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Federal Communications Commission (FCC)

The Federal Communications Commission (FCC) is an independent American regulatory body created by an act of Congress on June 19, 1934. The FCC replaced the earlier Federal Radio Commission (1927–34) and expanded its authority to include wired communication. Today the FCC's role includes the licensing of all services that utilize spectrum. It reports directly to Congress, which supplies its budget. In the early 2000s, the commission had about 2,000 employees and a projected annual budget approaching $320 million. While the cost of administration is on the rise, the agency typically offsets its operational cost by charging application processing fees.

Table 1 FCC Annual Budget 2001–081
Fiscal Year 2001$312,505,000
Fiscal Year 2002$337,334,000
Fiscal Year 2003$369,380,000
Fiscal Year 2004$361,011,000
Fiscal Year 2005$368,287,000
Fiscal Year 2006$377,038,000
Fiscal Year 2007$385,132,000
Fiscal Year 2008$408,913,0002
Source: Summary Tables—Distribution of Resources, in Federal Communications Commission. Budget Estimates, Submitted to Congress Yearly. Available from http://www.fcc.gov/Reports/fccbudget.html 1. Total gross budgetary authority, actual. 2. Total gross budgetary authority, congressional budget

The 1934 Communications Act has been amended many times since its passage, though its basic core requirement—that services (including broadcasting) operate as public trustees (of their spectrum channels) in “the public convenience, necessity or convenience”—remains. Many of the alterations have been in response to the many technical changes in communications, including the introduction of television, satellite and microwave communications, cable television, cellular telephone, the Internet, digital broadcasting, and PCS (personal communications) services. For example, the Cable Act of 1992 and the Telecommunications Act of 1996 both amended the 1934 act. But the flexibility incorporated into the original provisions has allowed the law and agency to survive.

Organization

The Communications Act describes the administration, formation, and powers of the commission. Five regulatory commissioners are appointed by the President and confirmed by the Senate. Each commissioner serves a five-year term except for when an appointee is filling an unexpired term. The only qualifications are that commissioners must be citizens and no more than three can be members of the same political party. One commissioner is appointed chair and is responsible for setting the commission's agenda. The commissioners (and increasingly this means the chairman's office) supervise all FCC activities, delegating responsibilities to various bureaus and offices.

In 2002, FCC bureaus and offices were reorganized by function. Responsibility for oversight of electronic media (radio, television, satellite, and cable services) is concentrated in the Media Bureau. Other bureaus include the Wireless, International, Enforcement, and Wireline Competition. After the terrorist attacks in September 2001, a new bureau responsible for public safety, disaster management, and homeland security was created. Most of the day-to-day regulatory work of the commission is done by civil servants at the bureau level.

Congress wrote the 1934 act in broad terms and provided the commission with the ability to promulgate rules and regulations as a means of administering communication policy. The commission's rules and regulations sometimes reflect the intentions of Congress but may also be initiated to solve problems that develop as technology advances or when user needs warrant changes to existing policy. Regulations adopted by the commission have the same force as law (though Congress can override them) and are subject to judicial review. Decisions may be overturned in whole or in part by federal courts or remanded (sent back) to the commission for reevaluation.

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