From june, a discussion with u. S. Trade representative on the Transpacific Partnership agreement and that is followed by a look at terrorism in russia. Cspan2, created by americas Cable Companies 35 years ago and brought to you as a Public Service by your local cable or satellite provider. Host congress pickering, what is your organization . Guest it was founded 35 years ago. 1981, and what was happening in 1981 . Should we have a big monopoly or open it up to competition . Comtel was the founding voice for competitive policy. In 1984, the reagan Just Department broke up at t and the Long Distance industry emerged. Those were the early members. Then you went to 1996 and ended the policy in the local market and other markets we were the voice for bringing competition there and we continue to be the voice for new network builders, competit competitors, innovators, business competitors, about 200 Member Companies. We are the voice for maintaining the technology, the network, the platform, a competitive market, interconnection, more innovation, more invesment and for the consumer and business lower prices and greater service. On one of the burning telecommunication issues of your day, Net Neutrality, where did you stand . Guest we were looking at multiple ways to get there. We have been maintaining what all of our country and the consuco consum consumers around the country have become acustomed to. They can go anywhere on the internet and see anything without having a preference, priority or being blocked or throttled. We were very much in support of that. We think for new starts, entrance, businesses and business models, that the open internet is critical to the Economic Growth and continued success. Host were you a little off the reservation as far as being a former republican representative on that position . Guest i was in todays world but back in 1996 and 2000 when the open internet first started it was republicanled and there was a bipartisan con consensus. Kevin martin another republican commissioner was the first to enforce the principles. When i was in congress there were a number of republicans and democrats who continued to support the principles of an open internet. So part of my job is being a voice for the openist but to bring enough consensus in the industry around those issues and principles so that the bipartisan consensus we once enjoyed on these issues can be restored and renewed. David kaut is here joining the conversation. Picking up on the Net Neutrality change. The order is being challenged in court. No one has a crystal ball what what is your best guess of how it will play out . I think the chairman will use the strongest possible Legal Authority to sustain the open internet rules. You may know, and for the audience, it has been struck down twice in the courts. Once comcast challenged the rules and the other time verizon and they were using title i or other authorities. The authorities the fcc chose, we believe it is the most legally sustainable, which will create the predictability. They used what was good from the other models. It applies to a light touch of the modern market. We believe he crafted strong, balanced rules and a light touch framework and of course we believe probably, i dont know if there may be some exceptions but at the core of what the chairman did at the fcc we think it will be upheld and sustained. Have you seen any changes since the order was adopted or took affect in the market . Or any problems developing that give you concern . Guest when i took this position as ceo, part of what i was wanting to do was to build a coalition that was broad enough and deep enough to really win the competitive policies or battles with us at the fcc. And part of that was to broaden the coalition. Having been a member of congress, coalitions are important in winning the votes. We wanted to make sure the Second Generation of competition survived and was sustained. So Companies Like google, netflix, amazon, twitter, joined contel, and what you have seeing is the internet bod model, which i think it is highest, compared to the existing or older telecom models, you are seeing high invest in networks. If you look at the recent wireless action, the numbers were used and invested over 40 billion into the wireless spectrum. You are seeing google fiber and new Wireless Networks like sprint and tmobile and others and at t and verizon and others as well. We continue to see investment, growth, and the internet economy, i think, is going to flourish because of the predictability and the certainty of the rules. So far so good. You already addressed this in general terms. But what are your top legislative priorities . Guest we had something called tech transitions. What does that mean . As you look at the last mile network, or what our audios may know as the wire that comes into their home or business from the local Telephone Company or cable company, as the legacy Telephone Companies transitions from copper and something called t t tt t dm, to ip and new technology andinate e and networks, how do we make sure the 911 system and the competition continues and thrives . And how do we make sure the Critical Institution schools, libraries, first responders, the services they depend on, how do they go into the next technology . This transition with everything being sustained and approved, because ip is what we want. It is more efficient. Better services. Lowers the prices. We all want and competitors have deployed ip networks from the beginning. So with this order that the commission adopted, it says we will continue and maintain competition in the business market. We will provide these services that are essential to the wellbeing of the country. And that is the big thing we have been working on. The incentive auction that the recent rules have been adopted continues to promote competition in the wireless market. So that at least a third of the auction will be in reserve for either the new entrance or Companies Like tmobile and sprint and us cellular and the small regional companies. So that was a big thing. Interconnection at the edge of the open internet. There is a First Amendment of speech, there is a First Amendment of competition policy and that is interconnection at the edge of where the internet traffic meets the last mile network, and to make sure this is open and competitive. We were able to win a major new connection policy with open internet and at t direct merger and a condition from time warner. They are saying they will continue to have the interconnection policy that basically exchanges traffic among all of the networks with something called settlement free. We believe it is the most economically efficient and c competitive. We are seeing gains in all areas under this competition for this administration. We are pleased to work in a coalition with consumer groups and the business Industry Groups to sustain what has been probably the most successful Economic Policy in our life time. Congressman, when you talk about the incentive auctions, are you happy with all of the rules . Is there enough set aside with your view and would your Member Companies be participating . We advocate for more. But to get 30 we believe that is the best that could be done. It is sufficient to promote competition. At the end in politics you may not get all you want, but we got progress. I tell many people, i have met progress in politics but never perfection. The order, i think, is a good balance that the chairman put together to make sure all of this objectives of the successful auction, broadcaster participation, and com pet positive motion of new entrance and existing challenges to the incumbants and a high revenue we think will come in to benefit the taxpayer and government. Who are some Member Companies that will participate . Tmobile, us cellular, you never know there could be a surprise of a new entrance. We are entering into an age that we had because of the old monopoly policies we had networks that we could control a market, hold it captive, and we could have scarcity in network for the speed. And we can monetize them. Because of the internet model, and all of the layers of the application, the internet of things, the internet of medicine, all of these new ways to do business over networks, the ability to do wifi or wireless Fiber Networks is about to help us enter a new age drive n by the economy and economics. You are a former congressman. You still have a lot of contacts up there. Can you give us a sense of the state of play on the hill of efforts to rewrite the telecom act and come up with new broadbandbased legislation. The energy on commerce, which i served, had a great hearing in the recent months and their emphasis is removing barriers of networks whether it is new, existing or whatever. How do you have the rights . How do you streamline the permitting process and whether it is fiber or wireless tower, one of our members is rocket fiber in detroit michigan. They deployed a new fiber met network. You may know google fiber. Wherever they go, they have new networks, higher capacity and lower prices. This hearing was on the hill about how do you Deploy New Networks and have competition. Mark doil, a congressman from pennsylvania said my gig is 400 here but in austin or provo or the new entance are like google fiber it is less than 100. What the hearing focused upon was how do we incentivise and make new bills possible. The second thing we can do on a rewrite where there is i think, emerging consensus on both sides of the aisle, is video reform. Retransmission consent. Reform. How do we make video pricing more competitive because what we have learned is that as video prices are high it slows down the investment and new networks and it in hibits or impairs or blocked new competition in the market. The video reform new infrastructure deployment, a possible restructuring of the fcc that would reflect the modern structure of the market versus the old industrindustry. More wifi and spectrum to be available. This was just done on reform that modernizes so Broadband Services can be made to low income people. How would you restructure the fcc . They have the common carrier and the broadcast and cable. We are going to an all broadband world. Having those category may not make sense. I think the 1996 act has been a great success. The fundamental competitive access is extremely important. Maintaining that while reforming the structure. Making sure the process is as transparent as possible, as accountable as possibly and as timely as possible. Those are things i think a congress, probably not this congress, but in 16 and into the next presidency and administration we may look at. Host david kaut . You mention the charter proposal and you propose the comcast merger that was locked and concerned about the at t case that was passed. The Cable Network is pending. How do you view the pending charter proposal to take over Time Warner Cable and Bright House Networks . A charter could be a force for greater competition and innovation sore they could have anticompetitive affects. One step they took that we applauded and commended was they announced they would have an interconnection policy the edge that would be the settlement free. That over the top Companies Like netflix, one of our Member Companies and others, will have the ability to interconnect, provide the content to the end user, without a toll or fee. That was very important that charter did. We continue to hope that charter will see itself as a disrupter and innovator in the marketplace. And we will continue to make procompetition commitments as we go through the merger. Congressman, i am sure you saw the New York Times recent editori on cable boxes and if they should be gotten rid of. What do you say to the Cable Companies that provided the box and invested in this and what do you say when you want to open up their competition . As we have seen the progression on the wire line telephone side. The cutting of the cord and going do the wireless or the cellular voice and Service Verizon made a push to break the bundle so they can be more competitive in video and we appla applauded that. What we would like to see, and the reads n there is innovation, the iphone, the android, the smart phone, the laptops, is each individual could get a wireless subscription but the phone wouldnt be operable. We want to do the same thing in the cable and fit top box market. So that you know new companies and new innovation and we believe the cable industly, you know, at this point is going to oppose and that is something we expect. But five or ten years from now if we are successful, and we will have devices, growth is higher, invest want increases and the competitor alike benefit from it. When i was a congressman, i didnt want competition or an opponent. I was a better congressman as a result of this. It streakened by ability to represent the district not weakened it. Whether it is political or cable more competition makes us all better. What then, five to ten years down the road, what is the future of video . How are we going to be watching . It will be very different. More overthetop, more streaming, more internet, the bundle as we know it today will possibly exist in some form but it may be a skinny bundle, the option of a fat bundle, you could do over the top, al carte, the choices are going to be multip multiplied and that is a good thing. More markets, more applications, tal go over it. There is a much larger market that everyone grows and bends from. At what point does congress draw the line and say we will start new legislation today with all of this technology that just keeps moving ahead . We will celebrate the anniversary of the 1996 act next year in february. And i was young when this was formed, framed and established the principles and then the legislation. I think it has been a huge success. There are margins that havent taken the full fruit of vibrant competition. And streamlining the reforming. You will probably not be able to start in the middle of congress and during a Congressional Election year to get there. I think you will see more and more talk and there is things that can be done. 85 of the country has only a choice of one or two providers in the last mile wide services. You mention the Election Year coming up. Are you discerning any signals coming from the president ial candidates on communication policy . Are you are not there are any issues that should be part of the conversation . We dont think of breaking up at t or how it spread to building the first fiber network. In 1992, when we had the 92 cable act, no one thought they would get satellite with 300 channels would force analog to go digital. And then that made the last broadband mile infrastructure in the cable modem and the policy started in 1993 where he said we will not have two Wireless Companies but up to seven and the 96 act, those things had have more affect on our life, politics and economy than any other, i believe domestic economic actions in our lifetime. When they look at what works and doesnt, hopefully they will reestablish the agreement that to be probusiness and growth and proconsumer, increasing competition in all markets works effectively. You had rubio, and secretary clinton, and even donald trump, talking around the edges and the innovation agenda is getting a lot of attention. But i hope they will get the Tech Companies the focus they need because it enables everything in health care, internally, the Business Community and it really multiples across every sector. We talked about video and the two big ways have been the internet and mobile communication that engulf the industry and society at large. If you see anything forming that will hit us in the last two decades . Or is this just incremental revolution . I look at different historical periods. 8496 was the first age of competition. Prior to that it was all monopoly. Huge changes that enabled of all things you talked about. Now the last five years, competition has stabilized and i would say we are in the Second Generation of this. Open internet, Competitive Industry structure, and incentive auction, he is mobilizing more competition in the licensed, as well as in the unlicensed and setting policy for the internet age. This commission is taking a lot of shot said because they are active. I admire chairman wheeler to stepping up to the plate and making the decision i think will sustape what we started and now can continue. There is always work to be done and improvements to be made. But i think these early decisions over the chairmans tenure have set a good course for the future. Thank you so much both of you. Thank you. Coming up, a discussion on Russian National security strategy. And then a discussion with u. S. Trade representative on the Trans Pacific partnership agreement. And followed by a look at trim in russia. We talk about the challenges the United States is facing around the world. And then a conversation about the Housing Market and real estate industry. Washington journal is live each morning on cspan2. You can join the conversation on phone or by facebook and twitter. This is cspans annual