Gulp. FCC chairman Kevin Martin is prepping for a big ol' congressional probe this morning. Martin received a letter today warning that he is being investigated for, "management practices that may adversely affect the Commission's ability to both discharge effectively its statutory duties and to guard against waste, fraud, and abuse." Martin, you'll recall, was recently accused of being in Verizon's back pocket during its attempt to revise the 700MHz open-access rule. The investigation is prompted by allegations made by "credible" FCC employees, both current and former, so far reaching -- including its handling of Comcast and the so-called, 70-percent ruling -- that Ars Technica expects it to turn the "FCC upside down." Martin has two weeks to deliver "a truckload" of records to Congress before this revolution gets televised.

We don't usually take much stock in proposed legislation -- Schoolhouse Rock left out the part where lobbyists gut all the good bits -- but we're willing to root for the Wireless Consumer Protection and Community Broadband Empowerment Act, currently on the floor in the House and Senate. The bill, sponsored by Massachusetts Rep. Ed Markey, would require carriers to sell contract-free phones, provide rate plan information in a "clear, plain, and conspicuous manner," disclose any phone subsidies hidden in the plan's price, and offer price-comparable plans with no subsidy or early termination fee. That means you'd finally know exactly how much a plan would bill you every month including taxes and fees, it'd be easier to see how much devices like the iPhone are marked up, and most importantly, it'd be way easier to switch carriers to get better deals. The House Subcommittee on Telecommunications and the Internet, of which Markey is the chairman, held a hearing on the bill this morning with reps from both the wireless industry and consumer groups present, so progress is being made -- we'll see how things go.

[Via CNET]

Read - Markey's statement to open the hearings
Read - Proposed bill [PDF]

Expressing concern over a few recent irregularities (or perceived irregularities, anyway) in the way the FCC is going about its business, the US House Energy and Commerce Committee is starting to put the smack down. In a bipartisan action, committee head John Dingell and ranking Republican Joe Barton have fired a communique over to FCC honcho Kevin Martin -- a Republican -- asking him to start saving all records and emails related to his work. Congress, regulated companies, and factions within the FCC itself have recently become dissatisfied with the way the Commission handles its policies and procedures, with Martin himself taking much of the heat for alleged improprieties in failing to properly disseminate information to FCC commissioners ahead of votes, pushing for votes while Congress is asking the agency do more research and investigation, and proposing widely unpopular policy changes. Analysts are suggesting that the move won't likely have a profound effect on the FCC's policy docket, saying the complaints seem to be more "procedural" in nature and that Martin may need to spend more time around Congress to keep 'em happy. If that's not punishment enough, we don't know what is.

[Via Slashdot and Ars Technica]

A continuation of earlier sessions on the subject, Senators Amy Klobuchar and Jay Rockefeller have introduced legislation this month that could throw a rather hefty monkey wrench at the contracts and early termination fees wireless subscribers have come to know and love loathe. Known as the "Cellphone Consumer Empowerment Act of 2007," the proposed bill takes swings at virtually every aspect of carriers' billing practices, limiting what fees can be listed on statements, capping contract termination charges, and giving the FCC more direct control over handset locking practices. Naturally, the CTIA and its members are less than thrilled with the proposed law, arguing that it'll lead to higher bills (quite the opposite effect the legislation's sponsors had in mind) and that consumer complaints levied against carriers on the already decline without government intervention anyway. Grab some popcorn and have a seat, folks; this won't all get resolved for a hot minute or two.

We don't like paying a couple bills to slide out from under a bunk two-year contract any more than the next guy, but at least we're cognizant of the tradeoff: subsidized hardware. Congress this week appears to have taken a special session to discuss state regulation of the wireless industry and turned it into a rant session, with several reps chiming in that termination fees and exclusivity deals (you can probably guess the device in question here) suck. We don't disagree, folks -- really, we don't -- but we hope these lawmakers (mostly rich people, we might add) realize the tradeoff of enforcing any sort of anti-contract, anti-exclusivity legislation will be higher prices on handsets. Naturally, carriers were quick to chime in that they're plenty competitive with one another and there's absolutely no need for any sort of government meddling. Let's start with significantly expanded carrier-subsidized lineups and greater manufacturer-direct unlocked presence before we start worrying about getting rid of contracts, shall we?

[Via AppleInsider, thanks Warren J.]