FCC Chairman Michael Powell sent a good strong scare into lawmakers Tuesday when he testified that WorldCom might be able to shut down its UUNET subsidiary’s Internet backbone without government approval. UUNET is a major component on the Internet, and its loss could potentially have devastating effects, particularly on corporate and government clients.
“Mr. Powell said he was confident in the long-term health of the telecom industry,” the Wall Street Journal reports. “But in the short term, ‘there are question marks’ about whether the FCC can order a bankrupt company’s Internet subsidiary to keep its backbone operational. ‘I could hypothesize that (the company) would refuse to comply.'”
After Powell’s shake-em-up, Senate Commerce Committee Chairman Ernest Hollings, a South Carolina Democrat, said he would introduce legislation to clarify the agency’s authority over Internet-backbone companies like UUNET. The Journal notes that the panel reacted positively to Powell’s request for Congress to strengthen the FCC’s jurisdiction over telecom companies that file for bankruptcy protection, to ensure it can stop them from shutting down essential services.