Transcripts For CSPAN2 Communicators With Jonathan Spalter 20170403

Brought to you today by your cable or satellite provider. Host and this week on the communicators, we want to introduce you to the new president and ceo of u. S. Telecom, Jonathan Spalter. First of all, mr. Spalter, welcome to the washington world again. What is u. S. Telecom . Guest well, first of all, and thank you for your welcome. Its great to be back near washington, and im very excited about working with our members and reconnecting with old friends and making new friends in washington d. C. Its a pleasure. U. S. Telecom a Wonderful Community of broadband innovators who are the men and women who have been doing the hard work of digging the trenches, laying the fiber to light up this next generation of Internet Innovation that we all are gloriously experiencing. Our companies are busy serving tens of millions of customer in each of the 50 states and district of columbia, tribal lands in colorado, in new mexico and are also very busy making sure that access is provided to Broadband Services not only in our smallest, most remote Rural Communities that are the hardest to reach, but also some of our largest urban centers as well as the suburbs and exurbs in between. Our members are men and women like oyster tucker who is the ceo of north state communications in north north carolina, who is, who has been working in the area around high point to deliver very advanced Broadband Services to communities that he serves. And his family has been doing this since 1895. He it would me a story about his great grandfather and his great grandmother who were actually leading this company, serving these communities over decades. This is a kind of an American Company that has been at the core of not only our Technological Progress in our nation, but the core of our membership at u. S. Telecom. It includes companies that are, for example, smart cities in florida that has become the leader in providing Network Services to our Nations Convention and hotel industries. It includes Companies Like centurylink. Monroe, louisiana, i had a wonderful opportunity to visit there just last week to see the profound progress theyre making not only serving urban communities, but Rural Communities. Allowing people to understand the transformative benefits of broadband. Our members span the entire country, but theyre all joined by one important point; they believe in the idea of universal service and delivering broadband to all americans regardless of where they live. We also, and im very proud to say this, are part of a very special broader Broadband Community that collectively invests more in the national economy, more in american infrastructure than any industrial sector in our land. In 2015 it was actually 76 billion in total investment in our nations infrastructure from the broadband sector. Its a trillion and a half dollars of investment over the last 20 years. Its an honor, a real privilege to be able to work with these innovators, and our future is very bright. Host so when you talk to some of your Member Companies verizon, at t, windstream, frontier, on mowville, louisiana what are their concerns and how do you represent them here in washington . Guest our broadband Innovation Ecosystem has really been leading the charge in advancing all kinds of new services and support and products for customers. And theyve been doing it serially for decades. Our major concern, i would bundle them into three clear categories. First is that we prioritize broadband first. We are pushing a broadband first agenda. Whenever were talking about investment or policy frameworks that can e give our nations equip our nations broadband providers to do better and serve more american, we have to prioritize broadband as an exist existentially input. And that has to be reflected positively in our nations policy agenda. Second is what i call parity. For too long broadband providers have been siloed in their own special regulatory taxonomy even though there are so many competitors now across the broadband ecosystem and have had to operate and invest within that regulatory silo that is both, that is both requiring specific burdens only on broadband providers, and we think it actually has been both discriminatory and biased. We really are looking for new policy frameworks that will put first the principle of leveling the Playing Field and how were applying regulation across this increasingly interdependent broadband ecosystem that consumers in america are enjoying. The divisions of yesteryear that divided wire line from cable and wireless and satellite are relics of an old and distant past. We have to modernize our approach, we have to create parity. And be as chairman pai at the fcc said, we have to fire up our weed whacker and really clear through the brush of these biases that have focused on our companies, large and small, so that we have a level Playing Field that they can continue to fs and innovate invest and innovate. The third category is clarity. Our broadband providers on behalf of their consumers need policy frameworks that will provide a clear line of sight and more confidence so that they can invest in the long term. I mentioned the historic levels of investment broadband providers have been making in our nations economy. Past is not necessarily prologue in terms of the continuity of that level of investment. We need to have new incentives, new approaches to the centrality that broadband providers play in our nations economy and reflect that in having clear, simple, forwardlooking and modern frameworks that will guide Communications Policy Going Forward. So broadband first, parity and clarity is what u. S. Telecom working towards. Host and one more question before we bring David Shepardson of reuters into our conversation. You described or u. S. Itll come described the recent telecom described the recent congressional votes on internet privacy votes as a win for consumers. How is that . Its a win for consumers and for privacy. We understand as an industry that protecting our consumers privacy is of utmost important. And our industry has been dead set in insuring that our consumers can realize the privacy that they require and deserve. Its a win win now because our consumers have the opportunity to have the opportunity Going Forward to have a consistent and harm needs framework for harmonized framework for privacy protections that will be applicable across the broadband ecosystem. Not putting the thumb on the scale for privacy protections only for one part of the broadband ecosystem versus another. Consumers demand and require consistency, and we need not confuse them about when they actually go on to the online environment what privacy framework is actually protecting them. Need a single, consistent approach, and congressional action is moving us toward that direction. But its also a win win for consumers and for privacy because it enables more innovation to happen actually in our networks by allowing our companies and the innovators to find new and creative ways of serving their consumers with better products and optimizing the kinds of tools and resources and advertising and ore aspects of our life on the internet that our consumers require. Host David Shepardson of reuters, as promised. So, as you know, the house voted 250205 to reverse those broadband privacy rules that the fcc under chairman wheeler had adopted in october but never went into effect. The critics during the debate said why not raise all of the standards for both web sites and for Internet Service providers, and they say without requiring optin concept on the part of consent on the part of consumers, that theyll be able to sell the data to the highest bidder. Do you see the broadband providers selling data, and what are they besides the voluntary, the voluntary guidelines that the industrys agreed to, what are the protections that you see that consumers have in the wake of that vote . Guest sure. Its important to understand that already our consumers, both yesterday and today, have strong privacy protections that insure that the integrity of their sensitive data. Our companies are aligned in insuring that sensitive data, our Social Security numbers and other deeply sensitive aspects of our personal lives, need not and should not be actual transacted or shared on our networks. Were all committed to that. Theres also good news that the current chairman of the fcc and the Current Interim chairman of the ftc have joined together to say as we move forward to evolving the frameworks for private in the future, trying to make them more consistent and harmonized, they will be acting in partnership to insure our consumers receive the kinds of privacy protections that they require. Look, every day globally six billion searches are happening on google alone. And every time that one of us goes on a google search, we know that there are nonsensitive data that can be populated into a broader database of data sets that allow google and other parts of the broader internet ecosystem to systematize and provide better services, better technology, better support through more targeted advertisement, more meaningful types of development in r d that our consumers really should expect from an increasingly innovating internet ecosystem. What were simply saying from the perspective of broadband providers or is that there should be a single set of rules that apply to all of our increasingly interdependent and coordinating internet ecosystem. It doesnt single out rules that only apply to one subset of actors in our broadband or internet ecosystem and fair others. We should have a common set of standards that put absolutely at the forefront of our vision the idea that it is our critical obligation as a broad internet industry the protect the Sensitive Information of our customers and consumers, but at the same time enable the kind of innovation, the kind of new Business Models and the kind of new services that we know our customers are clamoring for every time we log on, every time we are accessing this extraordinary phenomenon we call the global internet. Some people say that this battle over broadband privacy is presaging a much bigger fight later this year over Net Neutrality. Clearly, the chairman of the fcc plans to revisit and seek the repeal the rules on Net Neutrality under title ii that were put in place under the previous administration. Congress has talked about revisiting the issue. You know, where do your Companies Stand on the issue of Net Neutrality . Do you believe congress should put in place a new framework to continue some of these protections under a different section of the law . Guest sure. Well, let me start by saying that all of our companies are aligned with all of the consumers that they serve in prioritizing the very, very critical principle that we all are for, an open and Free Internet. We support Net Neutrality. We understand that the ability to transact our online lives in an open and free environment is indispensable not only to our democracy, but to the future of our economy and to the health and safety and productivity and education increasingly of our families and communities. Were all aligned in support of an open, Free Internet and for the concept of Net Neutrality. Where we disagree is how to get there. We do not think that the title ii solution to guarantee the future of the open internet is smart policy. In fact, we think its regressive policy. Title ii is an artifact of a dead and gone Regulatory Framework that was evolved in 1934 at the time we were using bake light, clunky telephones during the great depression. Shouldnt we expect that our regulators and our legislators and our courts can envision a path forward to protect season t that will be as flexible and as certain as the kinds of technologies were seeing in internet ecosystems . I dare say that we can. The path forward is, its not an entirely clear one at this point there still are many moving parts, but those three branches of government the courts, the fcc and congress all will be involved in different degrees of insuring a path forward to move us away from the idea that title ii is the only one true path to protecting our open internet that weve come to enjoy and has allowed us to thrive as the leader globally in Internet Innovation in the United States without the title ii rules over the last two decades. The fcc has an opportunity to examine rule makings that will allow us the proceed on a firmer footing, a clearer path, more flexible approach, more modern approach to insuring open internet protections. Ultimately, congress itself has the opportunity to engage on this and set into statute a clear framework that will allow us to, all consumers, to know that we will continue to have benefit of the open internet that we currently are enjoying, but then allow us to move on from what has been an unfortunately fractious and i think needlessly overheated debate about the future of our internet. I think the future of our internet is, has the opportunity for great things still to come. The innovation cycles we still are in the very early stages of where were going. Were looking out at a near distant future where were going to be evolving towards new generations of network, well call it 5g, that will lu imagine, a million wire lessen to haves to exist within a square kilometer. Faster, more speed, more internet, higher speeds that will enable cycles of new types of products and services that truly are going to be unimaginable from contextually aware environments, augmented reality, artificial intelligence, connected vehicles which i know that you cover so well and have been so thoughtful about. Advances in medicine that will be truly transformative and breathtaking including things like the artificial pancreas connected to our networks that will enable hundreds of thousands of men and women in our society afflicted with type i diabetes to lead a safer life. These are all feint on the ability of all dependent on the ability of our internet to continue to innovate with the scale, the speed and the progress that weve seen the last two decades. If we want that kind of broadening, dynamic internet, we need to have a set of rules that will be as nimble, as forwardlooking and as light touch as weve experienced that have created this great abundance of opportunity that we see in the internet. On the other hand, we can choose to continue down, i think, a more rigid and a less fruitful path which is an internet that will be shrouded in a straitjacket of old rules thats under the framework of title ii. time for us to move on, and i think we have the opportunity to do so, and well be working towards making that happen. Host so, Jonathan Spalter, from what youve heard from the Trump Administration so far, are you encouraged from your point of view . Guest i have been particularlien encouraged, peter particularly encouraged, peter, that the president has advanced the concept that its time for our nation to invest significantly and in a bold way of upgrading our National Infrastructure. A call that has actually been echoed by colleagues on the democratic side in congress who have advanced their own blueprint for a National Infrastructure plan that would allow all of our infrastructure assets to be upgraded and to be more modern for the circumstances that our consumers require and our economy demands. We are encouraged particularly because part of that infrastructure plan very specifically has tated has stated that we need to actually put broadband into the mix of the kris call assets that need to be part of our National Vision for what the future for american infrastructure has to be all about. Weve been very, very pleased to speak to members of the white house staff, a number of folks up in congress on both sides of the aisle who understand the vital, indispensable, i would even say existentially Important Role that broadband is playing as part of our National Infrastructure assets. We understand that we need to invest more, not less, to reach particularly those millions of americans that still do not have access to broadband, particularly in our Rural Communities. And an infrastructure plan that understands that theres no longer just asphalt and airports that are connecting our society, but increasingly it is the 1s and 0s of broadband as an essential input is the way forward. And were going to be working very closely with the administration and with congress to advance a National Infrastructure plan that does prioritize broadband, that does allow Digital Infrastructure of our nation to be more carefully coupled with our brick and mortar infrastructure. And if we do that, we can truly realize the formative opportunities and benefits that stronger infrastructure can bring all of us. And that all loops back to our Member Companies who are in the business of creating the Core Infrastructure to make all of that happen, which is broadband. Host well, as those 1s and 0s and Digital Infrastructure increase, theres more pressure on privacy and cybersecurity. What, whats where does the federal government fit into making sure that those are protected . Guest so the federal government has the pole position, the drivers seat in many respects in insuring that privacy from a policy framework perspective is consistent, intact and is actually consumer facing. And were working very closely with all branches of government to insure that happens. But we in industry also bear a responsibility for collectively insuring the integrity of our consumers privacy, and weve articulated that in a shared commitment towards principles that weve all joined in the broadband industry to make sure that our consumers and the communities that they live in as well as our allies and partners in government all understand that we are alongside this effort. Were absolutely focused on insuring that no Sensitive Information of our consumers will be shared and developing a framework that will allow a consistent and harmonized approach to insuring Consumer Privacy now and in the future. I think were on that path, and i think there are going to be positive results in the future. Cybersecurity is another important challenge that is an obligation both of government, but also of industry to shoulder together. And im glad to say that that obligation is being shared mutually and cooperatively. U. S. Telecom is very proud that its leading industrywide efforts to develop the kinds of smart and precise policy frameworks that will advance the efforts that we all need to address when it comes to cybersecurity. The threats are increasingly real. Theres present danger that our networks are facing, but it is not our networks alone that have to be vigilant and engaged in advancing the cause the fight against cybersecurity threats. All industrial sectors bear not only an obligation, but a responsibility to join in common cause, to do the kind of coordinating, the kind of technological development, the kind of investment and the kind of information sharing with our partners in government to insure we have a cohesive and, above all, coordinated view of the field of battle in which were waging this fight. Are we done with our work . Absolutely not. But im very pleased to see the progress that is underway. Were expecting shortly an executive order from the white house that will elaborate a clearer framework for the path forward in cybersecurity. Our Member Companies have been very engaged in working with the department of Homeland Security and across the broadband ecosystem, our colleagues in satellite and wireless, cable together in a group that we chair to come up with a common perspective and a common action plan that will insure that our, insure the increasing integrity of our networks, their resiliency and their security. A lot of work ahead, but weve joined the battle, and we are making progress. This week a lot of members of Congress Said that most americans dont have a choice of broadband provider. So what should the government and industry do to both expand broadband to areas that are underserved, you mentioned rural and some you are disturb you mentioned some urban areas. Time warner cable and bright house required charter to overbuild, add a million new homes and add a million homes where there are existing providers. Guest ing right. Is that the right way to go about it . How do we administer competition and serve more areas . Guest sure. Let me start with the premise that some have advanced that our nations consumers are lacking in competition when it comes to Broadband Service. I very clearly reject that analysis. In fact, our data and its data thats ooh been reflected in fcc proceedings, its part of the record, its commonly known that even when you come to just when you look at just wired broadband choice, 84 of americans have the choice between at least two wired Broadband Service providers. 84 . Well, if you look more globally, over 96 of all americans have a choice of at least three wireless broadband options. We have profound competition in this nation in our Broadband Service provider ecosystem. There are 1900 Broadband Service providers in the United States of america, and i think common sense shows just by picking up the newspaper or watching Television Ads about the number of choices we actually have. The comparison particularly to other countries in the world, the numbers really are off the a chart. American consumers enjoy more broadband choice than any other consumer on the globe. And thats something that we should be proud of. But i think government actually owes its not just our Network Investment and the innovation that were seeing in industry thats propelling that competition. Government has played an important and prudent role in catalyzing that competition with two decades, until recently, of common sense, light touch Regulatory Frameworks that have enabled and not disincented more investment that has catalyzed more innovation and, therefore, more competition in our nation. A key input to making sure that competition will continue a pace is to insure that our government can modernize its own Regulatory Framework that it applies to thinking about how Broadband Network operators must interact amongst each other and make that framework more adaptable to allow for the kind of investment, the kind of innovation that weve come to enjoy and benefit from in years past. Finish theres no guarantee thats going to continue. Were optimistic that will. Were shouldering the burden on our part through our Member Companies to continue to make the heavy kind of investments that we, that we know our consumers expect. But we need to work in Close Partnership with our, with government both at the state and level level, but importantly here in washington, to advance a new conception of what modern Communications Policy should be all about. And it should be about incenting competition and not, unfortunately, privileging with a thumb on the scale one part of the broadband e ecosystem against another. Thats whats important. The critics would say that gives the Broadband Companies too much power, it could allow for paid prioritization or zero rating that gives broadband providers too much of an ability the prevent, you know, competition either like i said through zero rating, paid prioritization. What are the protections you see preventing in a different ecosystem preventing broadband providers from preventing genuine competition . Guest sure. We have a is set of principles that all industry and both republicans in congress and democrats in congress and various republican and democratic administrations have all adhered to and a statement of principles that was elaborated while Julius Genachowski was chairman of the fcc in statute that was advanced but not passed by congressman henry waxman. We know that there are more flexible and smarter approaches to evolving a set of standards of open internet protections for our consumers. They involve no throttling, no blocking. We all agree in those types of principles. Where we disagree is the notion that government should decide to limit because of its, because of its own Decision Making processes and regulatory authorities the choices that our consumers have with respect to the kinds of services and applications and opportunities that are available on our networks. Things like zero rating or getting opportunities for content that has less, a lower price point than other types of content because of different types of business and revenue models that can be applied. These types of economic terms are existing throughout our Economic Life as a nation. Why shouldnt they also be able to exist and flourish and innovate on consumers behalf in the internet space . All were saying is lets develop a framework that will allow consumers to be in the frontover driving the kind of in the front of driving the kind of innovation, the kinds of choice that we know our market can inspire and deploy and not put government regulators, the government regulator horse before the consumer cart in evolving the kinds of internet that we all and the Internet Services that we all want to enjoy in the future. We still are in the infancy of innovation in our internet. I would much prefer or to allow our consumers working closely with the innovators to deploy the next generation of networks, the next generation of services than our friends who are working in the offices of washington regulatory agencies. And i think that the opportunity ahead is that we have a great chance to enable more of that kind of innovation if were going to be smart and prudent in the kind of Regulatory Frameworks were going to evolve. At the end of the day, in this title ii world that some would like us to embrace, ive got to say ive talked to lots of people who use Internet Services, and ive heard both good things and bad thing, but ive never heard anyone say they want it to look like their dads company. Host Jonathan Spalter, you come from a democratic, technological Silicon Valley background. Has this been a tough transition for you with the Republican Congress and the Trump Administration . Guest its a great question, but ive got to tell you ive had a lot of fun. Its been a fantastic and exciting opportunity to carry the flag of the broadband industry in washington at a time where both democrats and republicans are fundamentally align about the importance that broadband innovation, Broadband Networks and kind of work and investment that our Member Companies are making now and will be make anything the future. Theres no daylight, i think, between republicans and democrats on the fundamental understanding, the importance of of the importance that broadband brings to our economy. And ive had opportunities to collaborate, to learn from and to share learning with members of congress from both sides of the aisle, work closely with the administration and the finishing cc to and the fcc to advance a new vision for our broadband future that really will allow our Member Companies at u. S. Telecom and the broader broadband e ecosystem to have a clearer klein of sight about clearer line of sight about the moves ahead. The 1s and 0s that our members lay and pull to institutions and families and communities, theyre not red and blue, theyre red, white and blue. Host Jonathan Spalter is the new president and ceo of u. S. Telecom. David shepardson covers tech and telecom for reuters. Cspan, where history unfolds daily. 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