In behind roger and pick up. Because theres a few things that are going to be going on in the wireless i dont know if anybodys counting but its 41 days until the auction starts. And its great to have a guy like john in the Wireless Bureau who has been involved in this process leading up. And then john leaves a void. Fortunately mark stevens has been our cfo is stepping in to that. As acting managing director. Weve all grown to appreciate and respect mark, and the great skills that he brings. So were looking forward to him continuing that glide path that john put us on. So if there are no other things, i would have request one privilege of the chair to ask the secretary where she was about ay, and to tell us the story of that Great American who happens to be your grandfather. I had the honor and privilege of attending the premier in new york city of race. The incredible and true story of my grand father jesse owens. And i look forward to everyone going this weekend, opening weekend. Wonderful y is a movie about a wonderful man. Just very honored to be a part of that legacy and look forward to another generation just being inspired by his story and the person that he was. Well, its just fabulous that that story is getting told. As you know, i was privileged to know your grandfather. The buck aye bullet. Are you kidding . Nd he was a great, warm, humble man. And i look forward to seeing the movie. But i think its fabulous that you were ond rhett you were on the red carpet today. Even better for my 14yearold son. Ok. Madam secretary, why dont you walk us. What happens next . The next agenda is thursday march 31, 2016. And until then we stand adjourned. Thank you. Following the meeting chair tom wheeler met with reporters to talk about his agencys adoption of an open standard for settop boxes and what it means to consumers. He was followed by f. C. C. Media bureau chief william lake who answered questions on how the proposal would be implemented. Then the two republicans on the commission discussed their opposition to the measure. This is just over an hour. Good morning, everyone. Its a large crowd. So well limit to one question. Please speak into the microphone. Please say your name as well. With that the chairman will give a brief introduction and we will get right to your questions. Good morning, everybody. God afternoon, now, everybody. Moments ago the Commission Approved two distinct items which share common themes. The first of these is consumer choice. Consumers essentially have no choice when it comes to picking the equipment that they use to access paid tv services. Their consumers access video provider through a set op box or application that the every r leases to them single month and they dont have any choice. By introducing competition into the set top marketplace, as congress has mandated, consumers will finally have ptions for how they access paid tv. And those competitive options will do what competition always does. Which is drive better services, drive gown costs, and create opportunities. When it comes to video content, consumers have more choices than ever on multiple platforms. But on the most Popular Platform television, there are concerns that the range of diverse programming choices are narrowing. Thanks to the leadership of commissioner clyburn, the commission is taking a fresh clook at the video marketplace to help ensure that tv viewers have diverse Programming Options as congress has mandated. The second key theme linking todays items is removing barriers and expanding opportunities. Todays settop box marketplace has closed standards. Closed standards. Controlled by the paid tv industry. We propose to establish open standards for settop boxes. The same way that we have open standards for cell phones, for routers, for other devices. And we hope that by removing those barriers innovators will step up to develop new ways for consumers to enjoy their favorite programming on their terms. On the content side the commission has heard time and again that demands made during carriage negotiations with cable providers and others are often obstacles to reaching enough viewers to have a viable business. With todays notice of inquiry were taking a fresh look at the video marketplace and examining these challenges and and est to remove barriers expand the availability of independent and diverse programming. And when we expand opportunities for innovators to innovate, and let consumers choose their favorite products, programs, and services, everybody wins. So with that i will be happy to answer any questions. Shall we pick on monty first . Monty. Thank you. Commissioner oh riley paired the settop proposal with the effort to expand the definition and he said those are two things working hand in hand to expand the f. C. C. s reach. Is there any relationship between the box and the thing . No. Hes wrong. Earlier you said that the item on set top boxes doesnt require a multidollar reengineering of the network but they say the opposite. Even though the item doesnt require this whats ultimately going to happen is they will have to pour money into the network to comply. So is there something that you know about networks that they dont know . Whats going on there . Thats why i tried to show those charts today. Can we throw the charts up again. So the devices work exactly the same way. If you look at those four steps of back and forth between the cable operator and the device, they are identical whether or not it is a device that you are forced to have or a device that you can choose amongst companies. So first is signal goes down says ok what channels are available . What numbers are they on . Signal goes down. Thats step one. Step two, signal goes down. And says whats the authorization for this box . What tiers can it look at this can it record . Things like that. The signal comes back saying this is what the consumer has chosen. And then the content goes down. Thats unchanged. The Cable Operators have roku, for instance, as a box that some of them have blessed and used. They dont have to rebuild the networks to do that. Is the idea here that the criticism here from the industry is that they would be required to build their networks so that they could then respond to every potential third party device that wants to connect to the network and that would be the costly thing to do regardless of what the capabilities of the device were. Thats why you have standards. You come up with this is the way it will interface. One standard. Heres how it works. Consumers choice. So your hope is that the standards process side but your hope is that the standards process will lead to a solution that does not require expensive network engineering. Reengineering. So lets look at how the standards process works. When wifi routers are standardized through a standard 802. 11 and you go from a to b to c to d to e to on up through all the various iterations, you dont have to rebuild the Network Every time you do that. Thats one of the things that is taken into conversation as youre doing the standard. Yes, sir. Thank you, sir. Im looking at the next couple of months. It seems like there may be a point where youre fighting prety contentious battleles on three fronchts. The set top box and privacy ruling. Im wondering how you expect to handle the challenges on fighting on three different fronts and whether you are concerned that might make it harder to get consensus. Again, i think the reality comes down to the fact that there is roughly 90 of the time theres consensus. And all you get to see is the fun stuff. I was interested during the Media Coverage of justice scree scalias death that one of his quotes was you would be surprised the number of times that we agree. And i go, i identify with that. And i would also like to associate myself with some of my colleagues today that commented on that. I too had the privilege of he ing Justice Scalia and was a force major, as they say. But to your question, i think we will be able to handle things. Youre talking both about that your office and staff will be able to have the resources to fight these three different battles. And that i would im not sure its fight three different battles. I think its a question of do we have the resources necessary to work the processes to try and come together with some kind of a majority consensus on the commission. I believe so. The top ther topic lawmakers on the Senate AntitrustCommittee Just wrote the f. C. C. Warning that a merged cable could interfere with video distributors. Do you share that concern . Is that an issue that you want to address through conditions onts deal . Were at 144 days. If anybody is counting. And you know that im not going to comment on the details. Can you comment jenly . Im not going to comment on this proceeding. I never comment on these. You know that. Lydia. Some cable representatives have said that they have no problem negotiating paid distribution arrangements. And by the sounds of this proceeding sounds quite complex. How is your proposal a better method for expanding . I dont think its going to change the contractual relationships. What i was trying to explain in statement is that this is giving consumers choice. It is not forcing the Cable Operators to change the way they do business. Its simply a question of does the signal go to a red box or a lue box . With regard you mentioned breevel that privacy would not be implicated by the set top box item. So what does that mean . Are you contemplating imposing requirements on these Third Party Manufacturers or App Developers . How do you plan to get apps maturing the privacy section . Good question. So the standard, youre going to have to scomplie with the title 6 section 631 privacy ules which are by to Cable Operators. My question is kind of looking forward to life line. I wanted to ask when you might see some action on lifeline and specifically on the minimum Service Standards issue. I know that there has been concern that the standards are too high will that lead to out of pocket costs for subscribers. So i wanted to see how you feel. Were working lrd with commissioner clyburn on this issue. I hope we will be able to bring it forward. You will know the answer to that quickly. Some people say that the government has a poor track record of trying to force innovation. What potential risks have you considered moving forward Something Like that . The issue here is are consumers going to have competitive choices. Are they going to be forced to lease a box month after month and total up several hundred dollars a month. There will be Innovative Solutions to that. Its just like when the Telephone Company used to say you have to lease my phone. The only phone that will work on the Telephone Network is my phone. And this agency said no. Were going to open that up. And what happened . The functionality of phones went up and the prices went down. Thats the kind of thing that happens when you open things up to consumer choice, to competition and innovation. What do you say to people who think the marketplace should speak for itself . There is no marketplace today. 99 of consumers have no choice. That is not a marketplace. Im temperatured to ask about the mandated colors of these boxes but i think i will wait. How can you assure the content industry that unlocking the box isnt going to unlock their security and licensinging protections . So today they are content with theyre happy with the security that happens when they deliver to a roku box. Theyre happy with security that delivers to an ipad. Theyre happy security delirs to an android device. The same story. Regarding the noy that was approved can we expect the f. C. C. To develop a rule helping independent programs before the Current Administration comes to an end . Whats the likelihood that new leadership will continue the effort or abandon it altogether . I have no idea what happens. Can you tell us me who is going to win . I was hoping you could. Were going to move forward on the noi and that will inform next steps. Has a time line been established for commented period . Yes. I think weve got 30 on that. Im looking for my signals. 30 days for comments and then reply comments after that. Thank you. I was curious about a couple of your colleagues mentioned commissioner paes specifically about eliminating the box. I was curious about your thoughts on why you believe this path forward is better than eliminating the box altogether. Im all for eliminating the box. I tried to make that clear in the statement. We are moving towards an aps economy. The only difference between an app and a piece of hardware is moving from hardware to software. Its the same exact functionality. To is important is consumers have a choice . Right now whether its a box or an app, they dont have choice. Now, things get simplified in terms of were talking about boxes. I tried to make clear were talking about boxes and aps. And the issue is they should both be open and consumers hould have choice in either. On the noi, this is an issue thats come up a number of times with the f. C. C. In the past. Do you see any kind of possible areas where the f. C. C. Could make regulatory differences in this marketplace what sorts of hypotheticals could the f. C. C. Look at . We just published the noi and youre asking me in my 20 minutes. Come on. I want to know if you have some calendar in your office or at home which says every day 144 days on the charter clock whatever the the answer is for the spectrum auction the math is simple m. Its the 29th and there are 29 days in this mons so you just kind of start counteding backwards. Is i actually do it in my head. I do have a real question. I promise. I would love to get a little bit inside the mind of tom wheeler. You spoke at length today about the set top box proposal before the vote, something youve done in the past but not a ton. I saw you mentioned that you were disappointed in the stances from the republican thats why you shake your head a few times. Given that this could have been just sort of a wonky proceeding to come out of a wonkier proceeding to come out of a wonkier bill to be frank you seem relatively frustrated with how this has all played out and a lot of the flack that youve gotten. Tell me how you feel. I think youre reading things. This is a simple question. Were trying to provide the choice for consumers that was mandated by congress. Was i disappointed that folks didnt even want to ask the question . Sure i was. I mean, the purpose of a noticed of proposed rule making is to say lets build the record and then make a decision on that record. And when you say no, no, ive already made up my mind. I dont even want to build the record, i guess i didnt know i was shake mig head but i think thats probably cause fosh shaking your head. You invoked section 629 today of the commune exations act. Before your comments the commissioner was talking about that section and how it really refers to equipment and he drew a very clear distinction between the intent of that law applying to equipment and not the software, the aps that youre talking about. How much of a concern is that for you as we enter this rule making stage . And is this anything thats tripped up the commission in the past in any kind of proposals . So the statute talks about quipment systems and services. I think that covers aps and everything else. I want to ask about the issue of advertising in third party set top boxes and you said nothing will change that. So what exactly prevents a third party set top box maker from putting advertising in . Is there an existing law that they would be breaking . Is it any different from cable . Is there any rules preventing cable card user to insert adds now . The rule will prohibit it. Sanctity o have the of the content. Nobody is going to insert adds into it. Nobody is going to make a split screen where theyre putting ads next to it. Nobody is going to say theres a frame around it where you can say go to joes auto repair. Its going to require the sampingety of the content be passed through unchanged. Does that include like the neighborhooding agreements, too . Programming agreements are included in this. And are part of the sanchingtety of the content. And one of the things that is in that first data stream that comes out is what channel it goes on. And thats still there. So the rules specifically adver advertise sng yes, sir. Thank you very much. The burrows are radio here. Are there questions today for the media bureau on any items . Yes. Ok. I was wondering if you can tell us the length of the Comment Period. 30 and 60. 30 day force comments, 60 days for replies. You mentioned when you were presenting the set top box item that you said Something Like if an mpvd offers an application they will also be required to open up the stream to Application Developers. I want to be clear. Are they required to open up their information streams to Application Developers regardless of whether or not they personally offer an application to access video content . Yes. But that was referring to is a parity rule. Theres the basic requirement to provide the information flows. And then what we proposed is that if an mvpd provides service through an app without any need for an mvp provided piece of equipment they have to provide the information in a way that will enable someone else to write an app that also wont require a piece of equipment. So its making sure that an app developed by an independent app developper will provide service on an equal basis. Thank you. Just to clarify that. If they dont have an app of their own they dont have to provide access to App Developers . They do have to provide the free information flows. This goes to the question of whether were requiring a box be provided, we are not. They may choose to implement these requirements in a way that requires a device. But thats up to them. They can also do it entirely in software or in the cloud. What were saying is that if they do choose to provide service through an app without a piece of equipment provided, they have to make that capability also available to competitive manufacturers. Can you provide a sense of when the item will be out and also more details on the twoyear adoption period that was discussed . So what was the second part . More details on the twoyear adoption p