Obama Weighs Choices for FCC Chairman

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One contender is Blair Levin, who was Hundt's chief of staff from 1993 to 1997. During his tenure, Broadcasting & Cable magazine called Levin "the sixth commissioner." Levin oversaw implementation of the historic 1996 Telecommunications Reform Act, the first major overhaul of telecommunications law in more than 60 years. He also oversaw the earliest wireless airwave auctions, the development of digital television standards, and the commission's early work concerning the Internet—issues that remain on the FCC agenda. Currently, Levin is managing director at brokerage and investment bank Stifel Nicolaus (SF). Levin declined to comment. Kennard and Hundt were unavailable for interviews.

The Innovation & Technology Plan

Another Hundt staffer under consideration is Scott Blake Harris, who served as the first chief of the FCC's International Bureau, from 1994 to 1996, and was responsible for international and satellite communications policy and licensing. Currently, he is managing partner of influential law firm Harris, Wiltshire & Grannis, where his clients have included a broad range of information technology, telecommunications, Internet, software, and hardware companies. Harris declined to comment for this article.

Rounding out the list of Hundt staff members contending for the top FCC spot is Don Gips, who succeeded Harris as chief of the FCC's international bureau and spearheaded the drive to cut the prices of international calls. A Harvard University graduate, Gips later served as chief domestic policy adviser to then-Vice-President Al Gore and is currently group vice-president for corporate strategy and development at fiber-optic network operator Level 3 (LVLT), where he's worked since 1998. Level 3 didn't respond to a request for comment.

Kennard, currently managing director at buyout firm Carlyle, is said to be pushing a candidate of his own: Larry Strickling, who served as chief of the division that regulates local and long-distance carriers before he resigned in 2000 to work for the policy think tank Aspen Institute. Strickling, who—like Obama—is a Harvard Law School graduate, later worked for a variety of Internet companies such as Broadwing, now part of Level 3. "He knows the issues, he knows the people," says Andy Schwartzman, CEO of Media Access Project, a nonprofit advocacy group.

Like his former boss Kennard, Strickling also has been an Obama adviser. In late 2007, Strickling helped pull together the campaign's Innovation & Technology Plan, which drew support from such companies as Google and which includes pledges to protect the openness of the Internet, to encourage diversity of media ownership, and to build a nationwide wireless network for use by public safety agencies. Strickling is also said to be in the running for the post of the nation's chief technology officer, whose duties may overlap with those of the FCC chairman. According to the Innovation & Technology Plan, the CTO would "oversee the development of a national, interoperable wireless network for local, state, and federal first responders." Close Obama adviser Julius Genachowski, who used to be an executive at IAC/InterActive (IACI), is a possible contender for the CTO position or the FCC chairmanship as well.

Power Shift Ahead?

Some within the telecom industry expect Obama to appoint one of the FCC's current Democratic commissioners, most likely Michael Copps, to be an interim chairman until a candidate for the permanent job is selected, most likely in January. While Copps could stay on as the permanent FCC chairman, several Washington insiders view this as unlikely. The other Democratic commissioner, Jonathan Adelstein, a former Senate staffer, is expected to snag another position within the Obama Administration, sources tell BusinessWeek.com.

Whoever makes the final cut may have to pass muster with Tom Wheeler, who according to one person familiar with the matter is expected to have a big say in selections for technology-related appointments in the Administration. Wheeler is currently managing director at private equity firm Core Capital Partners. Previously, he was CEO of the powerful CTIA - The Wireless Industry Assn., which represents carriers like AT&T and Verizon Wireless. Prior to that, from 1979 to 1984, he was president of the National Cable Television Assn., which represents service providers like Comcast (CMCSA) and Cablevision (CVC).

Whoever is selected to head the FCC could shift the balance of power in the ongoing battle between telcos, cable companies, and Internet companies like Google, which have clashed in recent years over such issues as who should pay for high-bandwidth usage. "[Obama] has been more in tune with the…providers like Google," says Rebecca Arbogast, a principal at Stifel. "I'd expect that the very strong run the (telecom providers) have had under the Bush Administration has worked itself out."

Kharif is a senior writer for BusinessWeek.com in Portland, Ore.