Transcripts For CSPAN2 FCC Commissioners Testify At Oversight Hearing 20170725

Able to hear from you in advance of this hearing. The fcc has not been reauthorize since 1990 and its current appropriation is over 400 30 million. It is charged with the administration of the Communications Act and of the statutes by to the functioning of our key medications policy. We must reexamine the Core Functions of the commission and Research Culture of humility that was lacking under the regulatory cloud left by chairman wheeler picked the sec plays a vital role in our increasingly Technology Dependence society. The subcommittee has never released a discussion draft for consideration. I would be remiss in not discussing Net Neutrality, the commissions decision in 2153 reclassify internet as a public utility was a power grab laced with irony of suffocating the most innovative part of our economy with a 1930s era law. This gave been meaning to the term progressive. Reply comments to the commissions nprm argue august 18. Chairman pai, we hope you are keeping that handy because it has a lot of work to do. Title ii reclassification has created a 5. 6 reduction in isp network investment, will lead to rate regulation and is generated tremendous uncertainty. However, i know there is disagreement and while my colleagues on the other side of the aisle had nothing to do with this, internet giants amazon, facebook and google recently joined with website such as port hub and dark money groups like for the future demand progress and free press for a day of action to claim republicans will break the net. Let me be clear, republicans have always supported a free and open internet. Lets not have any misunderstanding on that issue. We must move past the partisan rhetoric, Ranking Member pallone said in 2010 that this is a job for congress in referring to the Net Neutrality rules, and i agree. Other issues confronting the commission included administration of a Lifeline Program ownership rules and reform. The gao released another report critical of the Lifeline Program on june 29. It found 36 of the Program Participants could not be verified or eligibility. Over 6000 deceased individuals were enrolled after their death, numerous carriers approved eligibility for the Program Based on fictitious documentation. Lifeline continues to be plagued by significant deficiencies including the need for a hard cap. Updated media ownership rules concerned the committee. Commissioner orielly astutely note the sea fcc quadrennial review of broadcast ownership roles release last offer was divorced from the rallies that todays media marketplace. Finally process reform has been an issue of bipartisan concern for some time. Bipartisan bills have passed the house five at the last six years. Chairman pai commute taken positive steps including the release of a fact sheet for any proposal to be considered added open beating and releasing the text of documents to the public in advance of a vote at an open beating. However, more must be done to promote and sustain a culture of transparency of the commission on several other issues noted in the majority memoranda. I look for to todays hearing, at this time i give the balance of my time. Thank you, cherub like burnt and welcome to the fcc, commissioners. The internet is a great equalizer. Provides an open platform to empower innovation expression and free speech as well as other invention in histories. Reclassify Internet Services under title ii commentary roles in 2015, the sec needlessly risk this great economic engine air title ii opens a to burdensome regulations that harm competition, threatened investment in broadband you to close the Digital Divide and holdback innovation such as 5g. I applaud chairman pai for initiating a proceeding to review this misguided reclassification. Its important for consumers not to conflate the harmful title ii reclassification with the Net Neutrality principles as someone suggest. Their strong support among the American People for a light touch approach to internet regulation and a strong consensus on both sides of the aisle for Net Neutrality principles. These ideas do not need to be mutually exclusive. It is my hope the commission of congress and finally resolve the open internet issues and we can Work Together in a bipartisan capacity. Thank you, madam chair. I now recognize the Ranking Member, mr. Doyle, for five minutes. Thank you, chairman black infernally this long overdue hearing today, and thank you to the witness for appearing before us. Its my sincere hope we can make this a far more regular occurrence. Ivi spent my time in congress d on this committee as a strong advocate of competition, innovation and opportunity. These are the pillars of a successful marketplace, and the driving force of our economy. When we act to weaken them, we weaken our own economy and our country. Chairman pai, in the tonja been head of this agency, we have seen an agenda that is at the consumer, antiSmall Business, anticompetition, antiinnovation in antiopportunity. Right out of the gate the commission took a range of actions, including pulling back and investigation of anticompetitive at zero rating practices, and a Progress Report on updates to a program that brought grants to schools and libraries. The commission reinstated the uhf discount for what seems to be no other reason than to enable an unprecedented merger between sinclair and tribune that would give the combined entity a foothold in nearly 80 of american households. The commission eviscerated competition for Business Data Services in this country. Your order concluded that a market is competitive if it is served by one provider with the possibility of another one might enter at some point. I dont even see how this makes sense. The commission ended a program that enables poor people to get access to broadband, literally pulling service away from people who would already signed up. The commission is in the process of eliminating the fccs open Internet Order, which as of this morning 12. 3 million have written to you in overwhelming opposition. These rules are working. They have been upheld in federal court and they promoted a Virtuous Cycle of investment and innovation online. And i dont think this point can be stressed enough. Publicly traded companies are required by law to fill their investors the risk to their company. No publicly traded isp has made such a claim. However, many Online Companies including netflix and snap have claimed that eroding our eliminating these rules will, in fact, pose a threat to their businesses. You know what, i read your statement and you talk about investment and your concerns picky only seem to talk about it in relation to isp investment. Im concerned that maybe you just dont get it. The internet isnt just an isp connection to the consumer. Its a vast array of networks, services, and applications. Ignore the rest of the ecosystem is to ignore the part of the internet that is the most vibrant and innovative. I am deeply concerned that the fcc is on a wrong path, a path that will hurt Small Businesses, regular people and seven most innovative sectors of our economy. And on that cheery note i will yield the balance of my time to ms. Eshoo. I think the Ranking Member and what a superb Opening Statement you just made. One of the most important issues currently before the fcc is obviously Net Neutrality referred a lot from Net Neutrality, opponents about the impact of title ii on broadband investment, and while large isp is still the fcc that title ii has chilled investment, their executives tell their shareholders a different story. The benefits of title ii protections to every other sector of our economy are enormous. A free and open internet supported the creation of 10. 4 million u. S. Jobs in all 50 states in 2016. 86 of these jobs came outside of major tech hubs. Despite the broad impact of the open internet on our economy the fcc is barreling down the road of eliminating these critical protections and making it clear to the American People, startups and Small Businesses, that their input is not valued nearly as much is that as Washington Special interest. So i look forward to discussing this issue further and ask that my full statement be inserted in the record. I also plan to discuss very directly with you, mr. Chairman, the whole issue of rt in the intelligence communities Public Record come statement. It is replete with references to rt and he think that we need to pay a great deal of attention to that. I thank the gentleman for yielding, and i yield back. The gentlelady yields back. Does the gentleman yield back. Was yes. The gentleman yield back as time and i will say to my colleagues we agree with you the issues of the health of the internet echo system, issues of net catelli, daesh of title ii deserve additional attention from this committee and we look forward to caring for with this. At this time i would recognize the chairman of the full committee, mr. Waldman, for five minutes for an Opening Statement. Good morning, madam chair, and all of our witnesses, the commissioners and the chairman come to our guests. America. American innovation andt spaces literally revolutionized the world and everything we do and how we do it. From research and communications to shopping and entertainment, the internet is an essential part of our everyday lives. Given the debate over the rules for internet operations and Consumer Privacy, it is our responsibility on the energy and Commerce Committee to fully understand all sides of the internet governance issue. Therefore, im announcing this morning that im convening a full energy and Commerce Committee hearing entitled ground rules for the internet ecosystem for thursday, september 7, 2017. Today i am sending formal invitations to the top executives of the leading tech companies, including facebook, alphabet, amazon and netflix, as well as broadband providers, including comcast, at t, verizon and charter communications, inviting each of them to come and testify before our full energy and Commerce Committee. Its time for congress to legislate the rules of the internet and stop the pingpong game of regulations and litigation. And make no mistake given the importance of his Public Policy debate and the work we need to do as a committee, it is essential that we are directly from the countries top internet and edge provider leaders who quickly speak out publicly about rules of the internet. Its time they came before us and directly shared their positions and answer our questions. And with more than a month advance notice im sure they can arrange their schedule to accommodate our invitations. Now with regard to todays panel. Chairman pai, welcome and congratulations on taking over the helm of the fcc. Commissioner clyburn, commissioner orielly, we are glad to have you back before us as well. Thank you for the work that you do. We begin a new chapter in history of the fcc, wonderful ship some of most important parts of our national economy. Telecommunications industry, the Beta Distribution industry and the internet. In todays rate would begin to examine the authors i the fcc, reauthorizing the fcc, the First Time Since 1990 the fcc has come up for reauthorization. This discussion is long overdue and today we continue conversations to make the sec a model agency with proposal for a number of process reforms. When we first look at these open government reforms i said it was not about who headed the fcc at the time. It was not improving transparency and public involvement in a public process. I believe that under chairman wheeler and i believe that just as much and now under chairman pai. I was pleased to see chairman pai demonstrate his commitment to making fccs operations more transparent to action by initiating the Pilot Program to publicly release the text of Commission Agenda items at the same time there presented the other commissioners for a vote. A major premise is a poster a number of matters pending company which we will discuss today. With the four portions incentive auction concluded, the next phase can broadcast reback is underway. Commission is set forth an aggressive schedule to move all the broadcasters impacted by this auction. I have every confidence chairman pai work to ensure consumers continue to have access to over the air television, and sentiment about the sufficiency of the 39 month timeline and the 1. 75 billion budget. I take these consumers search will continue to work work closer with the commission to my colleagues to make sure that over the air broadcasting and that use the rate under main channel and on their translators are not adversely affected. And, of course, chairman pai has commenced a proceeding to examine regular regular submit e bipartisan framework. That made it to economic engine that it is today. As a way for this process to take its course, future of the greatest economic engine of modern times is clouded with uncertainty. With acorn recognition that the time is now for legislative action. We offer a way forward on that detailed in 2015. I believe now as i did then that we should Work Together to write Bipartisan Legislation to protect the internet from bad actors who want to use of their unfair advantage to block it, throttle or in other ways engage in bad behavior. The American People deserve no less. We stand ready to act. Chairman pai, commissioner clyburn, commissioner orielly thank you all again. If there are others want the use of the last 15 seconds i would happily yield. If not i yield back the balance of my top. The gentleman yield back. At this time the recognize the Ranking Member of the full committee mr. Pallone for five minutes for an opening. Thank you, madam chairwoman. Id like to thank the sec commissioners for joining us this morning, our first fcc oversight hearing of this congress. Im glad youre here commission should have occurred months ago. Republican majority had no problem conducting oversight of the Previous Obama Administration holding quarterly oversight hearings. Now that their own Party Controls the majority of the commission, we are six months since he administration, and this is her first hearing with the new commissioner i hope this is not a sign of things to come because the commissions own actions have shown the critical need for congressional oversight. To date most of the fcc actions have ignored the needs of consumers. Too often when given the chance this sec aside with large corporations to the detriment of hardworking americans. The commission started this year by making it more difficult for competitors to offer broadband to low income people to the Lifeline Program. To continue with the scheme to encourage more consolidation in the Media Industry which would a limited voices from the internet last week chairman pai refused to commit to protecting the funds necessary to close the homework apis part of the popular emailed program in our schools. And then there is the alarming outright refusal by the fcc to protect the security of our Broadband Networks at when the russians and others are looking for new ways to break in. The highest profile example of the fcc having with large corporations over Small Businesses and hardworking americans is of this attempt to eliminate Net Neutrality. A free and open internet is crucial for our democracy i giving everyone an equal voice online, especially those communities too often overlooked by traditional media. Each of us gets did some which a bit as we watch, which cites we read and which services we use. Nobody gets to influence that choice, not the government, not of the Companies Run the networks. A free and open internet also allow Small Businesses to floors if the Small Business of many of which are owned by minorities and women, are responsible for more than half of the jobs in the country today. If the sec was had its nedra talley repeal the consequences will be severe. That plan will have a chilling influence on our democracy, cut away our connections with each other and limit Economic Opportunities for the future. The sec claims that nedra talley repeal is necessary because Consumer Protections might deter investment in network infrastructure. This narrowminded view of the Public Interest can lead to cruel results. I hope the commissioners relisten to the millions of comments that are coming in from around the nation and reconsider their dangerous plan to eliminate Net Neutrality. This is not only an oversight hearing today. The republican majority recently surprised us over the 42 page reauthorization bill that had absolutely no democratic input. And this bill is flawed. It slashes 18 million from sec budget, the same agency that is having issues keeping its website up and running. This is not serious legislation that it does not bode well for any serious legislation being developed by the majority of this subcommittee on any major communication issues. And with that id like to yield such time as she wants to ms. Matsui that i have left. Thank you very much, Ranking Member for loan. And for time and welcome to our hearing. I represent sacramento, the capital of california. Where innovation is central to the we do business. My constituents are extremely concerned about access to the internet which is essential for innovation economy to thrive. In fact, i have gotten myself so many comments on my phones and emails in sacramento and here in washington, d. C. Everyone from Small Business owners to educators and librarians in my district have told me that they are counting on the fccs Net Neutrality rules. And its not just my constituents to its americans across this country, almost 11 Million People have contacted the fcc about wide Net Neutrality is so important. And these are not just business people. These are students, seniors. These are librarians as i said before pictures of people who use the internet every single day and want it to be there. I have to say this. Chairman pai, i urge you to listen to these voices, millions of voices, and not roll back the progress that we have made. It is really important for the future of our country here. Its important for the future of our young people, and i truly believe that in this way, if we stop this progress, we will in essence stop the progress of our country. So i urge you to listen, and i yield back the balance of my time. And i yield back, madam chairwoman. Gentleman yield back. I will remind my colleagues, we had at this hearing scheduled in march and gave up our day for the market of the health care bill. And we wouldve liked to have had this hearing earlier in the year. That concludes member Opening Statements. The chair would remind all members that pursuant to the committee roles, they have an opportunity to make their Opening Statement a part of this record. We want to thank all of our witnesses for being here and taking the time to testify before the subcommittee. Todays witnesses will have the opportunity to give Opening Statements followed by questions from the members. Our witness stand for todays hearing will include the honorable ajit pai who is chairman of the federal Communications Commission. The honorable Mignon Clyburn who is a commissioner at the federal Communications Commission, and the honorable Michael Orielly was also a commissioner at the federal Communications Commission. We appreciate each of you being here today and for preparing your testimony for the committee. We will begin the panel with you, chairman pai. You are now recognize for five minutes for your Opening Statement. Thank you, chairman blackburn, Ranking Member doyle, names of the subcommittee. Thank you for giv giving me the opportunity to testify today. Since 2012 it has been an honor to work with you on many issues. And now as chairman i look forward to striving together to bring Digital Opportunity to all americans. I also want to be true to a distinguished member of the subcommittee, representative steve scalise. Ive had a chance to work with him over the past few years and i have learned a truth known to many of you. To know him used to like him. My thoughts and prayers continue to be with him and his family during his recovery. The agency has been busy during the last few months. July marked Consumer Protection month at the fcc. Our open beating we targeted a triad of consumers gorges, unlawful robocalls, slamming and cramming, and rural call completion, all on the heels of taking down the largest spoof or enter agencies history. August will be world broadband monster on august 3 will consider the next steps towards admitting the connect america find and Mobility Fund reverse auctions. We will explore how to ensure our ongoing collection of broadband Deployment Data is as accurate and efficient as possible. There is of course much more that the agencies doing and much more to be done. I look forward to continue working together on a bipartisan basis to close the Digital Divide, promote innovation, protect consumers and Public Safety, and prove the fccs processes and procedures. I testimony will focus on two issues i believe are ripe for legislative action. First i applaud at the subcommittee for promoting legislation to reauthorize the fcc for five years. Im eager to work with the subcommittee to advance it. I want to highlight one particular provision entitled deposits of bidders to be deposited in treasury. That provision is absolutely critical that our nation is going to lead the world in 5g. Because without it the sec wont be able to launch large spectrum auctions in the foreseeable future. Heres why. The Communications Act requires that upfront payments made by bidders in spectrum auctions be deposited in and they quote an interestbearing account at a Financial Institution. But recent regulatory requirements have dissuaded private institutions from holding fees upfront payments. Public institutions have indicated Going Forward they have no interest in establishing these specialpurpose accounts that would be necessary to offer such services. As a result despite repeated efforts by fcc and treasury staff, no Financial Institution is now willing to hold upfront payments and an interestbearing account for a large spectrum auction. Thus, the sec currently has no way to comply with the law, and a way to move forward with any such auction. Does i appreciate the subcommittee 20 su address this situation. The simple fix can think of the draft legislation, the scc would again be able to schedule large spectrum auction by allowing payments to be deposited at the treasury. Second, i would like to update the subcommittee on the post incentive auction transition process. July 12 was a deadline for Television Broadcasters that are going to be repacked to submit cost submitted to the commission. And two days later the fcc announced the aggregate amount of the estimated cost reported by broadcast television stations and multichannel video programming distributors, or mvpds, for reimbursement was 2. 115 billion. We caution respected receive additional estimates from mvpds and a smaller number of stations. In recent days the sec has received several additional estimates and aggregate total of estimate costs has increased to 2. 139 billion. Given the estimates that we received to date, we are confident once all initial estimates are received a total would be below 2. 2 billion. Looking dont initial round of estimates the aggregate total of estimated repacking cost continue to change to amendment and independent review during the transition process. For these reasons the fcc cannot definitely report today exactly how much the repacked will cost. The final number could be lower or higher than the current 2. 139 billion. But we do expect the final number to be above the 1. 75 billion a congress has provided the commission to reimburse affected broadcast stations and mvpds. Advancing competition, strengthening diversity in ensuring that could number as are always the first. Last week i had the privilege of traveling to marietta, ohio. It was there i heard countless stories from individual businesses and local government leaders who will up for no other reason than their geographic location and maybe a slight income gap find themselves on the wrong side of the Digital Opportunity divide in appalachia. Too many families in Rural America and even many urban communities are suffering from conductivity and substandard service to add insult to injury is simply unaffordable. I believe however that if we commit as an agency to put the interest of consumers and Small Businesses first, we will be able to truly say we are fulfilling our statutory mandate to serve the Public Interest. Allow me to send the majority of my testimony today further explain how the commission can achieve this goal. Among my Top Priorities is preserving the commissions 2015 open internet roles. But just what is this administrations response to the now 12 million commenters who express their views with commission to propose the dismantling of the rules of the road we adopted in 2015 and were upheld by the d. C. Circuit last year. We need to hit the pause button and begin serious discussions about the broader implications of undoing our classification abroad and has a title ii service. Take for example Consumer Privacy. In a World Without title ii come and not only will the fcc be forever barred from addressing Consumer Privacy in a broad dead world, it is unclear that any agency will ever hold that authority. When it comes to our efforts to expand the deployment abroad and, including in Rural America, and taking away title ii for broad and undercuts our ability to ensure universal Service Support for broad and by taking away our clearest choice of authority to make sure all americans are connected. In the title ii service also harms the secs ability to enable competition. Without title ii it will be far more difficult for the commission to enact policies to promote competition. Second, i have been a tireless leader and defender of the secs likeminded program in the need for there to be affordable contact dvd for all american consumers. The reality is 80 to 100 a month abroad and bill is simply out of reach for american tourists juggling to make ends meet. Moving forward, we have a choice to make as a commission. Will we be shortsighted and weaken a Program Designed to assist the programs most vulnerable or will we commit to constructively address any remaining issues. Third, and i remain committed to delivering just and reasonable rates for the 2. 7 million children who have been hampered to communicate with an incarcerated parent. Im thankful for the leadership of congressman bobby rush and others on the subcommittee who for years have fought for reforms. Rest assured i will continue fighting to ensure that inmates and their loved ones do not have to pay several thousand of what a nonincarceration rated person pays just to stay in touch. Fourth, i am a strong believer in the need for greater Viewpoint Diversity across our public airwaves. However, the commission has taken several highly concerning steps this year to derail the goal, including reinstating the technologically obsolete discount. By reinstituting in maintaining this loophole that belongs in a regulatory trash heap. The commission has signaled its willingness to allow a single broadcast Station Group to reach 80 of the u. S. Households in a way that is nontrance parent and enables a nearly doubling of the ownership throughout set by this body in 2004. Finally, i would like to share some views around broad and in health care you would. Last month the commission connected Health Task Force released an update for popular broadband mapping tool. Our latest data shows 214 counties, 175 majority rule for Broadband Access is below 50 in diabetes and obesity rates are above the national average. In the late breaking update i am pleased to report as of friday, the fcc has reopened its ride been proceeding for additional comment equipped with the information with hhs, the va and the fcc will be better positioned to target those double burden counties. In conclusion, let me say that i always stand ready to work with my colleagues, the subcommittee, state and local partners and Business Leaders to advance policy with consumers first and ensure communication landscape remains the envy of the world. I thank you very much for allowing me more time. Im very in tuesday at stake and i look forward to answering any questions you have and the remaining time i dont have. We thank you for her dedication on this issue. Ranking member doyle and members of the subcommittee the opportunity to discuss today. I commend the committee for its continued focus on the federal Communications Commission and we commit to making myself available as a resource if i can make any assistant in the manner in the future. I sincerely appreciate the effort of the subcommittee to examine issues authorizing of the commission. I believe its incredibly valuable any Time Congress any Time Congress articulates legislation on the commissions work including funding models, procedures and substantive issues. Let me lend my strong support to the draft reauthorization bill before you today. As an aid to examination, i humbly think just 15 additional process improvement that could be included in any reauthorization legislation. Some of which have been discussed before in the statute to the future commissions to continue chairman pai is process direction. Additionally, i would be remiss if i didnt include a request to Enforcement Authority to address the problem of radio broadcasting. There appears to be many policy makers to provide additional funding for purposes of expanding broadband capability towards americans. One option discussed is to include funding within a potential larger infrastructure bill. If this were to occur come i hope the subcommittee would adopt or look to a commission tie cost program as a mechanism to distribute such funding as such funding is supposed such funding as opposed to using other existing federal programs are creating a new program. Additionally, to succeed at the next technological challenge, wireless providers need to import and ingredients. Access to a sufficient nexus back on dance and reduce barriers to warehouse equipment. The commission has been actively reallocating for mobile purposes and hopefully more to come there remains obstacles imposed by state, global and tribal government hampering the ability of providers to serve americans. On another topic as chairman pai noted, the commissions in the early stages of broadcasters that either didnt participate or more select did as part of our successful process to reallocate broadcasters spectrum for new wireless services. While the commission will meet to review a script of broadcasters documents to ensure only legitimate charges, it does appear that there may be need for Additional Resources from congress. Importantly, subcommittee should keep a close eye on the cost estimates as the process continues and may want to initiate legislative drafting process and could certainly, if its determined Additional Limited funding is needed to complete a successful pac come i would fully support such action and would gladly help the subcommittee in congress in any way. That concludes my testimony. I thank the gentleman for this testimony. This concludes the testimony portion and we will now move to the questions. I will begin by recognizing myself for five minutes. As many as you said in his Opening Statements, there is an ongoing dispute about the impact on investment. This is the key much of the debate and investment is the key to massive blog and deployment that we need to connect to the internet it affects health care. As ms. Kleiber mentioned, it affects Economic Development and the creation of jobs. The analysis by the the consulting estimated we need an investment of 132,150,000,000,000 in infrastructure over the next five to seven years in order to meet our needs. Private investment is critical, but i fear we have put an investment pipeline with title ii. As noted in my opening, we are seeing decreasing Capital Expenditures by our largest broad and providers. Some of my colleagues contend to otherwise based on different studies measuring different parameters. Senator markey continued the hearing last week that publicly traded ist has reported to its investors that title ii is negatively impacted investment. Chairman pai, have you seen other information regarding the impact title ii is having on broadband providers . Thank you for the question, chairman but are in. Weve seen evidence raised that these rules have impact did investments and for example with respect to the 12 largest facilitiesbased internet providers in the united states, we have the 10 k. s and the isps required under law and i would like to have been entered into the record as part of this proceeding. I have heard for myself and smaller providers are held around table in maryland where antietam cable told me and precisely because of these rules. We want to test the proposition thank you for that. I was kind of chuckled a little bit. The New York Times had an article this weekend saying that infrastructure is an afterthought. It is the number one infrastructure issue. They want to talk about rod and more than anything else. They dont care how they get it. Mr. Chairman, you were kind enough to come and this was something we had planned last file and executed in february and something we are doing to make it easier to deploy wireless broadband touch on most components come at you as you all can do to help ease the way to achieving that goal we want too big talkative reforms. One involves the subsidy programs and the other involves regulatory reforms. The federal subsidies, the fcc in my first full month as chairman at the america funds and Mobility Fund to ensure both two parts of america were people on the wrong side of the Digital Divide. With respect to a regular reforms. But the federal state and local to cooperate from a broadband deployment. Weve taken steps to promote things like a wireless infrastructure, towers alike can make it easier to deploy the fiber like the policies to the extent we can have a reform. The highprofile issues the agency works on in terms that the constituent around the country. This is the number one thing that will impact your ability to get on the right side of the dividing years to come. I thank you for that. I would just note the repack we think is also important as they look at the broadband deployment in the estimate filed in the process started and we need to give them time for that to play out. We will be watching to make sure it is conduct it efficiently and on time so the spectrum is put to work. I will yield five minutes to the Ranking Member, mr. Doyle for questions. Thank you very much. Commissioner clyburn, with reacts to the open internet comments coming in, you talk to people and review comments about the open Internet Order. What gives you pause and repealing the rule . What gives me pause is what they mean and what the internet enables. In the conversation, a lot of times we talk about one part of the equation. You are really talking about at least two part. But if the investment . What do people need and what can they afford . We really have to talk about with this investment means in the communities, what expectations they have when they start their businesses and the like. When im hearing from people as they want options, access, opportunities and they want to be protected by an agency that im afraid right now is turning their back. Commissioner rightly, what comments would cause you to oppose the commissions open Internet Order . Essay aside, i previously expressed my thoughts on the issue at length and i am looking to the record to determine if anything changes. Im looking for a substantive comment. Admin example of a substantive comment. Economic analysis and real other than a farm consumers versus some of the material ive been getting on the comments so far. People talk about 12 million comments. Many of those comments are empty and devoid of any value. Im sure theres a few empty and devoid in there. The 12. 3 million i would imagine those are some of the concerns you just mentioned, too. I hope you go through those comments and will hold you to that kind of analysis. Chairman pai, same question for you. What kind of comment would cause you to change her mind and not go forward . Congressmen, as commissioner rightly pointed out, Economic Analysis shows the Infrastructure Investment has increased dramatically. In response to some of our inquiries that we hear from people in the internet, it gives startups to consumers that the evidence of an open internet and theres no way they would be able to thrive at the americans overall internet economy would structure. That is evidence we take seriously an part of the reason that my confirmation hearing that we did not want to issue a declaratory rolling and simply these would be null and void. They wanted to have a full and fair, process to ensure the voices. I hope youre looking at that. I will hold you to analysis my hope is these comments are coming in in 12. 3 million comments is more Public Comment than ive seen on any other issue before the fcc amongst them are that type of analysis and i hope you Pay Attention to it. Let me ask you another question, mr. Chairman. It seems to me that the analysis that you cited about isp investment seems to be onesided. You talk about broadband investment that isps alone as an indication that the health of the marketplace. But you discount investments being made a edge providers. You know, the basis of an open Internet Order was to promote this Virtuous Cycle of investment and innovation online. Why are you talking about edge providers, the investment theyre making in the jobs they are creating. I appreciate the question. Everyone as chairman plot or an pointed out as a free and open internet. There are millions of americans in and visited from west virginia, south dakota on the wrong side of the divide. They are not getting the access they need to participate in the digital economy. To the extent the rules are impacting Infrastructure Investment, my fear is forecastle be left out in terms of better education, health care and the like. We want to understand how they are impacting Infrastructure Investment and along with that, what are the effects of greater Infrastructure Investments on those companies. I visited as i pointed out in the testimony before, ive been in alan kay and disconnecting the power the broadband can bring in creativity. In virginia i thought the power that a broadband connection can have treating an emergency patient referred a patient arrives to the hospital. These are critical application and obviously Going Forward there were greater dimensions than Infrastructure Investment. Those investments in the network are critical that every american will thrive in the 21st century. Madam chair, my time is expired. I hope a chance to submit questions to the fcc for response. The gentlemans request is noted. I now recognize the chairman of the full committee, mr. Walden. Thank you, chairman for enlightening us with your comments in your testimony. Chairman pai has taught with continued uncertainty around Net Neutrality. Are you opposed to Net Neutrality . Congressmen, i favor free and open internet as they think members of this committee and americans do. Commissioner clyburn, are you opposed to Net Neutrality . I am not opposed to Net Neutrality. Im in favor of using the strongest legal tools at our disposal. Mr. Oreilly, you opposed in a totality . I support an open internet. It means so many Different Things these days than it once did so i can stand up for Net Neutrality to be treated identically in that to mean is not supported by the internet. I dont support that definition. I know you have to make some decisions based on the comments. I guess one of my questions is the reply comment are due fairly soon. Chairman pai, do you expect to act quickly before the record closes in terms of timeline, not in terms of your decision. Mr. Chairman, we are going to move as promptly as we can. Ranking member doyle pointed out we are bound by the administrative procedure act to find substantial evidence for whatever conclusion we reached and we are going to review the record fully and fairly to make sure we make the appropriate judgment. We are concerned with getting it right and getting it done quickly. Heart of what we are working on todays continuation from the last congress in terms of getting more transparent the in the process at the fcc, making more of what you do more public sooner so more people can participate in the process that we all value. Are there issues in this draft that we are looking at . Its a discussion draft for all my colleagues. We put it out well in advance to get input and make it bipartisan. There are bipartisan positions than it. Would you care to comment about what we are putting forward in your thoughts on it and how the commission might be a to buy implementation these exchanges . Thank you, mr. Chairman. I suggested in the draft bill, improvements on the business end i am in support, for example with a partisan agreement on relaxing the sunshine act restriction. I love seeing my fellow commissioners here at the witness table. I would love to see them together more often so we can collaborate in ways that benefit the Public Interest. That has been a bipartisan piece of this discussion draft i think all along. Commissioner clyburn, jewish to comment on some of this . Things have shifted at the committee since we last of this matter. Are you more in favor of transparency provisions in our bill now . College is proud to say im more in favor of transparency. Im more in favor of a doing especially the last ive been talking about that for a number of years. The final decisionmaking process before us as being able to talk about a doping up to. That was the proper notice and private protections, that enhances transparency in decisionmaking in any platform that will allow that to happen. Making the draft text public ahead of time, more that we propose commend you support that . Minimart internal . We are still in evaluation mode. So far i havent heard any major complaints. Okay, good. Commissioner reilly, what about what we are putting forward here for consideration . I support the draft legislation put before us. They put 15 new ideas and a testimony to be included if you are so inclined. I think the sunshine reform is valuable. I probably would go a little further but im not trying to criticize the commission. I really appreciate the analysis that has been so lacking in our decisionmaking for so long. I think its very important for the committee. Chairman pai, due in a comment on that . One observation previously paired one caveat for the administration is that Enforcement Matters for due process and other reasons, sometimes may be impractical for us to publish decisions in advance of the vote and that is the one note of caution i would add. We are not in favor of transparency, but a different consideration with law enforcement. Thats a good point. I realize my time has expired. Thanks to all of you. We appreciate your suggestions. We appreciate how we make it this right because indeed thats what we want to do is make the fcc a role model for good transparent public process. I yield back your the gentleman yield back. Mr. Colon for five minutes. Thank you, madam chairwoman. I want to ask these two questions. One to you, chairman and one to commissioner clyburn. My question of the chairmans numerous press accounts have detailed how your policies have demonstrated and there has been speculation the Trump Administration has been in touch with their office about a number of these tallest these. I wanted to give you a chance to respond to those allegations. Specifically, can you tell us that the administration is said to you or anyone in your office about the uhf discount . Thank you for the question, congressman. No one in the white house for administration generally has made any representations to me about any proceedings relating to that company. They express their views on the merits and are they now with respect to the uhf discount. What about the press accounts that detailed how your policies have benefited sinclair broadcast group. Did you want to respond to that . Congressmen, i would be happy to do so. If you look at regulatory actions, they are not defined to benefit any industry. They are meant to take a view of the marketplace as it stands in the law as it has been written by congress with respect to the uhf discount is a Pretty Simple matter. As i pointed out a year and a half ago, they consider the reform, and also has to consider not presupposing what the discount policy should be with the national cap should be. The two go together. One cannot consider it without considering beattie. Thank you. That may ask commissioner clyburn. I plan to file comments at the fcc in the next few weeks as explained on Net Neutrality protection by the fcc is essential to protecting free speech online and creating jobs across the country. Now the gop members of the commission focused on the Legal Authority of the fcc, but in my opinion ignore the benefits of net a trial date that would be lost if its repealed. The gop plan details regulations without mentioning these benefits. They want to ask you if you could tell me what in your opinion benefits exist for strong Net Neutrality projections at the fcc and what would be lost with the repeal . In terms of the benefits, i was in appalachia. When you have a Small Business owner that might be worried about her website or experience or negatively impacted. That is the type of uncertainty that no Small Business should worry about when it comes to the most enabling platform of our time. You know, when it comes to people being able to access, you know, a Health Care Website or health care professional, for anybody to wonder whether or not some traffic would be favored, one or the other, that is a very unsettling. So when we talk about strong open internet, what we talk about is the capacity for all of our communities, all of our businesses and individuals to have access, to be Better Business owners, to have access to content that will enable, educate and inspire. Its very important for the rules of the road to be clear, for people to know that they are good. The platforms to be open and free and transparent. If not you will have bottlenecks global throttle experience is an economic and other opportunities. Thank you so much. Then they go back to the chairman since i have time for a third question. Last week i introduced if your protection act and would still provide extra funds to the incentive options repacking process to ensure consumer still has access to the local stations that they can rely on. Its been broken. Broken internet is not the same speed in the same capacity as we have in urban areas. There is now a potential opportunity with the repacking in the whitespace as you are aware. There is a challenge because we want to make sure that our broadcasters has signaled that are strong and they dont suffer interference, but there are many now who are seeing that this white base is Technological Development that provides an opportunity for an expensive the question i have for you is where you are on night and where the fcc is on now. We have anything we can do to get that broadband now. The deployment is a financial issue. Can you address that . Using any Technology Using white space now. We are still in the early stages of study. I did a project in virginia and i talked to some of the effect its students about the issue. We are trying to figure out to work with all stakeholders to figure out the right way. If we can find the technological sweet spot that we are able to protect the fitness of broadcasters, we want to get her tv stations, local news, but we have the whitespace where there is a promising opportunity affordably to build up. Youre going to be aggressive. This sec will not stand idly by. Commissioner clyburn. At long talked about providing opportunities for the Business Case cannot be made. The promises they are and i will definitely push that along. Commissioner riley. I will say i dont support them setting aside full power broadcast stations between the two in the broadcast let me just say its a real person, i am urging you in the industry to protect the broadband signal to get broadband to rural areas. Its got to happen. The second issue that important to in Rural America. There is going to be action on that commissioner pai, depending on how the project the information is provided, there will be an opportunity for challenge for some of the rural providers to contest how the decisions are made and will be given opportunity to do that. Can you assure us the commission is milling forward next week that will ensure that the Data Collection process will lead to a coverage map that accurately accurately accurately reflects the current mobile broadband makeup and allows for smaller carriers and this is really important us, to have adequate time to challenge data that they believe on their own work is inaccurate. Chairman. That is certainly my aspiration. Working with our colleagues in the next 90 days we hope to get across the finish line. You are going to let them have a seat at the table . Absolutely. Thats the goal. The last thing on the record. One of the things ive been pushing in the chair will affirm that spirit i have been pushing for a robust open challenge process that is important and its important for the information to be granular and 477 will push that. Thank you. Madam chair, my last for seconds i want to say thank you to commissioner clyburn. I would concur with that. When we give commissioner riley im giving the question to allow him to answer. The gentleman yields back. Mr. Shimkus for five minutes. Taylor welch has shown so many questions in a solo time to deal with it on that basis. Im going to pick a few. First of all, its no surprise to chairman pai on nextgeneration 911. We have the act of 2012 when we talk about this between ourselves the last couple of weeks. There was a Grant Program design but was never initiated by the fcc. We all know money is needed. What else can be done to help move nextgeneration 911 work . Congressmen, appreciate the question. We are certainly grateful for the promise yet to be realized in the country. I was in tennessee with her earlier this week and visited the 911 call center to deliver functionality that traditional 911 call simply dont have. We at the fcc are supportive of any after we can take to promote 911. Its an ipbased technology as you know promoting the transition im encouraging away from the old networks towards ipbased networks is absolutely vital. Without it, the Public Safety answering points to fund the transition are going to be lost in a lurch. Thats the number one thing we can do. We be happy to work with members of the committee to figure out legislative tools as well. Because we know there was a Grant Program authorized but never initiated. We need to find out obviously that is an issue. But then, what else can we do . I do think the community is struggling to try to get to where they want to be in time is that the essence as we all know. Let me go to commissioner oreilly. We found other subcommittee hearing and the buzz is that there may or may not be an infrastructure bill. We would always say i think members on the subcommittee, both sides of papers and infrastructure bill, obviously broad and better identified appropriately through assist them should be aided and assisted. If there is direct funding to help the planet, what would be your vision on how that could best go through . The committee showed the two are highcost program and run the universal service as a mechanism to distribute the funding. In the last Administration Committee in tia program and department of agriculture, i think those programs were suspect and have a lot of difficulties. We have the universal Service Programs no doubt, but its something we spent a considerable amount of time trying to minimize the amount of subsidy needed for the funding to stretch as far as possible and is a valuable way to go. Thank you. Last but not least, commissioner clyburn, we appreciate your compassion, which has always been there, but your voice is a little bit louder now, which is great. Can mobile broadband theres really two more questions. Can mobile broadband now fill some of the gaps in underserved areas . And if not, do you see who you guys follow what is coming next sooner than a lot of us do . If not, is that coming around soon . I think i was in representative johnsons district. Mobile broad and is definitely necessary, specially on the roads where i do not have service. Especially in the households where they can only afford a connection. Mobile broad and is definitely has to be front and center, which is like we are moving to the next phase of a Mobility Fund where we cannot drop the ball when it comes to legacy because there are certain things you cannot do with a complement to the entire communications ecosystem. We need to go where the people are over 300 million of us have mobile conductivity, but its not all created equal. Thank you. My colleagues mentioned the white space, so im not going to talk about that. But i do want to address a bill that would pass through here, h. R. 460, which addresses the call completion problems that occurs. It really is addressing more accountability than just advisory. What is your opposition on this bill . Congressman, i havent had a chance to study the particulars of the bill but i do support the commission ample authority to tackle all parts of much of the carriers of the providers and others in the chain, so to speak that might affect the rural area. Anyone else want to comment on that . Weve taken a proactive opposition in terms of Holding People accountable for them via the phone the expectation on the other end. Theres a lot of variables they are and you have to win three and four players between the call and completing the call, that is a problem we are identifying a need to fix. One of the reasons that it exists is because some of our antiquated rules favor and that is something we have to get the fundamental issue Going Forward. Thank you, madam chair. Mr. Loeb sat for five minutes. Thank you, madam chair. Thank you for being here today. Its always fascinating talking about these different issues. A lot of us on this committee on both sides of the aisle privacy concerned about broadband and wireless areas. I just want to say one thing before i ask questions. This isnt just a rural urban issue as you all know. These are tied together. In iowa, for example, if we have an urban hospital that launched the new telemedicine with rural areas, is great the hospital has sufficient and went to be to do that. Obviously if a critical access hospital, whatever the case may be in rural areas, it is going to be affected as well because that connects significantly with those folks. It is not just rural urban. Those areas are tied together in a think we often forget about that and we just think in rural terms or urban terms. Everyone is in this together. That is my speech for the day. I have some questions. Chairman pai, i was the draft for the rural access act and had a lot of issues as i like to stay with garbage in, garbage out when it comes to mapping in how we are trying to figure out what areas are covered in which areas are not. That legislation was part of the fcc to establish Dinner Service definitions in wireless coverage. I think we can all agree that hasnt necessarily been the case in the past. I understand the fcc has recognized problems with the data appeared where we are not creating a good data set and will it meet the requirements to be robust and reliable and standardized . It is certainly our hope that it is worthy of the legislation that i commend you, too. Next week we are voting on the steps in the steps and its been a difficult process in all candor. We rely on the form weve got with respect to Mobility Fund or do we create the Data Collection . We decided to go down the road and recognized in the data we have that it wasnt sufficient. Going forward, we want to make sure if the map says there is coverage, there is in fact coverage. If there isnt, we direct the funding to those areas. They will in fact meet the requirements of my bill. Again, i havent seen the particulars of your bill recently. We be happy to take a look at the legislation. The bill is Pretty Simple. Just making sure the data will be robust. That is certainly what is in the draft item that we will be voting on. Commissioner clyburn. One of the challenges they are as howd you get different to compress and conform in a uniform manner . That is the challenge here. The object of his bear. That is the challenge we are working to fix. Chairman pai come you are northwest iowa not too long ago. Thats where he grew up. I represent the northeast part of the state now. I have no doubt that when you are traveling between sioux city in southwest minnesota. Is incredible driving down to spencer and sioux city, i mean, how many times i had to mention to my colleague in the car, we had the inability to check emails and the like. Its really a gap in that which is darned convenient. Many here are people who need to make a 911 call. Imagine if youre a farmer whose productivity depends on having precision agriculture. Those are the connections that really do matter. Its not just professional interest for me and my colleagues but to make sure all Rural Americans have chronic committee. I agree with the work we are going to do. There is a cost to how you can get, but i think it is very important. I want to get this bill passed out of the committee and signed into law by president. I just think there is a very significant bipartisan support for this. Again, mentioning not just rural areas, the connection to the urban areas as well as absolutely critical. Thanks to all of you and thank you, madam chair. I yield back. At this time i recognized the chairman of the subcommittee on judicial commerce and Consumer Protection for five minutes. Thank you very much, madam chair and thank you to our distinguished panel. We appreciate your testimony today. If i could start my question with you, commissioner riley. On the thank you again for coming out to speak to our folks this past year. It is important that folks back home understand and are truly listening to their concerns. I recently introduced a bill, h. R. 3289 that would require the fcc to list and describe all items adopted on delegated authority 48 hours prior to actually being taken. Those items are given the delegated authority, it will ensure the commission is appropriately delegating and not passing decisionmaking and two others were items both new and of policy. Im pleased to see my bill has been included. Based on your statement of support of my bill in the last congress, i believe you agree with the policy. However come in your testimony mention the provision could go further. Would you mind expanding on ways in which we can improve the language . Sure. So the bill as identification and notification. The commission is required to tell people the delegating authority, which is an improvement we have today. The second part of the question is what do you do with the notifications . Today, to the chairman requesting in the last commission i was voting one out of every nine. Eight out of nine items are being delegated. We should have the ability to pull some items we seem to be voted on by the full commission. We have to do that in a way, in my opinion. So i put forward a plan that i thought would be a way to melt both parts of the equation so we can get better accountability, but also do it in a timely manner. The great question congressman. I think its a part of our to stand alone project that would be worthwhile for the fcc to think about specifically the impact regulations have on Small Businesses. These are the companies that simply dont have the wherewithal to hire their lawyers, accountants and others and filling out the paperwork and otherwise helping them comply with the agencys rules. We need to be sensitive to that. Please follow up with another question. Are there other infrastructure that the fcc currently lacks the authority to address and if so, could you highlight some of the areas where Additional Authority from congress to the fcc may be needed. Thanks for the question. There are several them. First, there would be that gigabyte opportunity act which would be up by doug collins. That would go a long way in providing the country with a blueprint for greater broadband deployments and low income and rural areas. Secondly, it be helpful to have Additional Authority with respect to attachments. We do not have authority over all of the poles that are used by broadband providers to attach if a structure necessary or highspeed internet access. It be humble to have that. Third, it doesnt necessarily affect the fcc directly but getting the law of the land will be actually helpful. Theres bipartisan support for it and would be great to see that advanced into law as well. Fourth and finally, i dont know if it requires congressional action we are trying to take whatever steps can to facilitate greater coronation among federal agencies so that if youre looking to site infrastructure on federal lands you have simple point of contact in various agencies and their ways that congress could urge that effort forward suspect thank you very much. I time is about to expire and i you back. He yields back. We go to the author of didnt want. While the mr. Chairman and members of the commission. I hope the next time we meet will have a full commission with wonderful to see you and its important that you are here. I have an observation first and that is is some curiosity that i raise this the chairman of the committee asked each one of the commissioners if they supported Net Neutrality. Each one said yes with some additional comments. Twentynine mr. Pai this might unravel Net Neutrality as we know it. With all due respect to you, i dont i dont think its a credible statement to say that you support it because everything that i have read about what you said is the promise to unravel Net Neutrality with its protections. So, its easy to say im against blocking and im against throttling and im against whatever. Who is going to enforce that . The house. Its an observation but i think its an important one to place on the record. Ive raised this before in previous hearings with previous witnesses when they bring up the whole economic case and the chilling of investments in our country because of the handful of sections that are part of a title to that were applied to Net Neutrality and you know that publicly Held Companies and their ceos when they make a statement to their shareholders under penalty of law that they have to be truthful and i cant find anything in any record that states where a ceo has said because of title ii there is a chill on the investments of the company that i represent. Now, you say you are studying it. How are you going are you going to compare the statements made by executives to their shareholders which, i said, under penalty of law have to be truthful in the comments that are filed are the same companies in the proceeding that you are undertaking . We will test all the facts in the record that no, im asking you a specific question. Are you going to take the comments of the ceos to their shareholders and compare and contrast them with the comments that they place to the fcc on the matter . If those are in the record,. Will look at all relevant facts back to you compare and contrast . It absolutely. It depends on what facts are in the what is important to note here is a recent poll found that 70 of voters and 71 of republicans across the country think the internet has improved over the last few years. This is not just a big isp. Were talking about everyone, everyone that is a part of this echo system and i really think that thats been overlooked. I think its disturbing that you use to fully comply with the request asking for the text of more than 47000 informal Net Neutrality complaints filed with the fcc. I think youre being selective about what you want to read and what you want to hear. If it fits with the position that you stated, before he became chairman, and since he became chairman, then it doesnt count. Youre not a level playing field. Thats your prerogative. I dont think coming here today and saying i am for Net Neutrality is really a credible statement. I want to raise. [inaudible] which is Russian Television but they changed the name so that people wouldnt know who they were. They are operating in our country and id like to know this but i didnt understand your response. You stated what you can do as the commissioner, can you tell us what your commitment is to do from the commission because both in a classified setting the Congress Heard the Intelligence Committee speak to it in the declassified public documents and it is replete with references to rt and their operating in our country and id like to know who you believe that the fcc should play in this . They are spreading propaganda in our country. Thank you, congressman. The question here is perspective fcc sponsorship identification and those rules apply to broadcasters. To the extent that rt or any entity is pain broadcasters fo for i want to know you believe that this he can do about this . I was answering the question. With the second sponsorship id roles forcing those rules that they have paid are you prepared to do that . Will always why havent you begun to . On the public from now. Congresswoman, i am not aware that there are have you read the declassified report . I have not. I would like you to and then ill follow up with you. I be happy to do that. Her time is expired and now we go to mr. Guthrie for five minutes. Thank you, madam chairman. Youve all heard me say, this is for commissioner pai and i worked with my friend and enjoy working with george on spectrum issues. Last week we had the opportunity to host a spectrum caucus panel and i want to follow up on things he learned from the panel discussion. Want to open by asking you whats in this spectrum pipeline. In addition to work on millimeterwave and broadband the notice of inquiry is the Commission Also looking at reallocating other pms that the industry may be up to agree with existing licenses to great similarly large bandwidths or is there additional fans in general that you are looking for future . Thank you for your bipartisan work. It goes to show that when it comes to spectrum there are no republicans or democrats. They are simply people who are interested in the future of wireless innovation. The fcc have spoken with a bipartisan voice and he teed up a number of bands about 24 gigahertz, as you are aware, we are actively studying the issue including bands like 6070 gigahertz if we can allocate light large spots of bands that were not content to rest on our laurels and thats by next thursday mid band and a y this is the man between three. Dot seven and three gigahertz and we focused in particular on three. Dot seven, five to nine and six. Dot four gigahertz and weve opened it up largely for the public to tell us that their other bands we should be thinking about. Our goal here is to be as holistic as it can be to ensure that as much spectrum, licensed and unlicensed, gets pushed into the commercial replaced. Thats the best way to deliver wireless services. Can you out time frames . No particular timeframe so that the notice of inquiry. We anticipate longer time periods because he cant proceed typically from a notice of inquiry to final rules but were hopeful that given this is an urgent issue will be to move relative dispatch to identify where there is consensus, move forward on those, and if trickier issues, have further discussion. Even vocal about deficiencies of the draft rules with 3. 5 gigahertz band, what steps to the commission take to make such spectrum work more attractive for licensed mobile use . We need to better support 5g service. My apologies. The commission is looking at whether do rules regarding licensing for the one tear, licensed tier of the three to five gigahertz band and renewability is a big issue that was ignored under the last commission. The legs of the license themselves in terms of licenses are important. Both of those functions, in my opinion, need to be changed were looking at doing that. I am and hopefully will be up to look at that and a couple other issues and my goal is to have it completed by the end of the ye year. For all commissioners, what lessons should be in Congress Learn from the most recent auctions such as each block, ws three, 600 megahertz that can be applied as we look to the future and we want to create the clearest possible rules of the road so what can we build on and why should we avoid . Start with commissioner and move down. Thats a good question. First and foremost, it gives fcc the flexibility that it needs to identify spectrum bands that are ripe for auction. Secondly, to urge the fcc to set up an auction process that allows all participants to compete for that spectrum. Third, to ensure that it is possible that the fcc has the tools it needs to ensure the depth spectrum is in fact use the benefit. Last september i outlined a proposal to increase the buildout requirements in rural areas to ensure that it is Public Resources being allocated to the auction process to private entities that private entities will use it to benefit the public. Commissioner. I have to field on that and ensure that we have inefficiencies and expectations are being met by those who have the right to build. Also, ive been pushing for smaller, partial and smaller, economic areas where it will indeed give persons regardless entities not just the big players but to fit in the space. That is important because those in your communities, those who have the capacity in your communities who want to serve and followup apparently should be up to do so. I believe that less and should continue in subsequent options. Do consider commissioner oreilly, the active success . I believe its made available in this beneficial but i do believe your discretion is that we the number of policies that probably were problematic, restricting the number of builders and licenses that shouldnt have been included in the first place. We shouldve had a more open structure compared to previous auctions and youll see theres a different potential that you. My time is expired. Are you back. Missed max away for five minutes. Thank you very much. A strong supporter of sec in the Service Programs especially lifeline and eerie programs which help families, schools and levers get connected. German pie, i take an issue youve taken. One of those areas. Once we as the attack on Lifeline Program thats struggling americas across the country to count on. The small amount of support can make a huge difference in weathering families have phone and internet access. Lifeline needs so they can stay in touch with their school or a job repetition. Under the last admission, the fcc made progress to start the process of lifeline reforms. As part of the secs 2015 lifeline modernization order, the fcc began processing in creating the National Verifier for eligibility. This is an important check on the system that will make huge progress in making sure lifeline funding only goes where it is needed the most. Commissioner pai, could you provide us a status update on one of the fcc is in regard to the permitting National Verifier . Thank you. The National Verifier is still not scheduled to be up and running until later this year and it is not scheduled to be fully operational on till 2019. We are working actively to accelerate that timeframe to the maximum extent possible because its many millions of dollars are being wasted in part because he cannot certify that every person getting a lifeline subsidy is eligible. Okay. I think thats not very much progress at this point in time. It was the hand for adult, congresswoman. Can you commit to providing the committee with quarterly reports of what the Commission Staff is doing to speed the implementation of the verifier. I be more than happy to do that. Its critically important. We should be in preventing this form so that we know that we can safeguard against waste, fraud and abuse. Instead of continuing to attack lifeline. I know that commissioner clyburn has been a champion and what can we do to strengthen the rate and Lifeline Programs. Can ensure that we have the reports needed to better evaluate. What the chairman did not say some of the reports on the back burner. They were rescinded or they were released. Its hard for us when it relates to the rates to see how were doing, what we should be doing what our next steps are. Uncertainty is about to come to that because we told nine providers who spent millions of dollars to take part that we approved that no need to apply, we just rescinded those applications. What is happening is a lot of uncertainty and a program that can provide the most for the least is in a state of flux and it was unnecessary. Thank you. I hope the questioner Energy Apprentice program. Mr. Clyburn, i share your belief that we need to be strengthening localism and you point diversity in our medium. Have a strong tradition of local broadcasting in sacramento and its essential to keeping my constituents engaged and informed i know the concerns about the secs recent decision on media and probably back the discount. How is. Story this discount opening the door for greater consolidation and local broadcast markets . It will allow for potential licensee two, under the cloak of darkness, to account for 50 of certain license. It would only show up as sent and that means that you would make the assumption that they are under your cap when there actually are not. Its technologically obsolete and everything that is technologically obsolete will negatively impact the entire ecosystem. You believe this is really under the cloak of darkness. Absolutely. At this point id like to give a few minutes here seconds to converse and. Thank you. Thank you for holding this hearing, madam chair. I want to submit my questions for the record and i proceed this opportunity to hear from the commissioner and want to register some questions that i have in concerns to the merger between sinclair and tribune and the massive reach that they would have and the must run content that they seem to be pushing on their local media. Thank you very much. I yield back. Mr. Olson, five minutes. I think the chair and welcomed mr. Clyburn, commissioner riley and commissioner pai. My question concerns a spectrum for commercial uses in the spectrum type of act of 2015 cause identification at auction of 30 megahertz by 2024. Is that 30 megahertz adequate speed to meet the future needs and if it is not, what can congress and in pia and scc do to identify additional bands that could be made available for commercial use . Thank you. I think the only constant in the Wireless World this change and if we anticipate the 300 megahertz that mightve been sufficient interesting that innovators find applications that require us to think even more broadly and we certainly want to pursue as many of those 300 megahertz as possible but as i stated in my response to congressman three, we are thinking is probably as possible. To the extent that Congressional Authority may be helpful in identifying for their vans and were given fcc to clear more bands and would be happy to exercise obligatory. In your opinion, what repercussions. [inaudible] what will happen to blow it . The opportunity cost to be extremely significant. If your Healthcare Provider in a rural area and a Wireless Connection might be necessary for you to be able to assess and stabilize the patient that require spectrum, for agriculture, for education and all these other things depend on wireless spectrum. As goes wireless advance go up and we have to have enough spectrum to meet those needs. Mr. Clyburn, mr. Riley, the spectrum of the spectrum to add . We are working with federal partners, and cia to ensure that were on the right track. For being flexible and were talking about in all of the above approach. Unlicensed and shared spectrum. I think this what i know the momentum is there and we need to shore up the Public Public partnership of the equation to make sure that we keep pace. I would say that ive been pushing hard on muller made a waveband to make more spectrum spectrum available and i put forward an idea for federal agencies to try to make a mechanism that they would realize is in the budget of holding center. Theres no cost for the hold licenses and that keeps that bottled up in the federal agencies. Thats what mechanism i would recommend consideration. Thank you. Chairman pai, if the authorization draft would review today would establish a office of economics and data within the fcc do you support the statute and how could this office sufficient do a better job and is this necessary . I strongly support the provision of this office. Having proposed in april, it struck me over the years for the Legal Function theres a dedicated office for the engineering function theres a function of technology when it comes to economics the economists are sprinkled of the agency that impairs our decisionmaking, give the economists at the agency a less of a feeling that they are incorporated into the culture of that decisionmaking and makes it difficult for us to create recruit the best and brightest. We are hopeful that the congress support will be able to create this office in a way that inspires a great, big picture thinking. Sound like we should keep it in the bill. I would be supportive of that. Commissioner riley, what unfortunately, we all care about the delay of site which in some cases can take years. Chairman pai mentioned federal lands and what of the fcc doing what work you do in this regard as a former naval aviator, how can Congress Help fcc feel the need for speed for short. The chairman outlined a number of things that were doing at the commission including the p dac including proceedings we have before us. Will conclude those in the near term. In addition, anything that congress can do to clarify the current statute in terms of our authority is very welcome and i think we have brought authority in this space but progress can clarify and it would be helpful. Thank you. Are you back. Right on time. Mr. Ruiz, five minutes. Thank you chairwoman. Want to thank the chairman and commissioners for being here, the fcc is helpful for a vast array of issues and i welcome the opportunity to discuss a couple of them today. Diving right in, i want to talk about broadband deployment. One of the most for tools that the fcc uses to encourage broadband deployment is through the connect america fund which helps make deploying and maintaining Broadband Internet possible and remote in rural areas underserved across our area under nation. Areas like mecca, thermo, the telling, my district where i grew up where its a rural area, farmworkers and we have some tribes or a type that exists in that area. We know there are some classrooms in the Coachella Valley that doesnt have access to good in an internet where teachers have to print out a Youtube Video and show them as slides so that the kids can get the information. Also, this Unified School District in the community Work Together to fight every student k12 and ipad or tablet to boost achievement and narrow that Digital Divide where oftentimes i grew up there we still had outdated books and we didnt have the most recent copyrighted book, as well. Unfortunately, however, blood land deployment over the region remains spotty limiting the ability for students to take full advantage of this technology. In december of 15, i wrote to the fcc in favor of Frontier Communications proposal to acquire Horizons Network and supporting their commitment in working together with my office to utilize the connect america fund to deploy highspeed internet in those underserved areas in my district. I urge the fcc to support frontiers effort to Point Broadband in my community and to the whole frontier accountable to their commitment to closing the Digital Divide through their acceptance of connect america funding. My first question to chairman pai is are you committed to ensuring connect america Fund Recipients are fulfilling the responsibility under the program . Absolutely, congressman. How you monitor . Two different ways. Up front to have require the recipients of that funding to build out to 40 of their territory and the present and the by 2019 and the final present by the 2020. We require reporting obligations throughout and on the back and theres a credibility if they do not build what they said they would build out, then we will require the accelerated back thank you. This is a critical prominent account program for millions of americans that dont have access to profit. Switching gears, my next question is about addressing the challenge of and in some cases the utter lack of diversity in media programming ownership in the points. For me, this is an about some statistic is about the children in our communities who deserve to see their stories, their communities, their experiences with their role models, their culture portrayed on the screen in a positive light. Forgiving our young people more inspiration and more role models to look up to on the screen and behind the screen. When they believe that they can dream big and fight stream make their dreams come true and has a whole range of benefits. I firmly believe will see real progress, real change and that we will need to improve the diversity of those decisionmakers at the top. As we have seen, several mergers over the years and the evolution of how people consume media content we must ensure the diversity in programming and content is not diminishing and as the agency was overseeing numerous mergers over the years the sec has a responsibility to take Public Interest into account in determining whether to approve a particular proposal. Chairman pai, very briefly, if you dont mind, i have another question. The fcc considered diversity when reviewing proposed mergers under the Public Interest lent . That is one of the factors that goes into our analysis. Great. Commissioner clyburn, youre been a champion for this issue in the past. How do you think the fcc and congress can work to improve diversity on and off the camera . I think one of basis through ownership, just stamping every merger that comes our way will not help in terms of diversifying. Attack certificate that works wellin Incubator Program that will work extremely well that we could possibly elect some of our ownership obligations. Those are two proven ways, i believe, that we can further infuse and diversify the marketplace. I look forward to working with you both on this particular issue in the future. Thank you. Are you back. Mr. Long, for five minutes. Thank you mr. Chairman. Commissioner riley, a long time ago in a galaxy far far away during the established rule there was a fierce debate about the bidding restrictions set aside for. [inaudible] and now the auction is over can you say with confidence whether the restrictions set aside in the screen apply station . I cannot say that they increase participation, i would say that they decrease the opposite and that their instructions decrease participation. I think those were also harmful to the market and preauction and they didnt generate as much estate possible to have. I think i could delete the second part of my question. I was going to say were they necessary but i thank you think. This is for everyone. Start with nine and go down the line. Netflix is the largest paid tv service in america in terms of drivers and has a constant budget of 6 billion including to produce its own exclusive content. Amazon prime which offers premium and asked to submit video programming will soon see its scriber numbers past that of all the socalled traditional paid tv services such as cable and satellite combined. Alphabet offers a paid tv service no different than traditional cable and satellite and 35 of american households. My question is this do our communication laws and fcc regulations recognize an account for these new and Competitive Services . Good question. I dont think they do. Part of the reason is that the laws have been in place for a while and be humble to have Additional Authority with respect to forbearance that would allow the agency to modernize our rules to recognize some of those revolutionary changes you ive identified. A repeat the last part of the question. Do arc vacations laws and fcc regulations recognize an account for the new and Competitive Services . I say yes and no. We recognize and part of the reason you can mention all of those companies is the fact that we have an open internet and a vibrant ecosystem so, i dont think we should discount that. You would not have been able to save those outfit literally several years ago so i think we need to concentrate on that as much as recognizing that maybe we need to retool and continue and evaluate rules better on the books. Okay. Commissioner oreilly, again, do arc mitigation laws and fcc regulations recognize an account for these new and Competitive Services . I agree with my colleague and say yes and no. Pay no attention to the man behind the curtain. Okay. In terms of title vi, i dont think it reflects the current market place that generate governs our video services. In our media Ownership Department we are required to look into those things in required to look at our broad ecosphere and see what is happening in the marketplace. Until then, well have to go around meteor ownership and the lot doesnt. It should be modernized. Okay. With that, i yield back to. I think the chair. Chairman pai within two weeks of becoming chairman you said the as well as the notice of inquiry on the wireless network. You didnt move to say the Data Security provision of the broadband. All of this continuing live wall cspan. Org. The Senate Gambling in momentarily as they come in to vote to begin debate on the healthcare law. That vote expected sometime this afternoon, senator mccain will be returning to the to the senate at about 245 according to a statement from his office this afternoon. He will cast a vote on the motion to proceed to the healthcare legislation and the statement says the vote is expected to occur after republican and democratic tuesday commerce meeting. We will look for those who for more information for majority leader, mitch mcconnell, the Senate Returns in their efforts to roll back the Affordable Care act of 2010. Live coverage of n er. The senate on cspan2 the chaplain let us pray. Our father in heaven, we sing of