Confused minds of being antisemi, let israel in a way no other president ever had American History tv schedule, go to cspan. Org. Industry representatives testify on technology and spectrum policy including the federal Communications Commissions spectrum options. Also innovation and the security of communications and wireless devices and applications. The Senate CommerceCommittee Heard from them yesterday. Good morning. On the half of my friends and i im glad to convene the first hearing of the subcommittee on Communications Technology innovation and the internet. Anyone hundred 15th congress, welcome to you all. As we all know in todays connected world, perspective increases with every new technology. Spectrum is the lifeblood of this, improving the lives of people around the globe. Our discussion today comes on the heels of this committees approval of the mobile now. Under the senate leadership, weve taken a significant bipartisan step toward freeing our spectrum for the next generation and people should silence their devices , by the way. But, right on cue, thank you senator. For the next generation, in Armed Services, the approval of this legislation. Our hope is the passage of the bill in the near future. Our discussion on policy should continue with rapid growth in the use of mobile devices and the internet of things, demand for spectrum will only increase. Mobilebroadband is giving Rural Americans the tools and resources they need , applications that utilize mobile broadband and deliver policy healthcare in the most remote corners of our state and in Real Time Data for improving the crosssection and they are providing television, broadband and conversation for a variety of applications. Next jen tv has the potential to deliver Better Emergency Services and ultimately save lives. This is particularly important to states like mississippi that can be situated in the past some hurricanes, tornadoes and other Natural Disasters. Unlike spectrum offers opportunities for businesses of all sizes to innovate and continue to fuel the vast expansion of the internet of things. Although innovation for efficient spectrum use will also be what solves the problem of limited spectrum. We are here to talk about the value of spectrum to the economy. We are here to talk about what we have learned from the fccs recent spectrum auctions and how unlicensed spectrum is a vital piece to the puzzle. I also hope our discussion will encourage a focus on the future of spectrum policy and set the stage for this committee to look at ways to address spectrum demand. I would like to welcome all eyewitnesses and i will introduce them in a moment after we have heard from an Opening Statement to our colleague mister shot. Thank you mister chairman for convening this hearing and to the witnesses for being here today. Spectrum is the invisible infrastructure that has become the on ramp to access the internet. Its the mobile and Wireless Technologies people use for money, watch shows, video chat with their doctor, all from their mobile device. In a very short time, these technologies can transform our lives. The 5b Wireless Network and internet of things demand or spectrum will continue to grow. The value that that spectrum delivers to the economy is hard to overstate. Spectrum generates new investments, facilitates innovation, supports jobs growth and advancements in mobile and wireless benefit consumers and more industry secretaryters but transformed news and enhanced Public Safety. Although the focus of todays hearing is on the economic benefits of commercial spectrum, it is vital to point out that the federal government has critical spectrum needs for National Security, transp wide range of other government services. So we must continue to work with the agencies to insure they have the spectrum resources they need now and in the future but we should also build on the successes of the Spectrum Relocation Fund to make it more attractive for agencies to vacate or share bands with more commercial users where there is possible. Sh since we cant create more spectrum, we need to be more creative in how we manage competing spectrum needs. Im confident that industry will find innovative ways to make better use of the bands they have but we need to find a balance between competing public and private sector needs for terrestrial and pattern. And we need spectrum for licensed and unlicensed uses. Spectrum policy a priority for this committee which passed the mobile now act which would make more licensed spectrum available and facilitate the deployment of supporting infrastructure for 5g. Mobile now includes a bill that senator moran and i introduced that requires the government to develop a National Plan for unlicensed spectrum. While a lot of attention focuses how to make new frequencies available for the license side we also need a clear plan to support continued info he vision in the unlicensed bands. These shared bands have become an affordable way for people to get online. Consumers benefit, Technology Companies benefit and isps benefit from unlicensed spectrum. I trust the committee will continuework with the agencies and stakeholders to make more bands available to users over the come weeks and months. We have a responsible to insure people of all walks of life in rural, isolated hard to reach areas across the country have access to wireless broken band services. I know the chairman and many of our colleagues on the committee share this point of view. To pursue new spectrum opportunity every stake hold must be an effective partner in this conversation, a fullystaffed fcc led by a chairman and four commissioners is therefore critical to accomplishing these goals. I am appalled that the white house withdrew all pending nominations for federal commissions that unnecessarily provocative act of the administration should defer to congressional leaders on both sides of the aisle on nominees for these commissions as has been the norm. Of specific relevance to this committee is commissioner rosen weeks sells nomination. She has been a leader on spectrum policy and a strong advocate for consumers. I hope the white house willnd renominate her and the Senate Commitment to confirm her as we should have done a year ago. Mr. Chairman, thank you for the discussion and i look forward to the witnesses testimony. Thank you very much, senator schatz. We have a distinguished panel were looking forward to hearing from at this point. Our witnesses include from left to right, mr. Scott bergmann, Vice President of regulatory affairs, ctia, the wireless association. Mr. Roger entner, founder and lead analyst, recon analytics. Mr. Dave heiner, Vice President and deputy general counsel, microsoft corporation. Mr. Pat laplatney, president , ceo, raycom media. Mr. Tom stroup, president , satellite industry association. We have, a lot of people are prepared to come long distances and put a lot of thought into this hearing. We have votes at the top of the hour. We want to be respectful of the time and preparation of our witnesses. So it is the chairs intention to proceed on with the testimony and members will, will simply proceed in and out during the two votes i think which will begin at the top of the hour, and i think well be able to proceed in that fashion without having to recess and take the valuable time of thesese participants. So well begin to my left, and mr. Bergmann, youre recognized for five minutes for an Opening Statement. Good morning chairman, wicker, Ranking Member schatz, and members of the subcommittee. On behalf of ctia thank you for the opportunity to speak aboutic the significant economic contributions of the u. S. Wireless industry. The power of wireless is transforming how we live and work in every Community Across the country, and in every sector of the economy. Were about to have a breakthrough with 5g the next generation of wireless. 5g will add trillions of dollars to our economy and three million new jobs, from 333 in tupelo, to nearly 3500 in honolulu. To deliver on this promise, the Wireless Industry needs this committees continued leadership to deliver more spectrum ander modernize infrastructure sighting policies. The Wireless Industry today is a powerful contributor to the u. S. Economy. Our members have invested over 300 billion over the last 10 years. And are responsible for more than 4. 6 million jobs. S consumers and businesses continue to adopt mobile broadband with data traffic increasing more than 25 times since 2010. And expected to increase another five times by 2021. Americas Wireless Industry stands ready to invest another 275 billion to deliver 5g networks, faster and more responsive and connect more devices. 5g will enable new generation of smart communities and unlock internet of things. It will unleash industry across our economy, from energy, health care, Public Safety and transportation. With smart grids and selfdriving carts 5g will unlooktrillions of dollars of economic benefits and help save thousands of lives. The u. S. Has been the Global Leader in 4 g. Lte deployment and were poised to lead in 5g but the global competition is fierce. China, japan, south korea, the eu are all in the chase, making spectrum available, streamlining sighting and investing. The keys to u. S. Leadership are sound spectrum and infrastructure apologies. Licenses spectrum in particular is a key input in mobile networks and a powerful creator of Economic Growth and jobs. Fortunately the congress and the if cc have taken bipartisan steps to make spectrum available for wireless. Now more work remains to enable 5g leadership. 5g let me highlight a few steps the committee can take. First, we must insure timely access to new spectrum available to the 600 megahertz incentive auction of the auction will deliver 70 megahertz of spectrum for mobile booed band and 14 for unlicensed use. It raised 19. 6 billion, making it the second largest fcc auction ever. We support a seamless process and committed to working collaborative to achieve the fccs 39 month schedule to so that 5g is not delayed the second, the fcc decision to dedicate high band to mobile services is. By targeting reforms and acting on eight toon additional gig about hertz of spectrum in the mobile act. It takes on average 13 years to reallocate spectrum for wireless use. This under dosser the need to start today. Service sy makes should continue to review federal use of spectrum and consider ways to incentivize agencies to use spectrum for efficiently. Finally we must modernize our infrastructure sighting policies so Wireless Networks can be deployed quickly. They were designed to review large cell towers, not the small cells that will be essential for 5g. Small cells are far less intrusive, size of a pizza box or lunch box and will be deployed bit hundreds of thousands. We can remove barriers toa deployment by addressing burdensome local permitting insuring access to rights of way and polls with costs and fees that are reasonable and costbased. Ri modernizing our Historic Preservation and Environmental Review processes and directing agencies to speed deployment on federal lands and properties. With a continued focus on spectrum and infrastructure, well be able to insure that wireless providers can continue to invest, create jobs, and lead the world in 5g. Thank you. I look forward to your questions. Thank you very much. Look and at this point Ranking Member of the full committee has a unanimous consent request. To insert my comment into the record on this extremely important subject and thank you, mr. Chairman, and Ranking Member of the subcommittee for holdingc this hearing. Without objection, the remarks will be inserted at appropriate place in the record. Thank you, senator, and our next witness is mr. Roger entner. Sir, you are recognized. Good morning, chairman wicker, Ranking Member schatz, members of the subcommittee. Thank you for giving me the opportunity to testify this morning. My name is roger entner. Im the founder of reconr and analytics with a focus on wireless. H im here to discuss my research into the effect that the u. S. Mobile industry has on the u. S. Economy. And to highlight the importance of federal government continuing to free up additional spectrum to support 5 g and future network evolutions. First a quick overview of the u. S. Mobile industry. In 2015 americans spent 2. 9 trillion minutes talking on their mobile phones. Spent 1. 9 trillion Text Messages 218 billion pictures and used 9. 6 trillion inning ga bites of data. U. S. Wireless Network Operators have conducted over 307,000 cell sites, from 2000 to 2015, u. S. Network operators have spent 77. 8 billion to buy spectrum an invested 432 billion to buildout to expand the capacity and speed of the networks. Competition in the u. S. Mobile industry is intense. Two weeks ago verizon reduced its unlimited plan with. Less than four days competitors matched and tried to beat offer. Just today, at t launched another new pricing plan. 97. 9 of americans can choose from three met work based operators and 93. 4 can choose from four operators, plus more than a dozen virtual operators. The mobile industry is equivalent of over the top competitors. How does this relate into jobs . The mobile industry directly and indirectly supports 7 million jobs in the United States. These jobs are a function of the amount of investment the companies spend to build their networks, operate the networks, advertise the networks andt services and otherwise work with a wide variety of vendors to sustain what we know as the American MobileConsumer Experience and u. S. Wireless industry. As a result, the mobile industry contributed 194. 8 billion in gdp in 2014. The app and mobile content market is a 36 billion industry whose very existence is dependent on the ubiquitous fast, broad, mobile Network American companies have built. Companies like uber, lyft and airbnb would be unthinkable without direct connections and data flows mobile networks give them and their customers. Together these three companies alone are valued at 98 billion. To stay at that the u. S. Mobile industry is one of the driving factors to create new jobs and businesses in the Digital Economy is an understatement. But there is no guarranty the industry will be able to support the kind of exponential demand for mobile networking that a fullyconnected networked economy is expected to need. From 2008 to 2015 mobile data usage increased 643 fold and growth is expected to continue unabated. And today the internet of things is the newest frontier for wireless and it has implications for improvements in manufacturing, health care, transportation. Fo there is not a sector in your u. S. Economy that wont be improved by access to fast, mobile broadband networks. Deploying new spectrum is the most effective and quickest way to provide more capacity ahead of the tsunami of demand and insure the industry can continue to drive Economic Growth and nei job creation. Consider every 10 megahertz of deployed licensed spectrum creates 3. 1 billion in gdp and 100,000 new jobs. The mobile now act is a great next step in the journey to clear more spectrum but as demand for mobile services is increasing, the need foror spectrum is increasing as well. My suggestions for policymakerss are few but specific. First, licenses should be allocated in larger channel sizes. 5g deployments need at least 20 by 20 megahertz channels, ideally in low, medium and high frequencies. Second, 5g deployments hinge on access to clear spectrum which providers have exclusive use. Third to help streamline the approval process for new and existing cell sites. Thank you again for the opportunity to testify at this important hearing. I look forward to answersing your questions. Thank you very much. Mr. Heiner, youre recognized. Chairman wicker, Ranking Member schatz, members of the subcommittee, thank you for inviting me to testify. My name is dave heiner. Im microsofts Vice President of regulatory affairs. Im pleased to have the opportunity to speak with you today about the critical importance of inrunsed spectrum to the u. S. Economy. We all use unlicensed spectrum every day without giving it much thought. If you open to unlock your car with a key fob or open your ga roar door with remote this morning, make hands free call in your car youre using unlicensed spectrum. If you use a fitness tracker youre connecting to your phone with unlicensed spectrum. Of course we all use wifi every day. Pcs, laptops, tablets mobile phones, game consoles, smart tvs, thermostats, webcams, Lighting Systems and countless other devices connect to the internet and one another with unlicensed wifi spectrum. This Success Story is no accident. Congress and the fcc had great foresight decades ago in opening up spectrum to unlicensed use. Today unlicensed use, unlicensed spectrum is powering the nations economy. The nations internet economy. We can see it all around us. For example, most u. S. Homes have a wifi connection. Away from home there are 94 million public wifi hot spots around the world and that is