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FCC Chairman: a Former Cable Lobbyist Who Helped Kill the Comcast Merger

An anonymous reader writes: After Friday's news that the Comcast/TWC merger is dead, the Washington Post points out an interesting fact: FCC Chairman Tom Wheeler, who was instrumental in throwing up roadblocks for the deal, used to be a lobbyist for the cable and wireless industry. "Those who predicted Wheeler would favor industry interests 'misunderstood him from the beginning — the notion that because he had represented various industries, he was suddenly in their pocket never made any sense,' said one industry lawyer, who spoke on the condition of anonymity because he represents clients before the FCC." The "revolving door" between government and industry is often blamed for many of the problems regulating corporations. We were worried about it ourselves when Wheeler was nominated for his current job. I guess this goes to show that it depends more on the person than on their previous job.

12 of 86 comments (clear)

  1. The Revolving Door Argument is Thin Anyway.... by Shakrai · · Score: 5, Insightful

    The pool of people who are knowledgeable about the practices, challenges, and daily business realities of the telecommunications industry (or any industry for that matter) is a small one indeed; good luck finding someone in that pool with the experience necessary to lead an agency the size of the FCC who hasn't worked for the industry at one time in his or her life.

    --
    I want peace on earth and goodwill toward man.
    We are the United States Government! We don't do that sort of thing.
    1. Re:The Revolving Door Argument is Thin Anyway.... by guises · · Score: 5, Insightful

      The revolving door argument is accurate, not thin at all, and a very important thing to remember when you have fine upstanding citizens like Meredith Baker getting appointed to office. The corruption goes from regulators to industry though, which is not the position that Tom Wheeler is in.

      That does not mean that it's safe to appoint former industry lobbyists. Even an honest lobbyist has spent much of their professional life in close contact with, possibly friends with, industry reps, and the lobbyist's job is to regurgitate industry talking points. Believing those talking points, at least in part, makes a better lobbyist. Going from industry to regulation is less dangerous than the other way around, but the fact that Wheeler seems to be working out is likely a fluke. Someone of unusually strong character, at least for a person in his position (this is not a compliment).

      As for finding someone without the ties to industry - this isn't as hard as you make it out. For one thing, why do they need to know all the details of the telecommunications industry before they even start the job? We like to pretend that this is a requirement for every position, but we have tons of CEOs, judges, and politicians who don't meet this standard and when they fail people love to jump on this as the reason. A much larger portion though, are successful. A CEO for example, needs to be able to lead first and foremost. If they can do that much very well, then they may not need to know everything about the company's products and practices before they start the job.

    2. Re:The Revolving Door Argument is Thin Anyway.... by qwerty+shrdlu · · Score: 3, Insightful

      But Apple did exactly that when they brought John Sculley over from Pepsi. And it worked well at first. http://en.wikipedia.org/wiki/J... As to Chairman Wheeler, sometimes poachers do make the best gamekeeprs.

  2. It made a lot of sense... by QuietLagoon · · Score: 4, Insightful

    ... "Those who predicted Wheeler would favor industry interests 'misunderstood him from the beginning — the notion that because he had represented various industries, he was suddenly in their pocket never made any sense,' ...

    Given that Mr. Wheeler is more of an outlier than a norm, it made a lot of sense to presume Mr. Wheeler would favor industry interests.

    .
    I, for one, am glad he broke from the mold.

  3. So surprising... by Anonymous Coward · · Score: 5, Insightful

    I don't know about you, but I find it somewhat disconcerting that it's so surprising a federal regulator DOES HIS JOB that we get a news article about it. The idea that this proves there is nothing to worry about with "revolving door" policies is naively optimistic.

  4. Re:Well... by ShanghaiBill · · Score: 5, Insightful

    I admire Mr. Wheeler for the ability to separate his job from himself

    Don't be so quick. The notion that this merger was "good for the industry" is nonsense. It was good for Comcast and TWC, but certainly bad for all of their competitors (Cox, Verizon, AT&T, etc.). Wheeler may already have a job offer from one them. He may have done the right thing for the wrong reason. We'll see what happens when his door revolves.

  5. Shows how many people were opposed to it by Snotnose · · Score: 5, Insightful

    If you think Wheeler nixed this out of the goodness of his heart, or a jolt of moral courage, you're naive. He wanted this merger to go through, but there was so much opposition he couldn't make it happen without everybody involved looking really bad.

  6. Re:Well... by tnk1 · · Score: 3, Insightful

    There's no need to be skeptical. No rule is without exceptions. He could easily be good intentioned in this case and still not really disprove the rule of regulatory capture.

    Of course, you're right that he could have a reason that this particular merger met his ire. He may have a job lined up with a competitor. Maybe Comcast pissed him off when he was on the phone with them once. Maybe his friends at the country club don't like Comcast.

    Still, he could easily have been annoyed about how transparently bad the arguments that Comcast and Time Warner Cable made were. I mean, just listening to the commercials they were hitting us with and how they tried to somehow convince people that Comcast, one of the most hated companies in America, is somehow going to be good for us because they planned on implementing Net Neutrality without being told to (a line that went away right after the Title II changes). As if they could be forced to keep that promise after they merged with TWC. And gee whiz, they sometimes give away internet to poor kids, which I'm sure no one else has ever thought of, ever. Right.

  7. Reading his past history by l0n3s0m3phr34k · · Score: 4, Insightful

    This doesn't suprise me. I can't easily find the source ATM, but I read that he was part of a startup back in the day, and his company got screwed over by some giant company that crushed it. So he's probably been holding a grudge this whole time. Being a former lobbyist means he knows all the games; being a former start-up owner means he also knows the pain of the unfair near-monopoly advantages from the front lines.

  8. Still unsure about Wheeler. by Chas · · Score: 5, Insightful

    Okay, let's be honest here.

    The guy was put under an electron microscope the second this hot issue came up.

    Had this not been as controversial as it was, I SERIOUSLY doubt that he or the issue would have had that kind of all-seeing scrutiny.

    In many cases, skulduggery requires apathy and/or ignorance from the general public.

    The Comcast/TWC merger had a few octillion candle power focused on it from all directions.

    You had consumers going "FUCK NO!" by the millions.

    You had reportage going "FUCK NO!"

    Hell, you had POLITICIANS going "FUCK NO!"

    Had he rubber-stamped this merger, all manner of people would have been howling for blood. He'd be removed from his position, and the ensuing legal and political inquiries would have essentially ended his life and neutered any prospect of future employment.

    So, with pretty much EVERYONE standing over his shoulder (with club in hand), he was FORCED to play it straight.

    --


    Chas - The one, the only.
    THANK GOD!!!
  9. Re:Well... by Joshua+Fan · · Score: 3, Insightful

    Wheeler, 69, does not need to seek another job when he departs the FCC, and that freedom enables him to make the decisions he thinks is right, according to people close to the chairman.

    Judging simply from his age, it's very implausible that his actions were part of a ploy to seek secure employment after the FCC.

  10. Wheeler's initial "solution" by Anonymous Coward · · Score: 3, Insightful

    At least in the synopsis no mention is explicitly given to the initial "solution" Wheeler was backing, Internet Fast Lanes. That would have killed Net Neutrality and given the big ISPs just what they wanted.

    It was not until a ton of public pressure forced Wheeler to change course. I'm glad Tom Wheeler came around. But he didn't do that on his own. Let's not forget that Wheeler was initially the revolving door shill everyone expected him to be.