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

Posted by Soulskill on from the judging-books-by-covers dept.

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.

57 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 605dave · · Score: 5, Interesting

      This was going to be my point as well, it's a double edged sword. Do you really want people in charge of industries that haven't had significant experience in that industry? Would the board pick someone who never worked as a tech executive to run Apple?

      That being said in most cases whatever industry's interests seem to always be favored over the public's, so you have to wonder about loyalties. And count me as one that completed doubted Wheeler. I am happy my cynicism was proved to be wrong (for once).

      --
      Be kind, for everyone you meet is fighting a difficult battle. - Plato
    2. Re:The Revolving Door Argument is Thin Anyway.... by garyisabusyguy · · Score: 5, Informative

      The revolving door under the Bush administration was truly toxic, it was natural to expect the same.
      Six years into the Obama administration and none of the worst case expectations have come true.

      --
      Wherever You Go, There You Are
    3. 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.

    4. 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.

    5. Re:The Revolving Door Argument is Thin Anyway.... by stox · · Score: 1

      It would have worked a lot better if they brought over John Delorean instead.

      --
      "To those who are overly cautious, everything is impossible. "
    6. Re:The Revolving Door Argument is Thin Anyway.... by Moridineas · · Score: 1

      Could you give some examples of the truly toxic?

    7. Re:The Revolving Door Argument is Thin Anyway.... by currently_awake · · Score: 1

      Or he could have gotten a higher bid from elsewhere. Or his boss could have made the call. This looks good but it's not proof.

    8. Re:The Revolving Door Argument is Thin Anyway.... by klui · · Score: 5, Interesting

      https://corp.sonic.net/ceo/201...

      in 2004, the FCC took steps to limit competition, turning away from key provisions of the 1996 Telecom Act. They set aside unbundling requirements which serve as a key bridge for competitive carriers. By circumventing Congress this way, the Bush-appointed Chairman of the FCC was able to turn back a competitive tide, creating an intentional duopoly on Internet access in the US.

      The FCC Chairman was Michael Powell

    9. Re:The Revolving Door Argument is Thin Anyway.... by Luckyo · · Score: 1

      That depends. A good example of this expertise coupled with loyalty to "current position" rather than "past connections" has been former EU commissioner Neelie Kroes. Better known as the woman who put the record fine on Microsoft.

      She was a former lobbyist for big companies, and there were significant fears that she would kowtow to big industries as a result. The opposite came to be - she became big industries' worst nightmare. Someone who knows how the system works because she is an insider, and someone who has the political power and will to take it apart when it threatened to monopolize some parts of the market and damage the free market within EU.

      Which brings me to my point. These people tend to be selfish and career oriented. So while revolving door system does suggest ties to former interests, one also has to remember that most of these people are social climbers. Once they get a higher position if their interests demand it they will have few to no qualms of stepping on the faces of their former comrades.

      Wheeler is currently a high level government bureaucrat, standing above his peers in private sector. So when these peers get on his turf, he has shown to have few qualms in stepping on them.

      Best part is that this particular crowd understands self interest like this and is unlikely to hold it against people like Wheeler after they move on to their next post. This is because they trust self-interest and see themselves acting the same way if they were in his place.

    10. Re:The Revolving Door Argument is Thin Anyway.... by Guspaz · · Score: 1

      Wheeler is 69 years old. I would imagine his next post will be retirement. That may play a factor in his willingness to rock the boat.

    11. Re:The Revolving Door Argument is Thin Anyway.... by Moridineas · · Score: 1

      Ah, I see I got the infamous "-1 disagree" moderation. I thought my post cited enough outside sources (Slate, for goodness sake!) that I'd be immune. Ah well.

    12. Re:The Revolving Door Argument is Thin Anyway.... by Rakarra · · Score: 1

      Wheeler is 69 years old. I would imagine his next post will be retirement. That may play a factor in his willingness to rock the boat.

      Amazing what you can do when you're not looking forward to the next post your political allies can help you with. California's current governor, Jerry Brown, turned out much different than many on the left thought. He put the brakes on runaway public spending and resisted calls from the liberal majority to reinstate pre-recession spending levels once the state left the recession. He's 77 -- not really looking forward to a run for President.

      Though he does have that stupid high-speed rail thing hanging over him. That's the big mistake.

    13. Re:The Revolving Door Argument is Thin Anyway.... by klui · · Score: 1

      > why has gigabit internet rapidly proliferated around the country over the last decade?

      You have an interesting view about the glacial pace at which gigabit service is rolling out in a handful of US cities. Just because you reference a bunch of links doesn't mean your posts should be taken seriously.

  2. Well... by EmeraldBot · · Score: 1

    The main concern is for those people other than him. I admire Mr. Wheeler for the ability to separate his job from himself, but not everyone has that kind of willpower. I think that after working with the industries for so long, the majority would have been in favor of the merger - I thought that this man would be among them when he first was nominated, and while I am very happy that he proved me wrong, I'm pretty sure the majority of those in his position with his history would not.

    --
    "Set a man a fire, he'll be warm for the rest of the night. Set a man afire, he'll be warm for the rest of his life."
    1. 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.

    2. 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.

    3. 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.

    4. Re:Well... by nanoflower · · Score: 1

      Unless Charter buys Time Warner before Comcast gets a second shot.

    5. Re:Well... by amber_of_luxor · · Score: 1

      Or maybe Comcast is his current cable tv vendor, and knows that improving its service by a googolplexian, will still result in it providing crappy service, whether it be the techs that install Internet service to business customers, that don't know what Linux is, or the sales reps that don't know whether or not the company can serve a specific address, or the equipment people that send out "new" equipment that looks like a Leopard 2A7+ rolled over it.

      --
      Wind Beneath Thy Wings
    6. Re:Well... by Guspaz · · Score: 1

      Just like how AT&T eventually succeeded in buying T-Mobile, right?

    7. Re:Well... by thewolfkin · · Score: 1

      exactly. Congratulations on this one guy for not falling into the trap but just because he didn't doesn't mean that people in general don't.

      --
      Just another second banana
    8. Re:Well... by unitron · · Score: 1

      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.

      He won't be too old to sit on some corporate Boards of Directors.

      --

      I see even classic Slashdot is now pretty much unusable on dial up anymore.

  3. 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.

    1. Re:It made a lot of sense... by careysub · · Score: 2

      I admit to being pleasantly surprised by the actions that Wheeler is taking. I had been quite skeptical that someone so deeply tied to the two industries had not been completely captured.

      (It is not never necessary to assume pay-for-play or some sort of soft corruption. People who work in an institution a long time typically adopt its points-of-view through familiarity and socialization if nothing else.)

      --
      Starships were meant to fly, Hands up and touch the sky - Nicky Minaj
  4. 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.

    1. Re:So surprising... by 605dave · · Score: 1

      I don't think that's the point anyone is making. It's just nice to see someone do the right thing for a change.

      --
      Be kind, for everyone you meet is fighting a difficult battle. - Plato
    2. Re:So surprising... by jordanjay29 · · Score: 1

      Usually the news is less about the federal regulator doing her/his job, but the decision being made.

    3. Re: So surprising... by DigiShaman · · Score: 2

      That's just it; the fact doing the right thing is news. And news is defined by the reporting the exception to the rule.

      --
      Life is not for the lazy.
    4. Re: So surprising... by 605dave · · Score: 2

      Yes that's a very depressing reality we can agree on. But that doesn't mean we can't be happy that he did the right thing.

      --
      Be kind, for everyone you meet is fighting a difficult battle. - Plato
    5. Re:So surprising... by Livius · · Score: 1

      The exception proving the rule.

      Come to think of it, when was the last time that happened?

    6. Re: So surprising... by tnk1 · · Score: 1

      I'm pretty happy it didn't go through. That may not make me happy about the government, but I'm happy about anything that kept that abomination of a deal from happening. This is a legitimate cause for celebration, even if it doesn't really mark a significant change. Most systems are at least a little corrupt, so it is a fine thing to see a good decision come about sometimes from that mess.

  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. Obama killed it. by Anonymous Coward · · Score: 1

    Not directly - one of Obama's best fundraisers was a Comcast EVP - but by throwing the WH behind net neutrality in the strongest possible way, and showing the FCC he wanted active, pro-consumer regulation of the cable and ISP industries, according to a NY Times post-mortem.

    Here on Slashdot there's a tendency to say that there's not a dime's worth of difference between the two political parties, those curmudgeonly posts generally get modded up. But there *is* a difference. Sometimes.

    1. Re:Obama killed it. by tnk1 · · Score: 1

      Obama appointed the commissioners, but they're more independent than your usual government department. If Wheeler did Obama's bidding, it is likely because Wheeler and Obama were on the same page, not because Obama forced it.

      And of course there is a difference between the two parties, just not one that makes any fundamental difference in the long run. They both want the government to be bigger, so much so that they will even occasionally steal from the other team's playbook to make it bigger. I don't actually think it is a conspiracy, per se, I just think it is a bunch of people who like exercising power, and by doing so at the Federal level, they drag more and more into its orbit. Centralized power, whether built on the basis of defense expenditures or entitlements, will eventually be used for the benefit of the opposite side.

  7. This is a W-I-N by DaMattster · · Score: 2

    Victory for the consumer!

  8. Re:Goes to show by amiga3D · · Score: 1

    He's like a hired gun. He's loyal to who pays him. The people pay him now.

  9. lets see what he gives back by renegade600 · · Score: 4, Interesting

    I don't think he really had much choice but to support killing the merger - too many of the right people was against it. However keep watch and see what he gives them in return over the next couple of years.

  10. Re:Goes to show by tnk1 · · Score: 1

    A good-ish thing if he really takes that seriously. There's lots of people who work for the government these days who are more concerned with who will be paying them when they finish up in government.

  11. I think Comcast gave up ... by CaptainDork · · Score: 1

    ... because TWC is a dead man walking.

    The Internet is going to make TV as interesting as radio.

    Comcast is going to have to adjust its business model and TWC is no longer a good fit.

    --
    It little behooves the best of us to comment on the rest of us.
  12. 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.

  13. 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!!!
    1. Re:Still unsure about Wheeler. by sharkbiter · · Score: 1

      "A certain man was going down from Jerusalem to Jericho, and he fell among robbers, who both stripped him and beat him, and departed, leaving him half dead."

      The story of the "good Samaritan" is in reality a parable that shows a person who performs in exactly the opposite of his fellows and takes care of a victim of a mugging. Even going so far as to provide for a hospice to allow time to heal the victim's wounds.

      In reality, the Samaritan of the time wouldn't even lift a finger to save their own grandmothers from the Ravenous Bugblatter Beast of Traal ('without orders signed in triplicate, sent in, sent back, queried, lost, found, subjected to public inquiry, lost again, and finally buried in soft peat and recycled as firelighters).

      This then, is how the modern world works. A former lobbyist hired by the government...

    2. Re:Still unsure about Wheeler. by Voyager529 · · Score: 1

      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.

      Counterpoint: Where do we see precedent for this as of late? Most of the high-profile cases that come to mind of late involve people getting off scot free. Enron, Martha Stewart, and Bernie Madoff are about the only names that stick in my head that had any sort of repercussions for their actions, and those are the better part of a decade ago. The level of corruption in this day and age leads me to believe that, had he intended to let the merger go through, he could have easily went to Comcast, asked for $50 million and a tenured job as a middle manager somewhere, gotten it, and had Comcast's legal department ensure that no one raised any questions.

      Yes, everyone had him under an electron microscope with clubs in hand...but I sincerely doubt anyone would have actually threw the first punch, had this gone the other way.

  14. Re:Reality does not have a rest button son. by Moridineas · · Score: 1

    What damage, specifically?

  15. Comment removed by account_deleted · · Score: 2

    Comment removed based on user account deletion

  16. Dingo by pesho · · Score: 2

    May be he is not a dingo after all.

  17. Becket by Old+Aylesburian · · Score: 1

    The spirit of Thomas Becket is not dead!

  18. No it depend on the NETWORK by aepervius · · Score: 1

    If wheeler was not using his network or had a poor network, then the revolving door argument is thin or non existant. But on the other hand with highly networked guy ? Sure. That is a concern. People going from private to government is not a problem, heck in a way one of my sister did it. No, the problem is : do you have a big network and does this network influence your job.

    --
    C. Sagan : A demon haunted world:
    http://www.amazon.com/gp/product/0345409469/
    visit randi.org
  19. 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.

    1. Re:Wheeler's initial "solution" by Anonymous Coward · · Score: 1

      Yes, this is exactly what I came here to say. I first heard of Tom Wheeler as the corrupt little pond scum who was pushing against net neutrality. He only switched sides after Obama got publicly involved and it was clear which way the political wind was blowing.

  20. Bias is not an absolute by mysidia · · Score: 1

    A person in the FCC with past in the industry can be biased in favor of their previous employers in some ways, and not so biased in others.

    In other words: the bias can be unintentional or subconcious and systemic ---- For example, it can lead to certain ways of thinking about certain policies ; However, in extreme situations, they will not overtly side with their past employer when it would be obviously to unfair degree against the interests of whom you are supposed to serve.

    A good outcome out of a few policy definitions cannot definitely affect this for the positive.

    It can be very easy to prove bias exists, if you have an extreme enough pattern.

    Proving no bias or "fair treatment" not counting more than fair weight to the corporate position of previous employers, in policymaking consideration; would be extremely difficulty (if impossible) to ever establish.

  21. Re:Reality does not have a rest button son. by dffuller · · Score: 1

    Well there was widespread deregulation of financial markets that made for the great recession

    You do realize that the biggest deregulation of the financial markets occurred on Clinton's watch, right? Glass-Steagall ring a bell?

  22. Re:Reality does not have a rest button son. by Moridineas · · Score: 1

    I know you're under no onus to fulfill my request, but I did say specifically, not incredibly broad and general strokes!

    Well there was widespread deregulation of financial markets that made for the great recession

    Are you talking about Clinton's repeal of Glass-Steagal?

    Going from no deficits and a path to paying of the national debt under Clinton to tax cuts and war debt bringing the national debt to new highs

    And debt has risen even faster and higher under President Obama. So is he even worse than President Bush? Would have been nice if the 90s dotcom boom and the post-Soviet boom had continued forever.

    Rolling back all of the Clinton controls on CO2 emissions and encouraging the building of more coal power plants

    What Clinton regulations were rolled back?

    Destabilizing the middle east and getting thousands of service men and women killed on some unjustified search for wmds

    Honestly, destabilizing the Middle East seems to have succeeded wonderfully and I don't see how American interests are hurt at all. All of our alleged enemies have their hands full now. The loss of American lives is very unfortunate.

  23. Re:Reality does not have a rest button son. by publiclurker · · Score: 1

    in other words, the lives of thousands of funny looking furiners are inconsequential when balanced against the greed of you and your corporate friends. The fact that you have the nerve to show your face among decent human being with that attitude is insulting.

  24. Re:Reality does not have a rest button son. by Moridineas · · Score: 1

    in other words, the lives of thousands of funny looking furiners are inconsequential when balanced against the greed of you and your corporate friends. The fact that you have the nerve to show your face among decent human being with that attitude is insulting.

    No, you're changing the topic of conversation. I did not say that our presence is the Middle East was good for the MIddle East--it of course has been terrifically destructive. I did not say that is morally right--it's morally reprehensible. I said that American interests have not been hurt. Given that President Obama has continued--and intensified--many of the worst abuses of American supremacy (most notably drone killings), the only conclusion a rational observer can arrive at is that Republicans and Democrats have the same end goals--destabilize the Middle East. Our alleged enemies do have their hands full in what's rapidly becoming a full-blown Sunni-Shia crapfest. Please don't put words in my mouth or play Internet couch psychiatrist. It rarely comes across well.

  25. Re:This sucks for Seattle! by unitron · · Score: 1

    Comcast previously promised the city they would provide service for their entire monopoly area if this went through...

    Telecom companies are famous for *making* promises.

    Making good on them, not so much.

    They'd have probably gotten around to your area about the same time as your first Social Security check.

    --

    I see even classic Slashdot is now pretty much unusable on dial up anymore.