UPDATE 2-Genachowski named to head U.S. FCC

* Broadband stimulus, net neutrality seen high on agenda

* Genachowski worked on Obama campaign

* Technology executive, also worked at FCC under Clinton

(Recasts, adds byline, comments in paragraphs 7-17)

By Kim Dixon

WASHINGTON, March 3 (Reuters) - President Barack Obama on Tuesday nominated Julius Genachowski, a law school friend and technology industry executive, to head the Federal Communications Commission.

Genachowski's expected priorities include the expansion of broadband service fueled by the recent economic stimulus package and "net neutrality" to prevent Internet service providers from giving preference to certain content.

"I think his agenda is largely going to be dictated by the broad contours of what is happening in the marketplace," said Chris Murray, a senior counsel at Consumers Union.

Among the FCC's broad mandates are regulation of telephone and cable companies, oversight of concentration of ownership of radio and television outlets, and auctioning public airwaves.

Consumer and industry groups said Genachowski's friendship with Obama would give telecoms policy a higher profile than it had during the Bush administration.

Genachowski was widely expected to be chosen for the FCC chairman position. He was a top aide at the FCC under Democratic president Bill Clinton, a classmate of Obama's at Harvard Law School and an architect of Obama's technology policy positions and use of social networking tools during the presidential campaign.

In the private sector, Genachowski held various jobs at Barry Diller's IAC/InterActiveCorp (IACI.O) and more recently co-founded technology investment firm Rock Creek Ventures and was part of the team at LaunchBox Digital.

Genachowski is expected to win Senate confirmation to lead the FCC.

DIGITAL TELEVISION

The FCC's biggest immediate challenge is the nationwide conversion to digital television signals, which is now set for June after a delay to give millions of viewers more time to prepare.

Another major task will be helping overseeing billions of dollars in incentives to states and private companies to expand high-speed Internet to rural and underserved areas. The money was included in the $787 billion economic stimulus package approved last month by Congress.