Transcripts For CSPAN2 Book Discussion John Birch 20160530 :

CSPAN2 Book Discussion John Birch May 30, 2016

We also have to think about security, cybersecurity with all of that connectivity. Finally making sure we dont exhaust i. P. Addresses. I think all of those things play into the internet of things and will be really important Going Forward. Guest the fact of the matter, youve got two agencies primary in this space, with us being Expert Agency when it comes to telecommunications platforms and the like and we have to recognize and i believe the way the world is evolving. Once upon a time you know, you two are still wedded to paper and i am, i am surprised i dont have it in front of me and thats where our information was stored. Now most of our information is not and so when you talk about these companies that have access to your personal information and seems like like every hour were hearing about a data breach. It is important for us to keep this working relationship with the ftc and other agencies to insure that there is a seamless line or means of protection for consumers by all the agencies that have either influence or impact here. So we are the Expert Agency when it comes to communications agencies. There is section 222 that speaks to that. We have an item that is being teed up that we will review and i guess from where i sit i look at i want simplicity and administrativability if i said that correctly. This is what were looking at. This is vital, this is your very personal information that know you want protected and we want to protect it too and there should be no disconnect along that plane when it comes to your personal information and that is why i think this conversation is important for to us have. Guest your question got to the internet of things, my answer i want the commission to have very small role relates to that. We have an agency. Congress hasnt changed our authority to give us greater role in internet of things. I want the ftc to do what it does bet. If they are not doing sufficient work that is for congress to do, not for me to judge. Commissioner rosenworcel and i have been working hard. But, beyond unlicensed spectrum and approval of certain devices depending on the circumstances i dont want the commission to have a heavy role. We have assigned ourself certain roles because of our interpretation certain things as my colleague highlighted in the net neutrality. We have Statutory Authority to do certain things on privacy. Now amazing were Data Security and cybersecurity, not mentioned in the statute at all. I have deep concerns where this commission is going in terms of exceeding what congress has asked of us. Guest when you have rules and regulations and laws they are snapshot in time. When you have regulatory authorities in this process i believe that we have interpreting things based on our current framework. You can not talk about a law that might be 20 or 30 years old and expect for it to anticipate what all we see on a showroom floor. So what i always say is, again, a law or reg is snapshot in time and what we are cared to do is interpret that through todays and through this current lens. Guest so privacy is a cherished principle. We understand that. It is evolving, lets be honest. The way we access information are changing. Pew Research Center found nine of 10 of us think it is really important where our information goes. At same time the every consumer knows there is Value Proposition going online exchanging information for services. That must sound familiar to all of us. There is moment you pause or read in a blink all that fine print and check the box to get free shipping. Maybe you all come through it for hours and try to figure out the consequences but most of just check it because were aware that were willing to exchange some information for a free service. And i think, not just the fcc but our colleagues at ftc will have to wrestle with over time how privacy norms are changing and our behavior is changing and our expectations is changing. Guest im sorry. I talked about the most recent study how consumers are not engaging especially our seniors as much, getting full benefit of what the broadband and internet have to offer because theyre fearful and we have to, as a part of this regulatory space, we need to be mindful, a part of encouraging innovation and connectivity, which is what we are doing. David we have to think about the entire plane, the entire ecosystem. I know we overuse the word because it is so important here because it just lends itself and reinforces the fact that it is not static and not siloed and we can not come through and posture ourself in a siloed way and expect americans consumers to be rightly served. I think commissioner rosenworcel framed the issue perfectly. Guest i will mark that down. Guest the question is what kind of regulatory frame work preserves consumer expectations. I entirely embrace the white houses 2012 and consistent set of protections for consumers. Let me give you example how the fcc approach bonn off the rails in this regard. If you are at home on android smartphone and power on wifi network youre in one isp. In our on the highway over another cellular network, you have another and you are at work you might be on a third and take a local break at starbucks you might be on forth. Does it make sense to face a multiplicity of regulations depending who the isp is . We might not know who it is. Fcc decides to stringent regulation, for more stringent an that the fcc has done due the dawn of commercial internet as isps anticompetitive in this space. That doesnt make sense to me or former fcc commissioner leibowitz and nor does it make a sense to a lot of people. The new competitors in the Online Advertising market who are trying to pose a competitive threat to incoming players. Guest let me build on that. Im not going to agree with every last thing you said. Sorry there is asymmetry there. Think about a mobile phone today. We have different privacy regulations that are going to apply to the hardware, the software, the Wireless Network associated with it, and the online applications you might access and candidly that is far too complicated for consumers. And you shouldnt have to be a Network Engineer to understand how your information is collected and you shouldnt have to be a lawyer to understand how your information is protected. And i think that across the board we should be thinking from the consumer perspective about how to be consistent on all of those marketplaces. Because i think the frameworks that we have in place, which are from a long time ago, and were wrestling with how to update them, theyre too complex. Guest that was what was great about the federal trade commissions framework because it calibrated its rules to consumer preferences. For example, for more Sensitive Information there should be optin agreement and for less Sensitive Information there should be optout requirement. That is way to calibrate goals. Guest candor here there are questions about opt in and opt out and our rule making. That is something well talk about Going Forward. Guest well talk about. Clear from fcc leadership write something on the well. Anybody who thinks this is open conversation. Guest were having open conversation. Guest we are, the four of us are the very fact agency refused to give anybody a stake in this issue a few extra days to submit comments on 500 some questions i i did count them. I said it was more than 500 questions. Guest absolutely. Guest i do believe this is the kind of subject thats complicated and would benefit from longer rule making. Guest why is the chairman saying absolutely not . Well not have anymore time . Why wont he listen to three of us and agree have more time on complicated subject matter. Your point is welltaken to different portions of Communications Devices and activities you have and how they operate differently and how private spy is being treated but that is something, as my colleague highlights that the ftc has been able to handle. Were going to slice off one portion of that saying for broadband providers we know best and heres what it looks like. We already know what the rules are going to look like. That was in the nprm the chairman is already moving forward with that and intending to move forward with that in short order. Guest one of the things you keep on talking about harmonization of colleagues outside the agency who operate under different laws. I think we should focus on something else, harmonization within the agency. There are different privacy rules that apply to Cable Operators for instance, under section 631 and to satellite providers under section 338. We also have privacy policies under section 222 in the law. And Going Forward it is my hope we find a way to create even just a level Playing Field within the agency and within the industries that we oversee. Guest we talk about level Playing Fields, youre so right. Were not talking about identical Playing Field bass were not talking about identical interaction shuns, products or offerings. Harmonization should always be the goal, but sameness when the options and product is not the same, i just, i just depart a little bit on that because i think that is unrealistic. Maybe that is not what youre saying but thats just how i interpret it. Guest harmonization means more regulation dont put me up for that. Appropriate guest appropriate regulation is my nirvana is. Guest i would say what the statute says. Something cant create four of us magically determine any particular word means. If you look at 22 and our statute, talks about telephone records. Doesnt talk about Broadband Data Services and some other things well capture in our universe. That is problematic. The words on the page actually have to mean something or our activities are not bound by anything. Guest again a lot of these things were talking about today were not envisioned back then. When you talk about laws, when you talk about their application and interpretation, you know, were not in the 1800s or early 1900s certain laws on the books right now. Certainly not applicable and im going to be extremely sensitive to some of them that might be. When we talk about some of the communications standpoint which is more narrow for the purposes of this conversation, we again, you have regulatory bodies in place that rightfully interpret what might been written at a certain point in time and apply it to the way in which we consume and use these services. Guest if the statute has an out of bounds with what is currently happening that is the job of the legislative branch to fix it. Guest we know how quickly they move, right. Guest based on what they think is best. If they take longer time period because they determined it take as longer time period. Host is this conversation happening because you dont get the opportunity to talk to each other in washington. We have 15 minutes left in our conversation. We do want to involve the audience. If you have any questions, you can see a mic down hire. Line up well try to get to the questions in the last seven or so minutes. Next question comes from lived yay beyoud of bloomberg. You talked about how complicated questions. Is fcc equipped with personnel and funding to handle the growth in privacy regulation and issues before you . Because the Chairmans Office has been making the case they really need more resources. What do you think . Guest when you look at the number of personnel we have compare it to say five or 10 years ago, were at alltime low in terms of numbers. That is for a number of reasons. Were not only agency that has been, you know, under some strain when it comes to resources. Weve been in budget crunch. Our budget has not increased and has constricted a bit. You are going to have, i dont know exact numbers of 1634, i dont know why that sticks in mind, low 16 in terms of number of personnel. Issues are getting more complex. Im not going to sit here and say that you are wrong. Were doing the best, were doing incredible work considering the fact that, compared to five or six years ago we have fewer people. Guest heres something that concerns me. All of our issues across the board are fet getting more technical and more complicate and we need more engineers. The agency is operating right now with the lowest level of engineers in decades. Our engineers who are tremendous, are by and large older individuals. We have had for some time an Honors Attorney Program at the fcc and i think it is fair to say we have a lot of attorneys in washington, d. C. I would like us to convert the program into Honors Engineering Program and invite engineers into our ranks, more aggressively and earlier in their careers. And i hope that Going Forward we can make that priority. Guest so in answer to your question i think the fcc has adequate resources to discharge its responsibilities of the question is, what is the fcc doing with these resources . If you think about great many rabbit holes the fcc is pursuing at fc consider leadership, striking how much time has been wasted and how many of its delegated responsibilities have been ignored. For example, with respect to broadband deployment there is so much the agency can and should be doing but instead we spent great many staff hours on things like the settop box proceeding or singling out cable in particular for special attention in the special access market even though they took the risk to deploy Second Generation networks to give businessesspeed connectivity. Those activities distract us from the core mission we have under the law to make sure this industry and every industry is able to compete on level Playing Field to deliver Digital Opportunity to all americans. Guest i would answer it this way. Congress decides our budget. I leave that in their hands but in terms of resources the priorities are driven by the chairman and if you see where our staff is allocated today, i would say problematic. When i worked on number of things already this year, you see how many staff are assigned to particular project. We worked together on rate of return. There were 10 to 15 people working on it. The number of people working on privacy is 10 to 15. When my colleague talks about 1600 people at fcc, 10 people are working or 20 people are working on privacy that is a little disturbing. That is complicated issue as four of us come up with. Assigning small number of people and Wireline Bureau is overrun with work and fewer people. Thats a problem in my mind but that is something for the chairman to decide. Host i want to ask this of all the commissioners, do you have a chance, commissioner orielly, to see some of the complaints that come into the fcc with regard to cable, particularly content and delivery . Guest both. I have do get a number of complaints come directly to me and i have the opportunity to talk to the consumer and Governmental Affairs bureau and talk about what Consumer Complaints theyre getting. So i have opportunity to see what is developing from consumers in the marketplace. To be quite frank, the number of people that are generally happy with their service are not the ones that are going to write to us. It is those that have the biggest concern or maybe a little, some of them are a little unhinged. Guest we all have public accounts i think all of us monitor from time to time. We have regular visits from the consumer and Government Affairs bureau. They then reinforce that. I get a mixture, most of the feedback that i get i have to say its complaintdriven, but i get quite a few at fccs in terms of those people who are saying were on right track or were doing certain things. You naturally, usually when things are going well, you usually you dont, it is by the very nature of humans, usually dont broadcast to the world unless youre going to benefit from the broadcasting. When things are going wrong you usually escalate. That is the nature of, that is why you have a bureau. That is why we have complaints because we want to know when things go wrong and when consumers are not getting what they expected. Thats important and we need to take care of that. Guest i get complaints as well. Last week, for example, elderly gentleman emailed all five of us. I have a problem with my provider. I forwarded to bureau staff and got it taken care of. It felt great to help average consumer on individual issue. Complaints on twitter. I dont know if you get complaints, siriusxm channel, playing a station of a song made in 1990, what are you going to do about this . Look, millivanilli is gift to civilization. Complaint denied. Look it up. It is on interweb. Consumer facing function i think is really critical for us to remember at fcc. It is not simply agency that looks at industry and regulates to figure out what rules are. We have serious Consumer Protection function. That is something all of us share even if we might differ on particular policy that applies to them. Guest i think it is important that we spend time combing through complaint that come into the agency to understand how consumers are experiencing communications services. We get lots of complaints about billing, broadband not reaching certain location, about content. Oldie but goodie, the donotcall list doesnt work. Guest right, right. Guest nobody is a fan of rachel from card member services. I am not either. Well have to work harder to make sure consumers dont get the calls they dont want. Guest more than one occasion i responded, you made me think about, i dont know, a lady in west virginia, that was complaining, her area shows a surge when it comes to broadband and she is not. I would responded to her about erate and other concerns and listed. She thanked me, wasnt necessarily happy but we got opportunity to exchange because she doesnt have Broadband Services but i responded to her and forwarded and we do that individually on some and of course consumer bureau. It is important for us to never forget who we answer to and i think that is why i always scour, every day, i look at my

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