the fcc will accept comments, they'll look at the record.folks can go in and meet with them, and then they'll come out at some point with an order. sometimes you'll have a proceeding that's particularly hard, and instead of doing an order after that, they'll do what's called a further notice, and they'll ask more questions saying here's some things brought up in the original round of comments s and we want to ask some more. so not always, but we would expect some rules from this. >> host: and whenever we get into internet policy and net neutrality, there's always reference to title ii. for our audience that doesn't follow this, that means the threat of applying common carrier status to the internet. would you very briefly explain to people what the implications would be? what does common carrier status mean? >> guest: sure. and it's a great question, and to some degree i think we're all still trying to grapple with what those full implications would be. we think they would be dire. common carrier regulation brings with it all sorts of prescr

of institutional integ i integrity for the fcc. it was a very positive thing. as you note and we have said we have concerns about putting the restrictions in auctions. we think the incentive auction is complex as it is and micromanaging it on who gets what is not what we think we should do. we will explore the both the decisions, though, and make the decision when the time comes. >> they said they are going to try to attract broadcasters to the option and if enough don't give up spectrum there is nothing for verizon to bid on. do you think the fcc has done enough? or should they do more? >> guest: they are doing an awful lot of research and whether they successful i would have to reach out to the broadcasters. but you see chairman wheeler focused personally reaching out to the broadcasters. >> the open internet got the most attention and blocking the net neutrality law but with a different reading of it that would allow for individualized bargaining above a minimum level of access. would this change be accept to verizon? if not, wo

this is the fcc's role.there are regulatory policy entity that actually does limit free speech, carefully question moral norms and the like. do you have any way to tell me that is not true after your opening statement? >> what i'm trying to suggest -- >> please answer the question and you can pivot to your suggestion. >> i am suggesting that if the antitrust agencies overtake -- >> no, you were telling me the good reasons for the fcc to have this kind of control. and i have countered with you're absolutely right. everything you said about social policy speech, political, these are things the fcc has controlled over the airwaves for my entire life. commissioner mcdowell, you probably have the best perspective because you're a former commissioner. nothing like somebody who has been on both sides of it. do you have any question in fact but that is it still today, a part of how the fcc views its mandate when it takes complaints on whether "two and a half men" is crossing the line in broadcast? >> absolutely. the

i think the fcc does a very good job at what it does. the problem is with the continuation cc and other antitrust agencies is that they are optimized for two kinds of problems, and that is the protection of consumer welfare through the competitive process. and this is obviously a worthy goal. i'm not going to sit here and say we should take competitiveness out of the process. that's terrific, and it's particularly accomplished by focusing on a complex and very sophisticated economic analysis, which again i commend when we're considering only the issue of competition. the problem is in its day to day operation, the internet implicates a whole host of non-implemented values of antitrust laws. let's imagine we had an internet service provider that for its own reasons decided it did not like political speakers on one or another side of the spectrum. let's say we had a different isp that, for whatever reason, believed that local news sources were more valuable than the national news sources and decided to favor them. or let's say we had an is

can a tv host stop the fcc from creating fast lanes? net neutrality flooded the fcc website.hat is next on the best of "bloomberg west." ♪ >> welcome back to the best of "bloomberg west." the fcc is facing a growing backlash about net neutrality and fast lanes. tens of thousands of people flocked to the fcc website after john oliver urged viewers to post comments in a 13 minute monologue in support of net neutrality. >> right. the fcc is literally inviting internet comments at this address. and i cannot believe i am about to do this, i would like to address the commenters out there directly. [laughter] good evening, monsters. [laughter] this maybe the moment you spent your whole life training for. >> and indeed, the fcc website went down following the speech by john oliver. there are more than 49,000 comments on the issue. a huge number compared that most topics have hundreds. cory johnson spoke with the former fcc chairman and ask if you ever seen a public response to fcc issues this big. >> back in the day, in the 1990's, we had aol, steve case was the ceo, the e-mail of po

>> well, the fcc can do a lot but in order to actually regulate, the fcc is going to have to change the the internet is classified. what the court said was that as the internet is currently classified, which is as an information service, the fcc can't apply the same public interest requirement it can apply to a telecommunication service so they have to do regulatory reshuffling so it has the proper amount of power to actually put some kind of public interest requirements over the internet because we need internet. we use it every day. it's essential to our lives and we need to start treating it like it's as important as it and the fcc needs the power to regulate it properly. >> bob, the internet was actually classified in the 1990s as an information service, not so much like a telecommunications industry, service provider. given that, what are the big internet service providers like comcast or verizon saying about all this? >> they don't like the idea of regulation. they want to do whatever their business dictates. they are opposed to the idea of applying common carrier regulations that

that is the fundamental issue at the fcc. you ought to be able to know that you got what you paid for. that is what the application will permit you to do. you know if you are getting what you paid for. >> not that we have concerns over what local viewpoints are, but somebody else with that kind of control -- it raises some big free speech issues. i was surprised to see john oliver take this on. let me lay a brief clip of his 13 minute speech. >> these companies have washington in their pockets way conveniently almost unbelievable degree. millionst has spent 18 in lobbying last year. more than any other company. clear, the ranking of who buys government influence -- --bloomberg west viewers john oliver showed us how funny it could be. what about this revolving door thatrn and the concern they can't be fair because that gun so much influence from lobbyists in washington? >> back when the internet was in its youth, all of us in washington -- ira member sitting we wanted the internet to be a platform for grassroots democracy. wha

time do you spend with tom wheeler or the fcc commissioners? >> guest: tom and i talk on a regular basis. it's not scheduled, but we stay in touch with each other. >> host: larry strickling is the administrator of the national telecommunications information administration, he's also assistant commerce secretary for communications and information. brian fung covers technology for "the washington post". next question. >> so, again on this topic of the relationship between between the fcc and ntia, obviously, both work in the public safety realm. later this week chairman wheeler is going to give a keynote address at the american enterprise institute about cybersecurity. can you describe the overlap in responsibilities when it comes to public safety and where the responsibilities sort of divide? >> guest: so the fcc's primary responsibility with public safety is to be involved with the spectrum that's being utilized by the public safety organizations, and they can set rules around those and deal with other issues that emerge. and they're dealing wi

cory johnson spoke with the former fcc chairman and ask if you ever seen a public response to fcc issuess big. >> back in the day, in the 1990's, we had aol, steve case was the ceo, the e-mail of of -- arranged the first email of political lobbying, 400,000 e-mails were sent to the u.s. congress to tell them to keep the internet open. it is the same issue, many years later. and the power of the net has grown and the chairman is getting an earful. >> on some level, i feel like i've not done a great job of explaining what this is. the notion is some things on the internet will be allowed to come to you faster. if some companies want to pay for that. there's a bigger framework and i was wondering when you were at the fcc, how did you position the internet and decide how to regulate it? >> the fundamental view of the fcc ever since i was there in the clinton administration has been the internet really ought to be open to all users and that include people who put content out and just want to see the content. and it ought to be neutral that anybody can put content out and anybody can access it

that is the fundamental issue at the fcc.he starting point is you ought to be able to know that you're getting what you paid for. that is what the free assia application will permit you to do, to know that you're getting what you paid for. >> if someone else were to have that kind of control, it raises some big free speech issues. i was surprised to see john oliver, of all people, take this on in a funny way. let me play you a brief clip. >> these companies have washington in their pockets to a conveniently, almost unbelievable degree. >> comcast has spent $18 million in lobbying last year, more than any other company besides lockheed martin. >> just to be clear, the ranking of who buys government influence is, number one, military-industrial complex and, number two, the provider of lizard lick. >> "bloomberg west" viewers got a little of that before john oliver showed it. what about this sort of revolving door concern, the concern that tom wheeler and others cannot be fair because they have gotten so much influence from lobb

the fcc, that was an fcc 2011 reform order. the fcc is still working to implement that, to operationallize it. hopefully that will be in place by 2015. for the larger companies, funds will flow in a much more targeted way. more funds to connecting people in census blocks where they have no options, no other service. >> what about the smaller companies as well? i mean, as we think about this ip transition, how do we think it'll impact competition? i think that's an important issue for consumers. and also as we look at reform of the usf fund. and, you know, i've heard a lot of concerns, obviously, with this transition from rural carriers as well. >> right. so part two of the usf reform is reforming the smaller company, the rural company fund. the fcc made some reforms that were ill-advised to the fcc's credit and chairman wheeler, he's taken those off the table. and is going to issue a notice of rule making to modernize the fund for rural carriers, just like they modernize the fund for larger carriers. that's a very big deal and

the fcc began its rule making process only a month ago.we must give time to allow this process to proceed. to the extent that we do look to antitrust law as a way of ensuring net neutrality enforcement of existing antitrust law would be insufficient. under current antitrust law, there is relatively little that antitrust enforcers can do outside the marterger review context to address the conduct of a regulated industry like broad band internet service with respect to enforcing net neutrality principals. through a series of decisions, the supreme hacourt has limited the potential to suction is hce pursue claims under the sherman antitrust act arising in the net neutrality context. more over, exclusive reliance on antitrust enforcement while having the benefit of a more nuanced and fact specific approach to the problem would also be a cumbersome more limited, more resource intensive and after the fact way to develop a regulatory regime for net neutrality. another potential approach would be for the federal trade commission to use its authori

the fcc, that was an fcc 2011 reform order. the fcc is still working to implement that, to operationalize it. hopefully that will be in place by 2015. for the larger companies, funds will flow in a much more targeted way. more funds to connecting people in census blocks where they have no options, no other service. >> what about the smaller companies as well? i mean, as we think about this ip transition, how do we think it'll impact competition? i think that's an important issue for consumers. and also as we look at reform of the usf fund. and, you know, i've heard a lot of concerns, obviously, with this transition from rural carriers as well. >> right. so part two of the usf reform is reforming the smaller company, the rural company fund. the fcc made some reforms that were ill-advised to the fcc's credit and chairman wheeler, he's taken those off the table. and is going to issue a notice of rule making to modernize the fund for rural carriers, just like they modernize the fund for larger carriers. that's a very big deal and v

this fcc is willing to be pushed. we still don't even know how much money the e-rate has paid out to schools. the best guess, it's about 3%. 3% is 20% proportion of buildings and it isn't anything like the relative proportion to the number of users and libraries. all we can say about 3% as it hasn't produced the desired result. because when susan's group did the measurement in these libraries in less than 10 days because modern measurement tools work just like that, just like that. when we did this measurement what did we discover about what i have told you? woeful state connectivity. if we have statistically valid survey i think it was you krissah told me you were guessing it was about 400 libraries and i think i'm remembering right out of the 17,000 buildings we need to survey about 400 in order to have a statistically valid survey. it's going to prove the status quo is really deficient. let's not talk about the size of e-rate. it's roughly $2.4 billion. it was said at $2.25 billion in 1997 but one of the things the

the fcc anna that was a 2011 reform order. they are still working to implement vat to operationalize it. hopefully that will be in place by 2015. and for that larger companies the funds will flow in a much more targeted way to connect peoples incentive blocks that they have no other service. >> as we think about this transition, how do we think it will impact competition? i think that is an important issue for consumers and then also as we look at the reformat the uss fund. i've heard a lot of concerns obviously with the transition with the rural carriers trade >> park number two is reforming the smaller company. company. of the world company fund. they made some reforms that were ill advised to the fcc credit. she has taken those off of the table and is going to issue a notice of the rulemaking to modernize the fund for the carriers just like they modernize the larger carriers. that's a very big deal and it's important to get that right. in terms of the carriers in the transition, many of the carriers invested heavily in broa

i record in her as a pro bono lawyer at the fcc. her at the fcc. earth, a personal note. my sister is the head librarian in rockville, maryland. my nephew is a librarian, my mother was a public school teacher, my sister-in-law the public school teacher, and i once was a public school teacher. in washington, they would be called takers. but we regard ourselves as the family that has had a long commitment to public service. and i'm very proud, if i could be so bold, to say that i'm part of the library community. some would like to express of the realities of the situation, and not everything i say is going to be good news. folks, we need to step up our game. we are in the playoffs. we need to aim higher, we need to pull together, we need to fight more fiercely, and we need to understand that this game is definitely worth the candle. that everyone understand the political realities that face chairman wheeler and the fcc. before i go into anymore detail, i want to make sure that you understand that i was not in fact the creator of the e-rate. leadership is critical in every w

but those are decisions the fcc has to make. >> what is your impression so far up tom wheeler's fcc? like tom. he is a smart guy. i think he is trying to get done everything he can as fast as he can with the time remaining. he has a job to do. i like him. but i am disappointed that the narrative that came with him, that he finds offensive -- and i understand why -- as the former chairman of wireless and cable, a lot of the decisions that have ,ome up seem to be very biased to the injury of broadcasting. we are defending ourselves. he respects that, my job is to defend my members. confer an enormous value still on the american people. we don't care whether folks get their television from .ubscription tv or over the air gary schapiro has said six percent of the people. nielsen says it is 11%. is 20%. study says it 20% is 16 million people. who are those people? they tend to be overwhelmingly minority community members. lily, theto be the a young techies, and the economically disadvantaged -- they tend to be the elderly. i may sound more like a democrat than a republican. i think they c

but that's not what this fcc is telling us. it is saying instead of looking at it as x dollars every single year, why don't you come in and tell us a whole bunch of money ight up front. it will be a capital expenditure, more money up front, will for once and for all put fiber to all these buildings and provide caching technology, will have one simple model for every single building, and in your maintenance cost years later will be less than the upfront cost. this is the way every single network in the united states is built. it's only in this sector that we haven't yet embraced that model and we are being told by the fcc, bring us the plan and we will pay for it. we have to get the plan out, and it has to be technical. susan demonstrated to me that there was plenty of competence in a bunch of libraries to deliver the i.t. planning. this can all be done. there are a lot of libraries where the i.t. competence doesn't exist and isn't funded by the local and municipal governments, and doesn't need to be. you don't have to have a tr

the fcc chairman has found four universal values. while technology may change, the expectations of consumers do not. consumers expect the same quality of service, reliability, and access to emergency service to which they have grown accustomed. of when hurricanes, tornadoes, or unleashedsasters distractive forces, they do not discriminate between a copper, fiber, or wireless network. it is for this reason we policy makers should not discriminate in applying our values. these values must be applied insistently and in a technology-neutral manner, especially when it relates to public safety. thank you for this opportunity, and i look forward to your questions. >> thank you. >> good morning, members of this company best of the subcommittee. -of the subcommittee. thank you for inviting me back to testify on another important public safety matter. our members field 911 calls and manage the indications networks used by first responders. i have been tagged it in public safety for over 28 years, now serving as the operations manager for the s

the fcc reducing regulations to stimulate broadband infrastructure deployment. so i disagree. it was a 2-1 decision. judge silverman's dissent is very compelling in that regard. the fcc has very limited authority here and i think will fail again in court if it goes outside of the bounds of what judge tatel was drawing. i disagree with. he is talking about commercially reasonable agreement. that is the something in the data roman context which worked so far. in any question to answer your question more succinctly i think the fcc has almost no authority in this space. >> thank you. professor wu, outside of the free speech concerns outlined in your testimony, do you believe the ftc would be effective at protecting consumer interests and pro-competitive behavior over the internet? >> i think the ftc would do some, would do some things very well. i admire, i admire the ftc. i think they're a good agency and i think they're well-equipped to deal with violations of the sherman act or of and other unfair methods of competition. but i don't think they have adequate scope

fcc has asked for that same condition. baseball style arbitration based on coming up with a rate based on fair market value for the programming. that has expired. we believe a similar condition should be adopted to address that, but the one previously adopted had some flaws. they remain too expensive for smaller operators to use. if you have a remedy too expensive for the cable operator, you pretty much have no remedy. we need to be looked at this type of from it he, but some modifications to it to make sure it works for all providers. >> just to eliminate the ability altogether? >> yes. what we should do is eliminate the incentive to increase prices for rivals more than the price they would charge to non-rifle -- and non-rivals. >> it will be interesting as you go forward their. , one oflose by saying the proponents of the merger is directv continuing relationship with the nfl. what can you share with us regarding that relationship and your customers ability to get a package. imagine, nfl content, all of the customers are

fcc has asked for that same condition. direct tv is part of a 2008 merger had arbitration , baseball-style arbitration space on coming up with a rate that was fair market value for the programming. that has expired. and we believe that a similar condition should be adopted to address that harm, however, the one that was previously adopted had some flaws. it remained too expensive for smaller operators to use, so if you have a remedy that is to incentive for a cable operator with 1000 subscribers to use, you pretty much have no remedy, so we need to read look at this type of remedy, put some modifications to make sure it works for all providers that need it. >> just a limited the ability altogether? -- just eliminate the ability altogether? >> we should a limited the ability to increase the prices for the rivals more than the prices they were charged to non-rivals. a --l supports that would be interesting. let me close by saying what some members of congress -- this is the most frequent questions i was asked. i do not think

libraries than anyone who ever was employed at the fcc. we have a working group where we have to actually get to the conclusions about the administrative process reforms. we have got to do that so he can start writing is ordered in may so the order can come out out in june that establishes the new administrative processes and that also talks about how the fcc is going to be spending its money in the next cycle. in terms of general big picture for many many years the entire community that has benefited from the e-rate has understandably because of the constant culture wars has said just hold on to what we have got. that is what we have had to do just because of the constant pressure but that is not what the fcc is telling us. this fcc is saying instead of looking at it as a x dollars every single year why did you, and tell us we will bunch a whole bunch of money right up front. it will be a capital expenditure the way john has been talking about it. more money up front once and for all put fiber to all these ill things. we will provide cach

we will now begin with a wonderful welcome by fcc chairman tom wheeler. it gives me pleasure to introduce thomas wheeler who has taken time to start it off. chairman wheeler has been involved with nes networks and experiences. he is an advocate and business man. he helped start multiple companies offering innovative cable, wireless and video communication. chairman wheeler has made it clear he understands the importance of libraries. with this background on telecommunication. we are lucky too him here with us. please welcome, tom wheeler. [ applause ] >> thank you very much, susan and to the members of the board, nice to see you here. this is something very important. and congrats to the institute of library and museum services for convening and having this idea to help get this message out. susan and everybody there, i am privileged to share the podium with tom power from the whitehouse who has been a leading pusher, advocate, for the kinds of changes that we have to be making to mare sure we are bringing the e-rate program into the 21st century. i am jo

seriously can the fcc get to the bottom of what is going on? think it is obviously netflix throwing verizon under the bus in terms of streaming abilities, i don't know who is right or wrong but this is a logical step for the fcc to come in and find out what the delays are. as you know netflix has made a huge splash in all of our lives in terms of wash watching videos. people get frustrated quickly with the streaming abilities and turn it off quickly in terms of how good they have done and whether or not they will continue to participate. >> you think the fcc will look out for the consumer. >> this is where the fcc have to be effective and demonstrate that they can get to the bottom of it and become trance parent to the consumer at the end. this is a big issue that will get a lot of publicitiy between service providers and netflix. it's not just comcast or just verizon but it is syria kwloeri >> that's right. >> you did watch you watched something. >> i did watch breaking bad. i liked the creativity of the writing. but house of cards, i like you

>> the silver lining is the fcc is taking this more serious. they are getting involved with the technologies that helped the u.s. government go after terrorists and really crunch big data numbers and might be able to do it this way. >> thank you so much. >>> grim outlook about oil growth targets in iraq as global demand picks up. the international agency said iraq's targets for growth in the oil industry are at risk as escalating violence and political instability threatened supplies. iraq, the second largest oil producer in opec. >>> the path of violence by islamic rebels reached baghdad today following the seizure of key northern cities but as the report from iraq, no region out country is safe from the unrest of its impact. >> reporter: a car bomb exploded in north baghdad today in a market frequented by iraqi shiites. it could be a thing to come as the rebels from the sunni sector of islam push further south into a province north of the capitol. baghdad is looking like a ghost town as residents flee. a program appeared abandoned and shops w

we will talk to al franken, who opposes what the fcc plans to do.lso, i have got a weaver and the only cure is more world cup. the u.s. soccer team says it is ok to ditch work for the big game. stay "in the loop here: -- loop." ♪ >> you are watching "in the loop" live on bloomberg television. now that net neutrality has gone viral because of john oliver, more and more critics are speaking out about proposed new fcc. for the there is even occupy google, which called for taking action on july 15. the internet senator, al franken. senator, thank you for joining us. i want you to weigh in on the aereo decision yesterday. what is your reaction? >> i thought leo hindery covered it very well. they are violating copyright law. and were taking something selling it that was not theirs. ,t was a decision by the court but i will give you an example of copywritten material. can i call you betty? you can call me al. we just stole from paul simon. it is very different because we cannot just do a song. we actually did something else. we added to it. but no, i think

and, you know, competition if it's, needs to be there in the end, but those are decisions the fcc hashost: what's your impression so far of tom wheeler's fcc]cg . >> guest: well, 20% is 60 million people, and who are those people? they tend to be overwhelmingly minority community members. they tend to be the elderly, the young techies and the economically disadvantaged. the question is, do they count too? and my answer, may sound like a democrat or a republican, i think they count. and i think localism is one of those endurable values that congress established in the beginning so that every community has access to broadcasting if they can't pay for it, they can get it for free to tell 'em what the news is, what the weather is, what the traffic is, what the sports scores were and especially in emergency circumstances whether it's a terrorist attack, a earthquake. all these other telecommunications devices tend to fall first but not broadcasting. governor after governor has said in alabama and kansas and missouri thank heavens broadcasting stayed on because they saved human lives. >> ho

fcc has argued for that. so directv is part of a 2008 merger had arbitration conditions opposed to them. baseball style conditions coming up with fair market value for the programming. that has expired and what -- and we believe that a similar condition should be adopted to address that harm, however, the one that was previously adopted had some flaws. it remained too expensive for smaller operators to use so if you have a remedy that's too expensive for a cable operator with 1,000 subscribers to use, you pretty much have no remedy. so we need to relook at this type of remedy, put some modifications to it to make sure it works for all providers that need it. >> just to eliminate the ability altogether? >> excuse me? >> just to eliminate the ability altogether? >> we should eliminate the incentive to increase the price for the rivals more than the price they would charge to non-rivals. >> fine. and i think y'all support creation of a fee category include dbs? >> yes. >> and also at&t has so it will be interest

the fcc is not all-powerful. i think he has -- he is proposing tough net neutrality rules that have to accommodate the boundaries of the court. that is a fair description of what he is up to. honest.e, i'll be you talk to every ceo in my industry. i don't think they know what a fast lane is. i don't think anyone is contemplating doing one. i think this issue is blown be on the proportion of our incentives and interests. for 16 years there has not been a net neutrality rule. our broadband business have run substantially and not one isp has endeavored to do even a quarter of the things that are hypothesized to me at every legal right and opportunity to do them. that is because i don't think it makes that much sense. at&t wrote a blog saying not doing fast lanes or priority access. no plans or interest in that. i don't think they would be remotely willing to say that in the public forum they were sure that their business doesn't involve that. think about how silly it is that a certain level. i turned to google and s

who is to say -- does all this come under the of ready of the fcc?>> to an extent. >> in other words, will we say they release all of these things and we will tell the fcc to keep an eye on it? >> you have to break it up in different pieces. the telephone companies already hold the data. we are not doing anything new. there are already under the control of how they hold and how they do with it and things of that nature. what will remain subject of oversight is how we to acquireious tools some of that data, to use some of that data. restrictions on how much can be looked at, what it can be disseminated or, how long you can keep it, those are the kinds of things and what the standards are for getting it. those are the and wharton questions. a lot of oversight by the executive ranch, the justice department, the a the eye, the nsa, ig offices, there is a civic provision to do reviews. still be robust reporting by congress on what is done. let's thank you. life enqueue. -- >> thank you. >> thank you. >> it seems to me we're doing something unnecessary and

our rates far exceed in terms of the reduction, the fcc rates, that were proposed earlier this year. since only their reform on a national level touches on interstate phone calls, interstate is only 2 percent as you see here of our call volume and so barely scratches the surface that is, i think, critical to our county jail population. the remainder of the calls, is where we want to zero in on with the regulatory reform by zeroing in on the last year of the contract, with the vendor of global tel links, because it is that last year where our cfo, myself, and others had gathered together to put pressure on the reconfiguration of this contract and i think that it sets us up in a stronger position in the city that when the rfp comes up next year, we actually change the complete base line of what rates should be, which is frankly, unor not uncommon, uncommon in counter intuitive in the sheriff's industry, and correction's industry, when the competition is about how much commission one could get, we are actually trying to lower that ceiling by lowering the floor. if you could go to the ne