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tv   FCC Takes First Vote on Reversal of 2015 Net Neutrality Rule  CSPAN  May 18, 2017 9:49pm-12:00am EDT

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the neck neutrality rules to treat all internet traffic deeply the vote was one of several proposed thursday that commissioners considered in the to our meeting. [inaudible conversations]
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>> good morning. welcome to the open meeting of the sec then a secretary please introduce our agenda. >> good morning for today's meeting you will hear a presentation for your consideration first you'll hear a presentation on the public safety plan security bureau final report on its investigation into the 911 outage mobility experience
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march 82017. second you will consider a notice of proposed rulemaking to facilitate the deployment of them reduce regulatory burdens on the three types efiks satellite service and earth stations authorized to transfer it while in motion. earth stations on vessels and those aboard aircraft. thirty will consider a report to amend provisions of personal radio service is located on the commission's rules to address to petitions for rulemaking update and modernize various rules for recurring use in technology, remove outdated regulatory requirements and reorganize the rules to make them easier to read and understand forthcoming will consider a public notice to launch a review of the commission's rules
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applicable to media entities and seek comment which will should be modified or peeled. a notice of proposed rulemaking to eliminate based on a tentative finding it is outdated and unnecessarily burdensome for broadcast stations. and six a notice of proposed rulemaking propose to restore the internet to a light touch regulatory framework by classifying service as an information service by the existing rules governing internet service providers seventh he will consider a notice of proposed rulemaking with a rule requiring service providers read and write me getting support with higher minimum monthly rates on
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their customers than those paid by the counterparts or otherwise you support -- whose support the commission will consider a related order to freeze the current rate this is your agenda for today please note the consent agenda has been deleted from today's agenda first the acting chief of the public's safety home in security bureau with the presentation on the final report of the investigation into the 911 outage at&t mobility experience 2017. >> please proceed if you're ready. >> good morning mr. chairman , and commissioner -- commissioners on the fundamental responsibilities is to promote the safety of life and property through communications services
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assuring the public has access to 911 the central to the mission. that is where understanding the causes of the 91 outages to mitigate the effects of future outages is one of the commission's most important tasks. march 8, 2017 at&t mobility experience in nationwide 911 outage with the voice-over ltte service that is a technology 80 -- att use this during the outage approximately 12,600 callers were unable to reach 911 over five hour period one of the largest and richest ever reported to the commission. and germany really directed the home and security bill to conduct an investigation today the bureau presents its findings. with me today is the
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electronic session and attorney adviser from the cybersecurity and communication reliability division i'd like to think the division and other beer a staff for their hard work on the report -- report as well as those that contributed. >> good morning chairman and commissioners as lisa noted the bureau's report presents the findings of its investigation into the outage that interrupted 911 calling for customers across the country five hours march march 8, 2017. -- brokered entirely within the at&t network in order to route 911 calls to the centers they maintain connections with subcontractors through the zero west they provide at&t
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with 911 call routing information and since these connections are critical to service at&t network his program to reject all incoming connections except those from the trusted ip address on march 8 it unintentionally broke its connection initiated a network change their resulted in a mismatch between those ip address -- addresses and those that was used to send the call routing information to at&t this resulted in a loss of connectivity for gore as a result at&t could not receive time and one called information and cannot automatically route those calls to the appropriate call center. instead at&t rerouted to the back of call center for manual processing but it
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dropped a majority of the calls received. when at&t lost connectivity to network responded as programmed by resetting the past. this reset failed to restore the connectivity because the root causes of mismatched ip addresses were not fixed upper prevented at&t from receiving 91 wall -- nine and one call information while the senate because they share the network. the outage affected nearly all lead 11 calls on the at&t network. the ip address mismatch caused the outage in the network configuration effort that exacerbated likely could've been avoided if it implemented best practices with respect to the critical line 11 network cassette.
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at&t reports the has fixed those issues this offers illuminating case study for reliability. among lessons learned is the need for further our reach to promote better awareness and understanding and accordingly the bureau plans to remind companies of best practices. in addition it shows closer coordination between service providers and call centers during outages when that service fails 911 call centers play a critical role to have alternative ways to reach help while they each made efforts to notify thousands of call centers apparently not all receive notification furthermore some call centers reported they came into late in insufficiently informed.
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timely and effective outages is critical for safety accordingly the bureau recommends working with industry and call centers to ensure that consumers know how to best reach emergency services when and when one is unavailable the bureau plans to have consumer groups and have service providers to participate in the workshop to determine best practices during an outage. they accuse. >> now we will turn to your comments. >> is aptly demonstrated in this report it is vital that we ensure the system supporting our nation's 911 services are both reliable and resilience the steps at&t proposes are to prevent future outages in this network are laudable and necessary.
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but other industry carriers had not only taken the necessary steps to ensure the network infrastructure is sound the working to implement the voluntary reliability best practices developed by the interoperable the council so i want to thank the chairman for quickly initiating this investigation on the heels of the outage on behalf of the entire team for the commendable work on this final report. >> you talked about mismatched addresses? how does that occur? is that human error?. >> there was a latent mismatch in the provisioning
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system that at&t uses to decide the aps with trusted addresses when at&t made in a related network changes resulted in that blatant mismatch to be input into the live network and that is what broke the connectivity second march 812-20-0539 americans that our at&t customers tried to call when 11 they cannot reach emergency service is because of the nationwide outage when they place a call their herd fast busy signals or endless ringing or silence. this is unacceptable in times of trouble americans in need need to be able to reach americans who can help that is why as soon as this outage occurred at a demille called on the bureau to investigate they have
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delivered a thorough and fact based reports of the findings based on data is derived from the fcc audit reporting system in numerous interviews with people from at&t subcontractors as well as several affected others including the office of communications your washington d.c.. these findings are highly instructive as we have heard this outage could have been prevented it was a result of mistakes made by at&t the bureau's report shows there were four of false of redundancies and risk assessment and consumer our reach. going through best practices to the communications security and interoperable of the council this outage would have had much less impact but because of the yacht -- the cause of the
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shittah been addressed with a periodic audit. the good news at&t has addressees former villainies that led to the outage with these in place in march 8 it would be unlikely this would have occurred. going forward i urge every carrier to redress similar vulnerabilities in their network and gas consumer groups to work with the bureau to explore ways to improve notifications when in 11 outages occur. we cannot turn back time to out do this outage by learning the lesson we can and we must and reduced the odds that it will happen again. they want to thank the staff for their expertise and tenacity they have brought to bear also commanding at&t to help us get to the bottom of this outage in particular
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i'd like to think michael and michelle and he said in jeff macon, nicole, jerry macon, nicole, jerry, julia and james from the department of safety and homeless security bureau so with that madame secretary please announce the next player on today's agenda the. >> the international bureau entitle the amendment part to a 25 of the commission's rules of the earth station in motion to ruth communicate with the frequency bands allocated to the fixed satellite service and the acting chief of the bureau will give the introduction.
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>> faq madam secretary of mourning mr. chairman and commissioners we're pleased to promote this proposed rule making one of the fastest growing segments is the stations providing satellite broadband services on ships and aircraft and vehicles collectively known as the earth station in motion the notice examines the rules and has two broad goals and first the notice proposes to consolidate into a single regulatory category this harmonization would streamline the rules for the entire segment and the notice also proposes to eliminate unnecessary and outdated regulations. second and most significantly the notice
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proposes to extend the rules to portions of the conventional these proposals adopted will facilitate the licensing and deployment of earth stations. i'm joined at the table the deputy chief of the international bureau, the assistant chief and chief of the satellite division, the chief engineer and the attorney adviser. i would like to a acknowledge the outstanding contributions for mothers and the international bureau as low as colleagues of the wireless telecommunications bureau office of communication and technology cindy will present the items >> good morning mr. chairman and commissioners this
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notice of proposed rulemaking opens review of the commission's role of operation of the stations in version which include earth stations of vessels vehicles and aircraft the current roll is to have blanket of licensing for operations of the earth stations with the orbit satellites the regulation of these earth stations have developed in separate but overlapping proceedings those stations better vehicle mounted and aboard aircraft as the initial matter it would integrate the rules licensing of the operation of the different categories operating at a different frequency. the changes would reduce redundancy to increase
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efficiency. currently it includes former different sections the comment on a proposal to consolidate and that technical and operational section would be designated 25 dot to a also cover the conventional billion several companies receive licenses to operate this band places applications were processed on the ad hoc basis and they were granted with wafers with allocations then to amend the footnote of the frequency allocation so that
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it could be routinely processed. specifically the amended footnotes says in the frequency band although conventional with the application to be authorized to communicate with satellites on the primary basis. finally the item includes proposals to eliminate proper -- competition for example seeking comment on certain rules by referring to provisions of the existing rules applying to other stations and also seeks comment on the proposal for unnecessary rules proposes to eliminate rules requiring station antennas which are a necessary restricting adjacent satellites and
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further seeking comment to eliminate rules of the location in a dead during operations which to the best of our knowledge has never been invoked the international bureau request editorial privileges for conforming at its. spec now we turn to comments to make today the commission initiated proceedings to harmonize in the state rules for licensing and operation of earth stations in motion in the fifth satellite service is includes crustaceans that used to provide telecommunications services including internet access and merchant ships u.s. navy vessels among others earth stations aboard aircraft that provide productivity to commercial and private aircraft in
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vehicle mounted earth stations to provide broad band services to land vehicles than perhaps to you're connected car. diverging objective of these proceedings is to facilitate the deployment to have flexible use of satellite technology to the benefit of consumers a goal we can all share of the accord to reviewing the record that develops and thank the staff for international bureau when your hard work and a special leave my friend city for presenting the item. >> i appreciate all the efforts and i will put the rest of my statement in the record. >> the sec has rules for satellites on ships almost identical for earth stations on land vehicles in almost identical rules on aircraft. having three sets of
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duplicative rules is unnecessary and inefficient today we're just simply proposing to combine them into one call workstations in version with an acrid m. this appealing some have speculated what references i may try to tie in but i will not go so far to refer to the computer game simms or a the heisman trophy winner or reference actress molly since i will focus on the fact that these are earth stations on ago if you would get infrastructure that are connected to the satellite never to have the potential of broadband service especially those are hard to serve. to simplify the rules will process the applications made easier for companies to
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offer additional service options and the conventional billion gives more opportunities for more competition in this proposal is to of the three goals to reduce unnecessary red tape and enable the private sector which is a fast-growing segment of the satellite industry and invest in new technologies and for all of those who worked on this item paul, a chip, jennifer, joe, tom and troy and the office of engineering and technology
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jason in joe for the wireless telecommunications bureau and from the office and general counsel efforts are much appreciated. we will now proceed on the items. >> the item is adopted this is granted as requested base to the national bureau madam secretary please note the next item on the agenda. >> the next item is for the wireless telecommunications bureau the personal radio service his rule for rulemaking in the acting chief of the bureau will give the introduction. >> good morning mr. chairman and commissioner. the wireless communication bureau is pleased to present
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their comprehensive updates part 95 personal radio service rules they allow for those devices for the public to purchase and operate for personal communication to go through a service provider to get to the fcc license an example of these devices have simply uses like a walkie-talkie with votes and planes and the cb radio. these devices include more complex applications like medical telemetry devices and beacons. this would revise the rules with the current uses of
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technology with the regulatory requirements to make them easier to read and follow. resulting in more consistent clear and concise matters that serve the needs of the public i enjoyed it the table by tom ince got an in addition to at the table or like to thank your team for their hard work as well as staff from the office of engineering from the media bureau in the office of general counsel for providing your valuable expertise and tom will present the items very good morning commissioners i am giving the update report
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what is your 1020 good buddy ? everybody remembers the day and there were cb radios in millions of homes and cars we still remember the early form of personal communication dead -- did besides smokey and the bandit it is a hobby to communicate and only one of the many services that follow under rule 95 we allow for one audio device the public can purchase and operate for personal communication without having to go through a service provider or the fcc license they generally use low-power transmitters to communicate over shared frequency and the list of talking ticket to facilitate sharing so the sample covers common symbol
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used like walkie-talkies or radio controlled tollways or votes or planes these services also cover more complex than lifesaving application like medical implant devices and telemetry devices and a personal locater beacon we did a thorough review because many are decades old requiring a david requirements with the current use of the service now to remove any such outdated requirements to reflect the modern use of these services and reduce burdens and increase flexibility. it will also streamline and reorganize the rules to make it easier and translate into a plain language format to make them easier to read and understand for example, and
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then to have channels to maximize the use of the spectrum by using internal channels increase the power from those that were allowed to reflect the public demand for long-range devices that modernize the rules to of limited data options with gps location data in the text messages which is already permitted on the same channels these allow many existing combination radios were no license is required but to reduce that burden it would increase the license curve between five and tenures with the
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flexible use of the cb radio it clarifies that hand free headsets to remove the restriction on communicating over a long distance and also remove outdated requirements on manufacturers such as control and serial numbers be engraved on the chassis of the cb radio the draft makes other adjustments to increase the public corruption and reduce the annenberg the burden to reflect technological service demand changes the bureau recommends adoption and has editorial privileges ted for over and out. [laughter]
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we now turn to comments from the bench to met with this item we update reorganize and streamline our 95 rules to natalie reflect changes in technology the calpers of radio services in devices are used by the public their use for a variety of applications including the remote control of aircraft those of hearing difficulties medical professionals and those that use walkie-talkies to communicate those rules that are clear and easier for consumers to understand notably a makes clear the device label personal locater beacon and maritime survivor locating devices are used to aid and locate those who were lost on land
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or water must meet technical standards to be marketed as such as will help to insure that all the vices advertised with these terms provided location capabilities as a former walkie-talkie for short-lived and a former order of the cb radio i cannot remember may handle a cue for your hard work on this side of it before the meeting is over i will come up with my handle or remember it whichever comes first. >> hit a new -- to?. >> uninteresting picture. >> i am fairly certain when this was released back in june 2010 nobody ever
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imagined it would be at a commission meeting may 20177 years later not the fault of the staff this is the type of situation that causes the chairmen in congress to push deadlines for action and we are a whole part of the supporting that effort notwithstanding their generally supporting the rules and the manner to make them more user friendly and then to the extent possible judiciously eliminate in the code of federal regulations those that use the radio service should benefit such as making additional channels available in permitting to transmit location data i appreciate
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the chairman's rules to look for to future items to modernize those commission rules they q commissioner for the cb radio codes and irrelevant 1075 major causing interference in 1011 means talking to rapidly over the decades cb radios had changes' with the requirement with the transmitter for each cd radio when adopted and faded into memory like b.j. and
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the bear into gravy to exceed any theft prevention today we reorganize and streamline related to their personal radio service to govern the use of a cb radio remote-control toy is and walkie-talkies the consolidate sections into one place we also reorganize these rules and categories to make easier for the public to understand the modernization effort will help to anyone who uses a cb radio to easily understand and comply with rules if your truck driver agrees to communicate on the road you can put down the engraving pen and the lawbooks to focus on your handle the key to john, joyce, matt scott
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scott, suzanne the wireless telecommunications bureau, martin, a 10, bruce from the office of engineering and technology proton, the enforcement bureau, in the office of general counsel to those who have been calling on the commission for the years the rules i will the neck to on to say ted for over and out we will now proceed to vote on and the item. >> the item and is adopted with editorial privileges granted as requested the key for the presentation that secretary please announce the next item on the agenda. >> it will be presented by the media bureau entitled commission launches modernization of the
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initiative with acting chief of the bureau will give the introduction. >> good morning mr. chairman today a public notice of a top to bottom review of the regulations it is subject to a multitude of roles that are decades old. it is intended to identify those rules and outdated or unnecessary for cable operators. the goal is to eliminate or modify their rules for more competition and investment in the marketplace during the at the table is more of the from the media bureau to present the items. minister charity commissioners we're pleased
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to have the commission's rules applicable to media entities including television and rebroadcast cable operators and satellite television providers. rules and rotated or impose the necessary regulatory burden has innovation and investment in the marketplace. it is intended to ensure that there remains on the books from small businesses to which rules should be modified and repealed it taken put into consideration to whether eliminate or change their rules and through this review the commission takes another step to the benefit of consumers and the viet bureau adopt the public notice to request editorial
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privileges. >> the purpose of a public notices to gather information and build a record before drawing conclusions. the fcc majority starts with the premise that if fans in the public interest can only be achieved by clearing the books of rules for the benefit of the industry. to be clear i have no objection to reviewing the commission's rules making a determination and in concluding the more efficient way to have a goal for the benefit of the stakeholders in the commission. . .
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let me explain what i mean. by sharing a few examples of the commission rules that pertain to the audio and video marketplaces and apply they remain important today our rules require to
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maintain a recruitment program these rules also prohibit discrimination hiring as a multicultural company recently noted its only public service commission request radio stations and very few public services. perhaps some stations by their record keeping that doesn't negate the rules to the public interest and a similarly one industry suggested as part of the review of the commission should make broadcast ownership reporting every four years rather than every two years. not only is the information contained vital to enhancing viewpoint diversity, the third circuit has explicitly told us we need better data on the
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minority and female ownership less frequent data collection will do absolutely nothing to further these objectives yet another example is the commission's rules governing competitive access to cable programming and the regulation of the agreement about the challenges they face we should be strengthening the rules not eliminating protections that are currently on the books. some may claim i am overreacting a. finally, with the majority concludes the regulations should
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be eliminated it is my sincere hope that this will result in the freeing up of agency resources to actually enforce the rules that remain on the books. the compliance in th and reportf allegations of redlining. while i disagree with the premise and will therefore dissent i think the staff of the media bureau for hearing my concerns as well as for your tireless efforts over the years to promote localism, competition and viewpoint diversity. a wholesale review is necessary
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and long overdue so i support this should have and expect that it will generate quick results to follow under the previous successes and space. broadcasters, cable operators and others i've spoken with are very familiar with my calls for ideas about regulations if i was able to champion these changes and get them in one form or another. now we are opening the entire proceeding and they are ready to hear your ideas and act on them which is a refreshing change of pace. since the beginning of the year i've already heard a number of ideas i'm hopeful could be implemented as part of this process including updates of the reporting requirements for the example all tv stations.
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this can be eliminated. similarly, 4397 requires simply unnamed and a copy of the annual but now the reports are. the requirements are another area that they remain now so much communication has gone digital for example they require broadcasting's to give public notice in the newspapers dwarfed by the audience these notices would be given on the station's website. they send notices of the decisions to opt in to the cable
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operators via snail mail the process that can be accomplished online. if appropriate was to move as many forward as possible. >> thank you, commissioner. earlier in my tenure at the commission first adopted by the telegraph division in 1936 that rule was originally intended to address issues of telegraph carriers arriving from the delayed delivery or non- delivery of messages and money orders. it still remained on the books.
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it was yellow and obsolete with age. on cases where their appeal to such a rule last good housekeeping to conduct covered by the rule simply doesn't happen anymore so it is literally irrelevant. in other cases it is a necessity. by comparison every two years as pointed out they undertake what is known as the biannual review. section 11 told us to consider all regulations as we determine any such regulation is no longer necessary as the result of meaningful economic competition between the providers service we then must repeal or modify it. it doesn't require us to review similarly the rules but that
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doesn't mean we can't. the goal here is simple and it's the same as it is in the biannual review. that is we want to figure out with respect to the media regulations how to update the rules to match the realities in the marketplace and we aim to get public input on which rules are necessary and which should be in a fight or eliminated and to better promote the public interest. to be successful we will need your help so i encourage all interested parties to file comments in the proceeding and bring to our attention rules the desert for consideration. my thanks along with the terrific staff for putting together this public notice.
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your work is critically important nonetheless. if you could announce the next item on the agenda. >> the fifth item on the agenda will be presented by the media bureau. that's the reduced cost and regulatory burden for broadcasters by eliminating the main studio who. it requires each television broadcast station to have the video located in or near the
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community. the notice proposes to eliminate requirements associated in the main studio rule including the requirement of the main studio time management staff during normal business hours and be able to originate the programming. joining me at the table are martha and diana of the media bureau. i'm pleased to present the notice of the rulemaking seeking comments to eliminate the main studio rule and the associated staffing and program origination requirements. as discussed we conclude that technological innovations have a local studio requirement unnecessary. the intention was to facilitate the input and the members.
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and the stations to participate in the local communities without the difficult presence of the local broadcast studio. the online public requirements community members no longer will need to visit a station's main studio to access the public file. corruption stations already transitioned to the public file and radio stations will complete the transition. the notice proposes they maintain the current rules that require each a.m., fm, television broadcast station to maintain a local telephone number and its community of license or telephone number. such requirement could ensure members of the community continue to have access to the local broadcast stations if the studio requirement are eliminated and they choose to relocate. we believe that eliminating the rule and the associated staffing would eliminate the burden on
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broadcasters as no longer necessary. the bureau recommends to get off the notice and request editorial privileges to make any necessary technical or conformin or confi. >> thank you. we will now turn to comments from the bench. in the 2012 congressional testimony the localism underpins each of our licenses. to promise in times of every reminding us of broadcasters important role. i find it perplexing they are advocating to absolve themselves from maintaining local rules and the community license. they are often among the first to report an emergency.
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the physical presence means they actually know and are experiencing and are interacting firsthand. when the community wants to know what is going on at their backyard we are simulcasting fill the gap. the economic challenges facing the stations particularly in the small and midsize market and if the elimination of the main studio rule is what gives small-market station which is five or fewer employees the chance to keep the lights on and continue producing local programming.
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while it is true public found online members of the public have one less reason to visit the stations main studio. a local or toll-free telephone number is a good thing but if nobody's there to answer that call and the only option is to leave a voicemail, how often will that voice system be checked, when will the coffee returned and who is going to report if heaven forbid there is a derailment and hazardous chemicals are still up jeopardizing the safety of the surrounding community. this was indeed the case back in 2002 during the train derailment when it took several hours to locate station managers. i think the chairman for hearing my concerns and including the
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questions focusing on rather eliminating the main studio rule would impact the stations of the two communicate time sensitive or emergency information to the public they also ask whether stations for members should be staffed during the hours in which the station is on the air. this would have provided the public and local officials to communicate life-saving information during an emergency. i am also grateful for the inclusion of questions of what impact the elimination of the rule would have on the noncommercial stations. so while i admit i remain skeptical about moving forward with an outright elimination of the rule, i believe that the appropriate questions needed for these reasons i will vote to approve today's npr m.. my thanks once again to the
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staff of the media bureau working with me to ensure with broadcasters remain a core part of every local community in this country. the commission makes a much-needed move towards limiting the requirement on our nation's broadcasters that restricts the ability to make decisions and allocate resources in the way that best serves their audiences. but for so long it is seen that it was stuck in a bygone era would be the marketplace. when implemented they've been the only available means to ensure that local broadcasters would remain engaged and responsive to the communities. now however with more electronic means communications available, we overwhelmingly have other means to do so. the rationale has dissolved.
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it is intended to form micromanagement and the setups of its licensing. now any media broadcasters are ever focused on serving the needs of the local listeners and viewers because it is the only way to ensure the stations success so i think them for putting forth this proposal and i'm hopeful we can bring it to a decisive conclusion in the near future. thank you mr. chairman. >> the first broadcast took place november 21920 in pittsburgh pennsylvania. that night they reported the results of the presidential election. the studios accused for that broadcast was on top of the westinghouse plant in east pittsburgh. broadcast studios changed a lot over the last years including those i've had a privilege to
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visit. almost 80 years ago it requires each a.m., fm and television broadcast station to maintain a studio located in or near the license. back then perhaps it made sense for the reasons explained in this presentation. but today the rule is outdated, unnecessary and unduly burdensome, the axis and engagement ran important that technology has rendered the fiscal studio is unnecessary. that is because such are unlikely to occur by the social media, e-mail or phone rather than through the visit to a broadcast studio. it is a continuous cause that keeps them from serving in meaningful ways like broadcasting additional local programming.
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this rule has outlived its usefulness and added he would like to build a construction permit. the cost to maintain the staff would make the construction of the facility and ticket of doom. they would have meaningful content. the flexibility to the limited resources that best serves the communities. today's notice is an important step towards bringing the rules into the digital age and for that and from the media bureau
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to thank. as being too reflect on today's marketplace we will proceed to a vote on the item. madammadame secretary, if you cd be the next item on the agenda. >> the sixth item on the agenda today will be submitted by the wireline competition bureau and is entitled restoring internet freedom. the acting chief of the bureau will give the introduction. >> good morning mr. chairman and commissioners. the wireline competition bureau presents for your consideration a notice of proposed rulemaking that would take the first step
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towards returning to the successful bipartisan framework that supported a flourishing free and open internet for almost 20 years. i would like to think the dedicated staff of the wireline competition bureau and office of general counsel for their contribution to this item. seated with me at the table are madeline finley, deputy chief of the wireline competition bureau, the chief of the competition policy division, christine, the legal adviser in the wireline competition bureau and nathan the attorney advisor in the telecommunications access policy division.
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seeking comment on returning to the bipartisan regulatory framework to the free and open internet flourished prior to the 2015 adoption on the title. upon the broadband access services to the classification as an information service the text, structure and history of the communications act. the commission's president and the commission's goal of benefiting consumers through innovation, investment and competition.
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second, the notice proposes to reinstate the determination that mobile broadband internet access service is not a commercial mobile service and to return it to its original classification as a private service. the notice proposes to revisit the title to order that modified or reinterpreted the terms in 332 of the communications act and the commissions implementing rules. third, the notice proposes to eliminate the general conduct standard and the non- exhaustive list of factors to guide application of the rule. there is comment on whether they should keep, modify or eliminate the bright line rule set forth in the title to order. the bureau recommended the notice in the editorial privileges only to the technical conforming at it.
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i will have a statement for the record that at this time i will share a few impressions about the docket. for those unfamiliar it is a los angeles community housing one of the largest populations in the united states. it was fair that i me there thaa fascinating woman who called herself frenchy. she would stop me about three times over the course of the evening first going on about how much i look like a teacher but we know that isn't true that we love her anyway. abut the third time turned out o be the most telling. i was moments away to be honest from politely but firmly asking to be excused because it was the
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third time we talked. it is a stable personal e-mail address which helps her keep in touch with the world through the power of the internet. that continuity, that identity, that stable electronic footprint is the only permanent presence. at the same connection led her to the services that appear to be providing a more stable life. i also heard they lost his family, his livelihood and for a time struggled with mental illness.
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he lived at skid row but the doctor that made the greatest headway with his recovery was more than 200 miles away in fresno having to spend hours she was able to skype with his therapist along with their friend from argentina spoke his language and those that were ofe looking to pronounce the name directly they got in through the hardest of times thanks to the power of the internet. an artist, writer, mother of six felt separated from the world because the challenges of being a stay-at-home mother. she first turned as an avenue of expression but that would eventually become a retail outlet for her artistic work and a source of income that it had enabled her and her husband to support their family thanks to the power of an open internet.
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these are just three of the millions of examples of those whose lives have been uplifted by one of the most enabling platforms for speech, commerce and innovation of our times like the nearly 4 million who weighed in on the previous proceedings just over two years ago, these three individuals asked me to tell this agency to keep the internet open and free. we can get hung up on semantics and classification or rather the internet as a luxury where broadband is a necessity in the 21st century and access allows the most portable of us to hold on during our darkest moments to lift ourselves up to a brighter tomorrow. but those that are fortunate enough to have broadband access at home and do not have to go to the library and wait for a terminal or look for free wifi on the corners are in fast food
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establishments. not only are you fortunate, but you know that it is among the first of your utilities that you make sure it is working right after electricity and water. and what does one expect when you get connected that you can run your online business. access content over the internet and exercise free speech without your service provider or anyone else getting in the way. those expectations it pains me to say are now at risk. today's notice of the rulemaking more appropriately should be known as the internet freedom if ratified with deeply damaged the ability of the fcc to be a champion of consumers and
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competition in the 21st century. its contents a hollow theory of trickle-down economics suggesting if we just removed enough regulations. it contains ideological interpretive whiplash only proposing to gut the very same consumer and competitive protections that have been twice upheld by the court and it contains an approach to broadband that was so universal to broaden its reach but abandoned the users when something goes wrong particularly if they are faced with anti-competitive or anti-consumer practices. it jeopardizes the ability to
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function tomorrow as it does today. but if you trust that your broadband provider will always put the public interest over self-interest or the interest of the stockholders, then the internet freedom is for you. i find it ironic however that the voices that support this item including the majority of the commission. if that is so, then why are we here today why is it that they propose to undo the twice confirmed the classification and twice affirmed rules is it so congress can act. this proposal is for the most
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remotely located americans unless the goal is to actually weakeweakened the ability to sut broadband through the programs. i most vociferously defend because it has a three political month after month i listen to repeated calls from the current leadership about how economic analysis we are missing from the last administration i stood and how troubling that was and because of the absence of any
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analysis we were jeopardizing the ability to make sound decisions but unless i missed it, i would welcome a correction there was no economist or technologist consulted during the drafting of this item. i've been out of practice for a number of years i cannot find any evidence of it given the economic and technical depth. the only affects the open internet order that the majority keeps trying to drive home is their assertion that it has harmed investment. the npr m. presents one third for the market. it would be reasonable to assume that the open internet policy
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question is rather a policy increase or decrease for the capital expenditures. it is a relevant question but the only analysis that the majority cites is it is inappropriate to use investments as a policy objective even if i accepted the premise that the question is investment, the analysis failed to take into account what entrepreneurs invest in their internet business and the capitalists put in the market and what consumers pay for and how they use these services to create economic value and even to account for broadband investments that they may be beyond capital expenditures including the spectrum purchases.
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if we were to ignore those points that the majority puts forth it is lackluster at best and as i mentioned previously i get ti've yet to see a credible analysis that suggests broadband provider capital expenditures have declined as a result of our 2015 open internet award but of course that doesn't keep those dead set on dismantling [of productions as we know them from repeating the same tired unproven talking points.
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it was up 5% since the 2015 internet order was adopted. broadband revenues were up, this trend makes perfect sense and no broadband provider has ever told wall street or the security exchange commission that the open internet order was responsible for decreases in the capital expenditures, so why do we appear to be stuck in the exchange on this issue. one analyst articulates that it's impossible to tell. there's no way to provide a serious answer that rises above trying to reverse engineer the answer you want.
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what should we look to for answers with all of the assertions about how burdensome and draconian the current framework is which should be instructive is that the title for framework that was adopted for broadband in 2015 was actually less intrusive than the one that was applied in the early 1990s. we all know how much of a bust the wireless industry has been between 1993 and 2009. industry revenues increased by 1300% and the subscribership grew over 1600% so answer this, why is it that the leadership is
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now proposing to get rid of it is the same legal framework that we know was highly successful as a driver in the mobile industry context. what is becoming increasingly clear is that the majority is willing to read the definition of the telecommunication service out of the communications act entirely not just for broadband but all consumer telecommunication services. why do i assert this. they will unequivocally say it is a telecommunication service if they should be regulated as a common carrier. broadband, messaging, all of these i suspect the majority will say our most likely
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information services. it's about applying the communications act but none about applying the revolutionary to speak on the internet. they do not become obsolete in the technology but let me turn to broadband specifically. those in lockstep in the majority seem to be on board at least so far with the whiplash on the title to net neutrality but they are forgetting it is for the constitutional statutory interpretation to conclude they are engaging. justicjustice antonin scalia gue
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for the legal interpretation was to be interpreted based on their actual text and meaning but how quickly they forget when it comes to an issue they have a preferred policy outcome from the textualism. remember we have seen this and we have been here before. they went before the supreme court in 2005 when it attempted to classify cable broadband as an information service. the majority of the court was within the interpretation of the fcc does not justice scalia and its withering dissent. he accused the commission of attempting to concoct a whole new regime of regulation under the guide of statutory construction.
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those services are changing but the underlining transmission remains largely the same. innovation has and will contin continue. we've moved from copper to class and circuit switching to packet switching. it is the antithesis of putting consumers first when congress clearly instructed.
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the answers are that database is a common carrier service. if the market broadband would transmit across the globe in the blink of an eye. it simply makes no sense in the era of the 21st century conductivity.
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both i'm had to say are firmly stuck in the past. the subscriber purchase of the basic telephony service in separate dial-up service no matter that most of us no longer use dialogue to access the internet. in the discount so why not continue to wind back the clock
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and base the regulatory structure on the version of the internet expire the open internet .-full-stop. would any of the open internet rules that by this rulemaking i'm doubtful that given both the tenor of the questioning and the fact that the rulemaking is proposing to get rid of the only authority. the open internet rules. it is to serve as a basis of the
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limited broadband regulation and i'm talking about section 706 of the telecommunications act of 1996 while paying lipservice to the ideas that we would round open the internet rules for the statutory authority like 230 b.. i'm also concerned at section 706. we've litigated the statutory history. it is a substantial grant of authority. it's about the light touch
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regulation and so on and so forth. the endgame appears to be no touch regulation and the wholesale destruction. a declining to reviedeclining td 85 billion-dollar transaction with massive public interest implications encouraging the consolidation of higher prices if it is broadband and enabling massive broadcasting conglomerates that gobble up more local voices as they cut against the public interest and the majority would keep it coming unless americans stand up, make their voices heard and challenge the fcc and court because it is obvious with each open meeting that the willingness and ability of the
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majority to protect consumers and competition in a broadband era has come to a screeching halt. i think the staff of the bureau and the office of general counsel. your hard work should be recognized regardless. >> thank you mr. clyburn. commissioner rightly. today we initiate a proceeding to reverse the 2015 net neutrality order for the prior decision because i was not persuaded on the record before us that there was evidence of harm to businesses or consumers or to the adoption of net neutrality rules or the position of heavy-handed regulations on broadband providers. now recommending a new
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proceeding that i will fully support under the administrative procedures act. i certainly have my views on the topic and i restate my approach to look to the law for any rules and record of substantive comment that accumulates. thankfully the proceeding is not decided what you dancing with the stars contest with the comments submitted have only so much value. it's to present the common data and analysis. one of the reasons i welcome the opportunity is the prior commission changed course so abruptly it didn't take the time to examine the law and record and it didn't adequately respond to the viewpoint and alternative proposals. this time i am confident that
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whether you agree or disagree for the need of net neutrality rules or the authority to see in order to respond to all substantive arguments. to help bring order to the debate we will conduct an actual cost-benefit analysis. this is a critical for improvement. instead of operating in the economics free zone with the benefits and rules assumed to outweigh any costs they will need to provide evidence to support the argument that the rules are or are not needed. you will enable them to ground the position in fact rather than in hypotheticals. to notice it also asks for the range of questions on the proper legal classification of broadband internet access to service into these include critical questions that should have been explored and answered before it barreled down the path disavowing decades of interpretations that stood in the way. now the commission presents the
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key that it previously ignored for the president and public policy for the classification of broadband internet access service as an information service. my primary goal with respect to the notice has been to ensure the commission asks sufficient questions to lay the groundwork for the sustainable final decision accordingly, any issue that is related to the proceeding and could be part of the decision should be on the table here. one such issue concerns jurisdiction over broadband internet access service and if the commission decides it is an interstate information service and state and locality should be foreclosed from regulating it has some art attempting to do with the broadband privacy law and the approval process and other requirements. i think the chairman working with me.
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there's a vibranthere is a vibre free market that exists for the internet unfettered by regulation. ron wyden and others say the fcc suddenly subjected some or all information providers to the regulation that would chill the growth and development of the advanced services. the very next year they said it isn't good for america to just pick up the title to telephone regulation and dump it wholesale on the internet site. this wasn't controversial, this
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was the consensus. the private sector invested in the $1.5 trillion. they accelerated. it is like google, facebook, netflix and amazon. it wasn't broken in 2015. the they couldn't find evidence
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of market failure. for the internet service provider is big and small to heavy-handed regulatory framework designed during the roosevelt administration to micromanage the telephone monopoly these utilities filed regulations were and are like the sledgehammer being yielded except here there is no flea. as a result they face new regulatory burdens there is no compliance. even the free services had to hear the washington bureaucracy that might disprove the enforcement action against them. for the possibility of the broadband regulations on the horizon, companies investing in next-generation networks hesitated to build or expand networks. i'm sure that the government would let them compete in the
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free market. today we will repeal the utilities filed regulations of the internet. we propose to return to the clinton era framework that has been proven and we propose to put technologists and engineers and lawyers and accountants at the center of the online world. the evidence so far strongly suggests that this is the right way to go. among the 12 largest they decreased by 5.6% between 2014 and 2016. to give some context, this is extremely unusual. it's the first time such has declined in the internet era. to be sure, the study released by the special interest this week claimed that there have been no such decline.
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but the report makes basic mistakes like accounting network investments in mexico as network investments in the united states. this investment pullback is affecting smaller as well. we've received letters from dozens of explaining how title ii hurts them and their consumers. 76 wireless providers say the challenges are exacerbated by the order which has significantly increased compliance burdens and regulatory risks through heavy-handed regulations with uncertainty. smaller wireless providers tell us the uncertainty surrounding the regulatory framework from wireless broadband services hinders our ability to meet the customer's needs, burdens them with unnecessary costly obligations and inhibits our ability to build and operate networks in rural america. 22 of the nation's smallest reports that they have slowed
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dowdown is not halted the if noe development and deployment of the service offerings. 32 additional rules pointed to the bureaucratic straitjacket about the regulations known as title ii and the barrier to the investments they want to pursue. perhaps most notably, 19 nonprofit municipal government owned broadband providers often championed by the advocates observed that for the past two years, the substantial cost of the 2015 decision have harmed our businesses. now, consider for a moment why these statements are so important. these are 150 small isps most of which americans have never heard of. these are the very companies that are critical to objecting competition into the broadband marketplace. these are those that are in the digital divide by building out
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over areas that don't see investment at all or the first to see investments dry up. and again, these are the very companies telling us that title ii makes it harder for them to connect americans with digital opportunities. it puts consumers last, not first to stifle competition. in addition to proposing to reverse the classification, we also propose to eliminate the so-called internet conduct standard. it gives a mandate to review the business models and prohibits the service plans they could investigate any provider for offering any service that the agency might find problematic and that is in fact what the fcc did. within months of this upon itself, they met the enemy and consumer friendly data runs offered by several wireless
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despite the leadership of the agency having gained some of them highly innovative and competitive, they began investigating them preventing the consumers from getting something for free doesn't benefit consumers. additionally they question whether every network management decision is reasonable. this is especially wise when it comes to the networks of the future. consider the fifth-generation for instance, the economist magazine explained what this technology would require selecting the network into multiple networks optimized for a different fee. having to hire lawyers to make sure engineers don't run afoul of the fcc while pulling that off sounds like a recipe for disaster. the entrepreneur of the netscape browser and a prominent venture capitalist said and i quote if
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you have these net neutrality rules, you will never get a return on the continued investment which means you will stop investing in the network. today's notices the chapter public discussion about how we can best maintain a free and open internet while making sure the isps have strong incentives to bring them to all americans. to reiterate this is the beginning of the process, not the end. the next 90 days the public will have a chance to share their views and in the time to come they will follow the facts and the law where they take us. additionally there's a few things that are different from the last time around. first, we are proceeding in a far more transparent way than
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the fcc did. they pushed through the title ii order before anyone outside the building was allowed to see if. it's been available to the public online for three we indeed the public has already submitted over 1 million comments on the draft and i will go one step further today to commit to this. on my watch, any order that we may adopt in this proceeding will also be made widely available while before a vote is called three of you may ever disagree on what they are doing but you will be able to see what it is we are doing and why. we aim to conduct a cost-benefit analysis of the division and this simply wasn't done in 2015. the analysis in the order has been called wrong, unsupported
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and a relevant by their own chief economist at the time. we will have our experts to review the evidence and other variables and we will not rely on the statements about the internet as we know it and 140 character but rather on the data.
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>> >> is entitled connect america the acting chief of the bureau will give the introduction. >>. >> mr. chairman and the commissioners the bureau is pleased to present your consideration in the list of proposed rulemaking and order the visiting whether the rule adopted in 2011 requiring rural telephone companies to recover a minimum dollar amount for voice services from their customers, and they refer to
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-- continues to fill the statutory obligations to assure quality services available lead justin affordable rates. the accompanying order unless and until further actions are taken in this proceeding. join me at the table today is is a shared chief, the deputy division chief of the television communications access permission and an attorney adviser to the commission alibi toward knowledge and fakes to those of effort on this item the assistant division chief and technology division and an attorney and adviser. a bite to take our colleagues for their review
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and invaluable input. >> good afternoon mr. chairman and commissioners their rule adopted toward senator thune tunes for region requires any recipient that is below the rate for to have to call up the support reduced by the house of the residential local service and those are below multiplied by which the number of lives it is receiving support is based on the annual survey under a waiver adopted those lower charging prices such that the carriers to not use universal service support if it is above $80 a nebulize
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$20 and an $22. various stakeholders have argued it is not consistent with the it communications act and the single national rate floor does not as thorough account for the differences in urban areas. and the comedy on whether achievements are needed to address these concerns and what those changes should be progressive alternative they see comment also a state reach working in the and universal ones in the administrative compliance column as well as the need to reduce -- into a fight stakeholders' the benefit of the analysis and then to
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raise a from a current level rather they increase to serve the public interest but to propose that a rule making in request editorial privileges. >> faq. everybody has cleared out for the main event but we will still take comments. [laughter] >> was with drastically were related. >> we spell our last names differently. >> go get to my statement this is going nowhere fast. [laughter]
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asked you rather pay $5 per month or $20 per month for the exact same voice service plan? if there really is no difference in the offer was truly identical you would opt for the cheaper service plan. but in this scenario is only made possible by the carrier's ability to shift the to do the negative the true cost of service of to the other carriers to everybody else's contribution to an universal service fund the i must inform you we have a real public policy problem this is the exact scenario the commission addressed a few years ago with the process of reforming our universal service and confident -- compensation mechanism for:separate return carriers were charging customers extremely low voice service rates and recovering the rest of the requirement for
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a major carrier compensation in and say universal service fund this result in shifting the cost of service from the people who were actually receiving the service in those centers joe least able to afford there. by adopting the requirement to recover a certain portion of the a ultimate cost of service from the end user customers this was known as the rate for. and with that little cost of serviced but they could not be able to recover the amount from universal service fund over two months ago republican amendment to fix some outstanding unforeseen issues have resulted from our efforts at the rate of return reform this package of actions
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included the fix for the capital investment allowance , to find a new path for word of the new rage floor into deal with waste fraud and abuse from the high cost program i have also spoken out in the past about means testing in the ideal world me would have dealt with all of a steady rate of return issues at the same time and in part because many of the issues are not as difficult but they all have an impact not only on rate of return carriers but nationally. loss 1361 of those issues so i had let my misgivings go
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to support that item because i believe it is good policy. it got done sooner rather than later that the next steps would address those outstanding. so dealing in tandem with the waste fraud and abuse were key. now we are entering a second item pausing in fixing the rate for surprise bin to address waste fraud and abuse ignored. with that comprehensive package in freeing up of additional moneys that would
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have been the results of the more efficient process not happening so i respectfully dissent aggressively going after waste fraud and abuse with universal service program solely seems to have been in that is the blatant abuse and the high a cost program with the high cost fund that means to support a broad band networks and is inconsistent when it comes to policy making it should not be a return on investment for personal travel and expenses are paul hard work corporate jets and mortgages this is common sense many in the industry
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have this type of clarity is unbelievable to me with a clear opportunity presents itself we fail to take action. we have spoken about ways to improve the way the service consumers get in remain hopeful but these discussions will bear fruit. i would like to think the staff of the competition bureau for the work of this item to substantial involvement in net least eight or nine items of the past four months i know the work has been hard in the hours are long run negative off and i have disagreed with what you have passed to
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draft i appreciate your dedication to public service >> compared to this circulated version the docket contains a vital fix that is the only reason i cannot support it during this new freeze period they're all working good faith but if they cannot be achieved then they would be restarted the structure is the impetus to explore and develop more precise means to get to the same outcome. make no mistake i am puzzled contrary to all misinformation the commission as two-thirds of the contributions made by those into the universal service will and expected
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surge in revenue of stream from its own subscribers and then to contribute to cover the lower rate offered. to propose to reuter reasonably comparable rate the the cost of room america the rate for a originated that is evidence but to seek full reimbursement of the cost per iran to declare it does not mandate telephone rates companies are free to charge lower rates in in just to keep those artificially ) but that want
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to charge $1 a month that subsidies are provided between the consumer rates in the rate floor are there better ways to calculate? no happily express those if anybody thinks this is a faster return policy then forget there. we should not to have an impact in to be more specific because we have a cap from by cab budget and then to bring down the consumer rate of broadband services this very issue came up with a last-minute commerce committee oversight hearing.
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this is the zero sum game i cost funding seems difficult to the for those that would never support of broadband this is a non starter for me. with a stone cold reality there are rich in middle-class all over america of the job is to ensure those that paid a higher frosting cannot afford them country should not subsidize telephone or broad band rates for the wealthy in a matter where they live with high levels of material wealth we ought to expect that person to pay for those services themselves instead of forcing the middle income individual to provide subsidies although that
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could be lower than some committees compared to the nation as a whole so could the cost of daily necessities for this reason i reject that we should subsidize everyone with the majority of federal programs for instance if a person receiving medicare makes more than a certain income the pay a higher rate to. if means test medicare why not this program? there is the reason why anyone who earned more than $1 million should not pay the full cost of their telephone or broadband service. in to do this into the project we put this up for
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consideration shortly i firmly agree it may take a bit of time have no intent to add layers upon layers and parts of that program that is the right thing to do. that doesn't mean they're not other adjustments to the rate of return the with major reforms to fully support that technical fix that is appropriate is used to be general support that the ratepayer should not have to pay more to cover the cost i am disappointed we cannot get part of this one package to be sure that they are spent on actual
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broadband appointment in those in the very near future i think the chairman. >> in 2016 the average rate for basics phone service in washington d.c. was $13.70 per month july 1st of the last year federal law has mandated the role telephone companies charge at least $18 per month for the same service. it with those tight cost universal service support into in 2011 the concern their role carriers rover subsidized and then with the penalty amid federal funding is was known as the rate for. today is $18 it will climb to $20 in july bin $22 next
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july this is especially hard hit on those who can least afford it those who make less money them their counterparts the median household but income is over $75,000 and listed 55% of the tally. if is not the section of to 54 the requires the fcc to ensure quality services at affordable rates in the rate for imposes without any federal benefit that is because companies can avoid losing support raising the rates you will save taxpayers money going forward because now any
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subsidy is redistributive. in then to eliminate this program policy and we would freeze the rate for at $18 so it is unfortunate since he had been working in good faith to address the problems in the march 15th their commissioner said i would support the rules regarding the cap on the capital investment per probe and the most recent fcc meeting that we work together for the but the consumers first. i would support hitting the rifle or increase so for the
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past few weeks we accommodative literally every single item in now after calling for a river floor and it is consistent with the vote but it is inconsistent putting consumers first. i.m. riffles to the staff for their excellent work in this matter in the particular jesse jackson, you have held to low income spenders spend their money and their family instead of their phone bill. >> is adopted with editorial privileges granted so would my colleagues like to make
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any announcements?. >> i know you will know that when you see people in the hall in interactive them on a daily basis in basket you are doing that could be the only positive gesture that you get but i'd is wanted to pay tribute to to her. with a loss to the end of last month it to celebrate her life. on a more positive note i wanted to mention the presence i would not do that the second time.
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thank you. >> to spend 21 years one month in 10 days that the sec consumer advocacy specialist in day smiling face as the commissioner pointed out is always seven the number of our family passes away and we certainly have for family and friends in our thoughts and prayers. i hope after announcing another departure were the mainstays of the administrative law division and what makes the sec staff so terrific is the ability to work well inside and outside of the building to
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have fielded in the acronym and then since 1978 with the safety special services bureau. been working in the hero division but we kept bringing them back given with the enforcement bureau. spending over five years as the deputy chief with the act the media adviser returning in 2013 with their primary focus of the most challenging with other adjudications in relocating to delaware to spend more time with his family and his nearby grandson period
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philadelphia. in what could finally with the rock-and-roll hall of fame we will issue a figure for your service to the commission in your friendship and your counsel over the past many years. said was an in that corridor is a new director of media relations i got to know him and we were working together for the same senator many years ago as the vice president of public relations somebody who is often tormented so keep your enemies close is the best way to explain that. we are glad you're on board.
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one of the first summer law clerks he started this week the picks such a boring week to come to the fcc he just completed his first year of george washington university law school did in the connecticut republican party and connecticut in average -- an average sports fan in we think he has a good sense and also coached to use basketball teams also a black belt in karate for the body tries to mess with us you will have to sweep his leg. growing up in connecticut in a beach town he says he prefers to be here on the
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waterfront of washington d.c. we're grateful your your. last but not least a simple announcement for decades we have recognized national police week for started under president kennedy 1962 to recognize officers to a fallen in the course of their duties. those who serve here at the sec also deserve more accommodation and i often do but those dozens of security officials to go of the extra mile each and every day that we can do our job free from interruption and that is why we have the privilege to take the time to visit with a security staff and to thank them for their work we're so grateful to the rest of the team they know who they are they bretton
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our day i cannot tell you which helps to walk-in to see a smiling face to start the day of a positive note. if my colleagues don't have any further announcements please announce the date of the next agenda meeting. >> the next meeting of the fcc is thursday june 22nd. >> second day of summer. we stand adjourned. [inaudible conversations]
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[inaudible conversations]


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