So i have been at freedomworks for 12 years and 12 years ago, when i started, this is one of the first issues we worked on. And last year, i was very nervous that we were going in the wrong direction. President obama had passed new regulations on the internet that i had feared would permanently stop innovation particularly there are 15 billion devices connected to the internet today. 157 billion. In 2020, that number will go up to 50. So obviously, were going to getting to a whole new level of change. And we can either try and regulate that change or we can let the market develop. So we are encouraged to hear the chairman pai the announcements hes going to be making today, were going to be looking at opening up the internet for development and throwing it open in a way that will increase competition, sorry will throw the internet open in a way that increases competition and does away with trying to have an antistate regulation. So elections have consequences. And as i said at the end of the first 100 days, this potentially is going to be the greatest impact on our economy in the long run. So with that, id like to introduce Karen Carrie Jen from the Small Business and Entrepreneurship Council. Karen. [ applause ] well, thank you very much, adam. Its a pleasure to cohost todays event with freedomworks. I know our members are very excited. Theyre watching the live stream right now on the freedomworks platform on facebook, and like all of you, are very excited to hear from chairman pai and commission ker riley about the future of internet regulation. Its not going to come as any surprise i think to all of you guys in this room or even our members who are watching the event right now the that when Small Business owners think about their experiences and think with regulation or the regulatory process, those thoughts are not that kind to say the least. You know, regulations very cost ar kick why i, outdated, complex, conflicting. And the regulatory process itself most times does not consider the impact on small firms and entrepreneurs and ignores their concerns when final rules are actually released. So that being said, theyre very excited about the new direction that this administration has taken on the Regulatory Reform front and regulation in general across all agencies. And are very excited about you know what the fcc has done so far under the chairmanship of ajit pai. We were very delighted, for example, that when the chairman when he first put on the chairmans hat i guess, if you will, that his first action was one protecting Small Businesses. That was the order that extended protection for small firms for an additional five years from the burdensome transparency reporting requirements embedded win the Net Neutrality rules. From there its been a series of actions. Common sense actions that are supported by my members actions and reforms that that he long advocated for all agencies. Those reforms include more transparency, inclusiveness, using actual Economic Data and analysis to guide rule makings and actually listening on a proactive basis to the concerns of Small Business owners and entrepreneurs to understand what the impact is going to be on their firms as consumers, technology and Telecommunication Services as well as players in the marketplace. You know, as an organization dedicated to protecting Small Business and promoting entrepreneurship, were very concerned about the state of Small Business. Many of them continue to struggle. They have reached plateaus in terms of growth. And were very concerned about entrepreneurship. Because entrepreneurship remains very, very weak in the u. S. , in fact, a gap analysis report that was published by my chief economist Ray Keating Moss here with us today found that because of this lull in entrepreneurial and startup activity over the past ten years, that our economy is missing 3. 7 million firms. And thats a lot of businesses. Thats you know impacts job creation, innovation, and obviously the overall growth of our economy. But thankfully, things are changing. Were going to hear about a tax reform plan today that will create help create sort of the ecosystem that we need to encourage more Small Business growth and entrepreneurship. Todays world ip day so were celebrating that and obviously protecting ip is a critical piece of the ecosystem in terms of startup activity. And we need a regulatory system that is also very friendly. So and that is why is what chairman pai and commissioner orielly are doing on the regulatory front really matters. Investment is key to innovation and bringing our Small Businesses and people who want to start businesses affordable high quality broadband so they can use the internet to start scale and compete in the global marketplace in the location of their choice. So were very excited to hear the remarks about the future of internet regulation. Thats going to tick date the future of entrepreneurship in america. We again thank chairman pai and commission ker orielly for their leadership. We look forward to working with them in the years ahead, as well. Were going to hear a couple of remarks, i believe, from a few of stakeholders and friends of our organization i know, and katie mccol louf youre up next who is federal Affairs Manager for americans for tax reform and executive director of digital liberty. So katie. Youre up. Thank you. Hey, thanks, everyone, for being here. This is a really exciting day, an a red letter day if you will i want to say first of all thanks to chairman pai, commission ker orielly for everything you guys are going to be undertaking for a free market and open market going forward. I want to be clear that no one is against net fru tralt. We are against a government takeover by regulatory fiat without congressional input. That is a new jersey problem. So moving forward, i just want to say if you are for competition, youre against title 2 and moving forward were looking ahead to this open transparent process for comments, something revolutionary to be able to comment in this way ahead of time as we werent able to do before. So americans for tax reform and digital liberty are very excited about the road ahead of us. Thanks. Thank you, katie. The American Consumer institute is glad to be here today with chairman pai and commissioner orielly to talk about the future of the internet. The internet as we know it flourished under light touch regulatory models pes pite all the evidence and the. Studies billions of dollars of consumer welfare loss many studies the wheeler Led Commission voted to put the internet under the oak of a 19349 law meant for rotary Dial Telephone services. Since these regulations have taken effect, broadband investment has declined and broadband slowed negatively impacting consumers especially those in underserved areas. Aci looks forward to the commissions plans to right this wrong so that consumers can benefit from increased investment and innovation that will fuel advances in telemedicine and other 21st Century Innovations and technologies. Now, with that, do we have a representative from the National Range . Ill turn it over to you. [ applause ] thank you, good afternoon. My name is betsy huber. Im the president of the National Grange. Im honored to stand longside chairman pai. Freedomworks and the Small Business and Entrepreneurship Council to talk about the importance of connectivity to our rural communities. For 150 years, the National Grange has worked to insure that all communities are able to benefit from the latest advancements in Communications Technologies and gain access to them. Today, thats why we are committed to ensuring an open internet to connect all entrepreneurs from the Silicon Valley to the silicon prairie. We look forward to working with the chairman on his efforts to spur inclusive innovation that connects all of american citizens, including those in our rural and small town communities. Now, id like to introduce mario lopez from the Hispanic Leadership fund. [ applause ] thank you, betsy. Welcome, everyone. Great to see everyone here. Were thrilled that could be here for foods influencement. Im mario lopez, president of the spanish Leadership Fund a policy Advocacy Organization dedicated to providing liberty, opportunity and prosperity for allamericans. Like many of our members, im a tech enthusiast. Im excited about all the innovations and technologies coming from the tech sector. Not just on a personal level but also because of the transformative power that this sector has in terms of creating jobs, economic growth, and affording opportunity for all communities. The Leadership Fund believes one of the primary reasons the sector has flush risched is because its been allowed to operate in a light touch environment. This served us well under the president s of both Democrat Bill clinton and republican george w. Bush. And we believe it will work again to allow innovative ideas and Technological Solutions to improve the lives of working families across the countries. The Latino Community after all is heavy with Small Business growth. Latinoes the Small Businesses at a rate three times that of the general population. And are traditionally first adopters of technology relying on these technologies to improve their lives and seek education and another important areas. So we look forward to hearing what the chairman has to say about the future of internet policy and we intend to work with him and his staff to insure that all communities are served well by market or regulations. Thank you again, and now my pleasure to hand off to gary johnson with the Lincoln Network. [ applause ] my name is garrett johnson. I am a cofounder of Lincoln Network and for those of you who are perhaps not familiar with Lincoln Network, since 2013, we have focused on building bridges between the Tech Community and government leaders in washington, d. C. And across the country. But today, i am not here speaking as a Telecom Policy expert or a lobbyist or a lawyer. I am none of the above. Ing in 2011, i moved to Silicon Valley after a company i started was accepted into y combinenater. We had to register as a common carrier with the fcc because we were improving communication between businesses and consumers. We had to complete five reports, useless reports per year, that required over 50 hours of work according to an omb estimate. Although the company that i founded was acquired a year and a half ago and my cofounders and i have been operational for the past six months, my cofounder on monday received a call from South Carolina regulators there asking for 20 in fees that were owed from 2016. Im just happy they dont have my number. While jumping through the regulatory hoops, we built a product that businesses wanted and paid for. We created jobs. We met payroll. Every day entrepreneurs and Silicon Valley and cross the country are fighting to build companies that might transform education, transportation, health care, and many other industries. Many are doing important work. But they are not super heroes. They are simply continuing a traditional of americans who pursue a dream who solve problems. Who tinker and experiment until something clicks. We almost work to preserve this tradition to ensure that people who grow up in the midwest and rural appalachia and low income neighborhoods like belmont heights, florida, where im from, have a shot at pursuing their dream, whatever that might be. This is why lincoln works to connect policymakers and the Technology Community. As you all know the rate of new firm creation is declining for the first time in recent history. The Technology Community and government leaders must Work Together to reverse this trend and promote more access. And more innovation. I believe in a free and open internet as i am sure you and most reasonable people would. But the process of getting to this outcome and how rules are enforced makes all the difference. The internet is not a monopoly. It has not experienced severe market failings. The internet is always evolving and improving unlike our water services, transit or other public utilities. Companies in order to stay relevant in the marketplace do work to provide consumers with faster speeds, new products, and new services. In february of this year, nearly 200,000 californians where i live were forced to evacuate because of a collapsing dam due to years of neglect. But some think its a good idea to give the same Regulatory Authority over power grids and bridges and our waterways in the country to regulating the internet. I disagree. Government control of the internet invariably leads to more taxes, new rate regulations, new fees, and micromanagement. If the goal is to keep the internet open and free, to promote more access and innovation, something we all agree with, it should not be managed or controlled by the government. Im honored this afternoon to introduce someone who perhaps more than any Single Person in the country today is shaping the future of technology policy. In january, he was nominated by the president to be the next chairman of the federal communications commission. He took the helm of this important federal agency guided by a handful of principles. Consumers benefit from market competition. Not competitive or preemptive government regulation. Policymakers should be skeptical of any Technology Player calling for increased regulation on their competitors or any kind of special treatment. Federal regulations when they are needed should be created to reflect todays technology and todays dynamic marketplace. Rather than decades old regulations in industries. The fcc like other Government Agencies is bound by the laws created in congress. It cannot and should not be a super legislator. The fcc functions best, and this is critically important, functions best when policy is created through consensus and bipartisan buyin. He is a first generation american, a graduate of harvard university, a university of chicago law school, ladies and gentlemen, please welcome to the podium chairman ajit pai. [ applause ] thank you, garrett, for sharing your inspirational story and for your perspective. Thank you for the kind introduction. Thank to you freedomworks and the Small Business and Entrepreneurship Council for hosting us. Thank you to americans for tax reform, digital liberty, the American Consumer institute, National Great lake, Hispanic Leadership fund and garretts own Lincoln Network for supporting this event. It is a pleasure to be at the newseum this afternoon. For almost five years, ive had the privilege of serving at the federal communications commission. During that time, ive had the chance to travel all across our country and speak with americans from all walks of life. And when it comes to high Speed Internet access or broadband, i have found that there is far more than unites us than divides us. Whether im in red america, purple america, or blue america, whether im in thor. Na frost bob the Arctic Circle or in the bayous of louisiana, people tell me the same thing. They want fast, affordable, and reliable internet access. They say they want the benefits that come from competition. And they tell me that they want to access the content and use the applications, services and devices of their choice. The question that we at the fcc must answer is what policies will give the American People what they want. That question has been the subject of a fierce public debate and this afternoon, a new chapter that have debate will begin. But before looking to the future, id like to briefly review how we got to where we are today. Put simply, the internet is the greatest free market success in history. And this is due in large part to a landmark decision made by president bill clinton and a Republican Congress in the Telecommunications Act of 1996. In that legislation, they decided on a bipartisan basis that it was the policy of the United States to the preserve the vibrant and competitive premarket that currently exists for the internet unfettered by federal and state regulation. For almost two decades the fcc respected that policy. It adopted a light touch Regulatory Framework, one explicitly approved by the Supreme Court and one which enabled the internet to grow and evolve beyond almost anyones expectations. Under this framework, a free and open internet flourished. Under this framework, americas internet economy produced some of the most success it will Online Companies in history, google, facebook and netflix just to name a few. Under this framework, the private sector invested about 1. 5 trillion to build the networks that gave americans high speed access to the internet. And under this framework, American Consumers benefitted from unparalleled innovation. But two years ago, the federal governments approach suddenly changed. The fcc on a Party Line Vote decided to impose a set of heavy handed regulations upon the internet. It decided to slap an old Regulatory Framework called title 2 originally designed in the 1930s for the ma Bell Telephone monopoly upon thousands of Internet Service providers big and small. It decided to put the federal government at the center of the internet. Why . Unfortunately the answer has nothing to do with the law or the facts. Nothing about the internet was broken in 2015. Nothing about the law had changed. And there was not a rash of Internet Service providers blocking consumers from accessing the content, applications or services of their choice. No, it was all about politics. Days afc a disappointing 2014 Midterm Election and in order to energize a dispirited base the white house released an extraordinary and unprecedented Youtube Video instructing the fcc to implement title 2 regulations. This was a transparent attempt to compromise the independence of the agency. And it worked. Notwithstanding the revisionist history offered by some, the fcc was not moving towards title 2 regulation before the white house announcement. No, it was dragged kicking and screaming down that path. And what was the problem that title 2 was supposed to address . Well, we were warned that without it, the internet would suddenly devolve into as a additional dystopia of fast and slow lanes about you strangely the case for title 2 was a factfree zone. As internet entrepreneur mark cuban said near the end of 2014, if it aint broke, dont fix it. The dc circuits 2014 decision has created an opportunity for the fcc to introduce more rule making. They shouldnt. Things have worked well. And as he put it, there is no better platform in the world to start a new business than the internet in the United States. Did these fast lanes and slow lanes even exist . No, the truth of the matter is that we decided to abandon successful policies solely because of the hypothetical harms and hysterical prophecies of doom. Its almost as if the special interests pushing title 2 werent trying to solve a problem but instead looking for an excuse to achieve their longstanding goal of forcing is internet under the control of the government. More on that later. Now, two years ago, i warned that we were making a serious mistake. Most importantly, i said that title 2 regulation would reduce investment in broadband trukt. The economics are simple here. The more heavily you regulate something, the less of it youre going to get. When you talk about lesson for struck investment, many peoples eyes glaze over but its important to explain in plain terms what the consequences are. Reduced investment means fewer americans will have high Speed Internet access. It means fewer americans will have jobs. And it means less competition for American Consumers. So what happened after the fcc imposed title 2 . Sure enough, Infrastructure Investment declined. Among our nations 12 largest Internet Service providers, domestic brand Brand Capital expenditures decreases by 5. 6 or 3. 6 billion between 2014 and 2016, the first two years of the title 2 era. And this key cline is extremely unusual. It is first time that such investment has declined outside a recession in the internet era. And importantly, the impact has not been limited to big isps. Smaller competitive providers have also been hit. For example, one small arkansas isp called aristotle told Congress Last year before the title 2 offered was adopted it was our intention to triple our Customer Base and cover a threecounty area. However, we have pulled back on those plans scaling back our deployment to three smaller communities that abut our existing network. Aristotle wasnt alone. Take quis. Internet which serves 475 customers in rural northern illinois. Quis. Decalculated plans to upgrade its network and increase consumer megabits to 20 megabits per second. Whisper that serves 8,000 customers in st. Louis cut back on investment resulting in slower speeds. And just this week, 22 small isps, each of which has about 1,000 broadband customers or fewer told the fcc that the title 2 had and i quote affected their ability to obtain financing. They said it had slowed if not halted the development of Innovative New offerings which would best our customers and they said title 2 hung like a black cloud over their businesses. Americas smallest providers sirmply do not have the means or the margins to withstand the title 2 regulatory onslaught and remember, these are the Small Companies who are critical 0 meeting consumers hope for a more competitive broadband marketplace for fighting against the big guys in the market and closing digital divide. Now, none of in that ive described should come as a surprise. After all, we were warned back in 1998 ha if the agency and i quote suddenly subjected some or all information Service Providers to telephone regulation, it would seriously chill the growth and development of advanced services. Which radical republicans issued that warning . Senators john kerry and ron wyden. Among others. Thats why we heard in 1999 that it is not good for america to just pick up this whole morass of telephone regulation and dump it whole say on internet pipe. Which right wing zealot said that . President clintons fcc chairman, bill canard. And in more recent years, we were told that the title 2 order itself was an economics free zone and the