The Federal Communications Commission ( FCC ) is an independent agency of the United States government, created, directed, and empowered by Congressional statute (see 47 U.S.C. § 151 and 47 U.S.C. § 154), and with the majority of its commissioners appointed by the current President. The FCC works towards six goals in the areas of broadband, competition, the spectrum, the media, public safety and homeland security, and modernizing the FCC.
The FCC was established by the Communications Act of 1934 as the successor to the Federal Radio Commission and is charged with regulating all non-federal government use of the radio spectrum (including radio and television broadcasting), and all interstate telecommunications (wire, satellite and cable) as well as all international communications that originate or terminate in the United States. It is an important factor in U.S. telecommunication policy. The FCC took over wire communication regulation from the Interstate Commerce Commission. The FCC's mandated jurisdiction covers the 50 states, the District of Columbia, and U.S. possessions. Due however to close geographic proximity to the United States, the FCC also provides varied degrees of cooperation, oversight, and leadership for similar communications bodies in other countries of North America. The FCC has a 2009 proposed budget of $466 million which is funded by $1 million in taxpayer appropriations and the rest in regulatory fees. It has 1,899 "full-time equivalent" federal employees.
On 14 November 2008, Barack Obama selected Susan P. Crawford and Kevin Werbach to lead the review of the FCC. The review team will review the commission to aid the new administration in its planning decisions. The team "will ensure that senior appointees have the information necessary to complete the confirmation process, lead their departments, and begin implementing signature policy initiatives immediately after they are sworn in."
Mission and strategy
As specified in section one of the Communications Act as amended by the Telecommunications Act of 1996 (amendment to 47 U.S.C. §151) it is the FCC's mission to "make available so far as possible, to all the people of the United States, without discrimination on the basis of race, color, religion, national origin, or sex, rapid, efficient, Nation-wide, and world-wide wire and radio communication services with adequate facilities at reasonable charges." The Act furthermore provides that the FCC was created "for the purpose of the national defense" and "for the purpose of promoting safety of life and property through the use of wire and radio communications."
Consistent with the objectives of the Act as well as the 1993 Government Performance and Results Act (GPRA), the FCC has identified six goals in its 2006-2011 Strategic Plan. These are:
- Broadband : "All Americans should have affordable access to robust and reliable broadband products and services. Regulatory policies must promote technological neutrality, competition, investment, and innovation to ensure that broadband service providers have sufficient incentives to develop and offer such products and services."
- Competition : "Competition in the provision of communication services, both domestically and overseas, supports the Nation's economy. The competitive framework for communications services should foster innovation and offer consumers reliable, meaningful choice in affordable services."
- Spectrum : "Efficient and effective use of non-federal spectrum domestically and internationally promotes the growth and rapid development of innovative and efficient communication technologies and services."
- Media : "The Nation's media regulations must promote competition and diversity and facilitate the transition to digital modes of delivery."
- Public Safety and Homeland Security : "Communications during emergencies and crisis must be available for public safety, health, defence, and emergency personnel, as well as all consumers in need. The Nation's critical communications infrastructure must be reliable, interoperable, redundant, and rapidly restorable."
- Modernize the FCC : "The Commission shall strive to be highly productive, adaptive, and innovative organization that maximises the benefits to stakeholders, staff, and management from effective systems, processes, resources, and organizational culture."
History
Communications Act of 1934
In 1934 Congress passed the Communications Act, which abolished the Federal Radio Commission and transferred jurisdiction over radio licensing to a new Federal Communications Commission, including in it also the telecommunications jurisdiction previously handled by the Interstate Commerce Commission. Title II of the Communications Act focused on telecommunications using many concepts borrowed from railroad legislation and Title III contained provisions very similar to the Radio Act of 1927.
Report on Chain Broadcasting
In 1940 the Federal Communications Commission issued the "Report on Chain Broadcasting." The major point in the report was the breakup of NBC (National Broadcasting Company), which ultimately led to the creation of ABC (American Broadcasting Company), but there were two other important points. One was network option time, the culprit here being CBS. The report limited the amount of time during the day, and what times the networks may broadcast. Previously a network could demand any time it wanted from an affiliate. The second concerned artist bureaus. The networks served as both agents and employees of artists, which was a conflict of interest the report rectified.
The "Freeze" of 1948
In assigning television stations to various cities after World War II, the FCC found that it placed many stations too close to each other, resulting in interference. At the same time, it became clear that the designated VHF channels, 2 through 13, were inadequate for nationwide television service. As a result, the FCC stopped giving out construction permits for new licenses in October 1948. Most expected this "Freeze" to last six months, but as the allocation of channels to the emerging UHF technology and the eagerly-awaited possibilities of color television were debated, the FCC's re-allocation map of stations did not come until April 1952, with July 1, 1952 as the official beginning of licensing new stations.
The FCC's "Sixth Report & Order" ended the Freeze. It would take five years for the U.S. to grow from 108 stations to more than 550. New stations came on line slowly, only five by the end of November, 1952. The Sixth Report and Order required some existing TV stations to change channels, but only a few existing VHF stations were required to move to UHF, and a handful of VHF channels were deleted altogether in smaller media markets like East Peoria, Fresno, and Bakersfield to create markets which were UHF "islands." The report also set aside a number of channels for the newly emerging field of educational television, which hindered struggling ABC and DuMont's quest for affiliates in the more desirable markets where VHF channels were reserved for non-commercial use.
The Sixth Report and Order also provided for the "intermixture" of VHF and UHF channels in most markets; UHF transmitters in the 1950s were not yet powerful enough, nor receivers sensitive enough (if they included UHF tuners at all - they were not formally required until the 1960s All-Channel Receivers Act), to make UHF viable against entrenched VHF stations. In markets where there were no VHF stations and UHF was the only TV service available, UHF survived. In other markets, which were too small to financially support a television station, too close to VHF outlets in nearby cities, or where UHF was forced to compete with more than one well-established VHF station, UHF had little chance for success.
Denver had been the largest U.S. city without a TV station by 1952. Senator Edwin Johnson (D-Colorado), chair of the Senate's Interstate and Foreign Commerce Committee, had made getting Denver the first post-Freeze station his personal mission. He had pressured the FCC, and proved ultimately successful as the first new station (a VHF station) came on-line a remarkable ten days after the Commission formally announced the first post-Freeze construction permits. KFEL (now KWGN-TV)'s first regular telecast was on July 21, 1952.
Telephone Monopoly to Competition
The important relationship of the FCC and the American Telephone and Telegraph (AT&T) Company has evolved over several years. For many years, the FCC and state officials agreed to regulate the telephone systems as a natural monopoly. The FCC controlled telephone rates to limit the profits of AT&T and ensure nondiscriminatory pricing. In the 1960s, the FCC began allowing other long-distance companies, namely MCI, to offer specialized services. In the 1970s, the FCC allowed other companies to expand offerings to the public. A lawsuit in 1982 led by the Justice Department after AT&T underpriced other companies, resulted in the split of the Bells from AT&T. Beginning in 1984, the FCC implemented a new goal that all long-distance companies had equal access to the local phone companies' customers.
Telecommunications Act of 1996
In 1996 Congress enacted
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