bandwidth they use and to give priority to certain
services over others. A legion of digerati argue that such restrictions would
limit freedom of expression on the Internet. Obama has put himself squarely in
the latter camp, and the big question is whether Genachowski will push for
legislation mandating so-called net neutrality. <o:p></o:p></span></font></p>
<p><strong><b><font size=3 face=Verdana><span style='font-size:12.0pt;
font-family:Verdana'>Media Diversity.</span></font></b></strong><font
face=Verdana><span style='font-family:Verdana'> Obama wants to make it easier
for minorities to own TV and radio stations and to push distributors to offer
programs with more diverse viewpoints. To make that happen, Genachowski could
use a carrot and stick, says veteran communications lawyer Andrew Lipman: on
the one hand reducing the length of broadcast licenses if programming isn't
deemed sufficiently diverse and offering tax credits to broadcasters who sell
to minorities. <o:p></o:p></span></font></p>
<p><font size=3 face=Verdana><span style='font-size:12.0pt;font-family:Verdana'>It
will be several months before the business community gets a clear reading on
Genachowski's FCC. But executives already know one thing for certain: The new
guy will have far more clout than Martin. Not only did Genachowski advise the
Obama campaign on telecom policy, he is among the enviable few who participate
in the President's Sunday pickup basketball games. Even if he can't match
Obama's on-court moves, Genachowski has the big man's ear. <o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 color=black face=Verdana><span
style='font-size:12.0pt;font-family:Verdana;color:windowtext'><o:p> </o:p></span></font></p>
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