Lot of things. Host when you look at it they how much time do you focus on the fcc, how much time do you focus on congress and other agencies . Good question. Depends on what is going on. Sometimes we spend a lot of time on issues of state, there is a lot going on at the fcc, congress when it is in session. Depends what the issues are. Host what are the major issues facing verizon . Guest spectrum is a big issue for us. We are very focused on strategy. As a company we committed to be the first us company to rule out 5g, a new iteration of wireless technology, we are poised to a wave of innovation of 5g. We have a commercial pilot, commercial product. In order to do that we are able to roll it out. That is something we spend a lot of time on at the fcc and chairman wheeler announced the fcc will vote on an order in july and open up us and the rest of the industry to rollout 5g very quickly. Host can you give us a status report . Guest the incentive . That i cannot i cant because there are rules that govern applicants, discussions about the options, i cant comment on that. Host lets bring John Mckinnon into the conversation. Why dont you talk a little more about 5g of the kind of spectrum you need to use . How is 5g different from the last one . Guest 5g is going to be very different. First you have really high data speeds, you will have 10 to 50 times more in terms of capacity. That is exciting and a technical term, engineering term, what it means is you can have instantaneous Response Time between connected devices. In a 5g world therell be an explosion in terms of the internet of things, how we connect devices, what we do with transportation, energy, we have a lot of opportunity there and in terms of broadband, one of the things were looking at is using 5g for Broadband Wireless service for the home. These cases are still being tested. We are running field tests right now and a lot of questions about what kind of environment we are working on and the spectrum itself is High Frequency spectrum. There are different band the commission is looking at that will open up because of High Frequency spectrum, different propagation characteristics to test how it is going to work and that is what we are doing but we are determined, it is a big priority and we are determined to have a product in the market next year which is two to three years sooner than conventional wisdom. Host what are specific applications that could change the way people live . Guest there are a lot of possibilities. The healthcare space is interesting, one of the things i talked about, a Remote Monitoring service, what application, a Senior Citizen living at home, he or she takes medication or walking or doing that particular thing. The wireless broadband type of use that might be possible but we are still in early stages. That is the exciting thing about working on this issue. We have to see where Technology Takes us but particularly in the internet of things, this ability to have an instantaneous Response Time, we look at what the world is going to look like in 5 or 10 years and by 2020 there will be 50 billion connected devices in the marketplace. They are pretty endless and the possibilities are there so this is an exciting issue and why verizon is focused on it. You leave the way with te, that set the global standard and in a lot of ways that led the us to become the leader in this space. We thought it was important for the commission to move quickly because we want to maintain Global Leadership and it is fair to say, we can do that. Host have you seen the proposal of chairman wheeler . Guest he said he would circulate an order at the july 14th meeting. We have not seen all the details on this technical issue but he laid out the outlines of the order and proposal and a lot of that is good stuff. What we have been focused on his timing. We want to maintain Global Leadership and to do that, we need access to the spectrum because the spectrum we want to use for 5g is not for commercial use. In july after july 14th the gates will be open and we are ready to go. Host will 5g use more spectrum . Guest it will. In other spectrum options, talk about 10 to 20 mhz. We are looking at spectrum that are 100 mhz or 200 mhz or higher and that is because that is the span of contiguous spectrum to get the high speeds we are talking about so there is this order to deal with four different bands but much more, exponentially more spectrum for commercial use today. Host you mentioned fixed Broadband Wireless, talk a little more about that idea and how it will be different. Guest we have field tests and working out specifics of that. A device in your home you have a cable modem, not exactly the same but that sort of thing and a Wireless Connection to the network, that would be what broadband went over and when we do our field trials that is what we are looking at, environments we are testing and looking at. There are some characteristics of the spectrum that make it complicated in that environment. There is a narrow line of site. Host doesnt go through walls very well. Guest there are issues with that but there are complex engineering developments, there is a way to adjust with the spectrum that makes it more usable in that kind of environment. That is the kind of thing we are testing. Host would someone get a new device in their home . Can you talk about what the technology looks like . Guest a lot of this, these are not developed yet. And those are the antennas that are in the network itself. These techniques, the spectrum would travel making it usable in the home environment. Host what was your reaction in the house, the democrats had their sit in, not reaction to that issue. And went around the world from a phone. That is another thing, started at verizon in 2002 and that is being able to offer longdistance service so look at how the world has seen . People would have been calling each other to talk about what was going on, whether you were on the subway, turn on your phone and be watching and communicating with other people, facebook or twitter. The mobile phone and use of mobile videos, i wrote a stat that millennials use their mobile phones, was essentially a work week and they are watching video, it is a short content, expect that will continue. Host going back to 5g, where do you see that being rolled out . Just a few houses . Guest that is something we are thinking about. Pics in cities across the country, do trials next year. The trials, an apartment or a house or larger scale in a particular area. The urban areas, more densely populated areas, start and move on from there. Host you are not the only people with this idea. Talk about the competition that is out there, other countries that are interested in taking the lead. Guest we are not the first ones but we want to be the first in the us and i think we will be. We are driving toward that result and moving very quickly. We are working closely, some vendors across the world, drive the ecosystem, we want to make sure they talk about devices, there are other countries, korea and japan looking at that. And some of the countries. And proud that we were the leader on lte and we want to do that. Host does the us have the right Regulatory Framework or create such things as 5g . Host this will be a big First Step Towards that. You need two things, spectrum and build the infrastructure and deploy these things and we are working on that too. We are looking on a local and state issue. They are complicated processes. Or you want to put an Antenna System somewhere, go to particular states or rules that apply and streamlining that process and making it easier to do that will speed up 5g as well, to make sure the right policies are in place. Between those two those of the two big ones. If we make progress on those. That is important. Host what do you think of the Supreme Court decision . Guest it was a win the court found in favor of the issues. From our perspective the issue is what happens next. A lot of it depends on how to apply its rules. Will Congress Take another look at an act that is woefully updated. A lot of issues implying that in todays world. Another run at that. Host you opened up a lot of issues, will verizon pursue this to the Supreme Court . Guest it was a party to an appeal in the dc circuit, we wont be party to a Supreme Court proceeding. Host would you like to see a comprehensive rewrite of the telecom . Guest we need done, recognize the decision complicate the politics and the timing around doing that. It is a big effort and difficult to do that. We are still facing the same problem, it is a completely different world, the internet as we know it to your point about how people use periscopes to broadcast from the house floor, it was unthinkable on the house floor in 1996. We have an act that was not applicable today when they turn to it. A regulatory issue that hinges on what the statute says we will keep having this problem year after year. I think eventually it will be inevitable to have a rewrite. The timing is somewhat uncertain. Host you mentioned a lot of things flow on the Net Neutrality decision. There are new issues on the Table Including privacy, logical consequences of the Net Neutrality decision. Talk about those and how you would like to see them come out if you have concerns about what is on the table. Host in the privacy proceeding we have concerns. The initial proposal the fcc put forward in the fall, a couple things on that. The first is essentially what that would do is apply a separate set of regulations to one part of the very large ecosystem. When you look at what the internet world looks like, or Digital Advertising they are multiple players, big players in the market share. We try to enter that business and purchase aol and try to build on that investment and become more of a player in that market but the fcc rules would apply a strict set of requirements to essentially the entrance, that is the concern and the second concern is the rules apply to a broad category information. It is not calibrated, covered by these rules whether it is sensitive or not. That is another concern. They recently filed comments in the fcc proceeding underscoring the same point. We have been having meetings and discussions with the fcc and made those positions clear but those are the main concerns. Host that is an issue as you say that generated some segments of the industry. Even outside the telecom industry. I dont think it has risen to the level that the pushback is a separate settop box proposal to do you think there is enough concern to slow down or stop the privacy proposal . Guest there has been significant pushback and significant concerns expressed, a number of advertisers, collection that it advertises and a lot of data on the records, experts, it has been fairly significant and comments from the fcc, basically highlighting particular parts of what the fcc proposed, what do you require, opt out, what do you require to opt in, what is the is between a two . Host have you heard much from congress, some feedback from congress and concern in the same way. What are the rules . Who do they apply to and does it make sense to apply them to a small part of a large universe of players . Host what safeguards does verizon have in place to protect information from consumers or customers and how is that used . Guest we have a Privacy Policy that covers how we use customer information for a list of different issues. The fcc is exercising right now to figure out how to give customers notice and opt out and affirmatively consent that information, a lot of time on privacy officer, spend a lot of time on that. Consumers are concerned about these things, extensive quality Privacy Policy on the website that is clear, we give customers separate notices. When we change the policy or particular events. There is a lot of information, we provide to customers and be clear, how it is used. Host to customers read those complicated forms, privacy forms. Guest we spend a lot of time trying to make sure we explain Privacy Policy, a lot of time thinking about plain language. To make sure, something they dispel and dont Pay Attention to that they understand, that is important. It is not just that we want to post this because regulators ask us to but it is important to them and it is a relationship between us and them. And a 20 page document, that is not good from our perspective. Host briber to join our discussion kathy grillo is from long island, went to uva, undergrad and law school. John mckinnon from the wall street journal. Another thing that flows from the Net Neutrality decision is what the fcc is going to do about 0 ratings which is who gets to charge or not charge for which kinds of data. Verizon like everyone else is in this conversation, talk about how that issue out to play out. Guest the way that should play out is on a casebycase basis. These are products being rolled out right now by various companies in different ways. It is a nascent product. Customers are responding to them pretty positively. People like free data. They like free things. The real issue is not what we are charging for but who pays, is it the customer or a thirdparty content creator or someone who wants new products and wants to get it in front of customers. We hope what the fcc does is let these product rollout and see what the customer reaction is to them and make casebycase determination whether there are concerns there but Customer Feedback is very positive. There have been surveys particularly millennials like these products and the idea of these products. Host isnt it an unlevel Playing Field when you can give your data to customers for free and they have to pay for data from netflix . Guest know. We restructured our program. Everyone can have access or participate in the program as sponsor of content for the customer. The terms we offer are available to any provider that wants to do it so it is up to the third party whether that is something they think would make sense for them from a business perspective. It is a level Playing Field. Host talk about which products are involved. A wholesale product, essentially a way that a thirdparty can sponsor content for its customers, pay for customers, pay for the data usage rather than the data usage counting against a customers data plan. Host is this the wave of the future . Will they become very popular . Guest hard to say. That is what is exciting about the time we are in. Hard to tell where it is going to go and we are trying to figure that out so that is another reason it makes sense to let these products evolve, let the customers decide whether it makes sense. They are smart. They know when they are getting something know and when companies are not. There are rules in place. There is a basis to step in if they think they need to but right now it looks pretty positive. Host given that people use wired and wireless should there be consistency of regulation between wired and wireless . Host that depends on the issue. The Wireless Industry is extremely competitive. When you look at the industry, more so than ever. I dont know if there is a clear answer to that in every case. In general it is good to apply regulation in a way that is Technology Neutral or provider neutral but it is hard in our space, there is so much nuance and change that it is hard to say yes or no to that question. Host is are going to be wired Telephone Service in 10 or 15 years . Wikipedia guest probably. There are some people who like it. That will be a challenge because the smaller the pool of people that use it the expenses dont always change in terms of the cost to keep the network running. We offer a Voice Service over fiber in wireless territory that is much better than you can get from a copper connection. More resilient and that is important in emergencies, fibers better, cheaper to maintain, doesnt cost any more to the customer than a regular traditional landline would. So it is hard to say exactly. If you look at what customers think they are moving away from land lines in droves and if you talk to someone in their 20s, a landline some dont even know what it is. It is something for policymakers and industry need to think through. Host does the world move toward wireless in hard to serve areas, rural areas do they become more and more served by wireless . Guest that make sense in a lot of places as Wireless Service develops and becomes more resilient that might make sense but it will depend on the place, maybe it is too expensive, wireless may make a lot of sense depending on where the customer is located or what the weather is like but the point is we have to be flexible about these things, some people in the industry are adamant that you have to have a copper phone but because of the economics in the industry or the pace of change companies have to have the flexibility to make those decisions in a way that is good for customers. Host is fios priority . Guest it definitely is. Recently we announced a project that we are going to build a Fiber Network in the city of boston. A big project for us, 300 Million Investment over six years. It wont just the about fios. It is about 5g. We call it a one fiber approach. We look at fiber in a particular area, we dont just get business for fios but can we do 5g because you need fiber connections between the network or a small deployment of 5g. It is good for us in terms of the economic buildout but it is great for the city. Boston will be technologically one of the most advanced cities in the country. Stateoftheart Fiber Network, and ready for deployment of 5g. When you think of it that way, the project in boston, you can see how important that is. Host the fcc came out with a plan for settop boxes. We stayed out of the lobbying battle. We filed comments and have concerns about the proposal the fcc initially rolled out and understand the goals of it so we understand customers want to move away from settop boxes and that is a pain point in a lot of ways. We also see the industry evolving that way anyway. We are planning on that so we understood the goals the fcc tried to accomplish. We have concerns about the specifics and the Cable Companies and at t proposed a compromise or alternative proposal which we thought was a positive step and the chairman felt that way too. We have to see how that works but it seems to be moving in a good direction. Host kathy grillo a Senior Vice President of verizon and John Mckinnon covers technology with the wall street journal. Cspan created by americas Cable Television companies and brought to you as a Public Service by your cable or satellite provider. Booktv recently visited capitol hill to ask members of congress what they are reading the summer. I just finished a new bread for thriller, a great work, my daughter babysits for him in nashville, my kindle has quite a few Science Fiction books on it. I got into time travel so i am reading some time travel sciencefiction and a couple classic Robert Heinlein sciencefiction, depends how much time i get to read generally on the airplane. Host have you always been a reader . I have always been a reader. Sciencefiction has always been my favorite followed by political thriller genre. Host does it help you in your work . It helps me unwind. There is a lot of reading to be done here but it is all bills and reports and nonfiction. Cspan2. Booktv, television for serious readers. Kareem abduljabbar, searching for your book, writings on the wall searching for a new equality beyond black and white you write it is as if we