Entry. So you did not tested prior to october 1 . No, sir. Again that hearing you can see in its entirety tonight at 8 00 p. M. Eastern on cspan. And yesterday the house energy and commerce subcommittee on communications and Technology Held a hearing on wired communications and internet protocolbased networks. Some of the topics discussed include the telecommunication laws surrounding those networks as well as the impact of Communications Advancements on consumers and businesses. This is a little more than two hours. [inaudible conversations] we will call the subcommitsubcommit tee on communications and technology to order and begin our hearing on the evolution of wired Communications Networks. Wired Communications Networks have come a long way since the days of the telegraph or the rotary phone. It is getting harder and harder to remember at a time when you wanted to reach out and touch someone ma bell twisted copper wires were the only option. Todays consumers have so many more options. Cable wireless satellite and yes even the Telephone Companies are operating america connectivity to communicate with the world. As all they can stand alone Networks Voice and video were increasingly data operations completion between providers has never been more vigorous and overthetop providers like skype, apple spacetime netflix and hulu are bringing a new facet to competition for Consumers Communications dollars. While their competitors of successive generations of technological improvements wired Communication Networks have languished. This isnt because of innovatioinnovatio n but rather a declining user base high cost and unique regulatory mandates that have conspired to make the economics of the upgrade untenable. Today however we stand on the cusp of two transitions in the wires network. The ip transition and the upgrade of networks to fiber. These transitions are a Natural Evolution as Technology Advances greater capabilities develop, prices dropping competition forces the market to respond. While some of the costs of the costs of upgrades have changed and wireline providers are increasingly branching out beyond their Voice Service rouse the updated regulations one enacted to break up monopoly remained her consumers have come to expect as well as they should Competition Among providers and the innovation innovative offerings that result from that competition. The question we face today is this what is the appropriate role for the federal government in this transition . We should be looking not only in the theoretical impact of competition on policies on the market as they exist today but also the Practical Impact of the rules in an uncertain future. Ilec is looking to invest should be allowed to do so without the spectrum maintaining Legacy Networks. Those in the Competitive Community should be able to work to the future with the certainty that they have the opportunity to serve their customers and consumers should be able to embrace this transition without interruption in the services they already enjoy. We must strike the appropriate balance between protecting consumers promoting competition and not slowing the pace of innovation. The internet and wireless worlds have thrived without heavy regulation. The last and we want to do is stifle the impreza and in the growth and innovation of the internet by subject and you too complicated outdated government imposed rules of the plain old Telephone Networks. Its time to look a hard look at the role of wired Communications Network marketplace and our witnesses are here to help us do just that. I think the witnesses for their testimony and now ive will yield to my colleague from texas mr. Barton. Thank you mr. Chairman. That is Perfect Timing i just want you to know. I want to thank you for holding this hearing on the transaction from internet protocol. Its a topic that we have not discussed but we need to discuss in this congress. I was actually serving on the subcommittee and full committee back in 1996 and participated in many conversations and markups regarding that act. I remember discussing how we could make the marketplace more competitive and at that time at t did basically have a monopoly we believe in creating the local exchange the aisle x. And the Competitive Local Exchange was a good solution for competition. That marketplace then and the marketplace today mr. Chairman as you know are not the same. A new question now whether we need the title ii protections that we put in place back in 1996 and i think this hearing is a good start to answering that question. Thank you and i now recognize the gentleman from ohio mr. Latta. Thank you very much mr. Chairman and i appreciate our witnesses for being here today. Within the last three decades we have entered digital age of of communication have witnessed the emergence of multimodal dynamic internet ecosystem that is replacing the public switched telephone up work in multiplex enter cold as we continue to see the convergence and evolution of our Telecommunications Marketplace the future of regulations is a topic that must be addressed though it does not thwart future investment innovation or Economic Growth. We need to ensure that current laws and regulations reflect the technologies and Competitive Dynamics of todays marketplace while protecting consumers ability to access the Communication Services of the choice in safeguarding the reliability and security of those services. I would ask to submit this chart mr. Chairman for the record showing the declining share of u. S. Households with the ilx Landline Service as a primary line service for the last 10 years and i look forward to hearing from our Witnesses Today and i yield that. Without objection to charge you reference will be submitted for the record. I turned to my friend and colleague from california ms. Eshoo for her opening statement. Thank you mr. Chairman and 17 years ago of the 1996 act stated its intention to promote competition and encourage the Rapid Development or deployment of new telecommunication technologies. In the years that have followed hundreds of new entrants have emerged and with their creativity and ingenuity billions of dollars have an been invested and thousands of new jobs have been created. So there have been a lot of good things that have come from that. As the title of todays hearing suggests the evolution, and i underscorunderscor e the word evolution, in wired communicacommunica tion networks is underway creating new ways of delivering a familiar service, a phonecall. For over a decade Communications Companies have been making the transition to ip. So i think its incumbent upon all of us here to decide why we would remove rules that have helped pave the way for greater competition and innovation in the marketplace and its a worthy examination. Changes in technology and infrastructure do not alter the National Goals that have always guided our communication policies. As commissioner and Public Knowledge have articulated our conversation should begin by laying out the core values and principles that will guide the transition to all ip Voice Networks. Fundamentally the fcc must ensure universal service to all americans. And the rules of the road for competition as well as strong Consumer Protections and access to 911. Consumers and businesses have to have confidence in the reliability and the functionality of the services particularly during times of emergency and im sure its an area that we will hear about and concentrate on today. The reality is that consumers dont consider whether a phonecall is delivered through a traditional switch network or via ip and just expect their phonecall to connect as it always has. We all support investments that enable companies to offer their consumers new and Innovative Services and do so more efficiently and reliably. The changes in technology dont automatically dont automatically make markets more competitive. I look forward to our witnesses respected son how we can ensure the ip transition results in more Competitive Choices and finally its important that the investment of job creation to remember that the investment of job creation do not come from two or three companies but rather an ecosystem and we are blessed to have that in our country that includes hundreds of Communications Companies both small, medium and large. Earlier this year a study found that a dated competition policies would stimulate the hiring of 650,000 new employees in the Telecom Sector over the next five years and 184 billion of private funds into the u. S. TeleCommunications Networks so mr. Chairman the topic of todays hearing raises first of all the its important topic and also it raises important questions. Its our responsibility to have thoroughly answered. As the migration to all ip networks continues the testimony of our witnesses and our sterling panel today will help ensure that our laws and regulations promote new investment competition and Consumer Choice. I would like to ask unanimous consent mr. Chairman that this letter from the Competitive Carriers Association reiterated in the importance of longstanding tech neutral internet interconnection requirements be submitted for the record. Without objection. Thank you and i yield back. The gentlelady yields back her time. The gentlelady from tennessee ms. Blackburn. Thank you mr. Chairman and i want to thank you for holding this hearing. It is important and its in timely and i want to welcome our witnesses. Thank you for being here. Competition and looking at how that has changed and the Communications Marketplace and today we have that intermodal Competition Among the ilx, clecs Cable Network and others but these Competitive Services are subject to different rules based on outdated assumptions and i think its not easy for regulators in the federal government and here in d. C. To change how they think about the treatment toward communications in todays marketplace. And i do feel that it is our responsibility to look at how we create the appropriate environment for some regulatory certainty in place and then encourage that private capital and investment and focus on creating jobs. There are three things that i want to drill down on a little bit today with you all. Number one is it fair to tell someone who wants to invest in Tomorrows Technology they need to slow down in order to maintain an old network that they dont want to invest in any more . Number two, does it still makes sense for the old rotary dial regulatory model and yes some of us do remember that model, to hold back the Communications Revolution that is before us now . And number three how can we make the transition to the internet protocol as seamless and dependable as possible . Those are questions worthy of discussion. I thank you all for your time and at this time i will yield to any other member. I do not have anyone in the queue. Does anyone else on the republican side want to make any comments . If not the gentlelady yields back and i recognize my friend the gentleman from california mr. Waxman for five minutes. Thank you very much mr. Chairman. Since the days of the black rotary phone americans have been able to count on the phone network to call friends and family come to conduct business and reach Emergency Services when needed. Today thanks to innovation and competition consumers can connect to the phone networking in more ways than ever before. When we pick up a wireless smart phone or a dial in number over voiceover Internet Protocol Service few of us pause to consider the technology involved we simply expect their phonecalls to go through. The ongoing transition from traditional circuit switched networks to internet protocol or Ip Based Networks is the technical backdrop for todays hearing. But our phone network is more than a system of wires, switches and technical protocols. Its an essential part of the social and economic fabric of the United States. As we consider this next Network Evolution we must continue to protect the core values that have guided our Communications Policy for nearly a century. Many of todays witnesses have articulated some version of these values and there is widespread agreement on these principles. Our commitment to universal service is a recognition that all of us benefit when everyone is connect it. We protect competition because it is the most efficient way to generate new products and lower prices with the added methods of limiting regulation. We have rules for Consumer Protection because the marketplace needs oversight to ensure that Services Like 911 are provided either and if the market is not yet demanding them. This is a mandate congress has entrusted to the fcc and it does not change with new generations of technologtechnolog y. I think we all recognize that the transition to ipbased networks is already happening and this is a good thing. The transition means more investment and opportunities for Economic Growth and new services that can improve everything from Health Care Delivery to energy efficiency. The challenge we face is how to manage this transition in a way that does not disrupt businesses and consumers that rely on Traditional Services today. I agree with mr. Cicconi that we need the fcc as an Expert Agency to help guide the evolution to an all ip network but i caution against using the ipbased services as a vehicle to try to undermine the fccs authority to preserve competition and protect the public. Whether addressing complaints about rural call completion or ensuring Network Reliability during disasters we need the fcc to address the impacts of the ip transition. A vibrant and vital fcc is critical to ensuring that the transition ultimately achieves the goal we all share which is a world Class Network that delivers greater benefits for consumers and our economy. I think chairman walter for holding this important hearing and working with us to assemble a balanced panel. Mr. Chairman i would like to ask unanimous consent to enter into the edit paper by professor kevin were bought entitled no dial tone, at the end of the public switched Telephone Network. Without objection. Mr. Chairman at this time i yield the balance of my time to the gentleman from vermont mr. Welch. Thank you very much. I had the privilege of introducing john burke from castleton vermont a 12 year member of the Public Service workers it to a decommissioned. John has served on the committee on telecommunications with the National Association of rural utility commissioners and one of the things that he is so good at is talking about the impact on rural areas of Telecom Policy and congressman latta started a rural caucus to take a specific look at how the policies we have to and the met will affect rural areas and there is no person with more experience and wiser counsel than the person we are going to hear from, john burke from the great town of castleton vermont. Thank you, john. Think you mr. Chairman. I yield back. The gentleman yields back is time and the gentleman from california yields back is time. We thank you all for your testimony. Its most enlightening even if there is conflict among you which is why you are all here so without people start off with jim cicconi the Senior ExecutiveVice President of internal affairs for at t. Thank you for being with us and we look forward to your comments. And we are still on an old wire Copper Network so if you could turn on that microphone. [laughter] thats embarrassing. Chairman waldman Ranking Member eshoo distinguish members of such many thanks for the opportunity to testify with you today and thanks for holding this hearing. Four years ago as you know the fcc issued a National Broadband plan as directed by you hear that plan concluded that bringing modern Broadband Services to all americans is vital