Is one of the tests that the fbi utilizes. One other thing most of the people have been radicalized and guarded to violent extremists has certain characteristics. The same type as people who join gangs. Low selfesteem, unemployed categories such as this. A gives you some indication of the kinds of people they usually get involved. There are different statistics on that. That maythat may be more true to those who are going of foreign fighter out and less true or al qaeda type operators. Educated and you have seen across the board a high incidence of the down and hours. Not to say that there are not pockets. There are two aspects to the foreign fighter problem. There going to come back in the terrorists it is true. What is even more vital is the fact that they are recruiting going over the. It is like voting on american idol. It allows the claim that this is a caliphate. Showing the pipeline down over and apart from the physical threat is an important part of diminishing the brand. Yes, maam. You will probably be our last question. Susan craft. I have been covering this terrorist twitter problem trying to give more down to a question that was better. We have a question asked about facebook and other social media sites. 200,000 leads going on a day is it you seemed to dodge the question and talk about the dark space being a real problem. Jamestown we talked about twitter and the message being dangerous but he also talked about the dark space. Im wondering if the white house had asked them if the white house is letting twitter go about letting twitter be more lenient because Law Enforcement has an interest in the open space and they are not cracking down on twitter when waiting on them as much. If that is a helpful tool because you can track them and i would love to talk about the state departments failed efforts in the counter narrative is theyre have been a lot of Washington Post articles talking about is the complete lack of effort. They havethey have had programs but it seems like to have all been either failing or gone too far. Lets run down the panel and ill give you the option comment on social network with the state departments role or a little bit of both. Sure. No social the government would allow the communication and is being nicer to twitter. It seems to me that it could be a way that they can glean intelligence. It also seems like a mighty doubleedged sword as you allow them to communicate a lot. I have no specific intelligence what the government is doing but it seems like theyre would be a fine line. On the counter narrative that is to be a cooperative effort by number of different agencies not the least of which shallto employ saw the psychological warfare capabilities military has which is an important part. Adding to that i dont think it is something the government does well and it needs to evolve to aa publicprivate type process where you have some government element to it but it is not solely government. The other. I would make is, at least the studies i havei have seen with regard to recruitment online, it is an important tool, but it is the studies have not shown i indication that solely online recruiting has resulted in conversions to violent extremism. You still need the physical presence of someone who we will close the deal which is important. There has been so much focus. We tend to think that that is the problem command i dont think thats correct. Katie. 70 million twitter followers why . That is a Virtual Community and a Virtual Community found by a certain level of common interest which does not mean anyone will do anything she says. What makes this dangerous is theyre is a social network Virtual Community that links which is what maximizes the impact of social network. Theynetwork. They are rooted in groups of people that are going to do something. Compare with what we saw in the green revolution in iran. There was a massive social network which was moving all these ideas. Why waswhy was it . There people on the ground going into the streets. A linkage between human and virtual web which makes the virtual web powerful which tells you whether than concentrating on the phenomenon of the most significant thing that you can do to diminish the value is to diminish the value of physical network. This is notthis is not just in terms of network of people and our countries but this thriving, growing metastasizing menace in the middle east that is claiming a state. I would touch on that comment. What are the true size of the nature of the threat. Theretheyre is a huge delta that the psychological an actual threat. If you look at the numbers of folks on twitter for one thing that is fascinating and surprising is how few attacks and. He is relatively small numbers. Why didnt they focus on attacks to the United States . Isis has its own agenda but if they were intent many of you with inspire Magazine Online recruitment and how to manual. This isthis is the winter of 2014 issue gives detailed instructions about how to make explosives in your moms kitchen the cover of the indicators and science. We have not seen near the kind of use. This number of actors. They can all be sleeper cells but you need to take with a grain of salt the level of hyperbole. I am the one who talked about Technology Enablers which is real command we have to be cognizant of that in terms of how the future state in terms of what is available can change the game. Youre not seeing a lot of adherents in terms of action that is good news. You could have had a session and people could have come in. You did not here that. You did not here an assessment. You heard options and a discussion about how to make arrested for risk informed decision of Different Things we can and should do. That is where good Public Policy decision should be. Thank you. [applause] [inaudible conversations] commerce subcommittee hearing on communications and technology is just over an hour. [inaudible conversations] 1230. If we can go ahead and get started. Apologies of the classified briefing get schedule later today the cutsback on schedule about the same time this hearing was originally scheduled. We moved it up to now so that we can here from this distinguished panel of witnesses. Ive asked my colleagues because we now have a vote scheduled we will dispense with Opening Statements which is anyone knows is unprecedented historical annals that they we will all be in the official record. Unless there is objection i would like to proceed straight to our panel of witnesses. Witnesses. This is an important hearing on promoting broadband infrastructure investment. You all are in the frontlines command we look to you. We will start right out delighted to have you. Thank you for your leadership on this issue and appreciate the opportunity to testify. We represent the companies that design own build command manage for communications companies. Wireless carriers, infrastructure providers and professional services firm. Our mission is to help members provide wireless facilities to meet consumers growing mobile data needs. The industry plays an essential role in meeting mandated demand. Infrastructure makes wireless work enables delivery of data services. Wireless infrastructure as a catalyst for Economic Growth and job creation. The study found investments in our industry will generate 1. 2 trillion in Economic Growth and create 1. 3 million knew jobs in five years. This committee has shown great leadership trying to eliminate barriers infrastructure deployment. I commend you. Most notably section 649 a has had an impact on the ground itelement a major local barriers to upgrading Wireless Infrastructure. They have done an outstanding job of implementing the law. We still face for the spectrum is expensive, expensive, scarce command takes a long time the unity use. All the more reason to move quickly. Technological advances to foster greater efficiencies. In the networks themselves there getting smarter directing capacity to where its needed, these take time to develop and implement. The 3rd way is through the Rapid Deployment of infrastructure. Wireless infrastructure driven by private capital addresses a wireless data conscious and is deployed ranging from traditional cell towers to white coverage and capacity to small cells. Intensification of networks reduces scarce spectrum. Allowing users please more out of existing spectrum. There is Resistance Congress can help even more to remove the barriers. Streamlining these barriers. Streamlining the process of setting Wireless Infrastructure for land despite the law enacted by congress and the executive order by the president significant challenges remain. Furtherfurther legislation will extend broadband coverage and increased employment in rural areas. Bci supports f1618 recently introduced in the senate to address this issue and we look forward to continuing work to develop legislation. Additional roadblocks remain some state and local entities require proof of need which are both illogical and costly. Local communities should not be in the business of citing where services are needed. Where is needed to serve consumers and local governments are not in a good position to be secondguessing technical questions. Efforts to harmonize the rates would help promote broadband investment. The fcc has taken important steps. States that regulatesstates that regulate should follow the fccs lead. Wireless infrastructure boosts every sector of the economy. Demonstrating its effectiveness Global Competitiveness the challenges remain in reaching the full potential. They need to eliminate regulatory barriers so that industry can invest capital without resistance and not at cost and delays that we will slow the rollout of wireless broadband. Member companies aremember companies are grateful for bipartisan recognition of the centrality of Wireless Infrastructure. I wouldi would add that we look forward to making continued progress and we thank you for joining us and for holding this hearing. Thank you. We appreciate your testimony the owner, we are delighted to have you here. I enjoy the time i was i was in your committee and toward your facilities command we are glad you could be hear to share your thoughts on the challenges you face. Thank you, chairman members of the committee. Thank you for the opportunity to testify. I also want to thank the chairman for visiting the committee to see firsthand the obstacles that drives face in deploying broadband and i want to thank the Ranking Member for the request to have the Government Accounting Office look into the challenges and barriers to employment prevalence. Broadband provider which we refer to was founded in 1988 dollars 12,000 and members living in a reservation. Whenwhen we 1st and purchased the exchange only 10 and percent of our residents have access to basic phone service. Those looking to get connected had to pay tens of thousands of dollars before Mountain Dale today they offer phone service to 100 percent of our residents we also offer Broadband Service across the reservation. They Work Together to raise awareness tribal lands only served areas in the country. 40 percent lack access to speeds. A number of obstacles that present challenges to broadband deployment. I have set those out with more detail. First population density is an obstacle. Twenty person per square mile. Maricopa county has approximately 414 persons per square mile. Rugged terrain characterized by mountains and hard soil is typical of farmland. Low, medium, and high rates of poverty prison a severe challenge for the delivery of broadband. The Median Income is 24,000 to 59000 in arizona. Approximately 48 percent of persons living on a reservation live below the Poverty Level compared to 50 verizon. These50 percent for arizona. These economic circumstances are not unique to our travel community. This continues to negatively impact tribes. Our committee and others like it continues struggle. Because of the allotment policy obtaining rightsofway is complex and raises cost substantially and delays deployment. Access to capital is a barrier. Trouble lands can be leveraged as collateral for securing loans because they are held in trust. This private capitol is often not available meaning the only when your available is the federal government specifically the utility service. Loans were critical to gr g. I. When it took over its service area and remains critical. The combination of these challenges has resulted in average cost per loop be over 2,873. Because travel nations face unique challenges we often need unique solutions. Having tried athaving tried at the table and engaging in government to government consultations critical. Too often policies have an intense consequences of price because were not properly consulted in the beginning. The current effort to reform the universal service fund is a good example. Usf is when properly scoped a critically important source of funding that can help make it possible to deploy broadband to our reservations. Tribes have offered a proposal that would target specific support to lands through a broadband factor that can be added to proposals for standalone broadband fun. Inclusion of this travel broadband factor would promote a targeted use of universal Service Funding to advance the policy objective. The office of native american has been a welcome addition to the commissions outreach efforts to ensure that tribes are included in the development of proposals to employ more broadband. Sometimes the fcc forgets about tribes which is why we appreciate the letters sent from a Bipartisan Group of members of this committee mining the commission that tribal leaders need a seat table. I appreciate the opportunity to speak with you and hope to be an ongoing resource for the committee. Thank you. You can count on that. We that. We appreciate your testimony. People dont have a craig moffett. Thank you for your kind invitation to participate. By way of introduction i have been a financial analyst for the past 14 years. Before that i spent 11 years advising telecommunications companies. So this is now my 25th year and i have spent much of that focused on issues of broadband deployment. I thought i would share general observations particularly focusing on the economics of ` competitive broadband. I would start by saying the obvious. That should be taken as a given but the issue of return on capital is either ignored or misunderstood. It is not a matter of whether a business is risen are profitable but that are of whether a business is sufficiently profitable toward the high levels of is required for a structure. 2014 the largest phase of the cable industry and a healthy return. The physical aspects all and healthy returns in excess of cost of capital with returns ranging from 13 to 33 percent which are usually high. Onon the other hand it should be noted they earned returns below the cost of capital. Longterm return as to earn returns well an axis of the cost of capital during the maturity of the network to offset for years or even decades of losses. By contrast large Telephone Companies do not attractive returns. For example, a decade after 1st undertaking the homebuilder out verizon has not yet come close to the return. The paltry 1. 2 percent return. For the nonfinancial types of that is the equivalent of borrowing money at 5 in order to earn 1 . Thats a good way to go bankrupt. No one would undertake to replicate those disastrous returns. At t began deploying and much less robust and less costly fiber is also earned poor returns. Committed to make five are available for 12 and a half million homes in order to make the acquisition of directv more palatable. But it is hard to believe that we will be much better this time around. Around. There have been changes in the market. Developed bendable fiber that has helped lower the labor costs. Google has popularized the demand. They can target areas with the companywhere the company has the best chance of earning an acceptable return some critics call that redlining but it typically means it will be billed to the lower income communities and has been successful. You can think of it as a way of ensuring all the children are above average. The broader take away is theyre are concerns to be had from over building. Let that can. Marketmarket forces are unlikely to yield the fully competitive broadband market. Among some to regulate incumbent networks. That is if the not unreasonable assumption that any attempts to foster competition will be ultimately unsuccessful and regulation in this case the Cable Operators are therefore require. The counterargument that regulation will only step investment among incumbent providers amble there for mick the problem worse and will in the process generate unwelcome unintended consequences is equally wellintentioned and well supported by the historical evidence. That is to say there are no easy answers here. I will conclude by adding a few it is not observations about the cable industry. Everyone understands the cable video business is facing pressure. Cord cutting has been talked about but its finally showing up in a meaningful way in the numbers and program in cost or eating that way at cost. The video business in the broadband business are on opposite sides of the same coin. It is after all all on infrastructure. Rashana video profit pool would therefore naturally turn a pricing response of broadband or Cable Operators have greater leverage. It may sound nefarious but not intended to be so. Simply not duration the Cable Operators have benefited from the fact that their infrastructure can support two separate businesses and each can be delivered a lower cost if that were not the case. The aca American Cable Association is made this case eloquently in arguing absent reforms to restrain runaway programming cost growth video will be unprofi