adopt minimum baseline technical requirements for the new first net authority. those would be national, national in scope. the fcc should not complicate or encumber first net's mission for public safety. we have a once in a i'm life time to get the network right and it's complicated already. and we have to do it for our nation's responders. i will make sure that it's carried out with the intent of the law. similarly another thing i xwcar about is e-rate. senator snowe and i were responsible for passing that and it's made an enormous change in the nature of our country. it provides schools aptnd libraries with telecommunications and enter sunset, but also the demand from schools and libraries is out streakingentersunset, but also d from schools and libraries is

out streaking the supply of money available by a two to one formula.streaking the supply ofy available by a two to one formula. and that worries me greatly. that's why i'm troubled about the proposal that indicates that you will consider using e-rate funds or authority to support digital literacy initiatives. i've been very bad. i just started early. >> starting early. >> yeah, i know. but i got sort of permission from your guy. >> does your chairman do that to you? >> it's vital that we make sure that broadband is both widely deployed and adopted in rural and a urban communities on a nationwide basis. but let me be unequivocally clear. i believe any digital literacy initiative should not compromise the e-rate program.

finally we may hear calls for the agency statutory authority that it be updated. any effort must keep consumers front and center and something well be watching extremely closely because some might use that as a way to undermine the legal authority of e-rate or want to. and we won't allow that to happen. that's the end much my rudeness, but i said what i wanted to say. we have constrained. we have votes at 3:45. may last longer. >> are you going to do statements? i was told you weren't. >> that's i didn't stawhy i sta.

but i think that yyou should be able to say something and then we'll go directly to commission members unless senator kerry hits me with a sharp elbow. >> let me see aim glad we're finally having this oversight hearing. i think it is very important. i think it's obvious that -- well, first let me welcome the two new members because they both went through the committee with very large majorities and we're glad you're on board and you have the full contingent now. i want to say publicly because i've said it before that a lot has happened since our last hearing and the net neutrality regulations that were put forward are those which i think overstepped and i'm in complete disagreement with.

and i think the activities that you all are making must be confined to what you're authorized to do. so i just want to put that on the record. going forward, we did by pass the bipartisan bill on auctionsing the wireless bands. incentive auctions will be going forward. so i'll certainly ask some of the questions that i have on that and because i know he others might want to speak, i think this is a very important effort going forward and that it be done right is vo important, also. so we can explore that in the questions and thank you, mr. chairman, for going only two minutes early rather than ten. >> i would ask now senator kerry followed by senator demint has anything to say. obviously you have a lot to say, but do you wish to say it.

>> i'm going to ask my full statement be in record as if it were in full. i'd just say quickly i think a lot of good work has been done by the commission and i salute both bipartisan and thoughtful considerations that commissioner cleburne and mcdowell and chairm chairm chairman have been putting in place. the one hingege thing is a warng that i'm worry that had some people will -- i don't want to see thishad some people will -- i don't want to see this important entity get caught in the partisan cross hairs of the congress. some have suggested a weakened or inactive fcc might be much

better. and, you know, i think that we have to be really careful of winding up with an unregulated communications behemoth group of them out there that would be in-vulnerable to competition and unresponsive to consumers if we were to move in that direction. so i hope -- we need to have the discussion about where we're going post '92 efforts. it's buys entirely appropriate doing will this, but we to be careful going forward.entirely doing will this, but we to be careful going forward. >> senator demint. >> thank you, mr. chairman. i think you made the best point that our job is as to make sure consumers are protected and we know the best way to do that is through lots of choices, competition, transparency, fairness to consumers.

hope that's the way we look at it. i've expressed to a number of that you there seems to be a sense sometimes in this room that content producers are somehow a government property. or government service. i think you know they're not. they're private company, private investment, private management. our job is to make sure that competition works, that there's enough choices to let the market work and when we do that, we know that customers are protected because they always have more choices if they're not treated right. sometimes i think as we look at it as more of a public utility, it's not only our job to regulate it, but to manage it and that's the sense i get sometimes with the decisions that are coming out of the fcc. with a lot of i think preemptive regulation that are solving problems that aren't there yet. and that's what i want to have a chance to talk a little bit about today. i appreciate the service of all of you and i think i've had a little bit to do helping to

usher most of you through this process. so i appreciate your service and i think the way you approach your job has more to do with how we look at it maybe than you. because if you peel like we want you to manage the industry, that's what you're going to do. our hope is that we can recognize that it is very different than 20 years ago that we literally have dozens and dozens of competitors, ways to get content to consumers that are growing every day. the chances of someone being taken advantage of are getting less and less. and that has a lot to do with some good things you've done and we've done. but hopefully today we can talk about where to go from here, how to make competition and choices work better, not necessarily how to run the entry. i'd just like on consent to enter my opening statement for the record, but i'd rather hear from the witnesses than us. >> so ordered.

i call now upon the chairman. p what i thought we would do is have the chairman and commissioner mcdowell speak and then we would come in with questions. as you can see, there are a lot of people here and a lot more coming so we want to use our time efficiently. >> jim rockefeller. >> thank you. members of the committee, thank foug for the opportunity to be here today. congressional oversight is a vital function. this committee has taken important steps, particularly the spectrum law with the landmark provisions on incentive options in public safety. faithfully implementing the new law is a key priority of the fcc today. i'm pleased to be joined by a full complement of commissioners including my newest colleagues. they join a commission that's been productive, collegial and focused on issues of real importance to our country and i'm grateful to both commissioners cleburne and

mcdowell for engagement that has significantly improved or decisions and processes. at the fcc our mission is to maximize the power of communications technology to further the public interest, to help grow our economy, create jobs, empower consumers and unleash american innovation. we've made tremendous trog in the past you three years and indeed investment and job creation are up across the broadband economy. these metrics are up by double digit percentages both when looking at broadband applications and services and also providers and network infrastructure. american designed apps and services are designed faster than any other. our efforts to unleash the opportunities are focused at closing broadband gaps. first the spectrum gab.

we're focused on freeing up spec trek for both licensed and unlicensed use, removing regulatory and other barriers. and moving forth on innovative approaches like small cells and on spectrum sharing as a new and additional tool to free up government spectrum for commercial use. i specifically want to thank this committee for its work to authorize incentive auctions. i'm proud that the idea was proposed in our national broadband plan and the fcc has the challenge of implementing this mechanism. be we'll be the first to do so continuing a proud tradition on u.s. leadership and i look forward to working with my colleagues and the committee as we move forward. we're also tackling the broadband deployment gap as you've mentioned today about 18 million rural americans live in areas with no broadband infrastructure. our comprehensive reform plan adopted in october to modern size the service fund will spur wireless build out to hundreds

of thousands of rural americans in the near term and sets us on a path to universal broadband deployment by the end of the decade while putting the fund on the fiscally responsible budget. we've adopted orders to ease access by broadband providers and established a shot clock to speed towers. we're tackling the broadband adoption gap. nearly one third of americans, 100 million people, haven't adopted broadband. the connect to compete initiative enlists government, nonprofit and private sector leaders to contact the barriers to broadband adoption. one of several initiatives to promote solutions to major challenges. the fcc successful e-rate program has helped connect every library and classroom in america. last year weed eadopted several

modernizations and we remain committed to this this important program. wire on schedule implementing the provisions, helping deliver on the promise of nationwide for first responders. and we're working on accelerating next generation 91110 so that for example americans can send texts or photos to 911. we are committed to strengthen our cyber security. in the international arena, we're working to oppose proposals from some countries that could seriously undermine the long standing multistake holder government model that has enabled the internet to flourish. consumer protection and empowermentment is a core fcc

responsibility and we have taken action in many areas including smart phone sheft, big shom and cramming. i appreciate the slept committee staff report on the subject. i want to hey light not only what the pc krcht has accomplished, but how we conduct our work. the fcc is committed to smart responsibility government. we've taken many steps to modernize our programs. our major reforms are saving hundreds of millions of dollars and in addition to our practical ma program attic changes, would he moved to eliminate dozens of outdated rules.practical program attic changes, would he moved to eliminate dozens of outdated rules. we've done that and more with the lowest number of full-time employees in ten years. when i had the honor of being confirmed for this position, i said i would work to focus the fcc on promoting investment, unleashing innovation, fostering competition and protecting consumers. those remain my goals and i look forward to working with this committee and my colleagues on unleash the opportunities for our economy and the american

people. this is my first opportunity to welcome our new colleague, so i want to thank the senate for confirming them. and when the senate did confirm them, i put out a statement saying how highly qualified they were and how they were able to hit the ground running. little did i know they would hit the ground running 48 hours after being sworn in this, but this che handle it, i'm sure. so we have plenty of work on do together in the coming months and years. i believe america's future is right when it comes to putting the power of new communications technologies into the hands of the consumers. specifically i firmly believe that we are in the early days of the golden age ever mobile broadband. due to america's light touch approach,oever mobile broadband. due to america's light touch approach,fever mobile broadband. due to america's light touch approach,ver mobile broadband. due to america's light touch approach,er mobile broadband. due to america's light touch approach,r mobile broadband. due to america's light touch approach, mobile broadband. due to america's light touch approach, we is always led the

world and we can further strengthen america's global leadership in wireless if we first implement the new spectrum law with simplicity, humility and regulatory restraint, second, work harder to ensure that federal, state and local governments relinquish more spectrum for auction, and third, commence a comprehensive effort to adopt policies that make it easier to deploy technologies that enhance specteral efficiency. when it comes to sb implementing the new law, we should learn from past efforts to overengineer and you cans that resulted in unintended consequences and count it ter productive consequences, as well. new rules should be minimal by adopting deregular la taker flexible use policies that will make any rules future proof for innovatio innovation we cannot everyone imagine. rules should also offer fair opportunities for small, medium and large players to bid for and secure licenses without excluting any player from the auctions as congress intended with the law. the fcc's inbox is full with

many other matters, as well. we must conclude or producing on universal service contra bugs reform as soon as possible. this silent and automatic tax increase is eating into consumers wallets. it has been as high as 18% and it must be abated as soon as possible. furthermore we're overdue for monday easternizing our media ownership rules. based upon the record before us and recent court decisions, at a minimum, the 1975 vintage newspaper broadcast cross ownership ban seems as out of date as the wide lapels, long side burns and disco music of its birth year. and lastly, not only must we stay unified and energized in our efforts to prevent it from swallowing the highly successful nongovernmental private sector multistake holder model for internet governance, but we must quickly find allies throughout the world especially in the

developing world for this this effort. so thank you for having us here today and i look forward to your questions. >> thank you very much. i'll start with the questions to be followed by senator hutchsen. i share your passion for making sure that broadband is both widely deployed and adopted in rural and urban communities on a nationwide basis. in fact several months ago i requested the gao that they study the efforts supporting sustainable broadband adoption through the btop program. it's my hope that the study will allow us to identify the essential elements of the successful program on focus on only endeavors that have proved to be effective.

so while i appreciate the efforts on literacy, such sefrts should not under any circumstances proceed under the e-rate program. already demand for funds as i indicated is outmatching the money available by a two to one factor. during the confirmation hearings for the three of you, i asked each of you if you could commit that you would assume the e-rate program. i'd love to remind you that i asked for a yes or no answer and i got all yeses. so we're going for a repeat performance because the world changes. and so please give me a yes or no answer. do you promise not to take funds from e-rate funnel funds through e-rate or use e-rate legal authority for your digital literacy initiatives? mr. chairman. >> yes, i think. the answer is yes, we're

committed to strengthening, supporting, growing the e-rate program. we won't do anything in digital literacy that would in any way undermine the e-rate program. >> so that would you allow you to answer yes. >> i believe so. >> yes. so you say yes. >> thank you, sir. >> yes, in principle. >> yes. >> that's good. commissioner resenworcel? >> yes. >> and not much time either on that. in the context of the service reform, we spoke about the important role of wireless services played particularly in rural areas. we discussed the fcc's mobility fund, which you indicated will support the deployment of areas underserved today. prior to our fec actions to

reform the funds, our offices discuss the importance of making sure the fec's efforts help bring wireless service to rural areas that do not have it now, but it's my understanding that the largest in my state of west virginia may not participate in this fund. my question, therefore, is can the mobility fund help poorly served states like west virginia, even if local carriers choose not to take part, number one. and if not, what other steps can be taken to bring wireless services in? >> well, we hope and expect there will be broad participation in the upcoming auction for the mobility fund. it's worth noting that in our reform order, for the first time, we identified mobility as an independent universal service goal. we're committed both to universal service, to everyone in their homes, but also recognizing that people want and need mobile service when they're

on the road to and from work, et cetera. that is the purpose of the mobility fund. we'll take the first step with the reverse auction. we hope and expect broad participation. we're very committed on the goal of getting mobile broad band to the parts of the country that don't have it, where the economics don't support it, but it's important to ensure they have globalized. >> thank you, sir. and i now call upon the ranking member, distinguished senator from texas. >> thank you, mr. chairman. first, i want to ask a question. and it's about the state of texas wireless broadband network for emergency responders. and as you know, you granted the state of texas a waiver to deploy the emergency responder network in the 700 megahertz

wireless band. it's further along in the efforts to comply with the parameters of the grant than any of the other jurisdictions in the country, i'm told. and they are prepared to start using the network as early as this month, just in time for the start of hurricane season. and my question is because texas has moved to try to meet this very important season that afflicts us regularly, is it possible that the timetable can be achieved, that they will get the waiver to be able to go forward so that they can actually use it this year. >> i hope so. as you know, prior to congress' enactment of the public safety proceedings, there were a small number of waivers granted. we understand that the ntia,

which is -- has lead responsibility for first net is preparing comments to us on it. we look forward to getting input from the ncia. from the committee, we want to achieve the goal of the statute of having one inner operable safety network for first responders, we have to take into account the kinds of issues that you mentioned. >> could i ask if it would be a priority in your opinion to try to work with all of those issues, and assuming that they have met all the requirements that you would be able to move expeditiously. >> yes, unfortunately it's a small number, and a very small number at the stage that you described in trks. >> thank you. let me ask you about the spectrum as you are getting ready to go forward with the auctions. i have -- i believe, and i think it has been proven that the

auctions, the licenses that have the fewest strings attached, or the ones that are burdened with the least number of restrictions will gain the most income, which is, of course, what we all want. my question is, is that a priority of yours? maybe you want to go to, maybe the chairman in the ranking republican on trying to keep the future spectrum auctions as free from burdensome restrictions as possible in order to gain the most revenue. i agree that simplicity is better than complexity in terms of running auction, getting spectrum out there. the goal of the spectrum auctions is to maximize the overall economic opportunity from spectrum. it's what the communications act directs us to take into account. we're going to start the proceedings in the near future. we look forward to working with

the committee on the process of ensuring that we have spectrum auctions that maintain u.s. leadership. >> um, do you -- maybe i missed it, do you think that as much freedom from restriction is a high priority for that goal? >> yes, i think so. i think spectrums are complex. so the commission has a lot of history in designing auctions. it also received direction from congress in the statute that will faithfully implement, maximizing the opportunities and determining consultation with all stake holders, the best, simplest model to drive the most economic growth and opportunity, that will be the focus we'll all have in addressing the complex issues in auction design. >> okay, is there either mr. mcdowel or the others, is there anyone who wants to weigh in on this as well? >> i think it's right, senator.

it's important to keep it to a bare minimal amount. if we go back briefly to 2007, when i voted on the order, i voted for the d-block, but i did not vote for the c-block. but in both cases, it did not turn out as expected. the intended winner didn't make a winning bid and there are all sorlts of other collateral problems with it. so with the best of intentions we can make these designs. but then the market has passed by the thinking of the government at the time. i thank the chairman for talking

a lot about that recently. i know many people want to ask questions. >> thank you, senator hutchinson. senator kerry? >> thank you, mr. chairman. obviously the technology -- in a lot of the things that people have a choice on. there are really only two wireless providers. 96% of americans have a choice so my question to you is how

would you say the law has, in fact, either encouraged or discouraged competition in the best sense of the word in terms of number numbers and so forth? >> first, i am hearing from speakers today that it is a core feature part of the market system and the best as far as job creation and consumer benefits. competition has always been an issue in the communication space. since 1996, we have more competition than we did before, and that's good. we hear from many stake holders in the space, smaller companies that are trying to compete, that they have real concerns about