tv The Communicators CSPAN November 9, 2013 6:30pm-7:01pm EST
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next, "the, followed by c-span "first ladies ," and later, actress goldie hawn talks about her effort to help children. >> c-span, created by america's cable companies in 1979, brought to you as a public service by your television provider. >> for the first time in many months, the federal communications commission has a full complement of commissioners. new chairman tom wheeler and republican michael o'rielly have been confirmed by the senate. joining us this week to discuss the sec's agenda for the coming year, sam gustin of "time magazine."
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what you think is the number one priority for the fcc? >> i would say the biggest priority, the biggest immediate priority, is the spectrum incentive option that is scheduled for next summer. that is enacted by the to sell to sell thee fcc spectrum to address the growing spectrum crunch, which is being driven by the massive proliferation of smartphones and tablets. >> assess confirmation hearing, tom wheeler talked about the upcoming spectrum auctions. here is what he had to say. i want to get your response. [video clip] >> the incentive option, as i said, is something that has never been tried before. , liken it to a rubik's cube that over on the side of the cube, you have got to provide an incentive for broadcasters to
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want to auction their spectrum. on this side of the cube, you have got to provide a product that is structured in such a way that incentivizes the wireless carriers or whoever the bidders thate to want to bid for spectrum. and then in the middle of this, on an almost real-time basis, you have to have a band plan that is constantly changing to reflect the variables that are going on here. that is why this has never been tried before. this is a monumental undertaking. to create the pieces value for the broadcasters and value for the wireless industry and to pay for first annette and provide them into the -- first net and provide into the american taxpayer of all a go to the complex risk you.
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>> -- rubik's cube. >> sam gustin? >> he is right. it is the most complex event that any government has ever attended. there are other technical and market challenges. on the one hand, as he said, you need to create an incentive for the tv broadcasters to be willing to put their spectrum on the blog. in other words, you have to set up a structure so that the prices high enough that they would be willing to give up is very valuable spectrum toured on the other side of the coin, you need to set up a structure that has enough bidders to be able to drive up the price. there has been some discussion about whether some of the wireless companies might be excluded, for example verizon, at&t, the two largest wireless companies in the u.s., already on massive amounts of spectrum's , so there's been some discussion about possibly mighting them, but that
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have a negative impact on the auction itself. these are issues that the fcc is going to have to work out. i might add that the auction is currently scheduled for next summer, but the due to the themental complexity of auction, it actually may get pushed back further than that. gigi sohn has been pointed by mid-chairman tom wheeler. does that say anything about how the auctions will be conducted? well, the appointment of gigi to the fcc senior staff was a because,g development of course, gigi for many years has been one of the most prominent and respected critics of the fcc, and just a really fierce advocate for the public interest and consumer rights. ways,hink in a number of
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chairman wheeler appointing gigi might be sending a signal to the public interest community that he is if not sympathetic, certainly willing to be engaged with the public interest community to an extent that perhaps has not occurred during previous fcc administrations. so as far as the spectrum auction is concerned, i think having gigi as a member of the mean thatff will there will be a strong voice for the public interest in the chairman's office. i think that is a good thing from my point of view. >> why? >> because i think that one of the tough things about the fcc is that it can be a heavily politicized agency. i mean, it is basically stuck in
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between competing constituencies. on the one hand, you have the nation's largest wireless companies. you have the big cable companies, you have the internet companies, and all their attendant lobbyists and interest groups. on the other hand, you have the american people, the public. what the fcc does affect anyone who uses a cellphone, a smartphone, a tablet, anyone who watches tv, and that means all of us. so the interest of these different constituencies are not over the line. one of the challenges at the fcc is trying to balance these competing constituencies and, you know, for example, chairman wheeler served as a lobbyist for not one but two industry groups years, but the cable industry and the wireless
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industry, so i think a lot of people in the public interest community were a little concerned by that. that thereit is good is a very, very strong advocate for the public interest in the chairman's office. >> what did the lobbyists from verizon, at&t, and other companies think about gigi sohn's appointment? >> well, they have not issued a statement yet. i know that the big companies are enthusiastic and hopeful about chairman wheeler. traditionally, gigi, who for many years and served as president of public knowledge has occasionally found herself on the other side of a lot of from the big wireless and cable companies. i do not want to speculate about what they might think about her
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appointment, but i do think real important to have a strong public interest advocate in the chairman's office for balance. >> well, tom wheeler had been cleared by the commerce committee many months ago, but then was held up in the senate because of the so-called disclose act. here is an exchange he had with senator ted cruz about the disclose act. [video clip] >> in your judgment, does the fcc have the authority to implement the disclose act or to otherwise regulate lyrical speech? --political speech? that is and before, issue that i look forward to learning more about. there is a pending receding on that exact question. -- proceeding on that exact question, and i need to look at that proceeding and become informed. expressiont miss the on both sides of this as to the strong feelings, and i know this is an issue of tension dirt bikes mr. wheeler, as you know,
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every republican on this committee, along with minority leader mitch mcconnell sent a letter to your predecessor on this issue. you and i visited in my office, you said you need to study the issue more. i would ask you to submit in writing an answer to this atstion, and i would note the one i visited privately, this is the one issue that in my opinion has the potential to derail your nomination, and i do not want to see this happen. the commission have a very important role. but should the commission leave that role and get into the business of regulating political speech, we have seen with the irs what can happen when members of congress urged the executive branch to begin laying politics. so i look forward to reading your written response in terms of whether you believe the commission has the authority to implement the disclose act or to regulate political speech. >> thank you, senator.
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what is then, disclose act, and does the fcc have authority over its regulation? a billdisclose act is that is currently stalled, that is designed to increase transparency in political ad funding. so what it would do if it would third- super pac's, party groups, unions, and others to notify the federal elections commission when they spend more than $10,000 on political ads. issue fromt of an the supreme court united decision, which reduce the transparency supported -- associated with political ad funding. after citizens united, a lot of public interest groups pushed
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the disclose act, which would increase transversely in political ad funding. a lot of democrats support it, public interest groups supported. many republicans the -- oppose -- many republicans oppose it. senator cruz and his colleagues wrote a letter in which they say the disclose act raises serious first amendment concerns. is because the bill installed, some democrats and some advocates for the bill have suggested that the fcc could use its existing authority over the tv broadcasters to implement some portions or requirements of the disclose act. now, senator cruz does not believe that the fcc has such authority, and that really was the heart of that exchange. he wanted assurances from tom wheeler that the fcc would not attempt to implement the
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requirements of the disclose act said,t, as a senator cruz if he does not believe the fcc has the authority. on the other hand, some people believe that the fcc has the authority to implement the requirements of the disclose act . last year, the fcc passed a rule requiring many of the top broadcasters in the top media markets to actually put information about political ad funding online, so it is really a matter of dispute right now about what -- about whether the fcc has the authority to have lament the requirements of the disclose act or not. again, that is that the heart of the exchange with senator cruz. finally, last week, senator cruz met with tom wheeler, and -- privately, and tom wheeler assured senator cruz that in limitation of the disclose act
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is not "a priority" to the fcc. cruz'ssuages senator lifted thed he altered >> what about the issue of media leadership? is that going to come up in the next month at the fcc? >> and that will definitely come up. media concentration has been immediate -- has been a major issue for the fcc. there has been a lot of criticism about comcast purchase of nbc universal, which essentially combined the largest cable company in the u.s. with one of the crown jewels of the american media business, nbc universal, the peacock network, the movie studio, etc., so there was a lot of criticism about that. there are also rules regarding media ownership in cities around
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the country, so for example in places like new york or los angeles or other big media markets, there are rules that prohibit big media companies from owning too many media outlets across media, for example, newspapers, television stations, etc. working tocurrently rue m the media ownership les. of course a lot of the big media theanies advocate relaxing restrictions so they are able to own more outlets in a given market. but members of the public interest community after detroit -- have traditionally argued for what is referred to as diversity or localism, more local, independent stations. so there really is a tension. so, yes, that will be a big issue for chairman wheeler for sure.
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>> another issue that he discussed as his confirmation hearing was on fcc processes. here is a little bit of the new chairman. [video clip] >> there are sony components of components of the effect of the option that you have to say the auction is a top priority. i havea more mega-scale, spent a lot of time dealing with the fcc in my life. agencymportant that the make decisions and make decisions in a timely fashion. there is nothing worse for investment, innovation, job creation, all the things that flow from investment. than businesses not knowing what the rules are. hope that and
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overarching scope of things, that we would be able -- with my colleagues, because i am very aware that this is a commission, not a sole proprietorship, but with my colleagues at we will be able to identify issues and move with the spectrum. >> sam gustin, what does that mean? >> well, i think chairman wheeler is right. the fcc is one of the most baroque, slow-moving agencies in the federal government. if you take a look at what some of the rulemaking processes, some of the other activities justthe fcc does, it is incredibly collocated, dense, highly technical material. rulemakings take so much time, i mean years and years and years. if you look at some of the statements that chairman wheeler has made in the last week, he really has emphasized this
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notion of speed and timeliness. so i am certainly hopeful, and i think a lot of people are hopeful, he can increase the getbolism at the fcc, things moving a little faster, and also increase the transparency at the agency because and sometimes even experts can't fully understand what the fcc is doing because again, a lot of the stuff is extremely technical and extremely baroque. chairman wheeler is absolutely right -- with a slow-moving , that delivered for month and even years on end, it really does create uncertainty, and as we all know, uncertainty is the enemy of business. business the of certainty to be able to invest. if there is one thing we need in the u.s. in terms of broadband and to medications
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-- andructure, we need communications industry for, we need investment with dispatch. i think it is really important, and i am hopeful that chairman wheeler really makes an effort to try to pick up the pace, improve the metabolism, and also improve the transparency at the agency. >> in a recent blog post on the fcc's website, mr. wheeler referred to the fcc as what he likes to refer to at the optimism agency. what did that mean? >> that was a nice turn of phrase. i think part of it has to do with chairman wheeler's enthusiasm. chairman wheeler is not merely a techno-crack or a -- a technocrat. he is also a bit of an he is atual, and historian as well. he is a civil war historian.
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he wrote a book about abraham lincoln and a telegraph during the civil war. he seems to have this is oracle perspective that i think is -- this historical perspective that i think is very beneficial and will serve him well in an agency that has traditionally been technocrats sort of and bureaucrats. one of the things -- one of the phrases that he uses -- interestingly, he used it in his book about lincoln, he talked about the internet as a hinge moment in history. so you get the sense reading his statement that he really has a sense that the internet is a unique, in his words, hinge moment that is filled with promise for the u.s., for the common a -- for its economy overall has of applications from health care to education. so i really do think that he
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wants to instill the sense of optimism and hope in the agency, and that is really associated with the promise of the internet, not only for economic growth, but also for increasing opportunities for people around the country and for the next generation of broadband applications and services again in health care and education. so when he talks about optimism, i think he is really trying to againtone of hope, and acting with dispatch for the best interest of the country, the economy, businesses, and the american people. >> mr. gustin, one of the issues that is being discussed among consumers and in congress is the issue of cell phone unlocking. here is the new chairman at his confirmation hearing. [video clip] >> who knew the library and the congress had this far of a reach?
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of i am a strong supporter intellectual property rights. at the same point in time, i believe when i as a consumer or you as a consumer or anybody else has the filled our commitment, and we have paid off our contract, that we ought to have the right to use that acrossand to move it carriers or whatever as we see fit. yes, i look forward to working on this issue and to resolving this issue to give consumers flexibility. issue gustin, is that an that he can implement immediately or not? -- i am notannot sure he can implement it immediately, but there has been a growing grassroots effort to try to address this issue. up the paces picked since the beginning of the year. he is right -- a somewhat
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baffling why the library of congress is involved in an issue such as cell phone unlocking. i think what we need to do is balance, as he said, the competing interests of copyright and the contractual terms that users agree to when they sign up for cell phone contracts with sort of common sense ideas about once you have a filled your contract, you should be able to move to a different provider using the same device. hopefully he will be able to achieve a balance. i would add, with all due respect to to the advocates of cell phone unlocking, that while this is an important issue, it is not as important as the spectrum auctions or net neutrality or some of the other really big issues at the fcc is facing. >> speaking of net neutrality, how network management -- we are
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kind of in a holding pattern right now, but has chairman wheeler forecast his views on that old? -- on that at all? >> chairman wheeler has been keeping it pretty close to the vest on net neutrality and on rules.'s open internet it is important to know that these rules exist, these are policy, the open internet rules exist. he as chairman of the fcc, the open internet rules exist, so it is his responsibility to enforce these rules. now, net neutrality is traditionally been one of the most controversial, highly politicized issues at the fcc has faced. it is currently the subject of a high-stakes legal battle. verizon has sued the fcc claiming that the agency lacks the authority to enforce its open internet rules, and we should just be clear about what net neutrality is with the open
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internet rules are. net neutrality is this idea that broadband service providers like comcast, verizon, at&t should not be able to discriminate against rival services on their networks. so for example, comcast should not be able to block, slowdown, or degrade netflix on its own cable network or broadband network. now, verizon has sued the fcc, claiming that the fcc lacks the authority to enforce the rules. verizon is also making an interesting argument, which is the company isn't saying that the rules violate verizon's right to free speech, which is kind of an unusual argument. what verizon is saying is that because it transmits its own speech as well as the speech of others across its broadband networks, restrictions or rules
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itt prohibit or delimit how can structure or manages network violate the company's first amendment rights to free speech. this legal arguments has attracted quite a bit of criticism because, of course, verizon is perfectly free to speak out about any issue at any time. it is a giant corporation. it has free speech rights. but it is going to be interesting to see what the federal court does on at this case. we are not going to see a decision here for several months. case,f the fcc loses its then chairman wheeler is going to face a difficult choice in how to respond. ormight try to modify abridge the open internet rule, try to actually
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broadband service under a regulatory framework that would give the fcc the authority to enforce the rules. reclassification over the years has occasionally been called the nuclear option because if he did that, there is no doubt that the fcc would have the authority to enforce the rules, but the big broadband companies would go absolutely ballistic, and it was set up a massive, highly politicized battle between the broadband companies and the fcc. keep in mind that the issue of net neutrality has been intensely politicized for years. there were discussions during the recent government shutdown aboute debt limit debate some opponents of net neutrality in congress. they wanted to actually attach
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provisions, essentially gutting net neutrality to unrelated bills associated with the budget and the debt limit, so this is a very highly letter sized issue, and you're right -- right now we are in a bit of a holding pattern because the court is deliberating. it will be several months before the issue a decision. once they do issue a decision, if it goes against the fcc, chairman wheeler will face some difficult decisions. >> unfortunate, we are almost out of time, but mr. gustin, what can you tell us about michael o'rielly, the republican? >> well, he is a former senate staffer who is well respected, and it is traditionally when fcc appointments get made, there is a pairing so that a democrat and a republican are nominated to the agency. in theot as well-known industry as chairman wheeler,
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but he was a longtime senate staffer, republican, who is respected. so far all the comments from chairman wheeler and public interest groups and definitely industry groups and big companies have been very supportive. -- from my point of view and the point of view of a lot of people, it is great that the fcc finally has its five-member compliment because with so many challenging issues facing the agency, it is time to work. >> the "communicators" will face -- will cover the fcc in the coming months. magazine,"of "time thank you for being with us. >> c-span, brought to you as a public service by your television provider. [captions copyright national cable satellite corp. 2013] [captioning performed by national captioning institute]
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>> on the next "washington senior," daily caller conservator matt lewis talk about politics ahead of the 2014 midterm elections. vote executive director rob richie discusses america's voting laws and elect world system feared and later, we will be joined by charles kupchan, former national security director of european affairs. he will look at the effects buying abroad has had on diplomatic relations. our series on first ladies continues. hawnwed by actress goldie and her work to help children. of tarp.a discussion
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