The Prepaid Press - January 2009 - (Page 18)

PREPAID TELECOM Dec. 2008 / Jan. 2009 - 18 THE Jonathan S. Marashlian LEGAL LINE by in one of his weekly Youtube “computer-side addresses,” Obama all but committed to devoting funds from a massive government-backed public works program toward making the Internet available to all citizens. To help accomplish some of these goals, Obama says he will appoint a Chief Technology Officer to shape policy and guide technology priorities. There is even speculation that high-profile business leaders, such as Google CEO, Eric Schmidt, and Microsoft CEO, Steve Ballmer, are being considered. President-elect Obama has not tipped his hand about any specific proposals for reshaping the nation’s telecommunications policies. Enhancing and enforcing net-neutrality principles appears to be on Obama’s radar. After all, the President-elect has been a longtime supporter of net-neutrality, which means some proposed regulations could find their way onto the FCC’s agenda in year one. Addressing Universal Service Fund (USF) and Intercarrier Compensation (ICC) Reform could also find room on the list of telecommunications issues facing a new FCC Chairman agenda. The last gasp effort by outgoing Chairman Martin to hustle through USF and ICC reform proposals crafted by AT&T and Verizon are indefinitely stalled, but the underlying issues remain. President-elect Obama’s team will likely be in charge of sorting out a new policy to govern the future regulation of traditional wireline telephony. Little indication has been given on how Obama wants to proceed with USF and ICC reform, if at all. Based on the records of previous Democratic administrations and President-elect Obama’s philosophy of government through collaboration rather than fiat, an Obama FCC could expand the States’ role in regulating telecommunications services, particularly in the area of consumer protection. On an administrative level, the FCC is likely to see a return to “openness.” Under this policy objective, the new FCC would focus on ensuring greater transparency when setting the Commission’s agenda and managing rulemaking proceedings. This approach would represent a genuine change from the past eight years of backroom policy-making under Chairman Martin, who was recently chided by Congress for egregiously abusing his power by intentionally suppressing information and manipulating data to serve his agenda. New openness policies may also help smaller companies and those companies whose voices were largely disregarded by the previous ad- Dear Jonathan – In November, America elected Barack Obama to be the 44th President of the United States. Mr. Obama campaigned on a platform of “change.” What “change” is in store for the Federal Communications Commission and the telecommunications industry, in general, under an Obama Administration? Sincerely, Crystal Ball Dear Crystal – If I could foretell the future, my dear, I would have sold my house in 2005, purchased 1,000 acres in west Texas, and I’d be drilling for oil! I still live in the same house on a ¼ acre in Virginia, so you’re officially on notice to take the prognostications in this column for what they’re worth! Then again, unlike the economic free fall that’s seemingly caught everyone off guard, President-elect Obama has actually left a few clues that could help me make some predictions about the future of the Federal Communications Commission (FCC) and the telecommunications policies the new President intends to pursue. Some of the predictions may even offer you a glimmer of hope that the future will be brighter than the past, as it surely can’t get much worse than the present. Without a doubt, Barack Obama’s rise to the White House will change the federal government’s telecommunications policies in significant ways. Under the auspices of outgoing Chairman Kevin Martin and his predecessor, Michael Powell, the FCC seemed dismissive of small business interests while it oversaw massive industry consolidation, the privatization of public networks, and the re-concentration of power in behemoths, AT&T and Verizon. Although much too early to draw conclusions, President-elect Obama’s vision for the future of telecommunications appears to be starkly different. Indeed, during his campaign Obama touted the core principals of his technology Change at the Top With or without a CTO, the FCC will undoubtedly play a significant role in implementing President-elect Obama’s vision of using technology to spur economic growth and provide broadband Internet services to all Americans. The person Obama taps to lead the agency as its next Chairman is a critical decision, since the Chairman controls the agenda and pace of decision-making at the FCC. Late last year, Obama started outlining his plans to shape the agency. As one of his first steps, the President-elect announced an FCC agency review team for the new administration. The leaders of this team are Susan Crawford, a communications & Internet law professor, and Kevin Werbach, an assistant professor of legal studies and business ethics. Although the Obama team has not signaled its leanings yet, candidates to become the next FCC Chairman have been rumored to include the following names: • Julius Genachowski – Mr. Genachowski was legal counsel to Reed Hundt, the former FCC chairman under the Clinton Administration. Genachowski went on to become a senior executive at IAC/InterActiveCorp, Barry Diller’s e-commerce and media company, and is now an investor in Internet start-up companies. • Blair Levin – Mr. Levin was a chief of staff to Hundt during the 1990s. Prior to his position with the FCC, he was a partner in a law firm where he represented new communications ventures. Mr. Levin is now a managing director covering telecommunications for an investment bank. • Karen Kornbluth – Ms. Kornbluth has been an Obama policy adviser and previously worked at the FCC, where she was the deputy chief of the media bureau. Kornbluth was also chief of staff to Treasury Secretary Robert Rubin during the Clinton years. • Don Gips – Mr. Gips was chief of the FCC’s international bureau and an adviser to former Vice President Al Gore. He is now a vice president at Level 3 Communications Inc. • Julia Johnson – Ms. Johnson is a Florida consultant who heads Video Access Alliance, an advocacy and advisory group for independent, emerging, and minority networks and Internet content providers. • Mignon Clyburn – Ms. Clyburn is a member of the Public Service Commission of South Carolina. She is a former newspaper publisher and the daughter of House Majority Whip Rep. James Clyburn, D-S.C. Of the rumored contenders, Mr. Genachowski is widely viewed as leading the pack. Mr. Genachowski is a longtime friend of President-elect Obama and, during the campaign, chaired the technology-policy group. He is currently advising Obama on technological innovation matters. The FCC’s two current Democratic Commissioners, Michael Copps and Jonathan Adelstein, are also in the running. Though each has paid his dues, both are seen as long shots given Mr. Obama’s penchant for “change” and desire to name an Internet-savvy leader to the Chairman’s seat. The key component of Obama’s plan for the future is expanding the availability of communications networks and broadband Internet to reach all citizens, whether urban or rural, rich or poor. and innovation plan as “open government, open networks, and open markets.” The key component of Obama’s plan for the future is expanding the availability of communications networks and broadband Internet to reach all citizens, whether urban or rural, rich or poor. To achieve this objective, Presidentelect Obama appears to be supportive of stimulating investment through government funding and promoting open networks through “network neutrality” laws or regulations. In fact, Addressing Universal Service Fund (USF) and Intercarrier Compensation (ICC) Reform could also find room on the list of telecommunications issues facing a new FCC Chairman agenda. ministration. More openness and transparency at the FCC should incite small businesses to become more active before the FCC – not just fighting enforcement actions, but proactively taking on important policy issues and participating in rulemaking proceedings. For far too long, the voice of the small business has been overlooked and ignored by the FCC and, for that matter, government at large. It’s been a common complaint I’ve heard over the years from many of my small, entrepreneurial clients every time I urge participation in the rulemaking process -- they ask me, “why should we spend valuable time, money and effort lobbying the FCC when the outcome, never a good one for us small guys, is already preordained?” We can all be hopeful that President-elect Obama, his Chief Technology Officer, and whoever he names as the new FCC Chairman will take the steps that are needed to reform the way the FCC crafts the rules that govern our industry. I will know the day has come when faith in government and in the FCC has been restored. That’s the day a prepaid calling card company (not named IDT) hears one of my battle cries and actually participates in the FCC’s policy-shaping and rulemaking processes! Jonathan S. Marashlian is a partner at Helein & Marashlian, LLC, The CommLaw Group, a Washington, D.C.-area law firm specializing in federal and state telecommunications and technology matters. He can be reached at jsm@commlawgroup.com. Need ? Need Free Terminals? Need A Reliable Supplier? We seek ISO’s and Agents that want a safe, secure, and reliable POSA processing partner. No agent relationship is too small. We O er: AS A PART OF THE WORLD’S LARGEST PROVIDER OF PREPAID, WE ARE THE SAFE, SECURE, AND SMART CHOICE FOR ANYONE THAT WANTS A RELIABLE BUSINESS PARTNER. Call today for immediate service: 800-263-2370 Change of Direction Other than his ambitious Internet-related goals,

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The Prepaid Press - January 2009 Economic Crisis Sharpens Focus on Stored Value Cards Industry Veterans Weigh In on 2009 Prepaid Opportunities Contents From the Publisher: Ready for Change? The Prepaid Press Thanks its Editorial Advisory Board Regulatory Rundown 2008 Milestones Prepaid Wireless Providers Capitalize on Economic Downturn Prepaid Telecom in Brief APCC Services Settles With Calling Card Providers Boost Mobile Offers All-in-One Prepaid Package SonarTel Prepaid Customers Can Use Accounts in More Countries BillSoft Selected by Integra Telecom Pingo Adds PC “SoftPhone” Calling kajeet, the Cell Phone Service for Kids, Wins Award Prepaid Wireless Roundup The State of Prepaid Technology: Wholesalers & White Label Services New Millennium Releases Wireless Survey Results 5 Minutes With Paul Amick, EVP & Co-Founder, PhoenixSoft Millions Could Cut Cell Phone Bills in Half New Virgin Poll Reveals Buying Habits The Legal Line BioPay Expands Offering for Underbanked IDT to Sell European Prepaid Payment Business iPayStation Launches Network for Distributor Stored Value Solutions Appoints New VP Cellular South Offers Mobile Banking for Regions Bank Javelin Research: Processor Important in Prepaid MiCash Announces New Prepaid Debit Card Monitise and eCommLink Partner Platamovil Selects PhoenixSoft’s Cirrus Softswitch Prepaid Market Forecasts to 2011 Payments & Processing in Brief Prepaid 101: Gift Cards SCA’s PrizeSuite Enables Promotions MT&L Offers Gift Card Removal and Destruction Heartland Payment Systems Acquires Chockstone Amex and Rymax Offer Gift Cards TransCard Announces Corporate Gift Card Website Gift Cards & Promotions in Brief Our Advertisers Contact Us

The Prepaid Press - January 2009

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