Press Release

Federal Communications Commission Chairman Ajit Pai announced the appointment of Jerry Ellig as chief economist for the FCC. Dr. Ellig currently serves as a senior research fellow at the Mercatus Center at George Mason University.

Dr. Ellig’s work focuses on the role of economic analysis in the U.S. regulatory process, competition policy in telecommunications, broadband and electronic commerce, and performance management in government agencies. Most recently, he has published a series of papers that assess the quality and use of regulatory impact analysis in both executive branch and independent agencies. These papers identify best practices, shortcomings, and reasons for variation in the quality of agencies’ analysis.

Dr. Ellig has worked as a senior research fellow at the Mercatus Center at George Mason University since 1996. He previously served in the federal government as deputy director of the Office of Policy Planning at the Federal Trade Commission (2001-03) and as a senior economist at the Joint Economic Committee of the U.S. Congress (1995-96). He has also served as an associate professor of economics and adjunct professor of law at George Mason University. He holds a Ph.D. and M.A. in economics from George Mason University in Fairfax, VA, and a B.A. in economics from Xavier University in Cincinnati.

Federal Trade Commission Acting Chairman Maureen K. Ohlhausen announced that Abbott (Tad) Lipsky, Acting Director of the FTC’s Bureau of Competition, retired effective July 3, 2017. Lipsky was previously a partner in the law firm of Latham & Watkins LLP, and brought 40 years of experience in antitrust law to the position, including previously serving as Deputy Assistant Attorney General to President Reagan’s first Assistant Attorney General, William F. Baxter. He also served on the Trump administration transition team for the FTC.

Alan Devlin, an Acting Deputy Director of the Bureau of Competition also left the Commission July 3, 2017, for private practice.

Markus H. Meier, who has served as Acting Deputy Director of the Bureau of Competition since November 2015, replaces Lipsky as Acting Director of the Bureau of Competition. Meier has led the Health Care division within the Bureau of Competition since 2006. He brings nearly 30 years of experience in antitrust, serving previously in private practice and the U.S. Army. As part of these changes, Acting Chairman Ohlhausen has also appointed Haidee L. Schwartz as an Acting Deputy Director of the Bureau of Competition. Schwartz previously served as an Attorney Advisor to Acting Chairman Ohlhausen, and as a counsel practicing antitrust law at O’Melveny & Myers LLP in Washington D.C. Marian R. Bruno will continue to serve as Deputy Director, Bureau of Competition, a position she has held since 2008. She will continue to bring her strong leadership, immense skills and expertise to the Bureau’s mission.

Semiconductor manufacturer Broadcom Limited has agreed to establish a firewall to remedy the Federal Trade Commission’s concerns that its proposed $5.9 billion acquisition of Brocade Communications Systems, Inc. is anticompetitive. These concerns arise because of Broadcom’s current access to the confidential business information of Brocade’s major competitor, Cisco Systems, Inc., that could be used to restrain competition or slow innovation in the worldwide market for fibre channel switches.

Fibre channel switches are part of storage area networks that transfer data between servers and storage arrays in data centers. Because fibre channel switches can quickly and securely transfer large amounts of data, they are often used for mission-critical applications. According to the complaint, San Jose (CA)-based Broadcom makes the fibre channel application specific integrated circuits, or ASICs, that are custom-tailored to carry out the functions of each switch. Brocade and Cisco are the only two competitors in the worldwide market for fibre channel switches, and Broadcom supplies both companies with ASICs to make fibre channel switches. The complaint alleges that Broadcom’s acquisition of Brocade could harm worldwide competition in the fibre channel switch market because as Cisco’s supplier, Broadcom has extensive access to Cisco’s competitively sensitive confidential information.

In its analysis of data from 2012 through 2014, the Government Accountability Office was unable to confirm the eligibility of 30 percent of Lifeline users it examined. Opponents hail this finding as proof of widespread fraud. However, the GAO didn’t determine that these individuals were ineligible; it was simply unable to verify whether providers had complied with eligibility guidelines. The GAO also conducted undercover investigations, submitting a total of 21 Lifeline applications using false information and fabricated supporting documents. Investigators were able to secure service from 12 of the 19 Lifeline providers. Notably, the GAO underscored that the tests were “for illustrative purposes to highlight any potential internal control vulnerabilities and are not generalizable.”

Although investigators were able to leverage their expertise to deceive certain Lifeline providers, the GAO itself admits this effort doesn’t prove that the program is plagued by fraud. But none of that will stop Lifeline critics — including Federal Communications Commission Chairman Ajit Pai — from using the GAO report to intensify attacks on the program and malign its users. They will continue to dismiss the tremendous opportunities Lifeline has provided for millions of people — and the millions more whose lives can be improved with Lifeline’s new broadband offerings.

Federal Communications Commission Chairman Ajit Pai announced that the agency has chosen Larry Hudson to serve as Director of the Office of Workplace Diversity, continuing the work he has been doing as acting director.

Prior to joining the FCC in 2015, Hudson served as the Chief, Employee and Labor Relations for the Bureau of Administration, Bureau of Information Resource Management, and Bureau of Conflict and Stabilization Operations at the State Department. He has held positions at the Federal Transit Administration, Federal Aviation Administration and the National Park Service. Hudson possesses more than 20 years of labor and employee relations experience from the private, public and military sectors. His initial introduction to human resources came while he served active duty in the US Air Force. Hudson is a trained mediator, formerly certified by the Virginia Supreme Court. He has also obtained the Professional in Human Resources (PHR) certification and Myers-Briggs Type Indicator (MBTI) practitioner certification. He has a Master of Science Degree in Human Resources Management from Chapman University, a Master of Science Degree in Administration from Central Michigan University, and a Bachelor of Science Degree in Management from the University of Maryland.

The Fiber Broadband Association commended the Federal Communications Commission’s efforts towards removing regulatory roadblocks to nationwide broadband deployment. FBA also offered significant barrier-reducing steps to help make that happen. First, FBA suggested that the Commission should amend its pole attachment rules to address practices of many pole owners and existing attachers that delay and increase the cost of access. Second, FBA urged the Commission to repeal the 2015 network change notification rule, which imposes an unnecessary and costly process, thereby hindering investment in fiber infrastructure. Third, FBA proposed that the Commission adopt criteria that can be used to readily determine which state and local laws and regulations violate Section 253 of the Communications Act and inhibit broadband deployment.

[Commentary] In hindsight, it’s easy to say CNN shouldn’t have gone with such a flimsy, improperly vetted story. Unfortunately, journalism isn’t a hindsight business. Journalism happens in real time, against a deadline clock, and in a competitive atmosphere. Only ombudsmen, press critics and libel attorneys get to second-guess what they do. As the Supreme Court noted in the landmark libel case Times v. Sullivan, the First Amendment is of little use unless we provide “breathing space” for controversial reports that end up containing unintentional mistakes—like the CNN story—as long as they’re made without malice.

The Federal Communications Commission released an Order taking a necessary procedural step so that the Code of Federal Regulations contains an accurate reflection of the FCC’s current privacy rules.

Specifically, the FCC’s pre-2016 Privacy Order rules that applied to wireless and wireline telephone carriers have been reinstated following the recent resolution of disapproval of the FCC’s 2016 privacy regulations under the Congressional Review Act (CRA). The resolution of disapproval of the FCC’s privacy regulations, signed by President Trump on April 3, 2017, declared that the 2016 Privacy Order “shall have no force or effect” and “shall be treated as though [it] had never taken effect.” In addition, the June 29, 2017 Order also dismisses as moot 11 petitions for reconsideration of the Commission’s 2016 Privacy Order.

Although there has been great progress extending broadband’s reach to more and more Americans, there remain too many households and communities that are not enjoying the benefits of broadband. Research shows, for example, that families earning under $25,000 a year are about half as likely to have the Internet at home as families that are the most well-off. The Federal Communications Commission’s Lifeline program brings the many benefits of reliable, robust Internet access to low-income households. That means better access to job listings and workforce training, to education and healthcare, and allows people to fully engage in today’s society. In 2016, the FCC outlined plans for a Lifeline National Eligibility Verifier that would relieve from carriers the responsibility of checking on households’ Lifeline eligibility. We urge the FCC to move swiftly to implement those plans and ensure the program’s financial health.

Federal Communications Commission Chairman Ajit Pai issued the following statement after PBS and America’s Public Television Stations (APTS) announced an agreement with T-Mobile whereby T-Mobile will provide financial assistance during the post-incentive auction repack to translator stations that extend public television signals into hard-to-reach rural areas: “I commend PBS, APTS, and T-Mobile for developing a creative solution to assist millions of TV viewers during the post-incentive auction transition. The financial assistance provided by TMobile will help the many Americans who rely on public television, especially in rural areas. It will also help expand wireless connectivity in rural America. Today’s announcement is precisely the kind of cross-industry cooperation we need to ensure a smooth transition for broadcasters, wireless providers, and American consumers.”