Obama Appoints Copps FCC Acting Chairman

Jan. 29, 2009 (Vol. 30, No. 3)

President Barack Obama appointed Democratic FCC commissioner Michael Copps to the position of acting chairman of the commission Jan. 22.

Previous Chairman Kevin Martin resigned from the post Jan. 20. Promoting Copps to the position of acting chairman allows the FCC to function with its three remaining members, as it still has quorum, FCC spokesman David Fiske says.

Copps says Obama asked him “to chair the FCC through its transition to new leadership … for an interim period,” so the appointment is expected to be temporary. “I expect that a new chairman will join the FCC in the relative near term,” Copps said in a speech Jan. 26.

Though he will not speculate when Obama will appoint two more commissioners and a permanent chairperson, Fiske explains that commissioners need Senate approval before being appointed. A chairperson only can be designated among existing commissioners and does not require Senate approval, he says.

If Obama wants to appoint a non-commissioner to the chairperson post, such as widely-expected Julius Genachowski [VR 1/15/09], the prospect would have to be appointed by the president and approved by the Senate as a commissioner, and then appointed as chairperson. (

Sprint Lays off 8,000 Workers

Jan. 29, 2009 (Vol. 30, No. 3)

Sprint Nextel will eliminate 8,000 positions within the company in an effort to reduce annual costs by approximately $1.2 billion, the Overland Park, Kan.-based carrier announced Jan. 26.

Sprint says the layoffs, which will hit about 14% of total employees, will be largely completed by the end of March. CEO Dan Hesse assured customers that Sprint’s commitment to quality will not change.

Sprint has struggled financially since acquiring Nextel in 2005 [VR 11/20/08], and continues to lose subscribers and funds in the failing economy.

“If the economy recovered tomorrow I think Sprint would continue to suffer,” says telecom expert Jeff Kagan, an analyst in Marietta, Ga.

Sprint expects a first-quarter charge of more than $300 million for severance costs.

Additionally, the nation’s third-largest wireless carrier announced that it will suspend its 401(k) match plan, extend a freeze on salary increases and suspend its tuition reimbursement program in 2009.

“Labor reductions are always the most difficult action to take, but many companies are finding it necessary in this environment,” Hesse says in a news release. (