Hearing is two hours 45 minutes. [inaudible] [inaudible] [inaudible] [inaudible] [inaudible] [inaudible] [inaudible] [inaudible] [inaudible] we would welcome to todays hearing on oversight of the federal communications commission. Should point out this committee has a jurisdiction over sports that last night the south dakota sate State University jackrabbits punch their ticket to the ncaa to a term i winning the tournament. I know im im getting gavel down by someone. That was applause . Thats thats what youre supposed to do. The last time we met i think was six years ago and a lot has changed. We have have a new fcc chairman in charge of the agency for whom this is their first fcc oversight hearing. At the last hearing is that i hope to see changes to have a commission operates. I urged people to treat fairly and respect the law, to be to be willing Test Congress for guidance and seek consensus where possible. While in the early days i am heartened because the new fcc leadership has heated this advice. Their first action under chairman pye were to make reforms to improve the agencys processes and transparency. Color to the to the tread of the recent predecessors and the Chairmans Office as they could, the, the steps empower the public and other commissioners. Chairman pye has emphasized bridging the Digital Divide is a core principle under his leadership. Represented a rural state were many people are still without Broadband Service this is a goal that he and i both share. The fcc has taken huge steps to advance broadband deployment by moving forward with the second phase of the Mobility Fund and connect america fun. That the commission could loose it forward so quickly during a time of Agency Transition begs the question as to why they were not completed much sooner. Nevertheless its refreshing to see the agency take action to help bring broadband to every corner of the country. Its nice to see them move forward with broadcasting items that will help a. M. And broadcast Television Better serve the public. Not everything the commission will do will be as nonpartisan or positively received as chairman pyes first open agenda. I was a vocal critic of the previous chairmans hyper partisan partisan leadership style. It will not be an easy task to rectify some of the mishaps from last year. Im referring to the 2015 title to order and subsequent broadband privacy order. Im im sure other actions may need to be revisited we need to reset both of these items. Glad to see the fcc is started that process by staying certain parts of the rule to go in effect last week. As i suspect most of you know i feel strongly the best way to provide longterm protections for the internet is for congress to pass by partisan legislation. Since we dont have agreement on that front despite goodwill on both sides theres no reason the fcc to hold off doing what is necessary to rebalance the regulatory posture under current statutes. Something tells me much of the hearing will be dedicated to the topic. The open innate to be should not distract the fcc from important work and must do. The fcc is in the final stages of the broadcast tv auction which has been a success. 84 megahertz has been reallocated for wireless broadband and billions of dollars dedicated for deficit reduction. While it may be a mess done the work is far from complete. The clock will start on the broadcast repacking process of this will be no small undertaking for the agency or tv stations. I urge the commission to do whats in its power to ensure this transition happens quickly and responsibly. Robo calls is another problem that needs to be addressed. Theres a a positive step in the right direction. Covenant government must everything we can to protect consumers from those are truly the bad actors which is why this committee has worked out anti spoof legislation. We do make sure that the rules are not punishing legitimate callers who are not acting maliciously. The proposed inquiry has given a jumpstart to that. We will be busy this year with fcc nominations. Chairman pyes term has expired. Hes in his holdover year. Yesterday the president neat renominated him for another full term. Theres theres two vacant seats on the commission. Was the president makes his nomination for the fcc i hope the senate will move swiftly to review and confirm the president s appointees. The most important thing is that to allow the fcc to fall below functioning quorum. I know no responsible person would knowingly deprive the agency to protect consumers in the marketplace. Thank you, i recognize Ranking Member nelson for his opening statement. Thank you mr. Chairman. I welcome the three members of the fcc. Including the new chairman in his first appearance as chairman. The president has a renominated him and given him primary responsibility over what the senator believes is one of the most important Consumer Protection agencies of the federal government. In the last eight years the fcc has had the consumers back. Ultimately, for this senator, the successors failure of the commission rests [inaudible] the fulfillment of wishlist, but on how those who are least able to protect themselves have been treated and whether First Amendment rights, including those of journalists are vigorously protected. So, since assuming the chairmanship in just the last few weeks, the fcc, chairman pye, under your leadership has acted to prevent millions of broadband subscribers from receiving Key Information about rates, terms, conditions of their service. Acted to guarantee that broadband subscribers will have less protections with respect to the security of their online data. While promising to further weaken the duties of broadband providers owed to protect the web browsing history and other personal information the pain subscribers. By the way, that will arouse people pretty quick when he starts filling their personal data. Third thing is, just in the last few weeks, threaten the expansion of broadband into the homes of low income americans by limiting the effectiveness of new Lifeline Program reforms. The fourth thing, and the last last few weeks formally rescinded in fcc staff report detailing the implementation of the agencys comprehensive eat right modernization effort that sent shockwaves through schools and libraries across the country. They are worried that you are going to try to upend this highly functioning and bipartisan program. These are actions that directly impact the lives of millions of americans. I hope they are not signs of things to come. At the end of the day, the fcc fcc has the responsibility to put the Public Interest ahead of special interests. And just as it has with its past chairman, congress expects the commission to uphold the laws it has passed and enforce the regulations properly adopted by the agency. That is what the Public Interest, and the senator has, and will continue to demand. Now, there is something left undone that has not been done. That is, the three of us right here were just talking about, discussing my frustration with the fact that jessica is not sitting here today in front of us. The failure to confirm her in the last congress that was made a commitment as an exchange of the appointments of commissioner oreilly, that commitment was never fulfilled. That is a black mark on the senate. The president s decision to pull her nomination last week, i think was unfortunate. I hope the white house is going to correct that and nominate this impressive Public Servant for another fcc term, once again. Fax if you perform well. [laughter] no pressure chairman and Ranking Member of the committee thinking you for holding this committee today thank you for the president to nominate me to serve a second term at the fcc. Of wood like to offer a personal note agrippa and the great state of kansas as an Indian American and just a few months ago i made a personal or professional visit to leave the kansas it was quite painful to me to learn of the coldblooded murder of the garment engineer in the shootings in the cannot fathom how those involved must feel in as this diems words cannot capture however has hurt those of indian descent to call kansas home. But the do want to say my thoughts and prayers are with the families. Thanks for the courage he showed to risk his life into station along the millions of kansans to save the perpetrator is the despicable exception to prove the rule with the spirit of open and respect in the sunflower state. Returning to the focus of todays hearing like to discuss for fcc priorities closing the Digital Divide, protecting consumers and reforming the fcc process. First, highspeed Internet Access for broadband is critical to Economic Opportunity. Broadband is unaffordable and to many places. The fcc can help close the Digital Divide by targeting federal funds and revising regulations and by creating deployment friendly best practices. The first six weeks we have already taken bold action. We adopted on a bipartisan basis a 4. 5 billion dollar plan to expand lte and expanded rules adding 2 billion for fixed broadband and eliminated outdated rules so providers can spend on the appointment rather than unnecessary paperwork and that will develop a model code for those interested. And to promote innovation. Would to prisoners are causally developing new technologies san services because cl outdated rules stand in the way. Going forward want the fcc faugh for we propose to allow Television Broadcasters for the next generation standard on a voluntary marketdriven basis for was spectrum sharing in the innovation the core mission is to serve the broader Public Interest protecting consumers. All americans seemed united in their disgust with robocall. Number one complaint every year and every year americans receive approximately 2. 4 billion robocall. I have in the just set aggressive agenda to target those we will vote to allow carriers to block the spoof robocall there is no reason why any legitimate caller should be spoofing numbers and when it comes to Public Safety we granted an emergency waiver to Jewish Community centers to identify those who are responsible for the recent wave of bomb threats and hope this measure helps to bring the perpetrators to justice. M process reform. Working to make the fcc more open and transparent to found a strange the public could not see Commission Meeting items until after they voted. Well connected lobbyists but every day americans were in the dark and now that is changing. Last month i made public as the Pilot Project in things went so well last week amid public for all six items before the march reading. One of them anyways i intend to make a more open and accountable to the American People to implement more process reforms. Thank you once again for holding this hearing to answering your questions and working with you in the time to come. Chairman and Ranking Member and members of the committee did morning it is an honor to appear before you to share my priorities for putting consumers first. As more than seven years of a commissioner eye of an advocate for those whose voices far too often go on heard. Emission not be able to give love food or health care that is broad band access in benefit from tel health services. The with an open internet for all and forms were with like to share with the committee today talk about the open internet a larger question must be asked will there be a cop on the be in a broadband world . Is a just with the Service Providers in a remote area we cannot rely on competition. As a protector of consumers in the naval air of the ecosystem who will they turn to if they throttle their favorite website. This is what i strongly support the commissions 2015 open Internet Order and continue to live there provides the best Legal Framework to protect consumers and entrepreneurs. To empower consumers to make informed choices of personal information to comply with the rules that work for the company to be sure consumers have the tools to protect in the broadband world. The machine is of biggest and most distressing former injustice i have ever witnessed of an industry regulator we cannot continue to turn our backs while wife pays for a call for 15 minutes from her husband. And win the inmates get to society is not paid again and again by their sons and daughters and mothers and fathers and grandparents. To focus on infrastructure and access the sec universal service mandate can be described as a foreleg in stool with four different programs working in concert to close the Digital Divide. And with connectivity in we cannot leave out any lady of the stool in continued to stand that also means being courageous reforming the contribution system that is a heavy burden to shoulder the burden of bad nationwide by been deployment. And i believe the conversation must urge to have of moving the needle to own and operate broadcast properties to its this end i support reinstating the Tax Certificate Program working with the broad cast industry to start a program for new entrants are disadvantaged businesses and increasing diversity in front and behind the camera. We must focus on enhancing Consumer Protection and this agency overseeing miscommunication sector this is highly alarming in we can and must do more. There are many more issues i am hopeful that will tackle including streamlining of the infrastructure deployment of tel a health and telemedicine and my written testimony addresses many of these issues and greater detail but i think you for the opportunity to present before you today in answering any questions you may have. Thank you for the opportunity to address and discuss the important work occurring at the fcc of light to raise a handful of attentions in answer any questions you may have. For and disparate of cooperation. Let me college and applied chairman pai to improve our internal workings m procedures in five short weeks he has assured the reforms with the efficiency and transparency and accountability to publicly releasing the text the process reform is an important mark as we have ideas for further reforms with authority process in the scope of information Data Collection and on another topic is discouraging to movement to protect spectrum rights is not sufficiently achieved they are affecting the band that Consumer Services think leo believe the situation is fixable and preventable to take diligence with new targeted Statutory Authority dedicated to address radio. A high priority to ensure their Broadband Access is recently available to facilitate the time involved in the remaining pieces and at the same time standing in the way of greater access barriers imposed that is the difficult process to how difficult psalms with an effort to have government sponsored networks will the vast number of communities see the broad band deployment that there are bad doctors with those preemptive measures in those International Representatives via the different forms continue to seek greater role of an traneight bond negative internet oversight with a possible expansion of government interference with the longterm sustainability and afford to your questions. We have a lot of members today he will ask questions so as closely as possible and the week to work more closely with the gavel. Mr. Chairman serving during the clinton term said you are off to a very good start and set a very constructive tone everybody is reacting positively office of Personnel Management is global satisfaction based on the employees satisfaction plus recommending the organization as a good place to work global satisfaction fell more than any other time or large agency this was doing when satisfaction increase did is the development because pour rowdies to ineffective organizations. Because i am the chairman did take this extremely seriously with professional staff. Commission rules require requirement to be fully functional and then either by leaving your were that term expires will you commit to serving out your full term to ensure that maintains a quorum quick. Would you have read has never been suggested. I have no plan to do anything that would it jeopardize the functionality of this institution that the love so much. That they must charge customers for customers that this is known as the rate for. That has continued to increase every year and there is little effort to assess this impact as ellen Service Providers. With the ever increasing rate for man to have substantial concerns i have spoken about the several years ago was struck me as odd as under admission compulsion they were raised rates for those who have less in town so this is something i am committed to working with the bureaus staff about. Their husbands lot of discussion the what would happen if it suddenly went away is it true when the fcc be obligated under section 222 of the Communications Act greg. And the breach notification requirements. Q said you were comfortable pushing of the insulation house they speed the deployment working with the chairman with the steps they have taken the we may have to get into congress that is preventing broadband from being disbanded throughout the nation. Thats all for now. Mr. Chairman i will let our guys go first to clean up i will flip it over but i just want to make sure that you all understand the rate which was set up in supposed to be looked at 2018 is so central broadband to schools and libraries though expect them not to make any changes until after you evaluate pursuant through 2018. Mr. Chairman and commissioner chairman pai reword disappointed that the president pulled the renomination last week the senate should have confirmed her to a term last year i am looking to everybody to honor their original commitment some of we can get to these nominees so they can move through the senate floor quickly. Banks for all of you to oversee these successful incentive option may all want Faster Internet Service but i have concerns consumers could lose access before stuffy air. You said that if the stations cannot repacked in that 39 month timeframe theyre not forced off the air so yes sir no question to support those legislative efforts. With any effort to complement our goal to ensure that no consumer is negatively harmed. Diane agree with uh commissioners. I would agree. Chairman pai is the fcc going to review the timewarner merger quick. There is no license that would be transferred from one party to the other that is known as the Public Interest to dirt and as that remains the case my belief is they would not have the review. Have you asked the staff to confirm it has no role . We debut willing to do so . And a question about met neutrality if you move forward with the repeal of the open internet and we fail to pass legislation but the comcast merger has Net Neutrality commissions how do we ensure that level Playing Field with the at t merger and one of those major competitors would still be bound by that requirement . There are a number of hypothetical but the basic answer is you want to that simply depends on of the transfer of the license in the general rule making process there other factors going into the analysis. But there are two giants that has to abide abide by ned neutrality and another that doesnt. Want to follow up on a private conversation we had regarding the commission itself and with one of your previous oversight hearings with a large number of partyline votes that no Political Party and the realize they were not partisan but landers stay and you have a different perspective implementing your point of view but what assurances can you give the committee the Telecommunications Community your democratic commissioner of your commitment to get to votes whenever possible . By appreciate your perspective the top priority to the career staff wanted to close the Digital Divide involving the Mobility Fund to those parts that does not have it but the explicit directions word to work with commissioner cliburn to accommodate her concerns and she can speak for herself public to think that and product was bipartisan but in terms of process reform tuesday to push out these items so what about doing that one page faction . That is right and that is the spirit will negative a spirited want to carry around with me. Thank you very much thank you for your testimony. This is certainly something that the commissioner of the size in her prepared testimony. You were successful to move forward including phase two of the Mobility Funds they will undoubtedly Grant Services so tell us about the plan in requiring states and localities to of deployment friendly policies in your testimony and that you might designate. Thank you for the question this is what i am passionate about. Precisely because about these ideas is a new no partisan angling affiliation. And then to set up those gigabit opportunities. And then to that is as large as a rule county. And 75 percent or less of the National Average income. Those to build out in those areas and also a requirement devastates it and localities so it was east and additionally and the employer side of the payroll taxes for those 27 businesses in that area that was drawn from the spirit of jack kemp and my thinking was widely update the idea of enterprise . Those that dont have Economic Opportunity spirit this will require legislation. Correct. And commissioner what you think of such legislation could. So also recognizes that affordability is a factor when it comes to adoption of services so we look at those universal principles and tools that is a series of steps forward to bridge those gaps and if there is the affordability gap a deal agreed . I do that is part of the reason i express so much concern of the rate for and how much they increase the rates roll customers have to pay. To insure that they have competition choice and i am committed to working with her and you. If the distinguished member wants it to be focused. But it seems to me that that reversing the neutrality rules with regard to free data is pro consumer will not long after you terminated the investigation into these practices and unlimited data coming to the market. That new flood of opportunities came as a direct result of interaction greg. Data north that was a direct result of the confirmed the wisdom of the approach that it is a highly competitive marketplace all four National Wireless carriers avenue or expanded data plan. The public like that could. Cancer. Senator broker booker correct. Digest want to reaffirm that i have a Firm Commitment to the ideals of neutrality that was put into place the law of the land so clearly this guy is not falling and businesses have continued to innovate in this space with positive results and i am hoping there is a commitment to met neutrality neutrality but i just want to jump into this bipartisan encouragement that is so allimportant when it comes to creating a robust access to Communications Like tel a health that is great urgency i have a big concern the way the criminaljustice through is operating profoundly a tool to create a disparity in our country that are standing. No difference between blacks and whites for using drugs or selling drugs but africanamericans are 3. Seven times more likely to be arrested then you have situations but over 60 percent of the prison population and disproportionately people of Mental Health challenges fiercely committed to make this society fair for all americans equal justice under the law to empower those with the prison population so when they paid their debt to society they come to be successful. All data shows if the federal will reduce talk about robust connection to family ties. Been trying to make that robust we have children that are now separated from incarcerated parents and they are facing challenges that is vital for those children and families and the rehabilitation of those that are incarcerated. So does and just die in prison but they core priority but all of us have been to make your we support families but video visitation is of the riots which is something i have talked to numerous wardens. So commissioner can you let me know if the fcc loses this case that is in court right now what are the potential consequences . Kelly have one word it is devastating to set us back of the efforts we have attempted to close the gap to keep Families Together to ensure that more than 39 percent of the population impacted can keep in touch. And where it is affordable with the 700,000 inmates released into the society every year. By the time rolls around and is a criminal justice issue and to pay dividends to all of us. With broadband provider issues. And with that sense of urgency. I appreciate the perspective the petitioners should not have had to wait to heed their call also i suggested a early that the marketplace was broken that they have authority with rate caps and interstate rates that did d. C. Circuit is highlighted and we are working through those of my commitment to you back to make sure they do everything within its Legal Authority and be happy to work with you on that. Thank you to all members of the panel that you did last year with the rates of return before mortars and they are pleased with the results and i appreciate your efforts provide continued to hear concerns that they are none to permitted to get universal Service Support to charge customers hundreds of dollars to recover costs for standalone broadband so do you have any thoughts we can solve this problem so world customers have the option to buy affordable standalone Broadband Service greg. Clive very much appreciate it with the affordability question. This is precisely the reason why i put on very simple plan to with the rate of return and now they have to jump 311 hoops technical and complicated with a viable proposition to offer so to working with you to make this a regulatory system more streamlined to offer a standalone service. I am alone will defensive cant you have been to nebraska. But to that point when we worked closely with the carriers we had a choice to go one direction and would have been much easier playboy and is well taken is available that is in the hands of the carriers themselves. They say it doesnt matter if you pass this along lot split off because making too much money from that. But to stand alone Broadband Service and to be penalized for that. Air provided the subsidies as it is compared to a bundled product. To be sure that consumers out there have been to subsidize in terms of the you overall budget. Identified is a happy place. Chairman pai you mention streamlining to the regulations and the process with the ever structured deployment those maintained by the fcc and number of programs that are out there not under you but department of commerce but what i am hoping to do to encourage broadband appointment so do you think we can streamline the programs that about their weather with the sec or other agencies to avoid the duplication of that funding to make sure we have existing networks needed . Obviously a do not presuppose to Tell Congress how destruction their programs but would be helpful i recall early on during the town hall meeting where a number of carriers told us we have a line of credit that is outstanding viet the sec tells us if we take it there will be restrictions on how to spend it. And then to oversee how we spend the money would be better for everybody. They give very much chairman and congratulations on becoming chairman. While we may disagree on some issues like Net Neutrality to extend communications accessed that must include native americans that have the Digital Divide but today i want to ask about the president s open hostility toward Media Outlets that many of those have business to the sec in this climate that could directly affect matters in the First Amendment issues you have been very unspoken on. Door offical biography states your an outspoken defender of freedoms described your advocacy to hold scrap the proposed study of barriers in to the media marketplace and you wrote in the oped no place pressuring reorganizations into covering certain stories. In response to an interview question there is a role to play to keep the political elite to suppress trump reporters in reply certainly one aspect is using the bully pulpit to advocate for free speech. And i hope we hope the label would return to the tradition of respectful and robust public debate end quote. Today he uses Police Tactics to intimidate the media has declared certain outlets the enemy of the American People the press secretary to the unusual step to bar some journalists from attending the Daily Press Briefings for those that have business dealings from those regulatory matters somewhat like cascade couple of questions that could be answered with a yes or no. Day would agree he is the enemy of the American People quick. Will reaffirm the quotations from last year and the year before speaking refuse to lancer . The media is the enemy of the American People . Every american should have their rights her afforded by the constitution. When he met with President Trump at trump tower did you discuss issues related to the media press buick i will leave the details of that conversation to the white house side of the that liberty to say. Unlocking discuss any specific company corrects been met by cannot comment on the conversations i have had with the president and that is to the white house to disclose. Willie sec operate independently . Period absolutely we do resist any attempt to resist news organizations . To enhance said we are independent agency i will take a look of the facts and that applies to the fact to make a determination. Soda chief strategist that the media should be embarrassed and humiliated in just listen. Do you agree it should keep its mouth shut . America will not weigh in the political debate beyond the sec. Would you make a comment like that to keep their mouth shut greg. I have heard that at home every now and then buff laugh. [laughter] bolster journal reported the president s soninlaw raise concerns with the time warner executives of the cnn coverage of President Trump and with that antitrust review. And with that trump the ministrations. I have not had any conversations will you report to this committee if anyone contacts you to take any favorable rene give the action will. With those protocols that apply to the conversation. Thanks for joining yes was a moment to compliment all of you i appreciate the relationships we have had with you and commissioner in the opening moments of the presentation today i appreciate the heartfelt nature of what we highly the play my first visit returning to washington d. C. Was the embassy of india to express the concerns and those who came from india to express the belief there welcoming people and and i thank you for your comments for those success and those from kansas. [laughter] i know my colleague raised the topic and i guess shes solicited from new the tenement to work with him in the rest of us on the committee if necessary. So i will last more suspicious was aggressions did have some concerns but i have seen those decisions have already made and then leading up to that option than two out when the steps that is the best answer to give you. When will you know if it is set aside. And to get cost estimates and to take stock to figure how much they estimate it will be. And then to take the appropriate action. When will you know, if the 39 month time period is sufficient . Remind that depends on with the option clauses and others for reconsideration so we will go with the facts take is we just not sure the timeframe for. The Mobility Fund based to congratulations to get the order adopted. Plan to stand the order recognizes the need for the challenge process alegre weve had this conversation before with the challenges can you explain the zero that would operate and that will benefit the American People i was struck by the fact going from wichita to do moiety fcc said me did have coverage but we did not beg gives American People and the fcc Accurate Information where consumers are covered. And then to figure out the of best way that the data is accurate. To make sure we act on accurate data. Thaw. I have been pushing been happy to see the conclusion i am very passionate about also for those who are challenging are not disadvantaged to have open and transparent manner. With the interactive process to go with the parties to be sure we have accuracy in the process that enables us to meet our goals. Now back to questions licet that would be the first to come to congress and it is premature to get to that point. We are still months away. And pleases your having a conversation that isnt that normal dialogue and i have been in the room with senator attune and in every guest unquestioned either to make your record known. The senators time is expired. [laughter] thinking mr. Chairman and thanks to each of the commissioners we appreciate you discussing these issues and chairman pai u. S. Said the commission committed itself to be a truly independent agency that makes decisions based on facts the and i know you are aware september 2015 german and senator tune solicitors to the fcc to endorse the plan of two proposals for spectrum sharing and i understand that testing is currently in under way. Is important to the automotive Safety System in is the major dance when fully deployed and let the dated drive the policy can you commit to making public all of the data during the testing phase acquired. Error be happy to do so with the caveat there is a trade secret that might be revealed we are happy and not sure that obviously be applied by whatever rules are regulations are applied. I understand Everything Else will be made public we will do whatever we can to make it public so with spectrum sharing with is based on sound Engineering Data to undergo rigorous and review with the decision that was made. What is the target date . With the office of the Engineering Technology to discuss these issues i would be happy to get back to you but i cannot give the date at this point. Obviously we are following this very closely. What is the experience with the transition . Period in the process to do our reach and my commitment to be sure that one agency is not acting to the exclusion of any of their. This is the time allotted moving forward. Windows related to the data that is critical so to have the big issue to qualify with rural areas in it appears as if they do that is not reality. The go to the heart of the issue this beyond a the process but we really have to change the map is not accurate as far as what i am hearing in what i have been told so to fundamentally make sure we have good data is important we need to have good data. The with them to did minister the david is accurate. It is not clearly grain. We want to make sure that is part of a we hope to iron out in the challenge process but to make sure the information were getting is correct will and that is one of the commitments and frankly to our own professional staff going forward. Washington journal continues. Congressman Henry Cuellar is a democrat from texas and specifically the 28th district of laredo based border district which means your district would be ground zero for President Trumps wall initiative. You called that wall a 14th century solution to a 21st century problem. Why . Guest first of all we have seen the history of the berlin wall, the great wall of china and other places. You remember the french and the