FCC Chairman Resigns

Federal Communications Commission Chairman Reed Hundt today announced his resignation after more than three years, citing his desire to spend more time with his family. But Hundt will not leave the job until the Senate has confirmed a successor.

Hundt, who was named to the chairmanship by President Clinton and took office in late November of 1993, still has almost a year to go in his current term. He told reporters at the FCC this afternoon that he had sent a resignation letter to Clinton today, saying it was "the thrill of my life to serve" as FCC chairman. "It's the most wonderful job you can have in Washington without being elected," he said.

House Commerce Telecommunications Subcommittee Chairman W.J. (Billy) Tauzin, R-La., said in a telephone interview it is "fitting" that Hundt will apparently depart before the FCC issues any additional rulings under the 1996 Telecommunications Act.

"Personally he'll do extremely well, but professionally he had a pre-1996 mentality. He represents regulation and government intervention in the marketplace," said Tauzin.

Tauzin and other critics in Congress have accused Hundt and the commission of misinterpreting or ignoring the intent of the omnibus telecommunications law in issuing both the interconnection and universal service rules. That has eroded the relationship between Congress and the commission as a result.

"It's time for the FCC to remake itself," said Tauzin, adding, "They're supposed to answer directly to Congress, but you wouldn't know it in the last year. ... That's largely because of Reed Hundt."

But Senate Commerce Chairman John McCain, R-Ariz., while acknowledging he has had "philosophical differences" with Hundt, told CongressDaily that such criticism is "totally misplaced." Hundt was a "hard-working, intelligent" chairman who was trying to interpret "flawed legislation" that gave "enormous power to a bureaucrat," McCain said, referring to the 1996 law. "I absolutely, totally blame Congress ... Congress mandates universal service, Hundt tries to find ways to pay for it and he gets criticized," McCain said.

Hundt's resignation came as no surprise to industry sources, but it touched off wide speculation about who the White House will nominate to replace him as chairman. Commissioner Susan Ness could be named either as chairman or simply interim chairman while the White House decides on Hundt's successor. Current FCC general counsel William Kennard, who was formally nominated last week to fill a Democratic slot on the commission, could also be selected, but sources say that is unlikely.

Sources said another possible candidate, and one with strong credentials to be chair, is Ralph Everett, former chief counsel to the Senate Commerce Committee when it was chaired by now-ranking member Ernest Hollings, D-S.C. If Ness became chair, other possible nominees for a slot on the commission include White House economic adviser Kathy Wallman and Chris McLean, a long-time telecommunications aide to former Sen. James Exon, D-Neb., and currently a staffer for Sen. Bob Kerrey, D-Neb.