May 3, 2024

Obama Fund-Raiser Is Likely Pick to Lead F.C.C.

Mr. Wheeler, who more than a decade ago led two telecommunications industry trade groups, has prompted concern in recent weeks by some consumer advocacy groups that anticipated his nomination and said they were troubled by his background investing in and lobbying for cable and wireless companies.

Many of them contended that the departing chairman, Julius Genachowski, refused to stand up to powerful telecommunications companies during his four-year tenure.

But on Tuesday, Mr. Wheeler received cautious approval from Public Knowledge, one of Mr. Genachowski’s harshest critics. Officials at Public Knowledge pointed out that when Mr. Wheeler lobbied for cable companies and the cellphone industry, they were upstarts or far less concentrated than they are today.

Gigi B. Sohn, president and chief executive of Public Knowledge, said Mr. Wheeler would be unlikely to elicit concern about the so-called revolving door between Washington and the private sector. Mr. Wheeler, she noted, is 67 and wealthy, meaning that he is unlikely to want a job in the telecommunications industry after a term as a regulator. “This is the capstone of his career,” she said. “Why take over an agency at that point in your life and guide it into irrelevancy?”

A White House official said that Mignon L. Clyburn, an F.C.C. commissioner since August 2009, would be appointed as acting chairwoman until Mr. Wheeler is confirmed and sworn in. Before joining the F.C.C., she served for 11 years on the South Carolina Public Service Commission, two of them as its chairwoman.

Mr. Wheeler is a managing director at Core Capital Partners, a Washington investment firm with $350 million under management. He has helped to oversee the firm’s investments in an array of start-ups and small- to mid-size technology companies, including GoMobo, Twisted Pair Solutions and Jacked. He also is a member of the board of EarthLink, an Internet service provider that competes aggressively with Verizon and ATT.

In columns on his Web site, www.mobilemusings.net, Mr. Wheeler has expressed strong opinions about some of the issues that he would address at the F.C.C.

He has supported the voluntary incentive auctions that the F.C.C. has been planning. The agency is seeking to reclaim airwaves from television broadcasters and sell them to wireless phone companies for use in mobile broadband services.

In 2011, Mr. Wheeler criticized the broadcast industry for not moving more aggressively to use its airwaves for mobile digital television, or the broadcast of television signals to smartphones. At the same time, he said, broadcasters have been reluctant to let go of the part of the nation’s airwaves, or spectrum, that they do not fully use. The F.C.C., backed by Congress, is preparing to auction off many of those unused airwaves, potentially for billions of dollars.

“I’ve been mystified why broadcasters have declared jihad against the voluntary spectrum auction,” Mr. Wheeler wrote.

“Getting big dollars for an asset for which you paid nothing while still being able to run your traditional business over cable,” he added, “seems a pretty good business proposition — unless you really are serious about providing new and innovative services and need all that spectrum.”

The broadcasters association said that it had begun digital broadcasting to smartphones, with programming from more than 140 local television stations now available in 51 large cities. While Mr. Wheeler has gained some support, he will have to overcome critics.

Telecommunications industry watchers who have expressed misgivings about Mr. Wheeler’s work as a lobbyist point out that he oversaw the National Cable Television Association from 1979 to 1984. That could mean that he would look kindly on companies like Comcast, one of the largest cable and broadband service providers.

Free Press, a group that often opposes telecommunications industry proposals, said the F.C.C. needs as its chairman “someone who will use this powerful position to stand up to industry giants and protect the public interest.”

“On paper, Tom Wheeler does not appear to be that person, having headed not one but two major trade associations,” the group said. “But he now has the opportunity to prove his critics wrong.”

But others said Mr. Wheeler had promoted competition. He backed passage of the Cable Communications Act of 1984, which deregulated rates and let the industry compete more effectively with broadcasters.

From 1992 to 2004, Mr. Wheeler was chief executive of the Cellular Telecommunications Internet Association, the wireless industry group now known as CTIA — The Wireless Association. Mr. Wheeler’s wife, Carol, formerly worked in government affairs for the National Association of Broadcasters.

He co-founded SmartBrief, an online news service, and he served on the F.C.C.’s Technology Advisory Council and the president’s Intelligence Advisory Board. He recently was chairman of the State Department’s communications policy committee.

In March, Senator John D. Rockefeller IV, a West Virginia Democrat, sent a letter signed by 37 senators to Mr. Obama recommending Jessica Rosenworcel, the other Democrat on the five-member commission and a former aide to Mr. Rockefeller, for the top job.

A group of Washington technology policy advisers later wrote to Mr. Obama saying that Mr. Wheeler should be the nominee. “He has consistently fought on the side of increasing competition,” the group wrote.

The Wall Street Journal Web site was the first to report that the president was expected to nominate Mr. Wheeler. Any nomination would be subject to Senate confirmation.

Article source: http://www.nytimes.com/2013/05/01/business/technology-investor-is-reported-choice-for-fcc.html?partner=rss&emc=rss

Wealth Matters: Challenging Dollar-Cost Averaging and Other Bad Ideas

The sheer magnitude of the world’s problems — high unemployment and legislative gridlock in the United States, debt problems in Europe, signs of a slowdown in China — makes this a scary time for investors.

But what about the urge to take some sort of action? As I have written before, the better strategy is almost always to focus on a long-term plan and not abandon it the moment it gets tested. After the last three years, this is tougher to do than ever.

“It’s very hard to do nothing when everybody is trying to talk you into doing something, even when it’s wrong,” said Susan Fulton, founder and president of FBB Capital Partners.

Michael Martin, a trader and the author of the new book “The Inner Voice of Trading” (FT Press), put it a different way. The big risk for average investors now is confusing volatility with opportunity.

He said professional traders become more wary when prices are changing rapidly for no fundamental reason. And he equated the market, with its wild swings, to a drunken uncle at a holiday dinner. “When someone’s behavior becomes more volatile, you don’t want to warm up to that person,” he said. “You want to get away.”

But ignoring those swings can be difficult. Below are some bad ideas as well as some slightly contrarian thoughts that may offer comfort.

BAD IDEAS Fear causes investors to do all sorts of things that could hurt them in the long run.

The recent drop in gold prices to about $1,600 an ounce from just under $1,900 in August has damped down some of the enthusiasm for gold. But the gyrations in stocks have led some investors to think that they can find something there that will soar as gold did.

“People want to swing for the fences,” Ms. Fulton said. “We’re not going to have stocks that multiply by 10 in the near future.”

She said she advised clients to look instead at companies that had a lot of cash and were paying steady dividends. There is a predictability to those stocks that will help battered portfolios.

A variation on the stock-picking strategy involves using tax losses accumulated over the years to bet heavily on a risky company. The hope is that any gains will get an investor back to even and also be tax-free.

The problem is that unless the investor picks the next Google, his losses could be substantial. And even if he’s lucky enough to pick a stock that appreciates greatly, it could be years before he sells the stocks and is able to use the tax losses to offset the gains.

“You should use your tax losses on things that can benefit you today,” said Lewis Altfest, chief investment officer of Altfest Personal Wealth Management.

Mr. Altfest said a client recently wanted him to put money into some risky stocks because he was down so much. Instead of agreeing, Mr. Altfest suggested the client reallocate his portfolio back to 65 percent stocks and 35 percent bonds and then go back to that allocation whenever the stock position dropped below 63 percent.

“He’s got a human problem now — he’s behind,” Mr. Altfest said. “I could explain to him that this is the worst recession we’ve had in 80 years. It might help him intellectually, but he hurts, and he wants an answer.”

CONSOLING THOUGHTS One of the great comforts to average investors in a volatile market is dollar-cost averaging. This is a fancy way of saying you should invest your money over a period of time as opposed to investing it all at once, which is known as lump-sum investing.

Proponents of dollar-cost averaging offer two arguments. By putting money into, say, a stock over time, you will be buying shares at varying prices, which will benefit you in the end. This seems particularly appealing when stock prices are rising and falling so much.

The second advantage is psychological: If you put all your money into an investment and it is worth 10 percent less the next day, you’re going to feel horrible about it. Worse, you may also be less inclined to make further investments or pull your money out.

But new research from Gerstein Fisher, a money manager in New York, raises questions about that investing philosophy. It found that from January 1926 to December 2010, investing your money on one day yielded better results over a 20-year period than investing the same amount of money in equal chunks over 12 months.

Article source: http://feeds.nytimes.com/click.phdo?i=90a4d733ac782efae338a23b99bea603