Election Pushes FCC to Clear Its Plate

The Federal Communications Commission has a full Election Day meeting Tuesday, as Chairman Kevin Martin has loaded the docket with several critical items that could become more difficult to pass after the results are official.

The agenda includes seven items for the commission to consider, including a discussion on Verizon's (VZ Quote) acquisition of Alltel and the transfer of licenses between Sprint Nextel (S Quote) and Clearwire (CLWR Quote) for their WiMax joint venture.

With Sen. Barack Obama (D., Ill.) currently favored to beat Sen. John McCain (R., Ariz.) in the election for U.S. president, some analysts believe the FCC is tying up loose ends before control of the White House changes hands. With the presidential power to assign the FCC chairperson, Martin could lose the position if either Obama or McCain wins.

The FCC now has a 3-to-2 Republican majority, with commissioners Deborah Taylor Tate and Robert McDowell often siding with Martin. Commissioners Jonathan Adelstein and Michael Copps are the two Democrats. Commissioners are nominated by the president to serve five-year terms, and no more than three commissioners from the same party can be appointed to the FCC.

Decisions regarding mergers have been frequently decided across party lines, with the deal between Sirius Satellite Radio (SIRI Quote) and XM Sattelite , and the sale of Tribune to investor Sam Zell among the most controversial.

In another instance, Copps publicly feuded with Martin over the latter's unwillingness to review the possible effects of consolidation arising from News Corp.'s (NWS Quote) acquisition of Dow Jones last year.

Jack Nadler, a partner in the Washington, D.C. office of Squire, Sanders & Dempsey who was actively involved in the legislative proceedings leading to the adoption of the Telecommunications Act of 1996, says that too much is being read into the timing of the FCC's meeting, which coincides with the presidential election.