Pai, Stepping Down Jan. 20, Seen Leaving 'Big Coffee Mug to Fill'

Some of Pai's deregulatory achievements may be targeted for reversal by the incoming Democratic commission majority. Pai spoke of taking a weed whacker to the regulatory underbrush (see 1612070040). "That wasn't weeds, that was lawn, and it will be replanted," said Public Knowledge Senior Vice President Harold Feld.

The pending departure is likely to further embolden Senate Republicans to push to confirm FCC nominee Nathan Simington, President Donald Trump’s pick to replace Commissioner Mike O’Rielly, before this Congress ends, Capitol Hill aides and lobbyists told us. Simington’s confirmation would ensure a 2-2 party-line split until the Senate advances President-elect Joe Biden’s eventual pick for a third Democratic commissioner. Senate Republicans expected Pai to depart and were eyeing whether they could schedule time for a floor vote on Simington, lobbyists said. Senate Democrats are likely to unanimously oppose Simington and threatened holds (see 2011100070), which would prevent the chamber from confirming him via unanimous consent.

Pai championed policies that reversed a trend of declining investment in internet deployment, Commissioner Brendan Carr said in an interview. "The U.S. was really headed in the wrong direction." Carr called such steps as the Communications Act Title II net neutrality rules rollback, freeing up of midband spectrum and various infrastructure rules revisions "a pivot point." Pai's legacy includes addressing the Chinese threat to U.S. networks and managing the FCC through the pandemic, Carr said. "We did not miss a beat" in the FCC workflow despite COVID-19, he said.

Pai served as chairman “with a distinctive style” of “steely determination and a disarming sense of humor,” said former FCC Chairman Richard Wiley. He called Pai’s focus on opening up tracts of spectrum his signature achievement. Wiley and others said it's likely the next FCC will continue Pai’s policy of releasing draft orders before commissioner meetings. “It would be hard to change it back,” Wiley said.

Pai mentioned the agency's work on 5G, narrowing the digital divide, designating 988 as a suicide hotline and other endeavors. His statement also discussed issuing drafts before monthly meetings. Agency spokespeople didn't reply to our queries.

Effective Leader

Pai's supporters and, grudgingly, his opponents described him as effective.

“I disagreed hugely with much that he did and all the damage he inflicted, but he’ll go down as one of the most transformative chairmen in FCC history,” said former Commissioner Michael Copps, who also served as interim chair. Pai tried to “eviscerate” media rules and “buried his head in the sand” on net neutrality but was undeniably a successful chairman “from the perspective of getting what he wanted to be accomplished,” Copps said. “Unfortunately, Chairman Pai has succeeded in many of his efforts to promote the interests of large telecommunications, broadcasting and cable companies at the expense of smaller competitors and, especially, the public,” said Benton Institute for Broadband & Society Senior Counselor Andrew Schwartzman, a frequent adversary of the Pai FCC. Copps praised Pai for “observing the process” of transitioning to the next administration.

The next chairman faces "a pretty big coffee mug to fill" and needs "to continue to stand up to communist China" and ensure no entities connected to the Chinese government have a role in U.S. telecom networks, Carr said. He told us he expects ongoing bipartisan support for telehealth. Carr said he will still focus on infrastructure buildout and workforce development, plus telehealth, and he hopes for more efforts on freeing up midband spectrum. Pai is known for his oversize Reese's coffee mug.

House Commerce Committee ranking member Greg Walden, R-Ore., and Communications Subcommittee ranking member Bob Latta, R-Ohio, praised Pai’s tenure. He “undoubtedly left a lasting mark on” the FCC, Walden and Latta said. That's “from preserving a free and open internet, reducing waste, fraud, and abuse in the Universal Service Fund to allow carriers to deploy broadband services and 5G technology, to creating a telehealth care grant program during COVID-19, and stopping illegal robocalls."

The Pai administration's accomplishments include updating communications regulations, "restoring the Commission’s successful light-touch regulatory framework for Internet service providers, modernizing media rules" and opening up more spectrum from commercial use and increased broadband access for unserved areas, said Commissioner Mike O'Rielly. The Senate Commerce Committee tweeted Pai "will leave a lasting impact" from his efforts on the digital divide, freeing up midband spectrum and enhancing network security.

O'Rielly is expected to remain at least through the December meeting, we were told. His office didn't comment. Pai didn't give details about a next job.

Transparency

The next chairman is unlikely to reverse the agency's increased transparency, said former Commissioner Harold Furchtgott-Roth, now at the Hudson Institute. He cited Pai's making items public three weeks before being voted on at monthly meetings: "I don't think that's going to go away." The next chairman also likely will follow Pai in being heavily active on social media, Furchtgott-Roth said.

Democratic minority commissioners were more succinct in their praise. Geoffrey Starks said he and Pai often disagree on policy, "but we are in full agreement about two things: the outstanding quality of the FCC’s staff and the tremendous abilities of [Kansas City Chiefs quarterback] Patrick Mahomes." Jessica Rosenworcel said she and Pai didn't always align on policy issues, but "I always valued our shared commitment to public service."

Free State Foundation President Randolph May called Pai "one of the most consequential FCC chairmen that I have observed," with his actions on deregulation, fostering of broadband deployment and his reversal of the 2015 net neutrality rules. Pai responded "with grace and aplomb" to personal attacks against him and his family during the net neutrality fight, which is "a worthy legacy, too," May said. Pai's work "to close the digital divide and protect taxpayers has been phenomenal," tweeted Taxpayers Protection Alliance President David Williams.

Many officials are watching for signs of whether Sen. Dan Sullivan of Alaska, the lone remaining Commerce Committee Republican holdout on Simington (see 2011180064), will support the nominee at the committee’s planned Wednesday meeting. Sullivan cited the effect on Alaska of the FCC approach to the USF Rural Health Care Program for temporarily blocking Carr's confirmation in 2018 (see 1809120056). Sullivan’s office didn’t comment Monday.

The Trump administration is pushing for unanimous Senate GOP support for Simington, which may be crucial to his confirmation, lobbyists said. Senate Republicans will see their majority reduce to a 52-48 advantage Wednesday after the swearing-in of Sen.-elect Mark Kelly, D-Ariz. Sullivan’s stance on Simington will likely influence whether fellow Alaska Republican Sen. Lisa Murkowski also backs the nominee in a floor vote, lobbyists said.

Fight for the Future highlighted Pai’s departure as part of its call for the Senate to reject Simington. The nominee “has essentially no qualifications beyond his loyalty to an outgoing autocrat and stated opposition to restoring net neutrality,” said Deputy Director Evan Greer. “If the Senate confirms him, its sole purpose will be to throw sand in the gears, tying up the new FCC for months at a time when the public can’t afford the agency to be kneecapped.”

Cheers and Jeers

Pai might be remembered most for his work to free up midband spectrum for licensed and unlicensed use, said PK's Feld. "That's not something that's going to be reversed anytime soon, as opposed to net neutrality." But a lot of Pai's deregulatory work will draw a counterreaction, though that could be slowed if Simington gets confirmed, Feld said. The necessity of the FCC having at least some authority over broadband will drive a return of Title II regulation, he said. Feld said if Pai had focused more on undermining what was done in the Obama administration, that would be tougher to undo, especially as an incoming chairman wants to make a distinctive mark instead of focusing on tackling what was done in the previous administration. But a Democratic administration won't allow such Pai work as nearly wiping out media ownership rules to stand, Feld said.

Industry groups were effusive.

Pai brought "exceptional stewardship" and a vision pursued "with purpose, transparency, scholarly rigor and courage," said NCTA CEO Michael Powell, himself an ex-FCC GOP chief. Pai "pushed for policies that spurred investment and innovation in our nation’s communications networks while also expanding the benefits of broadband."

"Apart from his many policy advances, Chairman Pai also demonstrated great leadership, creativity, a sense of humor and always had an open door,” said NAB CEO Gordon Smith. “Most notably, Chairman Pai modernized the Commission’s media ownership rules, authorized and promoted the transition to the Next Gen TV transmission standard, helped revitalize the AM radio band and cleared out some significant regulatory underbrush that was no longer in the public interest.”

Pai "earned his place in history" for his efforts in ensuring connectivity for households during the pandemic, Incompas said. Incompas acknowledged policy disagreements but said the Pai administration "conducted honest and transparent policy debates, and vigorously defended their positions with creativity, care and substance." USTelecom said Pai's tenure, especially during the pandemic, prioritized closing the digital divide. The Wireless ISP Association said Pai "has been a huge champion of the fixed wireless industry."

Typically at odds with Pai, Free Press said he "has always been his own biggest fan, and his own cheering section, treating his important position at the FCC as little more than a pulpit to praise his own alleged accomplishments." It said Pai took credit for fiber deployments that were announced in 2015-2016, prior to his chairmanship, or a result of AT&T/DirecTV conditions that he had opposed. “Pai always soldiered ahead on the basis of ideology and little more," ignoring "overwhelming public opposition" to the net neutrality rollback and indications of millions of fake comments, Free Press said. "Saying good riddance today is an opportunity to turn the page and get back to the serious work the FCC ignored.”