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Summary

The Federal Communications Commission (FCC) is an independent Federal agency directly responsible to Congress. It was established by the Communications Act of 1934 (1934 Act) and is charged with regulating interstate and international communications by radio, television, wire, satellite, and cable. The mission of the FCC is to ensure that the American people have available -- at reasonable cost and without discrimination -- rapid, efficient, nation- and world-wide communication services; whether by radio, television, wire, satellite, or cable. The agency is organized by function and is composed of six bureaus and 11 offices. This current structure was established in 2002 as part of the agency's effort to better reflect the industries it regulates. The bureaus process applications for licenses and other filings, analyze complaints, conduct investigations, develop and implement regulatory policies and programs, and participate in hearings, among other things. The offices provide support services. Bureaus and offices often collaborate and share expertise in addressing FCC issues. The FCC is funded through the Science, State, Justice, Commerce (House) and Commerce, Justice, Science (Senate) appropriations process as a single line item. On June 7, 2005, the House Appropriations Committee approved a budget of $290 million, $9 million more than the FY2005 spending level, but $14 million less than requested in the President's budget. The Senate has yet to consider its version of the bill, which may contain a different funding level for the commission. Although the FCC has restructured over the past few years to better reflect the industry, it is still required to adhere to the statutory requirements of its governing legislation, the Communications Act of 1934. The 1934 Act requires the FCC to regulate the various industry sectors differently. Some policymakers have been critical of the FCC and the manner in which it regulates various sectors of the telecommunications industry -- telephone, cable television, radio and television broadcasting, and some aspects of the Internet. These policymakers, including some in Congress, have long called for varying degrees and types of reform to the FCC. Most proposals fall into two categories: (1) procedural changes made within the FCC or through Congressional action that would affect the agency's operations or (2) substantive policy changes requiring Congressional action that would affect how the agency regulates different services and industry sectors. The evolution towards converged services and the increase in industry consolidation have contributed to a contentious telecommunications policy environment. The substantive changes to the 1934 Act that may be needed to enable the FCC to regulate most effectively could remain difficult to achieve. However, the FCC, without such a congressional mandate for change, may find it difficult to conduct its work under the restrictions of the 1934 Act. This report will be updated as needed.

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