New FCC Economic Office Is a Go

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The FCC received final approval from Congress and the Office of Management and Budget to create an Office of Economics and Analytics (OEA). The agency earlier this year voted to create OEA to better integrate the use of economics and data into its rulemakings and other proceedings. It also needed to reach a deal with its employee union before going forward.

The new office is meant to fix several problems, according to FCC Chairman Ajit Pai. “Staff economists weren’t guaranteed a seat at the policy-making table.” They worked separately, and “cost-benefit analysis was often ignored and data was not particularly well collected or managed across the agency,” according to the Chairman.

OEA will bring together FCC economists, data professionals, and attorneys from across the agency, enabling them to work closely to improve economic analysis and data usage in agency proceedings. OEA will be staffed by about 100 employees.  The Acting Chief will be Giulia McHenry, who recently joined the Office of Strategic Planning and Policy Analysis (OSP) after previously serving as Chief Economist at the National Telecommunications and Information Administration. OSP and its functions will shift to OEA.

FCC Commissioner Jessica Rosenworcel dissented from the change, noting that her office can’t get answers to basic questions. She said there needs to be peer review, and more transparency, noting: “We need to be honest about how much of the economic data presented to the FCC is advocacy.”

October 26, 2018