[applause] good morning thanks to ppi for the invitation. With deals like a lot longer but i have been at the fcc a little less than one year. And in the Commission Time barely a blip on the radar but under the chairmans leadership were moving at a very fast pace taking on many complex issues so by way of example we have options incentive option will will spectrum infrastructure spectrum said frontier. 17 Competitive Bidding rules joint bidding rules competition policy and i suspect the pace will not let up anytime soon. What we are busy working on these issues the Wireless Industry continues to involved in challenging ways but we just dont see challenges and that is what i want to talk about todays opportunity that we see in those with arab agenda at the bureau more specifically we see opportunity with Wireless Infrastructure to make more spectrum available is a new ways with Broadband Demand and to promote and protect the marketplace also to promote innovation was divert Devices Networks with policy innovation is important. In with that overarching strategic goal putting into three categories from infrastructure deployment and not just referring to the sec staff and requires the collaboration of stakeholders many parties have the Important Role to make to the u. S. Continues to be the world leader of wireless. Those to approach the issues that they advocate as great opportunities to work collaborative flee. One quick observation in a short time that the agency i have come to appreciate how refreshing it is to have advocates to come before you to offer Reasonable Solutions. Those that benefit the interest but not overly protective defensive or aggressive but the even notice that at the agency. Not everyone comes from this perspective and i will not call anyone out here but. [laughter] may be some time over a couple of big piers. [laughter] but they do notice when they dont look at other perspectives and dont give consideration to other stakeholders. He should not assume it is just Big Companies enter pushing there is no monopoly on that. Last year the german challenge the industry to step up to take new approaches but i want to reiterate the request to take the opportunity for some of these opportunities to find new approaches instead of highlighting problems of specific suggestions when we dont have to adjudicate between legal technicolor policy positions everybody is better off the lessee space is bureaucrats making a decision managing the spectrum and competition and infrastructure deployment looking at collaboration as well as opportunity so first talk about spectrum there are great examples is be seen is an issue to capitalize the mayor hertz of spectrum in the commissions inventory for years but it was perceived to be an unsolvable problem but now they were collaboratively to build on advancements when they found a solution earlier this year we were at the Auction Block raising 1. 5 billion a ws 31755 through 1780 many were skeptical of the spectrum never be available for commercial use the have been working on this problem for years and i saw this from my time on the hill there often period the time there is no hope but due to a Solutions Based thinking the sec and other agencies and congress in just over two weeks will begin auctioning 65 mhz the largest auction in five years marked on your calendars were very excited november 13 building on the successful efforts their other opportunities for other spectrum behans it is an opportunity to explain new way for spectrum and if we are successful capitalizing on the potential opening prospects for access for other behans party still need to come together to drive the solution and over one week ago to embark on an exciting opportunity determined whether to make a spectrum much higher for mobile broadly and. Susan to proceeding with a look at technology to the higher frequency bands to ensure that they flourish. In the bureau this is called the frontier but as the chairman noted that i dont care what they call it even if it is a kumquat i dont care is a part of the spectrum efforts where we strive to create rules that are deployed is also a fresh based approach this is really the ground floor we cannot forget about the first ever auction of the innovative approach ford van spectrum the commissiocommissio n announced last week but were not slowing down those vital input should be coming in the near future as they make more spec available we need to major providers of all sizes have an opportunity in the wireless marketplace backed by the commission of rulemaking to look at the Competitive Bidding rules for the first time in eight years that is a lifetime in the Wireless Industry not to have an opportunity to support Small Businesses. Spectrum is only part of our framework will also need to seize opportunities to foster a competitive marketplace. I have made infrastructure a key priority and i spent some time in the private sector and other private sector history in this area with a special appreciation how hard it is. And when i was in the private sector some of it is realestate some of it is landuse but it is critical to make it available to consumers that has been particular the satisfying we saw an opportunity to revolve the infrastructure demand of the modern wireless network. The commission unanimously adopted to reduce the cost associated with collocation it takes critical steps to promote the deployment necessary to provide the public with the ubiquitous sabaeans wireless on demand. More specifically we update the manner that the fcc by waites the impact of the environment and with rules to implement statutory limitations on state and local governments to review infrastructure including for the first time a remedy of a state or local government to act on ineligible facility and a certain period of time and in codified then narrow exemption but the great thing about this it is pro environment and preservation but it takes into account wireless and they will all help do develop more wireless capacity to consumers throughout the u. S. Real six steps to streamline the rules of marketing to take steps to expedite the facilities Going Forward in any number of towers with the regulatory status being brought into compliance for echolocation this is an example for us to have Reasonable Solutions so all parties came forward we really would miss that spectrum opportunity but finally we will fall flat we dont wish to preserve the competition im sure youve all heard the chairman speak about how important competition is to him as a consideration with everything we do to preserve the competitive marketplace into the future he is encouraged by recent announcements that the industrys robust nine competing in the marketplace from our perspective is a good thing we expect to drive innovation for further Investment One of the major successes was the mobile Spectrum Holdings report we revise our spectrum screen for mobile broadband and treated as a reserve of will band spectrum to be auctioned off in 2016 to secrete the opportunity for providers to get the spectrum they need to compete for large and small but that they wanted as soon as possible there is significant risk of anticompetitive behavior and they will promote competition to that end so long those lines to carefully consider transactions including the enhanced Factor Analysis for the specter malleolus for opportunities for competition in will making casual though it drives innovation and investment for all endusers and devices also working to address questions to data roaming there are formal complaints pending at this time and do occur marketplace were actively reviewing those. Finally the discussion of competition would not be complete but we worked closely with Consumer Protections for the open internet for mobile wireless also as part of that review were considering the implications of capacity constraints meanders and wireless is different and if you wrap the roundtable the chairman understand it is different your actively exploring what that means in practice in what applies to mobile providers also looking if it could interpret the statute definition to be applied to mobile van service we will commit to encourage additional thoughts now is a time to wait and. It is a time at the Wireless Bureau and we need to seize opportunities to promote competition in access we want to do everything we can to stimulate innovation in all forms so we can continue to be the world leader in wireless. Thank you for your time. [applause] the panelists may come up to now. [inaudible conversations] we have more chairs available here if you want to come closer. Thank you roger and thanks for coming and ppi for hosting this event a want to sink the folks behind the scenes close to get the show going i appreciate all you do to put all this together but now it is time for the expert panel that what they have in common is they have written papers on wireless issues so give them an opportunity to talk about their research and it is all available on the ppi web page with else is available to recent ppi shows and proud of the last two of you have not seen them with policy watch we had one on interconnection and we had the key note and then one on neutrality debates were thought we had reach a consensus but i guess that did not put an end to the debate the their fabulous. I am very excited to have cspan3 covering the event i called my mom she said who is on one and two . It will take time. [laughter] the purposes to explore wireless issues but versos go over ground rules i will ask questions of the panel if they go along with the premise of the question there will insert you want to fight we will get cost file questions. [laughter] and one tip for the audience i will rely heavily on the audience i will go to you about 20 minutes is going to sit back there and listen so be thinking right now about tough questions you want for that panel and with that money quickly introduce the panel with mary brown director of Government Affairs from Cisco Systems senior director for spectrum policy from the Government Affairs office in during her career she has worked as a staff lawyer and manager at the second holds a masters of science in telecommunications from syracuse and Michael Mandel chief economist also holds an appointment as a senior fellow at whartons institute for management innovation in pennsylvania prior to joining ppi he was the chief economist at business week 21 years . Amazing he has a ph. D. In economics from harvard that is fairly impressive almost as prestigious as from johns hopkins. [laughter] writer at the end of the table founder and leading analyst leading expert on telecom with Wireless Communications in the Senior Vice President and head of research of Telecom Practice for the Nielsen Company will largest providers in the world also Senior Vice President at research and Vice President of telecom incs for joining us. Finally peter is an expert on the capabilities of Wireless Technology and president and executive director. Notice called Wireless Technology. Import in the year as a master of science from Electrical Engineering from stanford we will be known that heavily particularly with my first question. Even though it question is directed to one panelist i encourage you to weigh in so we can get some conversation going. Let me start on that issue of the day of neutrality to talk about how this relates to wireless but put that engineering degree to work. Advocates of strong neutralitys want to be an deals where they pay for priority theyre worried everyone else will get of lower Quality Service if true it would be a legitimate concern. But does a priority necessarily entail a sacrifice of the quality of service or is it possible to introduce a priority without degrading the quality of nine prior ties traffic . It depends if it is a zero sum game or not i dont view it as such there may be some scenarios where there is capacity and that tends to be much more of the case but certainly with wired networks there is plenty of capacity so to prioritize and it will have any adverse effect. So in light of peters answer. That could be a priority deal that there are no injured parties, does it matter of that moment economically with the large pool of investments with very low Interest Rates so writer mentioned investments we need to set a policy with the incentives for investing with the pay parity raising quality at the same time can do thats so the favor needs to look at that what can we do to create longlasting incentives for investment . If you have paid priority you have a commodity product and allowing Higher Quality that will produce more competition. With a blanket prohibition and case by case. That would be a terrible mistake from the big picture pointed you because if we want to create more capacity and more room for competition we have to create a structure that people say i can earn back that many in investing but if it is what new providers can do . And they blocked off the possibility to create a new network that could create a lot more competition and investment it is a bad idea to have a blanket prohibition and what we have seen with economics allowing a differentiation of products is better. A blanket prohibition means were freezing innovation the way Business Models are evolving those deals that may be bad yes but then we should address that on the case by case basis regional route every participant in the marketplace to innovate with a new innovative ways to provide services to consumers not to say it is only this way or the highway. We should think of policy in long term rather than shortterm cents to produce different outcomes. There is a lot of talk they want a different set of neutrality rules so what is the right answer . There is a different Market Structure there is wireless providers or a different capacity constraint with different sets as the fcc did . Cisco supported the 2010 order we saw what was made by the fcc and it made a lot of sense to us we did not base that on Market Structure as the basic difference of technology the wireless carriers deal with endusers to move around with capacity constraints that vary by time of day and physical space by defense happening whether the world cup for though world series so these have a impact relative to wireline we thought that 2010 decision hit the right notes to stick to that as it contemplates the next wave in the decision. I would like to add to that i heard mentioned that wireless and wireline a different avenue of the average person knows how different they really are so let me provide some insight one fiber optic cable has 2,000 times the capacity of all broadband spectrum so with that difference of capacity there extremely dynamic with those connections if they have a good signal quality bentleys in order of magnitude of coverage areas of the whole environment is extremely dynamic in Wireless Networks move to that capacity so how theyre managed is different said also looked at the capability like ltv with the transition boyce over lte voice over it for wireless that traffic handled with higher priority it just will not work there is nothing comparable happening right now i just want to emphasize that fundamental distinction what i am hearing perhaps is they should be treated different with a different set of rules and ill make that counter argument so lets go back to his largely vacated by the d. C. Circuit and then reconsidered a blanket prohibition we will not do that here that there was a presumption that a priority is in violation of nondiscrimination law this is what got them and in trouble with the d. C. Circuit to come for regard bended knee to say we have led deal they thought that was tantamount. If we were to new flip that presumption around to make the priority deal is presumptively efficient otherwise by a content provider to prove that treatment was discriminatory with that approach would we need to different structures 14 wireless or one for wireline . Assuming your analysis is correct is a better approach. I hearkened way back to my a sec at was deputy chief even there looking and a discrimination case the moving party to make then a demonstration had some burden to come forward to show the tariff was discriminatory was no presumption pages to the wave the flag of discrimination for it to occur like we were going with the idea to have to think about it. [laughter] it is the same approach the sec uses to adjudicate in the videos space the Cable Network has the burden to prove that it was discriminatory not to mention the blog yesterday with the takeaways at the roundtable the authors without two from three alternative paths and a case by case resumption it is in violation of the standard but they did not lay out this third approach which they were begging for was the case by case resumption. That is my eyes like critique but i have two more questions on that neutrality then we will go to the panel. This goes to the audience and pertains to the sponsorship to sponsorship deals. Metro pc has introduced an unlimited data planned 40 a month that excluded Video Service youtube was included but all others were excluded into understand for that odor of youtube had to compress but i dont know if google made us side payments they said this was in it neutrality violation and in april