that, yes, the fcc is the technical agency and that the department of transportation is the they will be moving on a rule to address voice calls on airplanes. i am the last person in the world who wants to listen to someone talking to me while i fly across the country, but we are the technical agency and we will make the technical rules that reflect the way the new technology works. finally, item three. we have all talked about the ip transitions, because there is not just one transition. it is a multifaceted process. in today's meeting we will hear a report from the task force which will lay out a schedule including a plan for a january order that will invite experiments in the field, real- life experiments, recommend data

collection, and create a framework for policy decisions. we have a full agenda, as you have all said. it is a privilege to be here, to be able to work with all you, and i look forward to doing that in the time coming7 chairman -- coming. >> chairman wheeler, thank you for your public service and for recognizing our concerns. to formerl switch urn.rwoman cliburn -- clyb please go ahead with your statement. >> thank you. thank you again for allowing me to appear before you today. since our last visit, i have had an incredible opportunity to serve as acting chair, and i'm glad to note that with the support of my colleagues and the assistance of a skilled and dedicated -- we were able -- dedicated staff we were able to

move a number of items which clearly advance the public interest. his hearing comes a critical stage in our policy continuing. tremendousriencing technological change that affects every aspect of our lives. as we look ahead to the challenges of tomorrow, i believe it is important to and the terrain over which we have traveled. we reached a voluntary interoperability solution to address an issue that for years had been impeding the deployment of valuable spectrum. we launched a proceeding to modernize the fcc's schools and libraries program to ensure that our children have the resources and connectivity they need to support digital learning and become the leaders of tomorrow. we adopted in order to address rule completion. it is unacceptable in today's to non-urbanlls areas are not being completed. we adopted in order to reform inmate calling services to

finally provide relief to millions of families who have been paying unreasonably high rates to stay connected with loved ones. we enabled the aws proposal to take major steps forward on government and commercial spectrum sharing. we made ongoing reports -- -- withto lifeline and chairman wheeler and my fellow commissioners, i look forward to building on the progress we have made. clear, thee voluntary incentive option proceeding continues to be a top priority. for broadcast television licensees who want to continue to use their spectrum, the acts mandate the commission make all reasonable efforts to preserve the coverage area and population served. the act has clear directives for the proceeds from the forward auction, including contributions to the public safety trust fund

and the national deficit. congress also gave the commission authority to propose a fine with an appropriate balance of unlicensed and licensed spectrum. unlicensed spectrum plays a critical role in ensuring be more efficient use of spectrum, and commercial wireless carriers are increasingly using unlicensed services to offload smartphone traffic. in addition, chairman wheeler has announced the commission will continue -- consider in order to lunch trials regarding the ongoing technology transmission. i believe the trial, if structured properly, can produce helpful insights in how to best approach reform. i will be keeping an i on how -- eye on how the reforms affect all consumers. havess reform is where we the opportunity to develop an even more efficient agency. passeday the committee

the process reform act of 2013. i am pleased that the proposed modifications to the sunshine act would facilitate federal commissioners' participation on boards and conferences. i would also encourage you to review the paperwork reduction .ct and how it can be improved for example, the fcc is using its website to better inform consumers and the industry, yet to obtain voluntary feedback on ombwebsite the pra requires approval. as a result, the commission cannot be as responsive to users without engaging in a lengthy omb approval process. bothu can see, we have challenges and opportunities ahead. i look forward to working with each of you to address our evolving communications landscape. i appreciate your attention and would be glad for any questions

you may have. >> thank you for your work, your testimony, your recommendations. we will now go to commissioner rosenworcel. thank you for being here. >> it is good to be back. good morning, chairman wallman, ranking member eshoo, and members of the subcommittee. it is an honor to appear here in the company of my colleagues at the fcc. i some measures, communications technologies accounts for as much as 1/6 of our economy. these are the networks that aspects of our modern commercial and civic life. they are changing at a breathtaking pace. keeping up requires taking a , to think at policies boldly about the future. in the weeks ahead, we will do this as we wrestle with the upcoming transition to internet protocol and think about spectrum auctions, including incentive options. if i think we make a mistake

we focus only on networks themselves. after all, there is great beauty and power in what we can do with them. our new networks can change the way we connect, create, and conduct commerce. they can change the ways we learn and seek security. in my brief time before you today, this is what i want to talk about, how the broadband beneath us and the airway is all around us can improve education and improve public safety. first, i want to talk about the e-rate program. it helps connect schools and libraries across the country to the internet. it is a byproduct of the telecommunications act of 1996. remember 1996? probably everyone in this room called the internet the information superhighway. it was a long time ago. 14% of public schools were connected to the internet. today, thanks to the e-rate,

that number is north of 95%, which sounds good. it sounds like the job is done. but nothing could be further from the truth. because the challenge today is not connection. it is capacity. too many of our e-rate schools access the internet at speeds as low as 3 megabits. that is too slow for high definition video. it is not fast enough for the most innovative teaching tools. it is definitely not fast enough to prepare the next generation with the stamp skills -- stem skills that are so essential to compete. contrast this with efforts underway in some of our world neighbors. in south korea, 100 percent of schools are connected to high-speed broadband and all schools are converting to digital textbooks by 2016. ireland will have all schools connected to 100 megabits next year. finland will have all schools connected to 100 megabits the year after that. meanwhile, in both turkey and thailand the

government is seeking a vendor to supply tablet computers to millions of students for a new era of broadband-enabled digital learning. we can wait and see where the status quo takes us and let other nations lead the way. or we can choose a future where all american students have the access to the broadband they need to compete, no matter who they are, where they live, or where they go to school. i think it is time to compete. i think it is time for e-rate 2.0. the fcc has a rulemaking proceeding underway to reboot and recharge the e-rate program. i think we need to make this a high hourly. i think we need to find ways to bring 100 megabits to all schools in the near term and 1 gigabit to all schools in the long term. while we are at it, we must find ways to reduce the bureaucracy of this program and make it easier for small and rural schools to participate.

second, i want to talk about a number all of us know by heart, but none of us hopes to ever use. i want to talk about 911. i haveime at the fcc, visited 911 call centers all across the country. i am always struck by the steely calm of those who answer the phones and help ensure that help is on the way. by how manyruck emergency calls now come in from wireless phones. in fact, nationwide more than 70% of calls made to 911 are made from wireless phones. that is over 400,000 calls per day. if you use your wireless phone to call 911 from outdoors, your location is reported, sometimes to within 50 meters under fcc location accuracy standards. but if you use your wireless phone to call 911 from indoors, you should cross your fingers, because no fcc location accuracy standards apply. unacceptableis an

cap in public safety communications. it deserves your attention, and hours. because no matter where you are when you call 911, you want first responders to find you. moreover, as our networks evolve and the ways we use them change, we must make sure our public safety policies keep pace. in fact, our approaches to networks, both wired and wireless, need to evolve as markets of all. but in our efforts, we must not lose sight of why networks matter. because they can do more than connect us. they can strengthen education and enhance our security. and of course, grow our economy in new and exciting ways. thank you. i look forward to answering any questions you may have. >> commissioner rosenworcel, thank you for your work and testimony and suggestions. .e go now to commissioner pai thank you for being here, and thank you for all the work you are doing. please go ahead with your opening statement.

>> chairman walden, ranking member eshoo, and members of the subcommittee, it is a privilege -- thank you for holding this hearing. it has been exactly one year since i last appear before you. much has happened in the time since. most notably, we have lost two colleagues and gains two new ones. chairman wheeler and commissioner o'rielly have gotten back to strong starts, and i'm pleased we have gotten to. and. we have made progress in a number of areas, but there is much more work to be done. it's morning i will touch on two of the issues i find most pressing. the incentive option and e-rate reform. a full list of sec priorities is detailed in my written -- fuller list of fcc priorities is detailed in my written statement. perhaps the most daunting challenge is the looming spectrum crunch. to meet this challenge, we are focused on them cementing the

responsibilities congress gave us in the spectrum act, especially with respect to the broadcast incentive option. the auction is the best chance to push a large amount of spectrum well-suited for mobile broadband into the commercial marketplace. i support chairman wheeler's recent announcement that in the thele of 2013 -- setting middle of 2015 as the new target. to getuch more important the auction done right than to get it done right now. if any part of our software were to fail during the incentive option, like another government website that shall not be named, the commission by law would not get a second bite at the apple. my greatest worry about the incentive auction, however, is not the technology. it is about the participation. in order for the incentive auction to be successful, we will need robust participation by both broadcasters and wireless carriers. the commission must avoid choices that will deter participation.

for the reverse auction, prices paid to broadcasters should be determined by markets, not set by administrative fiat. any attempts to restrict payments to broadcasters, including a couple kids scoring scheme, will deter broadcaster participation and risk causing the incentive auction to fail. for the forward auction, the commission should not limit the partisan ability to paid by setting a cap or narrowing the spectrum screen. this would result in less spectrum for mobile rock band, less revenue to fund national priorities, and a greater chance of a failed auction. another issue that will impact participation in the forward auction is the size of the geographic licenses to be offered. propose using economic areas, but some argue this would make it too difficult for smaller carriers to burgess paid in the auction. our goal should be to allow as many carriers as possible to bid, whether they be nationwide, regional, or rural.

so i am pleased to see alternative proposals, such as the newly-coined partial economic areas. if technically feasible, these proposals deserve serious consideration. aside from the incentive auction, there are many other opportunities when it comes to spectrum. in the auction next month, the possible clearing of aws three, and the greater unlicensed use of the five gigahertz band. i hope we seize all these opportunities in the near term. the second issue i will discuss is the universal service fund school and library program, better known as e-rate. has been as, e-rate success, as my colleague pointed out. it has also had difficulties. the funding process can stretch for years. many schools and libraries feel compelled to hire outside consultants to handle all the complexities. others don't bother -- father applying at all.

there is no meaningful transparency into either the amount or the impact that e-rate is spending. to solve these problems, i propose a student-centered program. this means up-front funding and a matching requirement so applicants know how much money they can bend and have greater incentives to spend the money wisely. this means a simple financial process. next-ing funding and generation technologies while letting local schools set their own priorities. this means making all funding and spending decisions acceptable -- accessible on a central website everyone can see. in its first year, a student- centered approach would provide a next or $1 billion for next generation services, all without collecting one extra dime from the american people. i believe agreement -- premature to raise the program budget, and under no circumstances should we do so without finding corresponding savings in other parts of the universal service

fund. we cannot ask americans to pay even more in monthly phone bills, especially when medium household income in this country is now lower than it was in 2007. thank you again for holding this hearing. i look forward to answering your questions and continuing to work with you and my colleagues in the months to come. >> thank you. we appreciate your thoughtful testimony and your recommendations. we will now go to commissioner o'rielly. welcome aboard. welcome back before this committee. you know how the rules work, so please go ahead. thank you for being here. >> thank you. to time, i would like to make five points and move on to answer questions. .1, i am truly honored to be before the subcommittee. i have worked on the committee staffer eight years and it was one of the greatest jobs i will ever have. the breadth of knowledge and command of issues by this committee are of the highest quality. the fcc is an

independent agency, not part of the executive branch. it serves to implement statutes enacted by congress. i firmly believe our role is to enact statutes as written. the commission has no right or authority to ignore a statute or statutory deadlines. thankfully, i have worked on most medication policy statutes over the last 20 years and have first-hand knowledge of the intent behind many key provisions. three, the commission has exciting but difficult work ahead. if done correctly, it can have a positive impact on domestic product and national productivity. our communication companies are extremely important to the u.s. economy, and we must allow them to flourish in a world marketplace. the commission's overall focus must or may not the consumer. four, in terms of specific items, my focus will be on the meeting -- immediate work before the commission. the fcc must finish rules on

incentive options, proceed with the ip transition trials, and complete our media ownership procedures. part of the role of an fcc commissioner is to provide information to the public. i take this seriously, and that is why i am choosing to spend time on distracted driving caused by wireless device users. drivers need to put away wireless phones and focus on the drive. let me be clear. industrys the wireless is doing work to get out the message. if they are aware of the problem, are dedicating problem -- resources, and are working hard to prevent the horrible tragedies caused by texting, viewing, e-mailing, tweeting, mapping, posting, i'm another's while driving. it does not appear more government regulation would be helpful in this space. instead, i am talking to my colleagues to find ways to use our voice in nonregulatory ways to educate the public and prevent senseless accidents.

thank you. >> you win the prize. two minutes and 37 seconds. >> i know this committee very well. [laughter] >> yes, indeed. some will learn along the way. we appreciate all your testimony and your recommendations. it is good to have all five commissioners in place, the four commissioners and chair in place. it has been a year to the day, i think, since we had the commissioners here. welcome aboard. i know we all have a lot of questions. i learned at the heels of the former chairman about trying to get answers at a relatively rapid rate. i will try to post some of these, not as skillfully as he does, but in a yes or no format. i would start with mr. wheeler. i know you are voting on this mprm today.

i want to stress, it would be helpful if the public got to see that. that is one of the process issues i hope you will break through. maybe this will be the last mprm that is not public first. i want to follow-up and figure out how you are going to permit, as your testimony indicates, airlines whether to choose to allow voice calls. is the commission planning to waive either the common carrier obligation to complete calls or the net neutrality rules on blocking voip packets? both seem to be necessary to prevent voice calling from aircraft . >> thank you. first, to your point, the morm weirton's -- mprm we are considering today will be complete in considering the words of a role we are considering. in light of the philosophy you and i share, let's get it out there. s is to doe of thi

just that, to put the language out so people can see it and give us their comments. to your specific question, the open internet order specifically provides what is called "premises exemption," and that means that coffee shops, bookstores, and airlines mentioned by name are exempted from the order. in that, under the definition of reasonable network management, which is one of the tools that premises owners, including airlines, have the ability to pick and choose exactly what comes over. >> all right. we will follow up more on the other piece you might have to deal with as well. i want to ask you about title two

. there has been a proceeding open at the commission for a long time. are you planning to keep that open, or planning to close it? >> we are in a situation right waiting for are court opinion on exactly what our authorities are in a broad sense. rushhat there is no between now and then to make a decision on title two. that asote, however, you mentioned, this has been open for a long time and it has not had the threatened chilling effect that some have worried in wirelessestment and broadband infrastructure. this is an issue that clearly is going to have to be dealt with. we will start with the court's decision . >> three more questions i want to get in.

we understand the fcc launched a study on critical information needs. apparently it includes a qualitative media analysis which would require interviewing reporters and editors to figure out how the media decide what stories to run. are these kinds of questions questions a government should be asking of the news media? as someone with a journalism degree, i get a little chill up my spine. does it have any effect on the media that the regulatory body is even asking these questions? how does it help you fulfill your section 257 mandate on which it is predicated? >> i think this goes back to the root of the discussion we were having a moment ago about making sure the public understands what is going on. the 257 requirement mandates lowering barriers to access to media for minorities, women, small business, and other identified groups. in order to make that kind of a judgment you have to have facts.

in order to have facts, you do studies. what we did, there was a study that has been proposed by a consulting firm that we were working with. we put that out for public get the kindctly of input you are suggesting. but it is not, and -- this is not an effort to influence the media. >> i will interrupt you for a second. when you're spending -- some of -- questions of media personnel include, what is the philosophy, what are the demographics of management and staff. what you would consider critical information. these seem like really internal journalistic issues. now, i need to move on because i'm over, but it is an important question. the quantel regression analysis analysisle regression

has had a negative impact on investment and the deployment of broadband services in rural america. mr. pai, you have been an advocate for the need to address this program to ensure that rural americans are not left behind. what do you recommend commissioner -- recommend, commissioner pai, needs to be done with respect to the qra? >> i have seen the problems on paper. the department of agriculture are ported to us earlier this year that 37% of funds are sitting on the table because there is so much uncertainty among rural carriers. tom my home state of kansas carriers in rural alaska, i have seen that they are uncertain of what the future pretense -- portends. they are not creating additional investments, which creates a divide we will not be able to bridge . >> chairman wheeler, given the negative impact on broadband development, do you intend to

reconsider the application? >> yes. as a matter of fact, i have asked the bureau to draft and let me see an order that i could share with my colleagues to return tothe qra and the high-cost loops. >> i have other issues with the fm translators and delay in the rulemaking, dealing with cable operators, the groups utilized by them. maybe we can follow-up afterwards. the committee has been kind to let me overextend my questioning. we are usually fairly flexible on that here. now i turn it over to the ranking member, ms. eshoo. >> that is great. so i have seven minutes, right? [laughter] mr. chairman, you said it is your 39th day. i would like to add that i think your adult lifetime of work has brought you to this. >> that has been a long

lifetime. >> a wonderful path that has prepared you for this position. i have a whole list of niche issues which is really the way we deal with all these things. first, do you think you will get a deal on cell phone unlocking by the end of this year? >> i hope we will be presenting to the commission today -- as a matter of fact, i know we will be presenting to the commission today the voluntary agreement that has been reached with the wireless industry. so the answer is probably yes. >> terrific. question, last week, as you know, i joined with my to ask you to take action to prevent at&t from implementing a significant rate accessr their special

customers. i appreciate what you have done in terms of the suspension. but i think there is much more that needs to be done on special access reform. expect further action? >> i apologize. i am currently recused from the preceding. >> so how will it happen? >> it moves ahead with the other members of the commission. >> i see. i am going to assume that they are going to, that this area will be examined. because we really have to have a reasonable rate for this important service. commissioner rosenworcel, thank you for your testimony. i love the way you present things. it is so clear. you can feel the sense of urgency and why it is urgent

and. how are you going to pursue getting this done on the commission, the whole issue of e-rate. you presented an eloquent case. i think you gave a fantastic 911 and theweek on problems we have between indoor and outdoor. that and the e-rate. maybe i should be asking the chairman what he plans to do on e-rate. i know what you want to do. maybe we can switch over to chairman wheeler? >> on e-rate, there is a leader on this commission. as you say, i would like to associate myself with the remarks of mid--- commissioner rosenworcel. >> maybe next time the commission comes before us you

can tell us the steps we're going to take. >> if i can say one thing, we are going to put out a schedule to address this issue. >> that is terrific. indoorchallenge of the versus outdoor wireless and 911, what is your plan to address this? >> as the old saying goes, you may only make one 911 call in your life, but it will be the most important call you ever make. right now, if you make that call from your wireline phone the first responder knows exactly where you are. if you make that call outdoors, in a field, using your wireless phone, we have location accuracy standards. >> i am asking what you want to do about the challenge. >> endorses the problem. we have no standard. increasingly, households are cutting the cord.

than one third of households rely exclusively on wireless phones. i don't think it is acceptable that when people make emergency can't first responders find them. i recommended in that speech you mentioned that we start a rulemaking to address this. we have heard from carriers and from public safety officials that this is an issue. >> good for you for identifying this and taking it up. i think one of the things i taught my children from their earliest memory was, 911. putting their fingers on the keypad so they would understand that. you are absolutely right. commissioner pai, you made a wonderful,. something about not one dime more on phone bills. i want to raise something with aboutairman going back

below the line fees. leading to our nation's wireless and wireline providers, and we asked them about their practice of applying below the line fees on monthly bills. i agree with commissioner pai. that is why we wrote. we have a concern about what people are paying. these things are hidden. they think everything on their bill is a tax. i have to tell you, i brought my bills in. i could not tell what the heck they were, who was doing what to whom and what it was for. tell me what you think the agency, i know there is a long list of the challenges, but these are important issues for consumers. what steps can the agency take under existing statute to ensure

that consumers know exactly how much they are paying each month, especially prior to signing up for their service, and the whole issue of below the line fees? >> this is a very legitimate concern. ae specific one is retransmission consent charge that cable operators have just begun putting on the bill. i say "just begun." i am trying to get around that and figure out exactly what our authorities are to answer your question. it does, however, strike me that the broader issue that the chairman and others have talked about in terms of the issues that need to be addressed in a telecom act rewrite, just what is going on. >> but that will be, like, seven years from now. >> oh, no.

>> let's see. >thank you, mr. chairman. thank you, chairman walden, and thank you to the entire commission. i want to say also, welcome to the new team that has come in. we wish you well. we really do. the chairman and the commission will operate at a higher level because of the high level of people that have come in to support the work. congratulations to each one of you. >> we will now move on to the vice chair of the subcommittee, mr. lamb of ohio. >> thank you very much to our commission members for being with us today. this is a question i would like to ask all of you. the incentive auction legislation prohibits the fcc from excluding qualified bidders . as it works its way up to the

commission, it appears the wireless bureau is simultaneously working on the spectrum aggregation docket to achieve spectrum caps. will you commit to allowing any that compliesder with statutory requirements to participate fully in the auction? chairman, if i could start with you. in your testimony, when you talked about the incentive auction, you said you are looking at a voluntary market- oriented approach. >> the statute is quite explicit in that regard that the commission may not exclude somebody from participating. ?> also aggregating it would be wide open for everyone to be involved? >> what has been developing here, the ceo of at&t recently came out with a statement saying, wait a minute, i think i to makeke to have rules sure not one party can run away with all the spectrum.

i think that in between those positions is where reality exists. the statute, i agree, is quite clear. the statute says we will not exclude anybody, and the statute --o says that the condition commission will design an option so as to promote competition and consumer choice to sustain a healthy wireless marketplace. we will do both. >> madam clyburn. >> section 6404 is clear, that any party that ok's the rules is qualified to participate. it also makes clear that the the ability to enforce rules of general applicability that will allow for spectrum aggregation in order to promote competition. so again, my colleague mentioned

that part of the reasons for some of the robust participation and the types of ideas we are seeing is because we took a dual path. on the same day we release the notice of proposed rulemaking on the incentive auction, we also released a notice of proposed rulemaking about this. i think that this in the long informationrove our dissemination and our acquisition and rulemaking once we decide on a clear path forward. >> thank you. >> the middle-class tax relief and job creation act says we can have rules of general applicability but we can't exclude anyone from participation in the auction. it is easy and simple. we have to follow the law. >> i would agree with my colleague. i would point out that if you look at the end goal, to have a successful auction that pushes

and yieldsf spectrum revenue to fund national priorities and provides fairness to all parties involved, then we conclusively deterred participation by adopting unduly strict policies. colleagueso thank my for stating that the statute is clear. was an effort to give the commission some authority in this base when members could not come to agreement. i am extremely hesitant to impose limitations on spectrum aggregation, because we have certain obligations under the statute. the money has all ready been spent. we have already spent the money from the spectrum act, so we have obligations to provide $7 billion. we have deficit reduction numbers that are already out the door. so i am worried about anything that would depress auction revenues. i am aware of the statute, and i

want to remain open to considering. i am hesitant at this time to impose anything. >> thank you. many of you know that competition has been an ongoing issue in my district. theink the fcc for issuing notice of proposed rulemaking to improve the ability to monitor the deliver of calls and roll areas by mandating certain requirements from carriers. commissioner pai, do you believe the november 8 order will resolve this, orders more need to be done? >> i certainly hope it will. whether in toledo or topeka, we need to figure out where the kink in the system is. and what point is the network failing? if it is a technical problem, we can take steps to fix it. if it is something the sec needs to be empowered to take corrective action. i support taking action sooner rather than later. >> thank you very much.

i see my times expired, and i yield back. >> we now turn to be ranking member of the full committee, mr. waxman, for five minutes. >> thank you very much. i wanted to indicate that under the act, the fcc may not single out a specific provider for exclusion from the system of and petted of bidding. bidding.itive at the same time, the fcc is permitted to adopt and enforce rules of general applicability that promote competition. even at&t recently it knowledge they support rules that limit the amount of spectrum anyone company could acquire as long as the rules applied evenly to all auction participants. chairman wheeler, as you know i am a strong supporter of the open internet rules because i believe the internet must remain an open lab form for innovation and commerce. you have emphasized the importance of the open internet order.

you recentlyime, made comments suggesting that an internet service provider could charge a content provider such as netflix a fee in order to guarantee the best available transmission speed. do you see these types of business arrangements as consistent with the fcc's open internet rules? >> thank you, mr. waxman, for raising that issue. it gives me an opportunity to get more specific than i was in ohio. i am a strong supporter of the open internet rules, full stop. the rules were written in such a way as to envision opportunities for innovation and experimentation. balancempose on them a between protecting the open internet, protecting consumers,

and stimulating innovation. , under the open internet order, new ideas such as those you have referenced, in a wireless environment particularly, are not prohibited. but there is a clear responsibility for the commission to make sure that what takes place does not interfere with internet access, is not anticompetitive, and does not provide preferential treatment. and we will enforce that. we will maintain the balance between innovation and assuring there is an open internet. >> i appreciate your expanding on that issue. while network infrastructure and technology have changed since

the passage of the 1996 telecommunications act, the values embedded in the act have not. i know you will soon begin a process to collect real-world information and data on the ip transitions. how will the commission continued to advance the long- standing goals of competition, universal access, and consumer protections throughout this transition process? >> mr. waxman, there are many people who have described the trial, the ip trials, as a technology trial. i don't think they are technology trials. we know how to build ip networks. they are exactly what you raised. they are a values trial. they are, how do we make sure that the values that for 100 years americans have come to expect from their networks continue even after the way in which the network operates changes? that is what we are going to be looking for. it is not whether they work.

we know that can get taken care of. values, howare the do you preserve the values in the new technological environment? >> commissioner rosenworcel, do you want to add anything? >> i think there are so many exciting things that can come with networks. we should embrace the future rather than reject it, so i think experimenting in these kinds of trials is a smart way to go. future,e move into the we have to be informed by the values that have always been a part of communications policy. i see four -- public safety, universal access, competition, and consumer protection. >> thank you. , imissioner o'rielly appreciate your appeal to bipartisanship in your testimony. i know you played an important role in helping us get the bipartisan legislation and the passage of the public safety and

spectrum act last year. thehelped negotiate availability of unlicensed spectrum. what is your perspective on unlicensed spectrum generally? do you think the commission is on the right track? >> yes. i am a strong proponent of unlicensed spectrum. i'm always amazed what the innovators and experimenters can do with unlicensed spectrum. i think there is great opportunity in the 600 megahertz for more unlicensed spectrum. a number of ideas have been proposed where unlicensed could fit. bands, 37, guard depending on what her plan looks like. we talked about wireless microphones. they will be whitespace in the 500, maybe the 600 as well, and there will be residual conversions, if you are talking

about converting from six megahertz to five megahertz broadcast channels. so, there should be opportunity in the incentive options after complete for unlicensed spectrum. i am strongly supportive of those. the only difficulty is figuring out how big those bands should be. >> my last question is to commissioner pai. you stated in your testimony that 92% of americans can now choose from 10 or more wireline competitors. if that number is accurate, doesn't it demonstrate that the pro-competitive policies of the 1996 telecom act are working? don't you believe we should continue to support a marketplace that gives non- incumbents a fair chance? >> congas and waxman, thank you for the question. i think the multiplicity of choices and sewers enjoyed demonstrates that an ip environment where you have conversion, something we only dreamed about during the 1996 act, were you have telephone

companies competing with wireless companies to provide the same services, we can rely in a way we could not in 1996 on marketplace and technological innovation to drive consumer choice. to the extent that there are values of competition embedded in the 1996 act, i embrace those, but we should ultimately be mindful of the fact technology can quite often outpace where laws and regulations are. that appears to be where we are with respect to the ip transition. >> should we report a market place that gives nonincumbents a fair chance to compete? >> absolutely. the market play should give everyone a fair chance to compete. >> i turn to the gentleman from michigan, mr. rogers. >> as he represented it of michigan state university, i want to say thank you for giving me a great weekend. [laughter] i do find it suspicious that my phone has not worked since the game. i wonder if you might be looking into that for me, mr. chairman.

recent council meeting, i understand you talked about the need to apply metrics and evaluating the security. can you elaborate on that for me? group you are talking about has done a terrific job in using the multi-stakeholder process to come up with rules on botnets, router security, important network security issues. but it is not enough to just say, ok, here are the rules, then walk away. the question is, are the rules working? what i have asked the group to do, is a multi-stakeholder process, is to say, how do you establish metrics and know if this is working? that is the trust but verify kind of situation. >> how do you find those

metrics? how are you working through that process to define metrics in th yeats that change literally bt the hour? botnets, for instance, how can you track the movement of where they are going? they seem to have movied -- move d into data centers. what we know about that and what that might suggest, and what are we seeing in terms of results of the implementation of haveidns of things they suggested? if you find you are in some kind of disagreement on meeting those standards, do you foresee a regulatory scheme? >> i would not want to presume a hypothetical.

i would hope we would be working with industry to identify what needs to be done. much like we are going to announce today on the cell phone unlocking, we sat with industry and said, here is a problem, it has got to be solved. by the way, we will have metrics on that. that is the preferable first approach. that is the approach we are taking. i hear you say that, if you correctly that means you are at least contemplating a regulatory scheme of some sort beyond just the voluntary, here is our metrics, try to do the best? >> that is the right question, but the key word is "contemplating." i have talked repeatedly about what i call the regulatory seesaw. you do this, we don't need to do this. what they are doing is saying, ok, here are the kinds of things that need to be done. if the seesaw has to tip, it has to tip, but it only tips on the

basis of need, not the basis of theory. correctly,erstood there is a possibility you could regulate. we should have lots of conversations about that. i worry that by the time you process your regulatory commission -- framework, it is too late, the threats have changed. >> i could not agree more. the reason why the multi- stakeholder processes preferred is because it is much more dynamic, much more flexible, moves much quicker than a regul atory process can, and can stay flexible. that is why i'm trying to say, yes, that's the preferred process. >> you're not going to move away from the council model for regulation? >> the multi-stakeholder process is the right way to go. >> can you talk about team

telecom? it is important in terms of preventing investments or tochases to prevent threats national security, like chinese attempts to gain control of telecommunication nodes? can you give us an idea of what you are thinking? >> when issues come before the commission relative to mergers, acquisitions, whatever the case teame, the input from takcom is always saught and -- sought and taken into account. >> do you see an improvement to that process? can we do something, once the report comes back you have a limited set of decisions you can make. you are in, out or disagree. is there something better we should be doing, providing authority for you all to be --

given the nature of the changing technology and how fast it changes? >> i have not had to live through one of these yet, so i am probably not qualified to o pine on the fly. i would love to look into this and have a discussion with you about it. >> we are looking at reforms to try to make sure we are keeping up. i look forward to that dialogue. thank you very much. to committeen chairman emeritus, mr. dingell, also from michigan, i believe, for five minutes. i have no comments. welcome my old friend chairman wheeler to the committee. we look forward to great things from you. i'm satisfied you will serve with distinction. i want to welcome commissioner

o'rielly, and i want to commend .ommissioner clyburn your daddy would be very proud. my questions will be directed solely at chairman wheeler. you will not be surprised to hear yes or no responses. i would like to start with spectrum auctions. you recently announced to hear the commission will not conduct such options until 2015. that gives you an extra year. do you expecte, complete negotiations concerning the relocation of broadcast frequencies with canada, mexico, and border areas? yes or no? hopeful wei am very will be able to move it forward.

you don't have to have the signature on the page. >> you know that would cause a lot of viewers to lose service and a lot of screens to go dark in our part of the country. paragraph 15 of the commission's notice of proposed rulemaking for the incentive option states "the commission expects interested parties will have an opportunity for meaningful comment on all specific beforeging methodologies it makes a decision." does the commission publicly commit to sharing with the public the broadcast frequency repacking methodology it adopts, as well as the variables and other inputs it may used to predict repackaging results, yes or no? >> i will go beyond yes and say absolutely. >> mr. chairman, let's move onto the forward auction of broadcast frequencies. f the middle- o

class tax relief and job creation act provides the commission may not grant licenses through forward auction , reassign, or reallocate broadcast frequencies or revoke spectrum usage unless it auction with a forward -- unless the proceeds of a forward auction are greater than the following three factors combined. first, the total amount of compensation the commission must pay successful bidders in the reverse auction. the cost of conducting a forward auction, and the estimated cost to the commission to pay for broadcaster reallocations. in addition, it is in the public interest of the commission to raises ae auction significant amount of money in order to help build out.

, these constitute a significant pressure on the commission to raise significant revenues to accomplish these objectives, do they not? >> yes. >> mr. chairman, will the commission adopt fair and simple rules to encourage participation by the broadest group of wireless providers in the forward auction, yes or no? >> yes. >> mr. chairman, let's focus our attention on intelligent transportation systems. this is of considerable importance to my part of the .ountry and our industries and the five gigahertz band. iven the commission licensed ago, is it5 years reasonable to say it would be premature for the commission to authorize unlicensed use of the

megahertz band before studies are completed that could form -- that would confirm such use would not cause harmful interference with its services and other incumbent uses? >> yes. and let me go further. we will not authorize if there is harmful interference. that youery comforted are here this morning, mr. chairman. chairman wheeler, do you believe improveission should licenses of the megahertz band before definitively establishing no risk of harmful interference with its systems? >> no, and ira p, we will do nothing that causes harmful interference. we will do nothing

that causes harmful interference. >> is the commission considering moving forward with rulemaking opening only the 5035 megahertz band for unlicensed use? >> this is where i need to ask a question. the answer is yes, if it is we are considering. the answer is >> i would like to commend you for your work for the networks. will the commission consider an order in 2014 that will adjust geographic trials, as well as wayto detect in the best for consumers using ip-based networks? yes or no? >> yes. >> you have been most gracious. thank you for this. mr. chairman, your comments have been helpful. thank you to you and the members for your presence. >> thank you. the gentleman yield back.

the chair recognizes mr. guthrie. >> thank you. i appreciate that. welcome. it is good to have you here. good work that you are doing here. there seems to be a lot of progress made. a lot of progress is being made band forp the hertz commercial use. i know that fcc has sought comment on how this can be used for commercial uses. is the fcc on track for the band. with another and -- is on track for the band paired with another band? are still on track. there are still some issues. >> are there some impediments

you can identify? >> i think these are implementation all kinds of things. question,ific to your we have a september time frame. >> you spent time in the wireless industry. how demand firsthand has grown exponentially. a lot of our short purpose is on the incentive option of the megahertz. looking forward, which is the plan for future demand? how can they ensure that there is a do spectrum to status by what consumers will face and demand? looking again, how do you plan for future spectrum demand? what. state have? -- what thoughts do you have? applying the incentive option

,oncepts to government spectrum i am a believer that by the time that we put everything away, it comes down to economics. economics of an agency where they can get cash to help them fulfill their mission is an important kind of decision. structurereated a where this can happen. >> we look at that in our worker in group. it is a lot a work for the agencies to do this. say -- i always say -- you learn things when you get elected that you never thought you would deal with. my consumers, my constituents demand it. they want fast bandwidths. -- we were looking at it.

you can get numbers of it will cost this and that. it gives them a reason to go in and make this happen. thing is iresting was involved in the negotiations back in the year 2000. it was the first negotiation with the department of defense. we kept saying to them, you will get money. they said they could not spend it is it those to the general treasure. but you have done is set up a structure to help compensate people. the beauty of it is that what it does is it creates a cash flow for them to be able to meet their new needs and to be able to raid their equipment -- upgrade their equipment. it is a winning situation all around. >> yesterday you said it was a win-win-win for the consumers

and agencies and the taxpayers. future, what are you looking at for what should happen for bandwidth and more spectrum as we move into the future? beyond that needed options and things. what are other things we can do to free spectrum? looking atonstantly how to get the most efficient use out of the spectrum. one of the interesting things we will be running a test on is what do you do with spec drum sharing -- spectrum sharing? there is a digital world the spectrum,y to share but our spectrum allocations were set up with analog assumptions. it,e can share it and reuse

it is a great opportunity and we need to be pursuing that as well. is that youetaphor do not have a lane on the highway just for emergency vehicles, but when it comes down the highway, he pulled go out of the way -- people get out of the way. the chair recognizes the gentlelady from california. >> thank you. let me follow up on my partners questions. the day you were looking at the use of federal spectrum. finallyconcept that is come to the point where we can do something about it. way tove this is a encourage federal agencies to spectrum. it is not easy to do. we work with the dod. we made a lot of progress. i am also looking at what the

commissioner has always said about using a certain approach regarding the federal spectrum holders and having them relinquish spectrum. in your view, and i also want you to comment on this, are that incentives going to be adequate to encourage federal agencies to relinquish noncritical spectrum? chairman wheeler. >> i do not know the answer to that. i have not market tested it. incentive is a market test question. respectith all due punt. what is important is the concept that has been developed. it seems to me that once that , making suredified

that incentives are adequate is frankly the easier lift on the whole exercise. >> thank you. commissioner? >> thank you for the question. the legislation that you have introduced is terrific. the demand is going up and the supply of the spectrum is going down. it is time to be creative. -- legislatione is creative. federal agencies by some measure have veto control over percentage of our airwaves. they use their spectrum for their mission. keep our planes in the sky and tell us what weather patterns are coming. the do not have structural incentive to be efficient with it. your bill is the start of a

conversation of how to apply those incentives. once we get it right, we will have a catalyst for new mobile broadband use. it will be a terrific thing for the economy. >> thank you. wheeler, you emphasize how important it is for you to lead the fcc in fact-based decision-making. for example, this committee is looking to the fcc engineering expertise to determine the conditions under which wi-fi protects the missions of fellow commercial systems. how will you and your staff this bond to that challenge? as the commissioner said, i associate myself with this comment that he is a strong supporter of unlicensed. they key is to make sure their are no harmful interferences.

i believe that if you take a and at the five gigahertz , we should block one be moving to rulemaking on that. it is something that the commissioner has often suggested. thatyou look at band two we have to address the questions that i was addressing with mr. dingell. make sure there is no harmful interference. there's nothing on the record that gets to that. >> thank you. a broadbandk options question. the fcc has implemented a lifeline measure. can you explain what the fcc plans to do here? what is the goal of these pilot projects? projects taking

place around the country that we are funding with some savings we have had in other parts of the program. we will look at what is the lifeline like subsidy on broadband adoption? and we will look at what are the issues to helpng people understand what broadband can do for them and the kinds of things that they can do once they get on the internet. to -- it is not just the two -- that you can access it. >> will you use this to develop a responsible, permanent broadband adoption program? is the goal. these are the trials to inform .uture actions

wireless broadband and broadband adoption are kind of the center point of what the agency does. >> thank you. i yield back my time. recognizes the gentleman from texas. five minutes. >> thank you. i want to make a comment on the audience. this one is a lot bigger than the one upstairs with the joint hearing. they seem to be more interested as well. [laughter] that is a credit to the subcommittee and the fcc commissioners. we have the nrc. >> that would be news, wouldn't it? [laughter] question, i have one -- the middle-class tax relief

in the jobs creation act requires repackaging and spectrum 65 megahertz in the low-power tv in which there are thousands and are not guaranteed continued assistance. of thisrman subcommittee has a bill that we hope to introduce soon. why does it not guarantee them? i hope it creates a pathway so .hey can continue to exist as the new chairman of the anyission, do you have thoughts among might be done to industrylow powered tv a chance to continue to exist? >> thank you. yes. there has been a lot of talk about following the statutes.

translators are secondary services. is what the statute says. have opened a public delivery of the content. how do we make sure that the content -- and this and that being more of a digital technology question than anything else. how do use digital technology to get comment -- content out? make sure the consumer gets the content. and then the dirt point is -- third point is there might be a safeguard in the reality that rural areas do not have that great of a demand for spectrum

wireless services to begin with. operators -- there may be operators where there is less pressure to get spectrum. we will find out. >> you are the new kid on the block. you have not had a chance publicly to comment on this issue. any thoughts on low-power tv and what might be done to help them to continue to exist? >> the chairman and you are right to introduce legislation to work on the spectrum at. it was a decision made by the members to not protect low-power translators. i would defer to your legislation to resolve that. . know we had a chance to talk representatives have argued to participate. i am not sure if that is accurate.

we have heard that argument as well. >> that is my only question. i yield back. >> the chair recognizes the gentleman from utah. five minutes. >> thank you. i appreciate your time to be here today. this is a very informative hearing. chairman wheeler, in my state of utah, we have many translators that relay signals to many rural communities that rely on tv to obtain the newscast and entertainment. with the increased reliance on mobile data, there is no doubt we need to take steps forward to make spectrum available. the spectrum repackaging could have a negative impact on those rural communities. taking twois the fcc protective viewers from possible negative impacts? congressman, the first issue

how threatened should they feel? the fact that they are living in rural areas where there is less of a demand for mobile spectrum may end up being a defect no shield for them. shield for them. the secondary service does not have protection. how do protect consumers as you are suggesting who rely on it? have had a public notice and are seeking comments on the question of how to get what the translator or tv station does in terms of content out and how this new technology

fit into that such as digital use of the airwaves or whatever the case may be? wheres clearly an issue we need to be focusing on what is the effect on the consumer rather than what is the effect on the transmission medium. you have told us how to look at that. >> i appreciate that response. there has been a lot of back- and-forth on how the incentive option should be structured. we should maximize participation. what do you see is the best way for us to maximize participation and revenue for the federal government and both of these options? before i took this job, i was in the business of doing business deals. i think that is what we are talking about.

this is a business transaction of someone who has a license needs to make a business decision. how do you do that? what is our role? we need to make sure we are getting relevant information on a timely basis into the hands of those parties to make that decision. we have scheduled the option plans. we will lay out what kind of information needs to be. i think it is incumbent on us to have an outreach program in smallwe make sure that and large broadcasters understand how the program will work and what the economics could be. in terms ofhink what economic models might look

like. at the end of the day, we are laceg we want the market -- place to make a decision on what is the best use of spectrum? they cannot make that decision until it is informed. upon us to make sure that information is given in a timely manner and to help them with that process. >> i have a question for you about a program you mentioned briefly in your opening testimony. currentd about a program that has jiro craddick inefficiencies built in. inefficiencies built in. what can you do with your existing authority or what do you need for congress to do to change it to increase those efficiencies? >> thank you for the question. i think the program is important

and invigorating it is important for education and the economy. we can do more with this program. we do subsidize a lot of old- fashioned services right now. we should phase those out over time and focus on capacity and bandwidth. we need to reduce bureaucracy. of small ande way often brutal squirrels from participating in this program. often --ike to -- and from percent -- participating in this program. >> i appreciate that. i yield back. for fiveair recognizes minutes the gentleman from nebraska. >> thank you. let me begin by saying thank you to the former acting chair. during your tenure as acting chair, you have finished the low

power fm and you guys did a wonderful job. you really did. thank you to all of you for that. chair --ormer acting >> the commissioner. [laughter] >> you can have a sign for your name now. you were extremely communicative. i love the way you reach out to us. frankly, you're so extraordinary i think every chairman, including the new one, should model themselves after that. that we see that level of communication. thank you to all of you. this is a great board. you are serious about the real issues. i like how you filter out the politics that surrounds all of this. keep it up.

regression the analysis has been discussed to some point. that has been a longtime concern for me. some of the concerns that we capitalt could displace aboutment -- this is all getting capital into rule america. -- rural america. it needs to be reviewed. i have been told that your comments are that you understand this problem. i invite you and all of the commissioners out to rural nebraska. land in my district and then we will go there. it is becoming a problem. that we one provider have used as the model for

--ponsible role telecom rural telecom. there are businesses that have high speed and are using it to monetize businesses. they are truly a worldwide business and not just two blocks. there is a wind farm. they are having trouble. they need a broadband hookup. they are saying they do not have the money. they are not allowed to use the money in that way. not just that one house that is 30 miles back. rural economic development. i want to ask the real question -- does it concern the video

market? many worry that cable -- of the current market of video is seeing an expansion. has defined a group for the purpose of program access rules in a way that excludes a biting group out there. are there plans by the commission to look into this and maybe change it? do you think it should be excluded from the process? >> thank you. of thebecome aware issues that have been raised about this. you.ed that we get back to the answer is that we are aware and are dealing with it. about it being

excluded from this rule? -- you actually had an expression. [laughter] no, i supported the notice. .e had a lot of questions it listed all of the issues under consideration. i look forward to working with my colleagues to make sure that fcc takes appropriate questions. >> and others nodded. >> and the new guy? >> i agree with chairman wheeler. i look forward to getting up to speed. i apologize that i don't. >> i yield back. recognizes the gentleman from new mexico for five minutes.

>> enqueue. welcome -- thank you. welcome. i know that you are very welcome here today. it is great to hear recognition from my colleagues with your leadership and your work. the not want to speak for -- i will invoke his name. it is good to have a fellow utility worker and a leader here. myself and he served on the utility commission with a chance to do some great news to get it. great to have you in that capacity. chairman wheeler, i appreciate the conversation of regression analysis. there are many rural members of congress that are on this committee. , i hopeok at this

through deliberations of make mobilef we can calls from an airline, we should be able to make it anywhere in rural america. [laughter] i do not want to hear that we are not able to anymore. thank you for making sure rural america will not be left out. -- i was alsoge encouraged by the fact in a -- it report -- report that is critically important as we roll out qra. lastly, i am planning to introduce legislation to include the elevation of the national of al recognition permanent office.

there is evolution of what we are seeing with the extension of utilities across rural america, including tribal lands. i am intrigued by the conversation around ip transition. representative rogers was asking about secure networks. do not lose sight of the fact of security. sometimes things we have read about in fiction or seen on television, there has been a lot of concern about the security of networks and the infringement of appearing in to consume information. . am intrigued with experiments i like your thoughts on anything you are aware of that the fcc might be looking at with the laser-based quantum encryption.

it is work that is going on with the national lab. i know it makes him nervous. it seems we are trying to protect intellectual property. the more advanced we can make our systems with the technology, it is something i want to encourage. analysis andrned not you want me to learn laser- based quantum -- [laughter] i look forward to learning a lot about that. let me be specific on what i can comment on. secure.orks need to be period. what i was trying to say to mr. way fors that the best

attacking that is through the multi-stakeholder process and moving with the dispatch. the bad guys figure out a way to get around things. we need to make sure that our responses are flexible. with therking president's executive order in the various steps that he is taking or that executive agencies are taking in that regard. twoppen to believe that challenges of the ip transition is going to be the security networks and the privacy of the information. commento back to the that i was making about that trials need to be about measuring values, and we need to

thoseressing both of issues inside that trial. i look forward to learning more can help laser quantum out. >> i appreciate that. it wasn't too long ago when the same idea was presented that we may be able to bring data over. there were a lot of discouraging thoughts that were associated with that. data on ability to move fiber cannot keep up with the processing speeds. if laser-based quantum is enough to keep secrets preserved, i would hope that we find a way to extend these protections to consumers as well. a very real threats taking place . we know that it works. there are ways to make this work with what we have available.

i have tried to take this up with the intelligence to midi. they're very cautious with the conversations until i presented them the publications that have talked about this in an unclassified way. am hoping we can look into this to have a serious attempt incorporate this. >> the gentleman yield that. the chair recognizes the gentleman from colorado for five minutes. >> thank you. congratulations on your new role , you newly retired role. enqueue for your service. thank you for the comments you made. it was something i have dealt with each and every day. i have a number of rural telecom utilities that continue to face the uncertainty about the qra.

thank you for your comment on that as well. i look forward to following up with you as those decisions move forward. i want to ask a quick question about the issue of a rate program. who is responsible for policing to make sure the program is being used as appropriately in baking sure there is no abuse? >> thank you for the question. , it is overseen by us and is monitored. there is not a great deal of transparency and accountability in the system. >> how do we ensure there is no overlap of ivan sector service with rate funding to make sure we are not adding to government competition? if there has been a problem identified with a rate contract

were -- contractor, is her way topolice -- is there a way police issues? company that has had violations.e-rate >> yes. action and cases can take action is something fraudulent has occurred. no interest in doing anything but enforcing rules against people who abuse the e- rate system. >> as we think of reforming the program and restructuring the planks of it, we need to ensure at the end of the day we do not add toe-rate funds to

the problems of competitors. >> i know you talked about this as well. >> i echo the sentiments of my colleagues. we do not want government funds to replace private sector funds. we want to make sure we reach as many schools at high speeds as possible. with respect oversight, we can benefit from more oversight. we have to take efforts to get them out. >> thank you. this is something you can get back to me on. are you familiar with a report on next generation 911 that is being put together by the national highway traffic safety administration in connection with a blue-ribbon panel that was convened by the fcc's

communications and interoperability council? report familiar with a that is about to come out? >> i am not familiar with it. >> there was a panel that was put together. in report is coming out january. there are some questionable findings in this report. areuld hope that the fcc not in line with -- if you could take a look at that report before it is issued in public to make sure when we issue a report --t has the seal of approval >> consider it done. >> thank you. regarding the ip transition issues, heading in a good direction. there are certain strides made. it is talking about rural

america again. the consumers be served in the long run? >> particularly in rural america. >> it will be important in these inals that we have trials rural areas to answer those kinds of questions. you cannot go to new york city or someplace like this and run a trial and say that it applies in cities in your district. that is going to be one of the criteria that we will look at. >> thank you. .> the gentleman yield back the chair recognizes the gentleman from missouri for five minutes. >>. chairman wheeler, i came to congress with a 30 year background in the auction business. interestt a great anytime we try to conduct an auction for anything.

how this is supposed to work, but can you provide a timeline of actions that need to occur before the incentive option began? >> yes. january, we are going to have a presentation that will lay out both the timeline in the policy issues that need to be decided. spring, we are going .o be voting it offers to do trials and set up a measurement scheme for them. it addresses the kinds of policy issues that will be important to all of that.

then we will go forth with trials. >> can you tell me about what the fcc is doing to make sure the maximum out of revenue will be generated through these options? -- auctions? >> believe me, we have a responsibility not only to fund ction activities, but to par down the federal deficit. it comes out of multiple things. got to be able to track broadcasters. .e have got to have something rules are understandable. there are rules that we are being aggressive and understanding the economic impact.

you only bid to the point that your spreadsheet says they will be making sense. we have got to track broadcasters. challenge.s perverse you have to provide the appropriate incentives to get them to -- >> you for see that happening? -- foresee that happening? >> congress told us to make it happen. we were going to do our da mndest to deliver on those instructions.

i believe that we will be able to fulfill the challenge that we have been given. in no way or shape or form do i underestimate the magnitude of it. i have spent more time on this issue on the last 30 90s than any other issue. i know my colleagues all feel the same way. we understand we are fighting off a huge chunk here. article in ohio. there is a quote for protection of competition would apply to the coming auctions of airways for mobile broadband. could help protect competition by making sure the two largest companies, at&t and verizon, were not able to use financials dubai up available spectrum -- would not be able to use financials to buy up available spectrum.

how do you decide to limit bidd ers? >> the more people you get to the action, presumably you presumably you get better results. we are creating a marketplace that will attract as many people as possible and not just the giants. sure that weke have smaller wireless companies and make sure there are entrepreneurial opportunities. that is one of the things that is the most interesting that was put out on public notice. talk about smaller economic could bid forthey a smaller piece of geography

rather than a humongous piece. carriers -- they can target their activities and take something that is a consumable bite rather than be forced to go out -- >> there is a patchwork quilt of what they can buy at the auction. >> they can buy their areas or other smaller areas rather than having to buy. we have put this out for comment. it is an interesting idea. but it wasn't -- >> that is the history. we are about to conduct our 86th auction. that kind of,

situation has occurred. .fter, market develops various players say, how can i be organized for the most efficiency? >> i'm beyond my time by quite a little bit. [laughter] >> the gentleman's time has expired. recognizes the gentlelady from north carolina for five minutes. >> thank you to the commissioners for being here today. to direct my question to you. that has beene raised from my staff back home in north carolina. it has to do with one of the points you made in your opening testimony. i will read from your opening statement. we adopted an order to have calling services to provide relief to millions of families

and two point 7 million children that have been paying unreasonably rates to stay connected with incarcerated loved ones. there are concerns on this issue. they would like me to ask some questions to you. measures, to security they will now we putting in place -- be putting in place, they want to provide access and information and the ability to communicate with family members. they are concerned that this iser or reform regulation saying that basically their ability to put forward call blocking, is that an issue? is that something that is looked upon that we want to veer away from? >> thank you. it is a pleasure meeting a fellow carolinian.

>> that is ok. we are brothers, cousins, sisters. >> absolutely. ,or the call blocking concerns as it relates to that particular item, i want to assure you that nothing within anything that we have the livered in this order prevent any kind of security -- delivered in this order prevent any kind of security blocking. if it is a judge or a witness or something, it is potentially at risk, yes, these providers can block calls. the call blocking comes into play when there is a business and another supplier is blocking them. that is when we have some

disconnects. when it comes to security protocols, that is in place. what you mention is that the epicenter for reform. family members, those who represent those who are incarcerated, not everyone who is incarcerated is guilty. they have complained to us for a number of years, well over 10 years, that the ability to communicate was financially outrageous. regime.n unaffordable acted. in providing reasonable rates for all. we put in a neck and is him that mechanism.put in a

means for aide the return for those carriers. have built time, we in a return for carriers. it is the amount of money needed to provide a state of the art security protocol? we put forth in terms of the order it would deal with -- it and bring more certainty who areility for those making calls to those who are incarcerated. >> there are concerns about the costs involved. if you could give some guidance in anticipation of the costs that they will have to incur as toesult of this, we want

make sure everyone is protected and the security is there. also, would you consider at the local level, they can be exempt until they can come up with a plan of action? >> one of the things we have put forth in this engagement is the capacity for any provider that is under distress is to apply for a waiver assess -- process. they do have the ability to do so. one of the things i wanted to emphasize is when we came up with this rate structure, we looked at a number of costs that ofluded a wide array facilities and came up with a cost structure that was much higher than some of the petitioners wanted us to. we felt we needed to take into facilities,account

large and small, to come up with a structure that strikes the right balance. >> thank you. i will certainly work with law enforcement back home and that commission on this issue and the subcommittees. thank you. i yield back the remainder of my time. thank you to the commission for being with us today. i know that chairman feels the same. and thank you for changing your to beor your meeting here. i appreciate you accommodating the committee to appear before us. cu no further business, this committee stands adjourned -- nom no further -- seeing further business, this committee stands adjourned. [captions copyright national cable satellite corp. 2013]

[captioning performed by national captioning institute] >> this weekend on c-span, secretary of state john kerry testifying before the house foreign affairs committee of the nuclear agreement with iran. you can watch that tomorrow morning at 10 a.m. eastern. and the memorial service for nelson mandela. resident obama was among the world leaders who spoke at the service. sunday morning, kathleen sebelius testified before that house subcommittee on health. she talked about improvements to healthcare.gov. you can watch her testimony at 10:35 a.m. eastern on c-span.

the archduke francis and his were in a part that was -- were in a tour. neighboring country was furious with them taking over bosnia. there were young plotters that were plotting. he saw the archduke is one of the symbols of the oppression. it was very sloppy police work. they shut the archduke and his wife went blank and they both died. of theassassination archduke and his wife and the events leading up to world war i. sunday night at 8 p.m. on c- span's "q&a."

>> c-span, we bring public affairs from washington directly the roomutting you in at congressional hearings, white house events, briefings, conferences, and offering gavel coverage of the u.s. house, all as a public service of private industry. that cable industry and funded by your table or satellite provider. you can watch us in hd. >> retired fbi agent robert levinson went missing during a 2000 trip to iran. the u.s. government denied he was working for the government at the time. recent news reports that he was a contractor for the cia. house briefing, jay carney said mr. levinson was not a government employee when he went missing. any questions about bob

levinson? reports have reviewed that he was in iran working for the cia. why did the administration falsely say for years that he was a probably citizen -- private citizen on a business trip? would you say that now that it has proven to be untrue? >> bob levinson was not a u.s. government employee when he went missing. there was an ongoing investigation into his disappearance. i will not comment further on what he may or may not have been doing. i will not fact check every allegation you have made in a story that was highly irresponsible to publish and which we strongly urge the outlet not to publish out of concerns for his safety. i will also not say anything that might further harm efforts to bring him home safe.

since he disappeared, the government has vigorously pursued and continues to pursue all investigative leads, as he would with any american citizen missing or detained overseas. >> you see the statements that as administration has made -- i i can say -- first of all, will not, on every allegation in that story. if there is some and detained overseas and it is published true or false that he is working for the cia, it is the hated by put thatt very likely person in greater danger. what i can tell you is that he was not a u.s. government employee when he made that trip. more detail.into

i understand this is a complicated issue. it is also very sensitive and deals with the safety and of anty and the life american citizen overseas. bealso deals with matters investigated by the fbi. i'm limited in what i can say about it. >> can you say with administration believes? can you be specific on what efforts the administration is undertaking to have him returned in the u.s.? levinson disappeared from an island in iran. in 2011, we received indications that he was being held somewhere in southwest asia. at the time, a hillary clinton publicly asked the iranian government to undertake a manager and efforts to safely return and reunite bob with his

family. they raining government had --vishly offered assistance previously offered assistance in this manner. there is a mr. levinson's case in his own call with president rouhani come in addition to other americans. secretary kerry has also raised these three cases directly with iran's foreign minister. today we reiterate that same request to the government of iran and anyone else who might have information about mr. levinson's whereabouts to undertake efforts to ensure that he returns safely to his family. again, this is something that we continue to raise at the highest make clear to the iranians that we seek in their assistance in having him returned home and to address

that anyone who might have information about his whereabouts to undertake efforts to return him back home to his family's. >> is he still alive? 2011 that heare in asia. the time in south i do not have more details or specifics about what we know about his whereabouts. obviously we are very concerned about him and call on anyone with knowledge of his whereabouts to undertake efforts to ensure that he returns safely home. >> was rouhani aware of the case? >> i would be surprised if he weren't. i do not have a direct memory of that conversation. it would be surprising since this is something going back to

at least 2011 when secretary clinton raised the issue. on the recentn budget deal in congress and its potential impact on future bipartisan efforts. later, segments from today's for him at the federal reserve system. at the federalg reserve system. the university of minnesota the budgetng about deal. >> good afternoon.