>> 2013, once we get through the election. a universal view the certainly the old status is definitely old. it is not slowly being in need of varying. i don't know that everyone is that clear about what exactly should replace. we have the conversation. privacy is going to up the conversation.

it is not unique to cable. it is not unique to even traditional telecommunications. it is critical, especially to whether kutcher will draw that balance. a big subject of discussion. the government, really important conference in dubai with the icy you of global internet policy which i think is the sleeper area of great worry to the industry. but with those issues on the market, a little bit of cyber security, i think it has come up. a little bit of piracy has come up. i would say a little bit. the overwhelming feel. a lot of the technology that we have been waiting for is coming to fruition. doing well. broadband is in turning into a success story for america. people are getting induced by that. >> what are some of the new technologies that have been introduced or talked about?

>> well, let me just see. one involving comcast, the eggs one platform. they announced it at the show. the bursts it -- the first city bid deploy the technology in. the entire interim, the architecture of the network, but it limits what you can do with the guide, software, would you can do with security. it is the gate keeping device of the network. and congress has been a leader in saying we can deliver more services on a cloud platform. the guide does not need to sit on your box. it can live on a server in denver. so could applications, so could other kinds of services. we can innovate on that because we can fix and distribute. they can literally change overnight. they could change in an hour. they could build an application will work with another company, a bugler someone and build an application and hosted on the

server in the cloud. that platform would be able to allow you to do stuff. he would not have to switch out your gear every time we'd get an innovation. i think ultimately they want to deploy that platform to all homes. you know, we start having that stopping the limitation on innovation. and all cable companies are headed to some version of that. we have verizon wireless here. what i am excited about, we have very nontraditional companies. we have netflix, google, microsoft. we have horizon. verizon just announced a platform on the mobile platform that allowed them to search and identify and index videos, streaming content, a traditional content all over the web and bring that. they chose to do that here. those are couple of the things that are exciting. there is a lot more. >> you mentioned that horizon was your. there is some agreement with comcast that they're working on

a joint venture. as a former chairman of the sec, is that something you think might attract the attention of regulators? >> it will. the transfer that will require the government to look at it. i have every confidence that it will get this training and the scrutiny that you think anything should. that is something. now, the companies will argue, probably rightfully so that some of these things should be outside the purview, but i think they are wise to say, look, we are willing to have a conversation about all of this and get the government's stake and that. you know, it's and it's always -- in my view some things are interesting. some things raise my eyebrow. but be tough on visit. but i think you should pause before you start thinking a, b, and see need to happen or this is bad because i think we should always be guided by, is it good for consumers?

is this something that consumers are craving that they're not getting? there is one thing. they don't want their wired and wireless broadband network to be managed as separate platforms all the time. when i take an apple ipad i want to walk in my house, and i want the wi-fi in my house to go over to my contest broadband network and let me once hbo go when i go outside if. i don't want to then have to go and sit disconnect, connects to the death -- this network. the industry -- people want broadband to be, you know, like the air, ephemeral. i don't have to be a network manager every time i changed the spaces. so of this venture can help solve that problem, that is a problem consumers would like salt. it should do so and a pro competitive way. at the government will ensure that they do. i think they're conscious of that. >> how has the business model of a so-called cable company changed over the past two, three years?

>> well, lots of ways. the biggest is broadband. certainly cable companies, broadband may be a more significant part of their revenue than the traditional tv business would be. but the beauty is, when i think of that. i mean, i am not that old. i remember -- to me, cable, title six. video. we are in every form of communication that exists in the world. we provide wired broadband distribution. repackage and bundle and sell video content. we have the nation's largest service provider. we develop software and applications for ipad and i found. we are in every one of those businesses. so with cable, that is our legacy. we are one of the nation's premiere communications platforms and most cable ceos to

elected conceptualize themselves that way. i am in the platform business. that is why we have a new ad campaign. cable. it's how we can act. we are the connective tissue to bring all of that to fruition. as i said in my speech on monday , very proud of facebook ipo. the market is trying to figure it out. but in america at 28 year-old kid can still in eight years make $19 billion, that would be possible that there wasn't a ubiquitous broadband platform that he can count on and reliant off. i'm proud of my country, and i'm proud is still a place that entrepreneurs make great things come to life. >> you mentioned social media, facebook. in the age of social media and connectivity that we have today, what is the importance of a show like this? >> i will go to my grave believing human relationships are still the most important thing that make us different is

people. businesses are relationships. government and private sector former relationship. you know, if melissa chips have to be nurtured. social networks can facilitate that, but if my children's friends never met, you know, they never met them, then never went and had to cope with them, then never went to dairy queen, maybe social networks get -- help them organize, maybe it helped them share and extend that activity, but my child would be is that person if those friendships never did anything but be virtual. when the egyptians form having used facebook, is still took people to come together united as people to make change happen. and i think a genius, they facilitated group to group formation. that is still a people business, and so is this show. >> michael powell, with state taking over the franchise agreement business, how is that

going to affect local content, local access to cable shows? >> well, i don't think that it is going to have all that much effect. i guess the underlying assumption of that question is that, that regulatory approval that somehow forces companies to use something that would otherwise not be interested in using. there are a lot of dollars building and hyper localized communities. let's go to the web when they're not regulated. what is a hot product, groupon? coupons from local -- from localized -- [inaudible] capital bank share. paget aol. hyper localized content. kugel local, you know, localizing search results. can identify where you are? where you are actually matters. you exist. i don't think there is anything but a compelling story.

whether that is new, advertising, shows and content and products, their is a real need there. i don't think the french as an authority to modify making a decision of whether to program for that market. >> i wanted to ask you also and have you talked about with the cable industry is doing to further expand broadband in the u.s. there is an initiative. >> thank you for asking. it is something i think we are proud of. that degree of the only big industry the stepped up to that. chairman jankowski talks about it all the time. we have huge penetration on availability of broadband. we have a somewhat surprisingly smaller adoption rate, many people have it available don't get it. it turns out the reason is a just price. is that even the most significant reason. as to do with comfort with the medium. and so we have signed up to compete and to lead an

initiative to provide low-cost broadband access to low-income families across the country. the entire cable industry is working on this collectively with the sec, enterprise. hopefully we will bring together three critical pieces. low-cost computers with drizzle literacy, training command a low-cost broadband network. and bring those things together will help overcome the adoption and get the country better positioned. >> how would you determine who is low income, who qualifies? >> we are using the program as the metric in these communities. so, you know, these are data sets that we can assess and evaluate. we use as a criteria for eligibility. so you're in a family and is eligible for free lunch, you will be available for this program. now, and the startup phase your technique and the viet -- and even easier test. if you were at a school, your

child went to school, 75% eligible for school lunch as a benchmark. we're going to serve anyone at the school. you may not be. we are not going to make that distinction, at least in the startup base. >> if we could return to policy. the verizon spectrum company deal is being looked at by the sec. was there talk here about that? >> honestly, not much. this is one of those things. in know, the matter is submitted. i mean, companies have announced are going to announce. reviewed by the appropriate authority. we are in that time. we had a lot of government officials here. no one seemed interested in talking about it because they would not anyway. i don't ask him about it. you can ask me all day about a pending transaction. you will get no answer.

but it has not been -- it has been the central story of the business will show at the moment. i have been even somewhat surprised that it has not been. >> and finally, as the former chair of the sec, give us, if you would, your longview of light squared and phil falcone and how that deal, the spectrum deal fell apart and. >> you know, i'm not sure i am really particularly qualified to answer it very tough philly. i don't know the details. i was not involved in the deal and anyway. they're not members of mind. i don't know all of the complexity of what they had to agree to. i can only say, i have seen many attempted models like that. i have always been a little bit -- when i was in the investment world for a while i was skeptical of that approach. but i always admire someone willing to put a lot of capital behind taking a risk. you know, the number of very

serious groups that have to go, pretty formidable. i knew where that spectrum was. i needed gps. i've been through that before. you know, i need your going to get caterpillar coming out of the woodworks. military guys. comparing. that is a lot to overcome, i think. plus, you are in this satellite spectrum. you know, i suppose i was always skeptical that one could overcome all this and then turn around and bill that a nationwide network. let me stop there and again reiterate, what the heck do i no. i am not part of it. i know the details. and so, you know, smart people. >> michael paul, president and ceo of the national telecommunications association.

we are in boston at the 2012 cable show. thank you. >> thank you so much. >> at an earlier session here at the cable show in boston you mentioned that cable set top boxes may go away. i wonder if you could explain. >> sure. the set top box, it actually performs two or three functions. traditional tvs to not have that capability. so i give you a couple of examples. drizzle signals are anchored to so that they are not stolen. we need a device that is able to decrypt some. traditional tvs don't have that capability. in order to display a program guide when need some computing intelligence. also, the ability to communicate

direction, a two-way radio. traditional tv does not have that. so that is -- so we have a set top to allow us to display services in our home that otherwise would not be displayed what is beginning to happen, consumers are buying devices that have intelligence and then. that could be a smart tv. it could be in ipad, and iphone. a local box. in the number of these things. most devices have computing power and they can talk. so that will enable us overtime to eliminate this separate set top box. so that means that the consumer will save that money and i think have a much better experience, including where you put the set top box. the big screen tv on the wall. what have you. but as long as people have all

their tvs we are going to have some setup devices. it's a point to take a long time. that is directionally where is going. >> time trend? >> well, today if you have an ipad in your house on our cable system you can watch tv on it without anything attached to it. so you can do it today. i think realistically to be in a world where there are no set top boxes, that will come only after everybody throws all of their old stuff awake. probably over five to ten years. with everybody is a long time. >> you also a new agreement. what is that? >> we are agreeing to create a common standard so that we can

authenticate our customers. a broadband customer, you could use our wi-fi. where we're building that. and we could also use another cable operator wi-fi. we will be a will to roam across cable operators. for example, let's say time warner broadband customer in manhattan. if you went to philadelphia which is comcast market you would be able to use comcast wi-fi. now, where we are building this is an area where people congregate. wi-fi is not a substitute for the existing cellular network. it is not useful in your car at 70 miles-per-hour or 55 if you're going the speed limit. a lot of data users, wi-fi now. so the idea is to make that available as part of our

service. whether you're doing things that people do, you can use that. our company, time warner cable, is starting in los angeles, a little bit in new york, a little bit in charlotte this year. we are really focusing on loss angeles. that is this year's focus. and we will go from there. >> speaking of ipads and other devices, tablets, even though it is still reported that 98 percent of us are sitting in our living room watching the big tv, there seems to be a lot of energy toward tv everywhere and be able to get tv on different devices. where is the -- where is the business model for that if people are still sitting in the living and? >> well, what we think is people , consumers, once

something that we call before ace. so what are they? the first one is that people want access to in the contents. that may be content may professionally. it may be amateur video on youtube. the video i made. it could be anything. people want access to content. it is not want to be limited. the second, people want to access that on any screen. so all sorts of things, not just the big screen on the wall, but an ipad is a tv. and iphone is a tv. in and tried tablet is a tv. it goes on and on. anything with the display could be a tv. so they want to access to any video on any device.

that is the second. the third, any time. so people want to be able to watch on their schedule. an example. rather than waiting for the one episode of the show week, you have to wait until the next season, people sitting down and consuming all the shows in a series all once. so that is choice, convenience of my time, not somebody else's. so the preferred. the fourth is any place. so wherever i am want this. and we think that people like the idea of paying for this all in one subscription. you pay once a month. you know what it costs. it's up pay-per-view. you don't know how big your bill will be. buy it.

so that is what we are seeking to offer. it is very difficult to assemble licenses and copyright permissions to do this. the technology is available lease it needs to be grouped together in the right way, but it is available. >> there was a quote attributed to you. distributors have to remember that technology is a complement to services, not a replacement. >> i said that? >> that was attributed to you in an article. >> okay. i believe that. i think that -- actually, if you look at our new branding campaign to make very much builds on that. so we are, as a business, a middleman and and enable our. we are all those things. so we don't -- if we are talking about television week, by and

large, don't create television. we do have news channels and some other things, but mostly we are buying them from other people who created. but actually, for that matter, most of the networks buy it from other people who created. c-span is the exception. c-span creates its own conscience. "we do is enable. we are selling it to people. we are delivering it to people who want to make it as easy and convenient as possible. so our new ad campaign is enjoy better. you can fill in the blank. so enjoy c-span better. enjoy nbc better. that is what we do. that is what is reflected. >> as chairman of time warner cable, how much of your day, how much of your time is spent worrying, thinking about working

on issues that regulators and legislators care about in washington? we talk a lot on this program about privacy, piracy, cyber security, that neutrality, the management. what about you? >> i think realistically we are in the infrastructure business. we sell services that are used by a lot of people many hours of the day. that means we are regulated. that is just part of this business. we are regulated at the federal level, the state level, and to some extent at the city level. that means we have to pay attention to issues that regulators care about. and so allowed of my time, i think we continually need to explain to both consumers and

regulators what we're doing, why we're doing it when there are issues they can be dealt with in a complex where people understand all the ins and outs. i actually spent a lot of my time with this type of stuff. >> recently, speaking of regulation and local issues, the mayors of several new york city's wrote a letter to the fcc against the cable companies and for arises spectrum deal. there are saying it prevents competition from coming into their cities. how important is that spectrum deal to cable companies? >> let me explain what we are doing. first of all, this deal is with verizon wireless, not the

verizon wireline company. verizon wireless, that is actually a separate entity that is 55% owned by verizon, 45 percent owned by marathon, which is an international wireless company. i believe it is the biggest wireless company in the world, but i may be wrong. it does not operate in the u.s. except for verizon wireless. so the deal is with verizon wireless, not the wireline company. the deal is to sell spectrum to verizon wireless. also, to sell our wireline services as an agent, which means that we set the price of the products. it's not any different from best buy cellular services, which they do, by the way. we come and turn, can sell the verizon wireline products. they have a similar relationship

with verizon wireline. and this is wireless. we can sell the verizon wireless products is what i meant to say. so i think it is interesting. we used to be part of time warner. a separate company now. time warner has many divisions. and nobody was ever uncomfortable with the fact that one division would have a relationship with a third party, another division might compete with that third party. it happens in american business all the time. so here we have a partially owned entity, verizon wireless doing a deal with some cable company. at the same time we compete with rising wireline. again, it happens in business all the time. add the verizon wireline is going to do whatever they do. unaffected by this deal.

>> finally, it is an election year. so congress is not terribly active at this point. do you expect to do you anticipate, would you like to see congress take on telecom reform after the 2012 election? >> as the ceo of a company in this industry to my would say yes. the length, the effect on this industry, 1992 which pretty much change the television landscape. now 20 years old. an awful lot has changed. then in 1996 there was another that mainly dealt with long distance and local telephones, but it did change some aspects of the television part two. that was 20 years ago.

so i think given the changes of technology in the internet which was barely even thought of back then, it is appropriate. i do hope congress takes the sub as a citizen i think it has to be put in context. many issues of the world. and maybe more important than this. so i think it is all leading to be done in due course. twenty years as a long time to live with regulations on the world changes as fast as ours has. so i hope they take it up. >> what is your background? how long have you been the time warner? >> i have been involved in the cable business for 40 years. time warner or one of the companies. a study with a company called time incorporated, which was a magazine company that was getting into the television business. twitter it merged with warner to form time warner.