Today about president trumps first 100 days. And i would suggest that yes, the Supreme Court is a big deal. But the things that the chairman is working on right now potentially have the longest impact of anything coming out of this administration. That is definitely doable. So i have been at Freedom Works for 12 years. And 12 years ago, when i started this was 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 passed new regulations on the internet that i feared was primly stop innovation. Particularly 15 billion devices connected to the internet. That number is gonna go up to 50. So obviously well get into 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 that chairman ajit pai, the announcements you will be making today. Well be looking at opening up the internet for development and in a way that will increase competition withdrew the internet open in a way that increases competition. And does away with trying to have regulation so elections have consequences. Another set at the end of the first 100 days, this potentially is going to be the greatest impact on our economy in the long run. With that i would like to introduce Karen Kerrigan from the Small Business and Entrepreneurship Council. [applause] thank you very much adam it is a pleasure to cohost todays event. With Freedom Works. I know our members are very excited. There watching the lifestream right now on the Freedom Works platform on facebook and like all of you, are very excited to hear from chairman ajit pai about this internet regulation. It will not come as a surprise i think to all of you guys in the room werent even our members who are watching the event right now that when Small Business owners think about their experiences and with regulation by the regulatory process, those thoughts are not that kinder to say the least. Regulations, very costly. Archaic, outdated, complex, conflicting. And the regulatory process itself most times not consider the impact on small firms and entrepreneurs and ignores the concerns when rules are actually released. So that being said, theyre very excited about the new direction that this administration is taking on the regulatory front. And on regulations in general. Across all agencies and are very excited about what the fcc has done so far. Under the chairmanship of ajit pai. We are very delighted for example that when the chairman, when he first put on the chairmans house i guess if you will, that his first action was protecting Small Businesses. That was the order that extended protections for small firms, for an additional five years in the burdensome requirements embedded within the Net Neutrality rules. It has been a series of actions. Common sense actions that have supported by my members actions and reforms that they have long educated for all agencies. Those reforms have more transparency, inclusiveness, using actual Economic Data and analysis. To guide rulemaking. In actually listening. On a proactive basis to concerns of Small Business owners and entrepreneurs. To understand what the impact is going to be on their firms as consumers. Technology and telecommunications as well as players in the marketplace. As an organization promoted Small Business and entrepreneurship we are very concerned about the state of Small Business. They continue to struggle. They reached plateaus in terms of growth. We are very concerned about entrepreneurship. Because entrepreneurship remains very very weak in the us. In fact a gap analysis reports that was published by my chief economist is with us today found that because it was low over the last 10 years, that our economy is losing 3. 7, that is a lot. Job creation, innovation and the overall growth of the economy. But thankfully there are things that are changing. We will hear about tax reform today. That will create, help create the ecosystem that we need to encourage more Small Business and entrepreneurship. Todays world ip day so we are celebrating that. And protecting it is a critical piece of the ecosystem in terms of start of activity. And we need a regulatory system that is also very friendly. So that is why what chairman ajit pai and Michael Oreilly and derant on their front it really matters. Investment is key to innovation and bringing our Small Businesses and people who want to start businesses affordable highquality broadband. They can use the internet to start and compete in the marketplace in the location of their choice. We are very excited to hear your remarks about the net regulation. It will dictate the future of entrepreneurship in america. Again, we thank chairman pai and commissioner oreilly for the leadership. We look forward to working with them. We will hear a couple of remarks i believe from some stakeholders and friends of our organization. And Katie Mcauliffe is up next. She is the federal and executive director of digital liberty. Thank you everyone for being here. This is a really exciting day. A red letter day if you will. I would like to say first of all thank you to facebook. Com booktv and commissioner oreilly for everything you are undertaking for the remark and an open internet going forward. I want to be clear that no one is against Net Neutrality. We are against government take over the regulatory fiat with out input. That is a major problem. So moving forward, i just want to send it if you are for competition, your against title ii. In moving forward we are looking ahead to this open transparent process for something revolutionary to be able to comment in this way have time as we were not able to do before. So we are very excited at tax reform and digital liberty for the road ahead of us. Thank you. [applause] [inaudible] incorporated you katie. The American Institute is happy to be here with chairman pai and commissioner oreilly to talk about the internet. We know it flourished under light touch regulatory models. Despite all the evidence, and the many studies, billions of dollars of consumer welfare losses in many studies. The wheel of that Commission Voted to put the internet under the yoke of a 1934 law meant for a rotary Dial Telephone service. Since the regulations have taken effect, broadbent investment has declined. 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 innovations and technologies. With that we have representative from the National Range . I will turn it over to you. [applause] thank you. Good afternoon. My name is betty huber. Im the president of the National Range. I am honored to stand alongside the chairman, Freedom Works and Small Business and Entrepreneurship Council to talk about the importance of this to our communities. For 150 years the National Grange has worked to make sure that all communities are able to benefit from the latest advancements in communication, technology and gain access to them. Today that is 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 the rural and smalltown communities. Now i would like to introduce mario lopez from the Hispanic Leadership fund. [applause] thank you betsy. Welcome everyone. Great to see everyone here. We are thrilled that you could be here for todays announcement. I am mario lopez president of the Hispanic Leadership fund. A Public Policy advocacy transport like many of our members i am a tech enthusiast. Im excited about all of the innovations in emerging technology. I am now on a personal level but also because of the transformative power the sector has in terms of creating jobs, Economic Growth and affording opportunities for all communities. Hispanic Leadership Fund believes that one of the primary Reasons Technology center has splurged is because it is been allowed to operate on a light touch regulatory environment. This approach with regulation served us well under the presidencies of both Democrat Bill clinton and republican george w. Bush. 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. They start Small Businesses that are at a rate three times that of the general population. And our traditionally first adopters of technology relying on these technologies to improve their lives and seek education and other important areas. So we look at forward to see with the chairman have to say about the future of internet policy and we intend to work with him and his staff to ensure that all communities are served well with regulations. Thank you again. Now it is my pleasure to hand this to Garrett Johnson with the linkedin network. [applause] my name is Garrett Johnson. Im a cofounder of Lincoln Network. 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. In 2011 i moved to Silicon Valley after company i started was accepted into 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. All of the company that i found it was acquired a year and and a half ago and my cofounders and i have been operational for the last 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. [laughter] 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 in Silicon Valley and across the country are fighting to build companies that might transform education. Transportation, healthcare and many other industries. Many are doing important work. But they are not superheroes. They are simply continuing a tradition of americans who pursue a dream. To solve problems. The tinker and experiment until something clicks. We all must work to preserve this tradition to ensure that people who grow up in the midwest and rural appalachia, lowincome neighborhoods like Belmont Heights florida where i am 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 different creations declining for the first thing in recent history. The Technology Community and government leaders must Work Together to reverse this trend and promote more assets. And more innovation. I believe in a free and open internet as i am sure you and most people would. But the process for getting to this outcome and how pools are enforced makes all the difference. The internet is not a monopoly. It has not experienced the market balance. The internet is always evolving and improving unlike our worded services. Transit or 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 down due two years of neglect. But some think it is 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 and invariably leads to more taxes, numerate regulations, new fees and micromanagement. If the goal was 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 the government. I am honored this afternoon to introduce someone who perhaps no 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 convert increase regulation on their competitors. For 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 and 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. The 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 perspective. Thank you for the kind introduction. Thank you to Freedom Works and the Small Business and entrepreneurship counsel for hosting us. Thank you to americans for tax return form, digital liberty, American Consumer is a jew, National Grange, Hispanic Leadership fund and the Lincoln Network for supporting the event. It is a pleasure to be at the museum this afternoon. Almost 5 years i have had the privilege of serving in the fcc. During the time ive had the chance to travel all across the country. And speak with americans from all walks of life. When it comes to highspeed Internet Access or broadband, i have found that there is far more that unites us than divides us. Whether i am ready america purple america or blue america. Whether i am above the Arctic Circle or in the buy used of louisiana. People tell me the same thing. They want fast, affordable and reliable internet. They said they want the benefits to come from competition. And they tell me they want to access 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. In this afternoon a new chapter of that debate will begin. Before looking to the future, i would like to briefly review how we got to where we are today. Put simply, the internet is the greatest freemarket success in history. And this is due in large part to a landmark decision made by president bill clinton and the Republican Congress and the Communications Act of 1996. That legislation they decided on a bipartisan basis that was the policy of the United States to preserve the vibrant and competitive free market that currently exists for the internet unfettered by federal and state regulations. For almost 2 decades the fcc respected that policy. It adopted a light touch Regulatory Framework when explicitly approved and one which enable the internet to and evolve beyond anyones expectations. Of the work a free and open internet flavors. The economy promoted some of the most Successful Online companies in history. Google, facebook and netflix just to name some of them. Under the framework private sector investors about 1. 5 trillion dollars to build the networks that gave americans highspeed access to the internet. Under this framework American Consumers benefited from unparalleled innovation. Two years ago, the federal government suffered suddenly changed. The fcc on a partyline vote decided to impose a set of heavyhanded regulations upon the internet. Decided to slap an old Regulatory Framework hold title to originally designed in the 1930s for the telephone monopoly upon thousands of Internet Service providers. Big and small. They decided to put the federal government at the center of the internet. Why . Unfortunately the answer has nothing to do with the law or facts. Nothing about the internet was broken in 2015. Nothing about the law had changed. And there was not a restroom Internet Service providers blocking consumers from any services of their choice. No, it was all about politics. Days after a disappointing 2014 Midterm Election and in order to energize a dispirited phase the white house released an extraordinary and unprecedented Youtube Video instructing the fcc to imprint title to regulations. This was a transparent attempt to compromise the independence of the agency. And it worked. Withstanding that it is history offered by some the fcc was not loving towards title to regulation before the white house announcement. I know they were not dragged kicking and screaming down the path. What was the problem that title ii was supposed to address . We were warned that without the internet would suddenly devolve into a digital as mark cuban said near the end of 2014, if it aint broke, dont fix it. The d. C. Circuit 2014 decision create an opportunity for the fcc to introduce more rulemaking. They should not. Things have worked well. And as they put it there is no better platform in the world to start a new business than the internet in the United States. Now these fast lanes and slow liens even exist . No the truth of the matter is that we decided to abandon successful policies solely because of hypothetical harm and hysterical prophecies of doom. As if the special interests pushing title ii were trying to not find a gopro about looking for an excuse to achieve their longstanding goal of forcing the internet under the goal under the rule of the government. I warned we were making a mistake. I said title ii regulation would reduce investment in broadband infrastructure. The economics are simple. More heavily regulate something, the less of it you will get. When you talk about less infrastructure and many peoples eyes they glaze over. But think its important to explain in plain terms what this is. Reduce investment means fewer americans will have highspeed Internet Access. It means fewer americans will have jobs. And it means less competition for American Consumers. So what happened after the fcc impose title ii . Investments declined. Among the nations 12 largest Internet Service providers, domestic broadband Capital Expenditures decreased by 5. 6 percent. 3. 6 billion between 2014 and 2016. The first two years of the title ii era. This is extremely unusual. And is the first time that such investment has declined outside of a recession in the internet era. And importantly the impact is 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 ii order was adopted, it was our intention to triple our Customer Base and cover a three county area. However, we have pulled back on those plans. Scaling back for three smaller communities in the existing network. Very subtle, they were not alone. Taken the internet which serves 475 customers in rural northern illinois. They delayed plans to upgrade the network and increase consumer speed from three splitsecond 20 megabits per second. With isp to they provided 8000 customers in and around st. Louis missouri also cut back resulting in lower speeds. Just this week 22 small isps coming into which has about 1000 broadband customers or fewer, told the sec that title ii order had and i quote affected their ability to obtain financing. They said it slowed if not halted the development of Innovative New offerings which would benefit the customers. They said the title ii hung like a black cloud over their businesses. Americas providers simply do not have the means or the margins to extend the title ii regulatory onslaught. And remember, these are the Small Companies were critical to meeting consumers help your competitive broadband marketplace. Theyre fighting against the big guys in the market and closing the digital divide. None of this that i describe should come as a surprise. After all, we were warned back in 1998 that if the agency and i quote the subject is some or all Information Service provided to telephone regulations, it would seriously chill the growth and development of advanced services. Which radical republicans issued that warning . Senator john kerry and whiting among others. That is what we heard in 1999 that it is not good for america to quote just pick up the telephone regulation and dump it wholesale on the internet. Which rightwing said that . President clintons fcc chairman. And in more recent years we were told that the title ii order itself was an economic free zone and the agencys Economic Analysis was wrong, unsupported or irrelevant. And which antigovernment extremists said that . The fccs own chief economist at the time. The title ii order was adopted. According to one estimate Foundation Title ii has already cost country 51 1 billion in broadband capital investment. Is just not worth the time and the money. That is where we are today. Where do we go from here . From a political standpoint unquestioned the easiest is to do nothing to the title to a loan and move on. I did not pursue a career in Public Service for titles to better the lives of my fellow americans including those they grew up with in rural kansas so with those sec rules to deny highspeed Internet Access and jobs to do nothing is nothing doing from the Great Depression instead we need rules for infrastructure to expand highspeed internet choice elsewhere and digital opportunity. We are going to deliver. Today i shared with a fellow commissioners the proposal to reverse title tilt to return to the framework during the Clinton Administration push a mystery shin and the person shares of the Obama Administration the document we will be voting on this call the notice several making the sec will Seek Public Input for this proposal in other words, this is the beginning. Not the and. Now some of called upon the sec to reverse title ii immediately to the declaratory ruling but i do not believe it is the right path forward it should be made in open process that every american can share his or her views. With those basic elements . First we are proposing to return that classification to the title one information server. John from the clinton demonstration this title one classification is upheld by the Supreme Court more consistent with the facts. Were proposing to eliminate the internet standard. To micromanage the Business Practices immediately following the vote my predecessor was asked what those standards meant correct the answer was we dont really know what means or where things go next for quite never heard a better definition of regulatory uncertainty. Later we did see where things were headed. To use that context tendered to use a free ranging investigation. Wireless Companies Offer customers to stream music and video theyre very popular among consumers especially low income americans. But consumers forgetting something from free form of wireless providers. With the election richard b. Did the internet before the sec to take action we should not leave this on the books for future commission the third major feature is here seeking comment how to approach the rules adopted 2015. But you have to take word on the notice of proposed rulemaking held publicly released the entire text tomorrow afternoon and this will be a marked change from what happened in 2015. Years ago the fcc hit the title ii from the American People a softer was adopted. Those given special access love to make major changes including at the last minute. The fcc has to pass it before you were allowed to see a. But this time under my leadership and will be different may agreed or disagreed youll know exactly what is in it. No i have outlined the process lets address the critical issue why is this proposal would for the American People . First it would bring highspeed Internet Access to americans without the overhang of Regulation Companies will spend more money to help networks expand especially the lowincome americans that have been forgotten will get highspeed Internet Access for the first time. It will benefit from better in frost faster broadband. And it will create jobs. More americans will vote to work building the next Generation Networks they are good paying jobs to lay fiber to lay and dig trenches. Starter pensioners will build businesses using those Networks Creating further jobs. Third, a boost competition. Remember title ii was designed for the monopoly the Regulatory Framework will move the marketplace toward a monopoly. It is no surprise sea have seen great consolidation since the title ii era with heavyhanded regulation especially tough on new entrants for those the dont have the compliance and lawyers that the wellestablished companies do. We want to encourage smaller competitors to enter the marketplace as well but to expand and we must end title ii. Forth the best path toward protecting Online Privacy that is a topic that receives a lot of attention recently in understand many disagree with Congress Decision to stop the sec privacy rules going into effect later this year about where every state and one thing is indisputable congress was maintaining the status quo the sec put in place when it imposed title ii that decision actually strips the ftc of its authority to regulate internet providers privacy that is because they cannot regulate common carriers because the prior fcc deem them to be this decision was a mistake. Repealing t20 will restore the ftc authority to Police Privacy practices that means the nations most experience privacy regulator can at once again be the cop on the beat and simply return to the tried and true approach to protect our digital privacy. Now with any debate there are least to decide the like to address the main argument well hear from the title to supporters you will hear from the aside to 20 is the only way to have a free and open internet but let me be clear this is a lie. They will repeat that over and over but it is just not true you dont have to be a regulator or a lawyer to figure that out of you just need to have a memory. Decades before 2015 we had a free and open internet. That developed and flourished under light touch regulation under that partisan position that they saved all of us from ourselves. The next argument you will hear some will argue that government control to express yourself on the internet. And that is the absurdity for what it is not a friend of freespeech it is an enemy. It denies the government that power and then to give everything that you want but consider the leading the special interest in favor of title ii the bill way special interests called repress the ago finder cofounder board member makes effort to hide the agenda he says were not at that point yet to complete eliminate the telephone and Cable Companies hit midfield it cool is to get rid of the Cable Companies. Budget but that rebuilding the entire society of the socialist principles. What would government to certain not protect freespeech he has said the matter what we can do to eliminate propaganda or even eliminated. Takes been frequent negative inspiration from venezuela. In 2007 aggressive unqualified political dissent is alive and well and venezuela and how was that working out for you . And then only government to provide institutional framework that is repugnant to journalist and to be sure the that is fundamentally hostile to freedom of expression. B. C. It when theyre barred from College Campuses we see it with university bureaucrats want to continue to empower that prey framework of prevention. And those to restrict political speech and regulate the online pack platforms. Where did the people stand on greater governor regulation of the internet . They strongly demand that the emir supposed to believe the freed the true motive is to protect free speech . So do we want the government to control the internet with those from the Republican Congress in 1996 to reaffirm the republican fcc. And then to invest in those networks with that of mind of a structure with the digital opportunity. Thirtyone jeff you were americans or put them back to work . Do we want rules of promote competition for consumers . Do one American Consumers broad ban prices . And then to protect americans privacy comprehensively. The answer to each of these is obvious. With the sec recruit the order we looked back as an aberration a temporary deviation in the voice my confidence so the next meeting will take a significant step and later this year i am confident we will finish the job. In this is the fight we are ready to win. [applause] not intrusive commissioner oreilly with this commonsense approach he was nominated for the sec by president obama from the United States senate. But sworn on november 2013 with at renomination by the United States senate. Please join me to welcome commissioner already. [applause] i am excited to be here. So Freedom Works and that is such an important topic today my colleague and i announce the beginning of a process from the terrible constraints from the bob grant broad ban provider. It is clear it never should have been imposed in the first place it is hyperbole problems with the liberal ideologically ideology to take internet policy and we darken prevalent were here to declare those days are over were bringing evidence based Decision Making back to the commissions rules. In that has necessary procedures with neutrality regulations that to commend the chairman for doing to complain about the shortcuts and instead with the procedure act followed to the letter of the law over the next few months now i will get a little into the weeds on the topic. I smile when i hear proponents tried to defend neutrality to refer to those for a million comments this simple truth of 1. 1. 6,000,040 percent of these comments oppose those rules more importantly commission outcome cannot be decided by those polled members neutrality tries to argue that those rules cause no harm. The irony is that they said the same thing prior to adoption more succinctly there is no credible evidence to warrant that intrusive neutrality regulation. The base this was stated or defunct after further investigation. And the courts agreed that they were intended to be prophylactic to address that hypothetical future harm with problems in the marketplace. He made it clear those decisions to regulate Broadband Companies despite competitor choices available to most was designed in part common carrier regulation with the vague standard that there is no limit what the imagination can do. That was one of the first tasks if the november election had turned out differently and also the view be headed down the road to broadband price regulation. To take down a precarious route. With a paid prior tradition cns seems beyond unnecessary. For your indulgence to focus on the majority of my deaf with a Net Neutrality order. To go teach policy objection. Starting to see some of the hypocrisy even ardent supporters say that some amount of traffic differentiation must be allowed or encouraged ms be prioritized over email. It is not a bad word that is a necessary component this is an exchange for consideration for the third party or to benefit but that is a reason for the albright bay and. Consider the facts of all the highminded buster including the strongest supporters of neutrality routinely pay for a friday services for the best possible experiences for their customers have been doing it for years. Contract that describes the arrangement it has with the broad band providers. The then to provide a better experience for consumers of naysay it wasnt the paid prior duration but as judge williams explained with that content with the broad band provider it is another form of paid prior duration so adding to the confusion is a longstanding category Specialized Services to recognize the commission tried to limit the use that non broadband Internet Services undermined the purpose would not be permitted. Unless the service is what they wanted to encourage that they expressly invited the loophole to put them beyond the reach. In banning the fast lane with the system of good and bad fast lane to set itself up that should be lessened this is far from the rules. All traffic must be treated exactly the same did anything else is to be rejected. What started as an outcry over hypothetical fax transformed into a more radical idea. In addition to these problems and with a ban on paid prior to irritation arguing results of identical speed to be suboptimal with the unpaid paid prioritization with faster speed to have less incentive for the transmission capacity. Turning to the general contact with negative context tendered referee throwing flags. Fanatic is how it would last. In to be compatible somebodies Business Plans would send a series of letters to few major providers and to be driven solely of the man or woman absent any process of making of the internet with the theoretical option they cannot be hypothetical that the opinions and not binding on the commission from the Enforcement Bureau it should come as no surprise that this is not a popular option. To still object the commission having a catchall type of authority with that uncertainty into the marketplace that could be called that iraq task of the only to bring that resolution was in for all is for congress to consider it the subject and there can be no lasting peace without a statutory originally resolution for the large swings of neutrality there was an uncertainty and confusion as duly elected representatives to ban all the relevant concerns to bring that to rifle close. In those actions in the coming weeks and months and then to find the right outcome. In to reiterate so that conduct standard and then is my absolute pleasure to be here. [applause] to look back at this point it will be a turning point in our economic history. With over 50 billion devices of with the next couple of years it is the nextgeneration of the economy to help free up investment. I applied chairman pai for believing in competition Link Foundation for the future. [applause] [inaudible conversations] senator chris crohns of delawares dutch chris coons of delawares chris coons a reporters. Oke to this is just over 10 minutes
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