Wireless in one way or broadcast which is wireless and another, or fiber. Lets look at how consumers are benefiting and also harmed, and if theres concentrations and abuses and market power. Thats a daunting task, i think if we all Work Together it doesnt have to be partisan, it could be unanimous. Commissioner pai, thank you for your recent visit. Do you have any common . I do think it would go a long way to streamlining the effort of the commission to report back to congress. I think it would to Congress MuchBetter Service because you get in one place comprehensive snapshot of exactly what is going on in the marketplace. The endeavor to reform our business from legislative standpoint should not what we can do ourselves. To keep the trains running on time. So a number of the proposal ive put forward which i dont believe are politically beneficial to anybody that are just a matter of Good Government involved, setting deadlines, creating a dashboard where the public can monitor exactly how the nation is performing like a number of how long it takes ius to issue license renewals ad those kinds of things. All of which speak to the valley of accountability. I think too often what weve heard over the last number of years, not limited to any particular agency is that image doesnt mr. Respond as quickly to the industry as the msha is moving on its own. So i think thats one of the things i know my colleagues agree with, as we move into the 21st century, deeper into the 20 we need to make sure we are acting at the same pace as the private sector. Im running out of time. Thank you i plan on introducing, reproducing the fcc consolidated reports act this year. Certainly hope to get the support of the committee. Thank you very much. Let me just for the convenience of misery, members, senator warner will be next, senator klobuchar, some guy named senator nelson, senator begich and senator cruz. So show your love for the committee. Senator warner . Great to see all the Commission Members here. One of the things that senator wicker and i and senator snowe before that worked on at some length was trying to make sure we just got a good inventory of spectrum, and another commission has been generally supportive of this. Weve got to get her other colleagues and the federal government, on the dod and intel side help you get there on that because some of the most valuable commodities we have, we dont have good information about how not only private sector but much of the Public Sector is using the existing spectrum. Relate to that aspect and gets more and more valuable, somebody who benefited from the increase in value in a prior life, weve got to make sure we get as much utilization as possible. I want to talk a little bit about interoperability and maybe start with the chairman, but any other commission would like to mention this, i understand that as a look at all of the new technologies coming on, particularly in the wireless space, if you would like to comment on how youre looking at the whole question of receiver standards and whether this is going to be a mandatory system or now looking at potentially a voluntary buyin, he goes were continuing to see new opportunity, Otto Industries and others who want to think about smarter cars as well as smarter phones, yet there is constant question that interference issues which is it a couple of your other actions invest. Mr. Chairman, to want to start . There was a time when people thought that spectrum wasnt scared anymore and we had all we would ever need and there were no issues. Now, of course, we know that the opposite is the case and have some real challenges on freeing up more and more spectrum. Part of what weve learned is that where we have spectrum that is being inefficiently used, sometimes because of restrictions like satellite restrictions, we will see receivers come on the market that it interfered with as we remove unnecessary restrictions. And we have to tackle the. We are running a process that the commission to determine the best way to do that. I know the committee has looking at it, but we need to alter the incentive structure so that we dont see that kind of issue. Anyone else want to make a comment on that . I would adopted by reference with the chairman just said, and receiver standards are very important. We hope that there could be a private sector consensus here, so lets push towards that. It should be part of an overall goal to increase the spectral efficiency because even if we could identify all of the 500 megahertz of the national brought plan called for to bring the auction or to bring to market, thats going to take the better part of a decade to actually get into the hands of consumers. What do we do in the meantime . We have to adopt policies that promote spectral efficiency in a variety of ways, but also one thing we should avoid is with the upcoming instead of auction is making it too complex, too complicated. Having been part of a 700 megahertz auction, my first dissent was cast. That encumbrance among other, unforeseen shouldnt say this, probably resulted in an interoperability problem which we now face and its a mess we had to untangle. Lets be careful trying to outguess the market, because we cant. Speaking of interoperability, in general, i think i missed them when ive been talking about a lot is as lower 700 megahertz whether our issues as it relates to interoperability. Theres been engagement for almost a year, im still hopeful for a voluntary solution, but the fcc in its history has either mandated or encouraged interoperability across the board, rural and urban areas might benefit from and where we can we should. Either mandate, encourage strongly voluntary engagement. I agree with a voluntary component, although i know in the past its not always been successful. At the end of the day, pushing out new technologies, were going to use all the spectrum we can. I know my time is running down. I just am concerned as well that holsters of questions ill submit for the record, mr. Chairman, but there seems to be a bit of backsliding on usf reform, and i just believe that this is a not a problem. This is obviously a change of technologies, but its going to get the kind of Rural Broadband deployment that i think many of us all want to see, this is going to have to be a component. What i heard you say is that there shouldnt be any backsliding. Yes, thats right. And i completely agree spend my time is up. I just want to also echo comments i think so my other colleagues at me, and i know it opens up an enormous can of worms, but with the marketplace and Technology Moving so quickly, at some point a broaderbased, looking at reworking of i think not to be the subject of this committee, at least starting down that path. It may not happen overnight, but great, Great Potential so i think the chairman and thank the committee and the Commission Members for being here. Senator klobuchar. Thank you very much, mr. Chairman. Thank you to the commissioners have come to minnesota in the last year or so, including the chairman and commissioner rosenworcel, as well as commissioner clyburn, and youre invited as well, commissioner mcdowell. Thank you, commissioner pai, thank you so much for your work. I want to for start out with unlocking. I appreciate the leadership the fcc is taking on this issue. Reduce the wireless Consumer Choice act with senator leahy and senator blumenthal, and we are taking this very system. We think this is a great opportunity to open us up for competition. I think you know that theres been a lot of outrage over the recent decision by the library of congress, not a, for for people but that is if it creates uncertainty for consumers who want to unlock their phones from one network to switch to another. And again i see this as an opportunity and i wondered, i guess thank you if you would commit to work with us on this to addressing concerns and to take action and do you agree unlocking is an impediment for consumers choosing to switch carriers and, therefore, is a barrier to competition . I do. I think that decision from the library of congress raise real competition and innovation concerns. I was happy see the legislation introduced, and thank you for your leadership. It appears to be bipartisan issue. We need to address it because right now there are criminal penalties for someone to get a new phone and unlocks it. Doesnt make sense. No, it doesnt to does anyone want to add anything more . I think its important to get past the headlines a little bit on this issue, and while we need to quickly dispel the image of consumers being hauled off in handcuffs, if they try to unlock your cell phone without their phone. Exactly. And we also need to understand that we need to protect intellectual Property Rights and there is contract law which your bill speaks to, that can convey and give consumers lots of options and lots of freedom here. So lets make sure were not undermine intellectual Property Rights and we also preserving the right to contract. I agree with my colleagues. And also, affordability is a factor and environmental factors, you know, if you got to make all these changes every time, if you have an option to change providers. Thats a good for the vibe so all those things going to play, and thank you so much for introducing that. I agree, would be happy to help, whether thats through the fcc or the updating the Digital Millennium Copyright Act are i think the most stunning thing those to find out about the great power of the library and of congress. Spent exactly. I thought the same thing. As you referenced, senator lee has a bill simply in our also on. And i think its a different approach and we can somehow combined them, we will all Work Together but i do think its important, mr. Chairman, for this committee with its jurisdiction over telecommunications to be involved in this decision. Thats one of the recently introduced the bill this way. I would have the contract law in my view rather than criminal or copyright law should be up in relationship between wireless consumer and wireless provider. I would be more than happy to work with you whether its an exemption that allows consumers to unlock the phone or another mission. We stand ready to aid. Thank you very much. Good news today, the fcc is taking the issue seriously about call completion with our consent decree. Thank you very much. Could you discuss, mr. Chairman, what this consent agreement with level three means to the industry quickly that huge problems with call completion in rural areas in my state and and others spent i think it sends a clear message its not acceptable, that we will take seriously any instances that we find of failure to complete call. We will continue to investigate reports, and if its necessary to have more enforcement action, thats what we will do. Okay. Another question. I understand the fcc has an open proceeding considering the legal and policy consequences of expanding or redefine what a multichannel video programming distributor is, or as known as mvpd. Weve had some issues come up in some of our suburban areas about the price of cable. And so, and also transparency. For Wireless Services disclosure. Spent we havent reached any decision in that proceeding. I am, i think we all are concerned about rising prices to consumers and the need to keep on pushing competition policies in this area spent i will followup more on that and i will do my colleagues go on, but i would just put some questions on the record, commissioner rosenworcel, especially on metal theft and wires, a growing problem. Senator graham and i have a bill that senator schumer have cosponsored, and i appreciate your interest in that and will put other questions on the record as well. Thank you. Thank you, senator klobuchar. Senator rubio. Thank you, mr. Chairman. First, thank you all for serving on the commission. Its an exciting to be on there with all these things happening. I may not use all my time for questioning. I have a 4 30 p. M. Appointment to unlock my phone. [laughter] are you going to need a lawyer for the . At 440 thymic i have to go to the library congress. I guess ill start with commission ago because he was so involved with the Internet Freedom debate that took place. And i guess its my question. Im interested in working on draft legislation with others that would declare the policy of the United States to promote the Global Internet free from government control and maintain the current multistakeholder governance. I know not asking to endorse legislation although feel free to do so, any of you, but i would ask you, do you think is her statement from the congress will be something thats helpful in regards to position of the United States and these International Bodies and beyond . Thank you for your leadership on this issue and many thanks to every member of the senate for unanimously supported that resolution last year, and the short answer is yes, that would be tremendously helpful. Great, good. Did we get that on tape . Im sure. Second question is about spectrum. The way ive explained this back home across the country have asked me about it is, well hear conversation about roads and important road towards economic development. Got to get your products from entry point to end use customers. Spectrum is very similar to that in my mind. Its identical to that on a different level. Spectrum capacity is what allows people to quickly get information on tablets or cell phones or what have you. It actually would give us a cutting edge ive been concerned of course about staying on the Competitive Edge and we were different reports about where we are in comparison to the rest of the world in terms of our capabilities. Moving forward, it seems to me and i may be wrong, and if i am i want you to point this out, that im concerned that in the Wireless Industry the demand for wireless broadband might outstrip our ability to provide the supply. So my question is, would it be helpful if congress authorized multiple spectrum auctions, may be staggered over to the time just to ensure that you have a pipeline of spectrum entry the marketplace in a steady and predictable manner . Is that something youll might be helpful . I think youre thinking about spectrum as infrastructure is exactly right, and one of the challenges is its invisible infrastructure. So it can hard sometimes to generate the action that we need to its why this committees action on legislation was so important. Your right to identify the supply and demand issue i think. The real issue is getting more supply spectrum to auction. So the issue that send a i upgrade to have to be more spectrum from government use, would be helpful and i think we can hold an auction anytime but we need the supply of spectrum in order to auction and data some the other four to working with you together. Hes absolutely right. Federal spectrum has got to be up early, getting the federal government to liberate through exclusive use licenses rather than sharing. And you of course can provide the incentive that might be needed by the federal holders of spectrum, and i look forward to working with you on that. Youre absolutely right. The broadband beneath us and airways all around us on the roads, ports and denounce of the 21st century. The challenge is just as you suggested, making sure we have enough spectrum in a pipeline to meet the demand of that infrastructure. I think what were going to have to do moving ahead though is identify ways to make sure that our federal users of spectrum are rewarded when they use it efficiently. If they use it efficiently, they should see some gain whether thats through appropriations or budgeting or some other system. And if they use it efficiently they will return more spectrum for commercial use and will have more in the pipeline which will help grow our wireless economy. I agree. The problem in terms of more intensive spectrum use, the devices were using today, are sometimes more aid intensive than a simple cell phone was 15 years ago. So theres a need on the consumer side. Federal spectrum come one of the processes that is established now under as modified by the legislation last year, notification an auction process because i outlined, that is an established process by which the fcc would notify ntia of us federal spectrum that could be reproduced for commercial use. And if we adopt the process and invoke it in a very robust way, that would be fair and flexible for everybody, for federal users, for the fcc and for the private sector. I hope we use it more often. Thank you. Thank you, senator. Senator blumenthal. Thank you, mr. Chairman. Thank you for holding this hearing, i do want to thank my colleague, senator klobuchar, for her leadership as well on the unlocking bill which ive been very glad and proud to cosponsor. Let me ask just very quickly, the merger, proposed merger involving tmobile and metro pcs, chairman genachowski, has that been accrued . It has been approved. Went . Did a spit so this information was released at what point do they . I dont remember the time that it was released. Earlier today. Spent hours in advance of the searing . Yes. Let me ask you, wasnt approved of the bureau level or the Commission Level . The bureau level. Can you tell the committee, this is a deal involving 40 million subscribers, billions of dollars, are you aware of any transaction similar size that has been approved at the bureau level rather than being circulated for vote by the Commission Speak with there have been large transaction as large as this one . My information in terms of dollar an impact on consumers has ever been approved by the bureau as opposed by the commission . This may be the Largest Global transaction was very large. There was a major radio transaction. There were no petitions to deny, no wishes of commission policy. These are typically done bureau level and this was consistent with the president in the area spent i do want to take them on this issue now but i will have followup questions for the committee. Of course. Second area, i noticed that today that at t has announced a rate hike. Im sure youre aware of it. This comes just one week after verizon announced an almost identical rate increase, both of them trouble m