tv Communicators with Morgan Reed CSPAN March 4, 2017 6:30pm-7:00pm EST
together to make this law better, to reduce cost and increased choice. we can do that together. it's not too late. because health care -- it shouldn't be about politics. it isn't in connecticut. no matter how much will people get hurt. now, i may never find that secret room where the health care bill is, but republicans know where to find me if they want to stop playing politics and start working together. c-span, where history unfold daily. 1970 nine, c-span was created as a public service by america's television companies and is brought to you today your cable or satellite provider. on the communicators, we want to introduce you to morgan reed who heads an association called the app association washington d.c. mr. representative -- mr. reed,
who you represent? morgan: 5000 companies who make all of the apps you find on your smart phone. all the way to the applications that are built to handle your mobile banking, your retirement accounts, and sensitive data including your health information. a mobile community basically has turned the world from something that is where you carry your life and your information in your pocket. -- why dos the app the app manufacturers need representative --need representation in washington? what is critical to understand and the way the government intersect with our world is with them on platforms whether it is the internet, the app store, the vice you live on --the device you live on, the health care that you intersect
apps are centric with that world. know that when you get that service, that large company providing it, the part that you use condoms on top of something -- the part that you use comes on top of something else, like where we have a need. in health care, there is in its gear section of the act that beingts telemedicine for reimbursed. only a tiny amount of those telemedicine apps will be reimbursed. my job is to give a voice to the consumers about the product they use and the companies so that
they have the opportunity to solve problems. are employedeople by app developers? expand into the platforms, you are talking about hundreds of thousands throughout the states. if you look worldwide, we have anpanies we work with employee 12,000 developers. and we have many, many people who employ one. the app economy is built on an army of developers where i maybe the guy with a great idea, but you are the person with the co ding skills. in south dakota and i'm in alaska. we marketed and we share the revenue through corporation we create. that is the model that is building literally hundreds of thousands of apps every day that
we love and depend on. >> help us talk about some of the issues the app association faces. >> the app association was among the members of the tech community that decided to speak out against aspects of president trump recent immigration order. i was wondering if you could talk about the reasoning behind that? thatn: it is a perception it is large companies that use hb one visas. membership is made up of a huge number of people who moved to america for the entrepreneurial opportunity. to build a company in belgium, there were so many restrictions placed on entrepreneurship that they moved to the united states. swede in florida.
we have people all over the place of it from elsewhere because they had a product to t,ve forward on, and ye they were restricted in their country and ability to raise money. the greatness of america is often build off of that offer no real opportunity. thatild off of entrepreneurial opportunity. maybe you are someone that has a separate coding capability. u.n. and i want you working -- i need to bring you in and i what you working on this to move forward. maybe i bid on a contract and without your skills, i lose the contract and that loses me the seven american jobs that i am hiring based off of your special skills. for the small community, there are thousands of hb one visas come along company, one person per company making a difference
between success and growth and -- ore or being small staying small. from our perspective, the executive order was not done in a way that allows for legal immigration of people into the country in a way that wasn't confusing. it was good to see that the order was changed to allow green cardholders and others that have been in the united states building amazing applications to come in. the reason we spoke out as we was notthe little guy getting hurt. >> is it important to have people side-by-side? morgan: many of our companies do an anonymous amount of virtual work. if we are looking at a development model. you will bring together a small team to solve a problem.
and you bring them together -- you bring them together to solve a problem. i want to white board the problem or prevent cash or present solutions -- i want to whiteboard the problem and present solutions. virtual working is amazing, but sometimes you have to have face-to-face. tech companies decide to -- --se so they are concerned do you feel that they may hit back with things that may negatively affect the industry? morgan: most of my membership is small.
their goal is for the product is for it not to be stepped on. our job is to bring the voices of small business into the mix. from our membership, what was important is to make sure that through the rhetoric that was happening at a much hotter level, the small business voice was raised and heard. throughout this administration, the president has made it clear that his goal is to grow jobs. one of the things that people may not understand is almost 80% of all of the mobile apps you used were not made in silicon valley. there are regions in the united states in southeastern areas of the midwest where most of your amazing applications, were actually developed by teams in nebraska, georgia. there are thousands of developers quietly coding away so that the truck for your cable
company rolls and on time. thebody has to integrate gps from the driving system from the customer record with the information about how long the project takes. all that has to come together. there is a coder somewhere in america making it happen. we want to make sure this administration is taking into consideration the jobs that are created at how many people, not just on the coast, are part of this ecosystem. >> are americans prepared educationally for these jobs? morgan: thank you for that incredible softball question. the answer is unequivocally no. 250,000 jobs open right now with an annual salary of $92,000. if you include project managers
and user interface networks. we see a cry for jobs a lot of yet on our side, we have a cry for talent. coding asked is blue-collar job? absolutely. half of a lot of tech staff do not have a college degree. -- it isier to takeap latin then it ap is to take an ap science class. one of my daughters is interesting in coding, but her school has almost nothing to offer her. it she finds that she have to do it at home. imagine all of the others who do not have an opportunity and are not playing video games at the
same rate and level, so they don't have that. common among boys. but you look at the educational level and the failure of k-12 education to adequately provide computer science education, and i do not mean typing classes. i mean how do program and had you make something happen onscreen completely out of your own imagination? that we do not have in our educational system and it is killing us when it comes to filling those jobs. 250,000 jobs at $92,000 a year or better. >> are you advocating a policy change to create those? morgan: absolutely. we focused our efforts to put cse downward pressure to add classes. here's the interesting part. should we spend tax dollars?
c billionsending onoding -- industry is spending billionsc on oding classes. -- industry spending billions on coding classes. we have one member in pennsylvania who takes folks in, pays them for 90 days, get some up to a certain skill level, and then pays an even more to bring them to the next level, and then is able to get them jobs and the environment. billionstry spending to inject this information. my problem is we are injecting than information in bringing the knowledge after they have graduated from high school. it is crazy to me that we are -- it is crazy
to me that we are not finding ways to get that when the interest is most broad kids have more time to mess around. we are advocating for a policy whether it be challenged grants or direct action in the state, or whether it be through other federal mechanisms. working withrd to the new secretary of education to meet the needs we have with jobs and the k-12 system. of hb onesubject i am us -- hb one visas curious to know what your thoughts are. what you think needs to be changed about the program? the senator's announcement was wide ranging,
broad, and incredibly refreshing. senator hatch outlined an agenda that was incredibly aggressive and put smiles on the faces of everyone in the room because he was clearly listening. i want to set up by saying very much on the tech community, thank you very much to senator hatch for bringing up and investing his energy on those issues. he sits on very important committees and for someone with his seniority to raise those issues is important. our membership sees a couple of specific issues that are about -- we are competing with large companies to get a hold of those visas. that is the world we live in. the problems we often face are the same things the companies thatis how do i broach visa holder's family.
how do we replenish the supply? how do we increase the supply? should there be extra visas for small businesses that go on top of the large-company visas? we were looking at the reform proposals on h-1b. in ast the talent to come fast as possible and are willing to pay more than market rate, which helps us hire more americans. >> there has been a draft executive order about h-1b visas. what is your reaction to that? morgan: i have learned from my work with the trump administration at this point in time that i will withhold judgment. manytive order draft had interesting aspects to it, but i think it will be revisited. i will wait until we see the final version.
also, in congress, there is talk on a different subject. using the congressional review act to potentially go back some of the fcc broadband privacy rules that is something that the app association has spoken out before. what would you like to have happen to those rules moving forward? morgan: it is very clear from what the chairman is said, we have heard from congressional republicans in this administration that the review sec's position is important. as that review happens, whether it be on the privacy concerns, it had questions that will be filed, one of our concerns was in a rush to sell the certain problem, they were potentially creating lots of problems for -- create lots of
problems for certain issues. with theon is written big guys in the room in the big guys have the lawyers, so compliance is something that can be solved by a compliance department. my member companies have a staff of one and that person is also having to wash dishes that night, the compliance department is also the development department and it creates problems. but for example, we expect it will review free data. that is a proposal that will be very interesting to our community. in part because if it is done right, and this is something that they have addressed, it could be a boon for small businesses if you can make it accessible. in a manner that allows our membership to participate and is open to the membership to participate, that could be something good because if the consumer has more room in
their data cap, that could be helpful. again, we need to see how these proposals are shaped, but to frompoint, we have heard republican members of the house and senate an administration that this is a change they want to make happen, so we are going to participate as loudly or squirelly is necessary to make and the small business side get the ticketve may need. we want more data in more places in the one it now. so whether it is spectrum reform , putting up more towers, our industry succeeds when you have more access and faster and in places. for us, that over arches all of these discussions. there is a rather intricate
relationship between privacy, encryption, law-enforcement. that one of the questions that often gets raised , this intricate weave we have on all these issues -- let's undo it for a moment and start with one of the work you mentioned -- encryption. important thing for your viewers and all americans to understand his encryption is the thing that keeps you safe when it comes to your identity being stolen. last year, 17.4 million americans experienced identity theft. the vast majority of those had a monetary impact of more than $1000. what is interesting is when you interview people who have had their identity stolen, the theft is not just monetary, but it is of having to get back
their identity. if it is a mixture of records that are presented to them. it is an experience our folks have. my own daughter has been getting phone calls from somebody used her identity. she is 11 -- detroit to purchase a car -- to try to purchase a car. we have your loan is approved calls. get theirmericans identities -- 11.4 million americans get their identity stolen every year. use technology like encryption to do a better job to protect it? the flip side is how do we empower law enforcement to go after those bad guys when they do break through encryption? that is something we are going to see congress continue to look at. maccoll warner proposed a working group. that is something active we have
been working with to intercept law-enforcement any proper way. -- butond that, we have beyond that, we have to think about how to be shared and use it? something you may not realize, but every single one of my members from the smallest to the largest is actually in the international trade business because almost every app is available on some -- in some store outside of the united states. gathering, retaining, and sending data across her physical border in a virtual world with no borders. how do question comes ideal with lawful access? the fbi comes knocking asking we want access to the data. if this data is held in a foreign company, and i am a u.s. citizen, what do i do?
how to properly inform my customers about what my requirements are as a u.s.-based company. when you think about lawful cross-borderlso data flow and how do i share it? you have these two interests. senator hatch brought up that specific issue. last year, he was the sponsor of legislation to try to solve this aoblem through improving process and changes to the law. becausemore interesting the court system is gotten involved. -- thear, the circuit second circuit ruled and said he was companies would not be required to part with data based on the u.s. warned only on a foreign citizen whose data is held overseas. expectationsonable
that that process should have been gone through. if that becomes a law of the land, that makes it easier to communicate with our customers to say here is how i protect your data, here is what i will lawfully give your data over. so now, let's enter into a contract and get down to business. without that certainty, we live in a world if a customer asked us what do we do, we have to say, i don't know. second circuit, third circuit, no circuit at all, what do we do? we appreciate senator hatch's being on the front lines. >> do you see bills like the evil piracy act -- the email toacy act really helping
mold this over? will they make it through congress this time around? morgan: i am an internal optimist. i have to be. i am also realistic. legislation isn't so much about smoothing over the problem as creating a new framework by which we can world and our data eight bordered environment that we are as people that may occupy a borderless environment in the internet of the world. to your question of where am i on it? i am hopeful that we could see -- the emaila privacy act.
decisionsrious court are the strongest reason why i believe the international communications data flow will be everyone needs an answer to the question. i believe we can pass. morgan: when was the first app developed? morgan: there are multiple origin stories. storesere apps and app before the iphone. blackberry had its own app store. and microsoft had its own app store. we go back quiet day of ways -- we go back right takeaways. the ways.ack quite in 2009 ands passed
was obligated in 2008. you have to look at our timeline as beginning in 2008, but like any good origin story, there are a couple of spider bites that happened in the 1990's they gave people a sense. it really made the difference when the environment was right. we had debt processes that were fast enough. we had up to indications technologies. how do we get faster bandwidth? we had to have the bandwidth, the chips to run them. and we had to have the creativity of apple on developing and app store that was open and robust they gave us consumersnity to have pay for something without having to worry about me collecting a credit card. frompp stores'power came
three elements -- instantaneous marketing, and in a common, levelch a playing field, that the app i created could be as successful as the one created by the large multinational companies almost instantaneously. if my idea was better, if my user interface with stronger, i could win in head-to-head competition against the largest of manufacturers. level playing field instantaneous tress, and easy marketing, really gave root to the growth of the apple-itunes store. got a store, has google has got a store. >> what is the average number of apps somebody has?
morgan: on average, between 10 and 15. some folks have one app. have a series of applications. the ultimate test is if it was profitable or successful. if you have ever used products were it seems to want to do everything, applications or tending to grow more like individualized tools that solve an individualized problem. you do not buy a nap and it theoretically -- you do not buy an app that theoretically does everything. some people have 10 to 15 and some have as high as 20 to 25. 100.have over
director reed is the of the app association. thank you. please, back. c-span, where history unfolds daily. created as aan was public service by america's television companies and is brought to today by your cable or satellite provider. next, joe hockey, the austrian ambassador to the u.s. of america's place throughout u.s. history. u.s.so talks about -australia's relations. this is one hour. >> it is my pleasure to welcome ambassador joe hockey to chicago and to the chicago council on global affairs.