FOR IMMEDIATE RELEASE: News Media contact: August 12, 1999 Linda Paris at (202) 418-7121 Maureen Peratino at (202) 418-0506 CHAIRMAN KENNARD DELIVERS TO CONGRESS DRAFT STRATEGIC PLAN FOR 21ST CENTURY Sees Need for New Structure in Era of Converging Technologies; Calls for Faster, Flatter and More Functional Agency William E. Kennard, Chairman of the Federal Communications Commission (FCC), today delivered to Congress a draft strategic plan for the future, entitled "A New FCC for the 21st Century." "With this plan," Chairman Kennard noted, "the FCC is meeting the challenge of reinventing itself to keep pace with the rapidly changing communications industry landscape. We've developed a well-thought-out plan that reflects input from consumer groups, industry, state and local governments, the academic community, and FCC employees. It will allow the FCC to enter the next century able to respond fully and quickly to emerging technologies and the inexorable movement from regulation to competition. The Commission looks forward to a constructive dialogue with Congress and a continuing dialogue with all our stakeholders to ensure that this plan is inclusive, and addresses the needs of the American people." The plan envisions that in five years U.S. communications markets will be characterized predominantly by vigorous competition that will greatly reduce the need for direct regulation. The FCC as we know it today will be very different both in structure and mission. As a result, the FCC must wisely manage the transition from an industry regulator to a market facilitator. The plan notes that the advent of Internet-based and other new technology-driven communications services will erode the traditional regulatory distinctions between different sectors of the communications industry. The FCC's primary goals, however, of promoting competition in communications, protecting consumers, and supporting access for every American to existing and advanced telecommunications services will continue unabated. What will change is the means and mix of resources necessary to achieve these goals in an environment marked by greater competition and convergence of technology and industry sectors. In this new environment, the FCC must refocus its efforts from managing monopolies to addressing issues that will not be solved by the market. To do this, it must: (1) create a model agency for the Digital Age; (2) promote competition in all communications markets; (3) promote opportunities for all Americans to benefit from the communications revolution; and (4) manage the electromagnetic spectrum (the nation's airwaves) in the public interest. Throughout the plan, the FCC focuses in particular on consumer protection and enforcement to ensure that consumers are empowered and treated fairly as they navigate the new world of communications. For each of these goals, the plan establishes specific objectives and policy initiatives. (See attachment for more details.) To assess whether the FCC is on track in achieving these goals, there are specific performance measurements to be achieved within five years on key dimensions such as industry outcomes, consumer benefits, and Commission output. The plan also notes where statutory changes may be necessary to achieve the goals and includes a summary of those proposals. The plan recognizes that it is necessary to restructure the way the FCC is organized to reflect changes in the regulatory landscape. In addition, the FCC must streamline its licensing activities, accelerate the decisionmaking process, and allow the public faster and easier access to information through increased automation and efficiency. The FCC must become a "one-stop, digital shop" where form-filing and document- location is easy and instantaneous. This draft plan was developed in consultation with the senior management of the Commission. In addition, four forums were convened to get input from FCC stakeholders industry, consumers, state and local governments, academia, and FCC employees. It will continue to be refined after further discussion with these stakeholders and with Congress. The plan is available on the Internet at http://www.fcc.gov/21st_century/. Paper copies are available from ITS, the FCC's duplicating contractor, at (202) 857-3800. - FCC - Office of Plans and Policy contacts: Robert Pepper or Lisa Sockett at (202) 418- 2030; Office of Legislative and Intergovernmental Affairs contact: Sheryl Wilkerson at (202) 418-1900. A NEW FCC FOR THE 21ST CENTURY MAJOR ANNOUNCEMENTS Create a Model Agency for the Digital Age ü The Commission is committed to reorganizing along functional lines: § We will begin the transition to consolidating our rulemaking and licensing functions by using one of our current bureaus as a test case. The goal is to streamline our regulatory processes and to provide one-stop shopping for license applicants, while at the same time eliminating obsolete functions. § We will examine the effects of increased competition and convergence on our existing bureaus to consider what areas should be restructured. For example, consideration will be given toward restructuring our media-related cable and mass media functions to create a media competition bureau. § Our vision is to restructure the agency along the functional lines of enforcement, consumer information, licensing, competition/policy, and international communications. These functional areas will replace the current industry-specific Bureaus and be completed in five years. ü The Commission will begin design and development of an Intelligent Gateway which will provide tracking information on the status of proceedings electronically via our website. ü The Commission plans to act on petitions for reconsideration that do not raise significant new issues within 60 days after the record closes, as part of our commitment to move items more quickly. Promote Competition in All Communications Markets ü The Commission will implement an aggressive Year 2000 Biennial Review of regulations aimed at eliminating unnecessary rules as competition develops. ü The Commission will streamline the technical rules for, and privatize certain aspects of, the certification of telephones and other equipment (Part 68 Rules). ü The Commission will create a joint conference with the states to promote deployment of advanced services to rural areas. Promote Opportunities For All Americans to Benefit From the Communications Revolution ü The Commission will establish a Consumer Advisory Board to advise the agency on consumer issues, including issues involving access for individuals with disabilities. ü The Commission is developing an outreach plan to increase the presence of women, minorities, and small-business owners of communications outlets, which will include holding educational forums on broadcast and wireless auctions, and bringing together these entities with representatives from financial and high technology institutions. Manage the Electromagnetic Spectrum In the Public Interest ü The Commission is in the process of developing a plan to allocate and assign up to 200 Megahertz of spectrum for a broad range of new services, such as expanded wireless communications services, advanced mobile communications services, and new spectrum-efficient private land mobile systems. ü The Commission is working on a market-based spectrum initiative that would, among other things: (i) explore innovative assignment mechanisms, such as band managers, two-sided auctions, and combinatorial bidding; (ii) facilitate the creation of a secondary market for spectrum by establishing a public database on current spectrum incumbency and holding forums to bring together prospective buyers and sellers of "after market" spectrum; and (iii) develop and encourage market-oriented ways to clear encumbered spectrum for more valuable uses and reduce interference. ü The Commission is actively preparing for the Year 2000 World Radio Conference which will help promote the competitive provision of radio services to a world community; ensure the availability of new and innovative communications services; and protect existing services in the U.S. and around the world.