Come to order. I want to thank everybody for coming. I have a fairly short statement that i will read and then i will turn to the senator. Were convening under different circumstances of our previous meeting. Were following the guidance of the cdc and the office of attending physician. So were spaced further apart. Our staff is reduced. Were grateful for all of them. The general public is watching online rather than filling up the room. So our hearing today will look a little different. I think we can all agree that the capitol feels a little different, the halls of congress feel a little different. Small businesses, if theyre allowed to open at all, are operating on a very different circumstances. American homes have become classrooms and offices for millions of american families. And at least for a while, American Life as we know it has changed. Nonetheless, access or inaccess to Broadband Internet services, especially in rural areas, as remained unchanged and it might be a good topic for us to touch on today. Our witness today, of course, is the esteemed chairman of our fcc, ajit pai. Thank you, mr. Chairman, for being here. Well hear from the chairman today about the agencies spectrum Auction Program and any other topic that members of the subcommittee would like to talk to him about. I hope well address the critical need to expand broadband in this country. I think we continue to lag and i think by not making as much progress as we should were getting further behind. Well discuss the agencys response to the ever growing demand for Wireless Services including the commissions decisions with respect to c band. I think everybody in this room knows that a number of us, including me, have been pretty outspoken about the midband spectrum. I believed from the beginning that we should have a public auction as a transparent means to allocate the c band and as an assurance that luxembourg Satellite Companies, i have nothing against luxembourg. Wonderful place. But as an assurance that they and their shareholders would not be the beneficiaries of what i think any fairminded person could consider to be a wind fall that should go to the american people. And im very pleased that the chairman and the commission ultimately announced their support for a public auction this year. Im not completely pleased, though. Im pleased with the public auction. Im not pleased with the parameters of the plan. As the chairman knows. I oppose the commissions proposal to provide 15 billion in various payments to the satellite operators. It makes sense to me as we ask the satellite operators to move not to move to a new part of the spectrum. Just to move within the spectrum, the c band, and to and to allow us to use that portion of the c band that theyre not using. That seemed reasonable to me and it seemed reasonable to me that we should pay their moving expenses. But were paying them a lot more. About 9 billion in Walking Around money. That money could be used to expand broadband. It could be used to expand Rural Broadband. It could help students connect to the internet to complete their homework or simply pay down the national debt. Let me say it again, were providing i think somewhere in the neighborhood of 6 billion in moving expenses which seems fair to me. But the 9 billion to do something that they would have to do anyway and are required to do if the fcc tells me i think is a waste of taxpayer money. And i will address those concerns through the bill. Rather than work with congress on a solution, the commission decided to move forward and to make the deal with the Satellite Companies. The biggest of include promptly went into bankruptcy to try to provide leverage. These companies were willing to give up something they didnt own in exchange for billions of dollars. I guess i shouldnt blame them for not thumping a free melon and taking advantage of the offer. I blame us for not negotiating a better deal. So today well talk about it. Before introducing our witness, i want to turn to my friend from delaware. Thank you, chairman kennedy. Thank you for convening this hearing and william to chairman pai for what i believe is your third hearing. We welcome regular opportunities for detailed engagement like this. I want to commend you and your staff for making this hearing happen while taking appropriate precautions to protect us in attendance. We need to keep engaging and demonstrating our commitment to thorough oversight. I look forward to todays hearing. Senator kennedy, youve been a leader on the c band issue, consistent with your role as a steward of federal dollars. And im glad the auction is scheduled for this december. Chairman, i look forward to hearing whether theres anything we can do to help make certain that this happens on time. I think we all share an understanding of how critical a successful and timely deployment of 5g is to our country. It should be billions of dollars to the treasury and, senator, i would love to find a way to have some of these proceeds go to expand broadband in underserved areas. Im interested in also discussing today the implementation of the broadband data act, ways to facilitate Online Learning during this coronavirus epidemic and figuring out how we can make progress on robocaller fine collection and repair and replace funding. And last to chairman pai, i want to commend you and your staff for the successful implementation of the demo that was included in the c. A. R. E. S. Act. You note that in your prepared testimony that the quickly implemented program has made Funds Available to grantees across the country. I commend you for the wisdom of your priorization. I like forward to todays hearing and appreciate your working swiftly to make it happen in a safe and appropriate way. Thank you. Senator, do either of you have anything you would like to say. Not at this point. Okay. Mr. Chairman, why dont you stand and ill swear you in. Do you swear to tell the whole truth, and nothing but the truth so help you god . I do. Thank you. The chairman really needs no introduction. Hes been on the fcc since may of 2012. The president designated him as the chairman in january of 2017. Hes a proud not current resident, but at one point, he was a resident and grew up in kansas. He went to harvard undergrad, chicago law school, two extraordinary institutions. Hes been an attorney at the justice department, the fcc office of General Council, he was a partner at jenner and block. You were at jenner and block. Wonderful law firm. Hes worked at Verizon Communications earlier in his distinguished career. Mr. Chairman, you honor us with your presence and the floor is yours. Thank you, chairman, for the kind words. It has been eight years, although at this point, i measure my tenure more in pounds and gray hair instead of time. Chairman, Ranking Member and members of the subcommittee, i appear before you today to discuss the fccs spectrum Auction Program and update you on the work of the commission. When i last appeared before you on march 10th, i testified on the fiscal year request. Our country was disrupted drastically as a result of the covid19 pandemic. Ever since, the fcc has been deploying every resource to deal with this unprecedented national emergency. For example, i challenged broadband and Telephone Service providers in march to take what i call the keep americans connected pledge. A voluntary commitment to, among other things, to not terminate service to any residential or Small Business customers because of their inability to pay their bills due to the disruptions caused by the coronavirus pandemic. Im proud of the fact that over 780 broadband and Telephone Service providers across the country have taken that pledge. Many have gone above and beyond the pledge and taken additional steps to maintain or expand connectivity during the pandemic. I also want to thank the subcommittee for helping to establish the covid19 telehealth program. Were enabling many more people to access care remotely. The commission established the rules for the program in just days after package of the act and its now approved funding for 305 Health Care Providers in 42 states plus washington, d. C. , for a total of almost 105 million in funding commitments including to louisiana and delaware, as senator coons pointed out. The commission has continued its ongoing efforts to close the Digital Divide and execute on the 5g fast plan. For instance, were on track to commence an auction of mid bab spectrum beginning on december 8th. Our efforts to make this critical spectrum available for 5g have been going very well. Our staff announced this month that all eligible operators currently this spectrum committed to an accelerated relocation. It will become available for 5g in the United States two to four years earlier than otherwise would have been the case. Getting this spectrum out into the marketplace years ahead of schedule will promote American Leadership in 5g. Faster Broadband Connectivity for consumers and the creation of millions of jobs, billions of dollars of investment and Stronger Economic growth. Even with all of this progress, the commission needs your help. For example, since our last hearing, Congress Passed the secure and trusted Communications Network act. This law ratifies the commissions proposal to require small, Rural Telecommunication Companies to end the reliance on manufacturers that pose National Security threats. I strongly support the rip and replace requirements that congressman dat congressman congressmandated. A program could cost up to 2 billion and we ordered an Information Collection to nail down those costs for all covered carriers. Were working through the data thats been collected but we also want to work with you to get the funds needed to implement this program and protect americas networks. Congressly passed the broadband data act which ratifies the commission to have maps. And the fcc simply does not have the 65 million we need to start the process and implement that law through its first year. If we dont get that funding soon, this well intentioned law will end up delaying rather than expediting the production of better broadband maps. Theres one auction currently mandated by federal law that we are not looking forward to holding. Specifically, the spectrum act of 2012 mandates that we auction off parts of the t band which is used by Public Safety entities. Our highly skilled economists believe this auction will raise less revenue than the amount of money needed to clear from the spectrum. But because of the statutory mandate, our staff has had to divert resources to preparing for an auction process to commence in february. Bipartisan legislation in congress would repeal this mandate and address related firms and i hope this legislation passes as soon as possible. Chairman kennedy, Ranking Member, members of the subcommittee, thank you for giving me this opportunity to testify. I look forward to answering your questions in the time to come. Thank you, mr. Chairman. Ill start. I have a few questions. My understanding is that your agreement with the foreign Satellite Companies is to provide 3 to 5 billion to relocate in the c band and 9. 7, well call it 10 billion, to cooperate, to move quicker. And you have suggested that that will save two to four years. Whats your basis for saying that . Thank you for the question, chairman. Without the accelerated relocation payments, the deadline for moving and to the upper portion of the c band would occur by december of 2025. With the accelerated portion now we have 180 megahertz that will be what are those deadlines based on . Its based on the assessment of staff that that is the soonest that we could require those i understand. But what are they basing that on . Your agreement with the Satellite Companies . The 2025 deadline . You say by spending 10 billion, were going to speed things up by two to four years and i dont understand why. Right. Theres certain steps that the satellite operators would have to take in order to clear that spectrum quickly while preserving the Important Service that theyre currently providing. They have to do that anyway. What im saying is, you say, okay, were giving them 5 billion to relocate. Were paying the moving expenses. Were giving them 10 billion to relocate faster and its going to save us two to four years. Why . Under you have the Statutory Authority which congress has given you to tell them to move now. Mr. Chairman, the accelerated relocation payments better align the satellite operators incentives with those of the Wireless Companies that want that spectrum sooner i understand that. If you give me 10 billion, i would find that persuasive as well. But the fcc has taken the position, we have to give this 10 billion because if we dont its going to prolong this two to four years. And i dont understand why when ive read the statutes. They say that the fcc has the authority and the Public Interest to renegotiate any agreement it has. Im not sure that the Satellite Companies have a license. But im not sure what they have. They have a privilege, i think. But why do we have to give them 10 billion . Because ultimately those relocation payments put us on the same page. We want to give the spectrum out there for 5g. I know. I dont mean to cut you off. But youve said repeatedly, im giving them 10 billion of taxpayer money so theyll move faster and its going to save us two to four years. I dont understand why. One of the companies has already gone into bankruptcy. They say theyre going to use that to leverage you for more money. Senator, i cant speak for that company. That company and others, all the eligible Satellite Companies opted into the payments which means that we are on track to get that accelerated freeing up of the spectrum to get more 5g services quicker which is explain to me again. Maybe im misunderstanding. How do you know its accelerating the payments . Its accelerating the im sorry. Accelerating the move. Its accelerating the move because now we have given the satellite operators obviously the funding they would need in order to clear that spectrum quicker. Thats spraeparate. Youre giving them 5 billion. The 10 billion is extra. Correct. And it gives them a very strong incentive to meet that december 2021 deadline. Otherwise, it could take a longer period of time. Why . You have the authority to tell them to move. Obviously as we detailed in the order from paragraphs 215 to 226, that relocation payment framework gives them a much stronger incentive i know it gives them an incentive. You just spent 10 billion of taxpayer money. I would have an incentive too. If you have the unconditional authority to tell them to move anyway, you dont have a basis for your claim that were saving two to four years here. And the other point, mr. Chairman, if i might is that the obviously clearing that spectrum two to four years earlier means that the Wireless Companies would bid do you not have the authority to tell them to be out within two years . Ill have to check with the general counsel. Youre a good lawyer. I know you have that authority. Ill come back. I have some more. Do you have a good estimate of how much money could be returned to the treasury as a result of this particular auction after payment of relocation costs, cost associated with the auction and potentially incentive payments. How much might go to the treasury. And under current law, all of those net proceeds must go to the treasury, none can be used to address some of our underserved communities . Thank you for the question. Your last question, the answer to that is yes. We are required to deposit auction proceeds into the treasury. As to the amount of those proceeds, the predecessor question, thats difficult to say. Theres been speculation that this midband spectrum is highly prized that it could yield tens of billions of dollars in revenue. Obviously, deducting from that the administrative costs and that could leave tens of billions of dollars in the treasury for the important purposes that congress may see fit to spend it on. I think there are many worthy causes. Do you think the commission would support legislation that directed some of those auction proceeds to addressing our unmet needs in terms of broadband. I cant speak for any colleagues. Ive been on the record for over four years now saying i support Congress Giving the fcc the authority or directing the spending itself to worthy causes such as Rural Broadband access, telehealth, closing some of the Digital Divide problems weve encountered. Have the foreign Satellite Companies at issue here in the c band agree to waive their rights to take further legal action. Litigation one not one of the conditions. To my understanding, almost all of the companies have not filed anything in the court of appeals. To me, that was maybe i missed something here, that was the critical issue, were going to pay you billions of dollars. Youre not going to sue us and youre going to move. The only limb additiitation is legal capacity to challenge it in court. Right. Certainly the small satellite operators which did not get any relocation payments from the fcc, theyve filed a petition for review. Our goal was to align those eligible satellite operators incentives with our own and we believe weve done that and dramatically reduced the litigati