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, wou

this is the fcc's role. here 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 isp

that is the fundamental issue at the fcc. starting point is knowing that you are getting what you paid for. the assia application will let you know if you are getting what you paid for. >> and not that we have concerns over what what roberts' viewpoint. if somebody has that control, it erases free speech. i was surprised to see john oliver take it on. let me play a brief clip. >> you bet. >> these companies have washington in their pocket to conveniently degree. >> comcast has spent $18 million in lobbying last year. more than any other company. >> just to be clear, the ranking of influence is number one, the military-industrial complex and number two, the provider of lizard lick towing-- [laughter] >> yep, bloomberg west viewers got a look at that before. i wanted to the issue that we try to bring coverage to earlier, what about the revolving door concern and the concern that tom wheeler and others cannot be fair because there've gotten so much influence from lobbies in washington? >> back when the internet was in its early d

it's heating up because the fcc is considering new rules for the internet.ublic comment period ends july 15th. the issue gains high-speed momentum africa median john oliver highlighted it on his hbo show. it generated so many comments it crashed the agency's website. here is a clip of last week's tonight with john oliver. >> here is the thing, net neutrality is hugely important. essentially it means all data has to be treated equally no matter who creates it. the internet is a weirdly levelled playing field and established brands, that's how facebook sure planted my space and having friends. do you remember physically having friends? it was awful. you couldn't tap people's faces to make them go away. >> well, here to examine this debate further are the electronic frontier foundation and bob mcmiller. laura, john oliver having fun. net neutrality can sound dry, why should we care? >> the most basic reason, for example, if cnn can afford to make sure that its videos get to you faster, they will pay the money and suppose pbs can't. so pbs public broadcasting on

the entire out. and phil libin. fcc for host stop the creating fast lanes? net neutrality fled at the fcc website. e best of on "bloomberg west." ♪ >> welcome back to the best of "bloomberg west." the fcc is growing -- is facing a growing backlash about net neutrality and fast lanes. tens of thousands of people flocked to the fcc website after mr. oliver urged viewers to post after a 13 minute monologue in support of net neutrality. >> right. the fcc are 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. good evening, monsters. [laughter] maybe the moment you spent your whole life for. indeed, the fcc website went down following the speech by john oliver. 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. theack in the day, and 1990's, we had aol, steve case was the ceo, the e-mail of 00litical lobbying, 400,0 e-mails were sent to the u.s

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 wit

that is the fundamental issue at the fcc. e 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 lobby

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. what

he was the chairman of the fcc from 1993 to 97 he was on president obama's 2008 presidential transition team. he sits on the board of directors of intel corp. and mitigation software firm smarts guy networks and a financial services firm. he is a vocal proponent of libraries. it is appropriate that we and with his remarks given a lifelong commitment to improve broad than connectivity is one of the original architects of the program and we are so pleased pleased to open this up with our chairman wheeler and in this with chairman reed hundt. we are very honored to have those two chairman acknowledge the importance of libraries. [applause] >> thank you very much to this susan for hosting everybody here today and also to susan benson who is my friend and client because they represent her as a pro bono lawyer at the fcc. you all know that susan is the ceo of the early library counsel. first a personal note. my sister is the head librarian in rockville maryland and my nephew is a librarian. my mother was a public schoolteacher. my brother is a public schoolteacher. my sister-in-law is a publi

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 broad

transition through the fcc's transition trials. ultimately it's my hope that through these trials all stakeholders can work together to pro actively address any issues revealed in the trials to protect consumers but i expect congress to maintain close oversight over this transition. we deserve nothing less. i want to thank you all for being here and i want to hear your perspective on this important discussion. i look forward to your testimony. i want to turn it over to the ranking member, senator wicker. >> thank you, senator pryor. this deals with preserving public safety. this hearing hits home not only this hearing is certainly hits home not only before arkansas but through missippians. in late april tornadoes ravaged us and took lives and caused extensive damage. despite the devastation, we can be thankful for the technology that provided critical information ahead of time, alerting people to take shelter and saving hundreds of our fellow citizens. the swift action of our weather forecasters, local officials and first responders

in elsie is committed to working with the fcc, the you will see, congress, the white house, imls. we are committed to working with everybody to make sure that we address this issue. we know that talk is easy but action is more important. when know that many families only ci iphones and ipads and computers in libraries such as this. we recognize that this is the place that people come and travel around the world because they can read about places. would state the time to get the e-rate modernization process right. with the creative and bold and our thinking to make sure our libraries have the technology infrastructure that they need to support a strong local community that results in a strong national economies. my kids will be embarrassed as i say this, but as drake, the singer said, i started from the bottom, now i'm here. and it is because of libraries. thank you. [applause] >> thank you very much. that was terrific. we have a couple of questions. if we have anything coming in on twitter pass them off to me. some quick thoughts, what do you think community leaders can do to prom

transition through the fcc's transition trials. ultimately it's my hope that through these trials all stakeholders can work together to pro actively address any issues revealed in the trials to protect consumers but i expect congress to maintain close oversight over this transition. we deserve nothing less. i want to thank you all for being here and i want to hear your perspective on this important discussion. i look forward to your testimony. i want to turn it over to the ranking member, senator wicker. >> thank you, senator pryor. this deals with represerving public safety. this hearing hits home not only for arkansans but through missi sip i ans. in late april tornadoes ravaged us and took lives and caused extensive damage. despite the devastation, we can be thankful for the technology that provided critical information ahead of time, alerting people to take shelter and saving hundreds of our fellow citizens. the swift action of our weather forecasters, local officials and first responders validated the importance of technology a

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

the fcc began its rule making process only a month ago. 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 authority

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 co

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 sa

>> there is evidence in the record at the fcc during various rounds in '08 and 2010 and i think coming in now under of the current proceeding, wireless internet service providers, wisps we call them and others are very concerned about explicit evidence in the record, statements by owners staying that they have been questioned by their banks as what their future would look like, whether or not they could get loans from banks and buildout and continue to improve their networks and serve their customers. >> would these companies be similarly impacted by the application of the antitrust law? no, i don't think so. they wouldn't. part of the question is here creating a new body of law. by the way i disagree with the premise there has been defacto net neutrality by the government. there has been defacto net neutrality in the private sector to maximize freedom so you're actually creating abundance and competition but not by the government. but in the case no is the answer to that question. >> okay. well in your view, do you believe the fcc is properly equipped to handle enforcement of improper

it is in our filing with the s c fcc. we had an economist study this. we had a detailed econometric model. before the merger synergies were incorporated, this would have not only a downward pricing bias on our prices, but also on the cable companies prices. >> let me get a response from mr. lieberman before we close out. >> thank you. i just want to say mr. stephenson and mr. white are polished about the benefits they are willing to make. we have not heard them talk about the concerns that they are vertically integrating programming, particularly sports networks that are owned by directv are not subject to any arbitration conditions and they will have an incentive ability to increase the prices for that programming for smaller cable operators. if they're going to be making commitments,st it would be nice to hear them address that problem as well. member's time of expire. the chair recognizes himself or for his questions. i want to go back to something. i want to make it clear that directv will not be forced to unionize, correct? forced to unionize. >> no

and we are subject to the program access requirements of the fcc. i believe the vigorous competition will help consumers get a good deal. is genuine markets choice. directv's&t and written testimony, you say this merger will increase competition. , buttition is not an end it should help consumers realize an actual benefit. or atu say with certainty least is it possible in the business world at this merger will or will not directly result in more choice in short-term and long-term and to what extent? it is portrayed in these mergers that this is what will happen, but the reality is spotlights are often this does not happen. i would like to hear each of you answer that question. take the pay-tv side. wem a customer standpoint, believe in choice. we sell a pure play offering. it is going to be like vanilla, chocolate, and strawberry. we will have a pure play, a , adle with at&t capability new benefit for consumers. in terms of the overall value to consumers, today those bundles are not very competitively priced. when you make one company, you will see a

it's only in this sector that we have an embrace that model and we are being told by the fcc bring us the plan we will pay for it. we have to get the plan out and it has to be technical. susan demonstrated to me that there is plenty of confidence not in every library but a bunch of libraries to deliver the the i.t. planning. susan heldreth could do it and you can talk about pots. 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 municipal governments and doesn't need to be funded. it doesn't have to be that you have the cisco trained ip professional in every system. it ought to be 50 or 100 can serve the entire country meaning everything needs to be transparent. that is why we want to be on line. all great library deals out to be public for all libraries. in fact every library ought to be goading themselves and others on every quarter by reporting to the fcc every single quarter now and forever how it's going. which is so incredibly easy. it wasn't easy back in the old days. though sold based on exist now. it's rea

the fcc and the doj are the players to watch.se congressional hearings are an opportunity for a bully pulpit. it does not seem like there are many major changes at least at this point. >> an interesting focus. you. kicks off io tomorrow. we will get a preview the next on "bloomberg west." ♪ >> you are watching "bloomberg west." google kicking off its annual two-day developers conference tomorrow. developers, designers, and marketers of the android operating system. kitupdated version of the kat operating system is expected. by jon erlichman. >> the key thing for google is you want to hone your developers effort and focus in certain areas. i think these are all the areas where google has had steaks and hardware or software. the key thing for me is what are the messages i want to take away in the areas of focus. wearables is an area that i want to see. some advancements and i would like to see something in the auto area. i also want to see advancements in all of their current product platforms. that, do you want to see why do you w

and considering the analysis of fcc data that imls just released yesterday, this moment is perhaps of even greater importance than any of us realized. our analysis shows 15, 551 libraries used the discount provided by the e-rate. this number varies from year to year about we found the annual participate rate was 67% of the libraries in the united states. e-rate was created 17 years ago when the first overhaul of the communication act was passed in '96. this was the same year the museum act was enacted and created imls. we moved on to the technology act. and through that imls supports initiati initiatives help school libraries serve the public. we help diverse people. to individuals with disabilities, limited functional literacy or informational skills and from its creation, imls recognized the importance of a connected society and a leadership role as a hub for the world. we are delivering broadbrand services and the needs of library pofessionals are meeting. i would like to know the national broadband plan recommended affordable action to one giga pit per second to anchor institution

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 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 sa

we will talk to al franken, who opposes what the fcc plans to do. so, 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

we had an economist study this, it's in our filing with the fcc, did a very detailed econometric model. he said even before the merger synergies, the cost synergies were incorporated, it would have a downward price bias and a cable price. >> let me get a response in from mr. liberman before we close out. >> thank you. mr. stevenson and mr. white are very polished about talking about the benefits that will come to this deal, the commitments that they're willing to make. we haven't heard them talk about the concerns that they're -- that the programming, particularly the regional sportsnet works that are owned by directv are not subject to any arbitration conditions and that they will have an incentive ability to increase the prices for that programming for smaller cable operators. if they're going to be making public interest commitments, it would be nice to hear them talk about a commitment to address that problem as well. >> thank you. the gentleman's distinguished ranking member time has expired. >> thank you. >> the chair recognizes himself for his questions. i want to go back to som

like you might go to court over that, and you already are embroiled in some court challenges with the fccmembers support a court challenge of that software, and is there a chance it could derail the whole process if it -- >> guest: i promise you, we will defend our coverage areas, and we will do it in court in and when that is necessary. >> host: do at&t and verizon have too much leeway this these upcoming auctions? >> guest: they're important participants. they have the big checkbooks. and, but with, you know, they have influence and, obviously, there's a tug between wanting to maximize the dollars to return to the federal treasury versus not trying to recreate ma bell which some would argue we're on the verge of doing. and, you know, competition if it's, needs to be there in the end, but those are decisions the fcc has to make. >> host: 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 dis

and the aws3 auction that is being held, the fcc said that will probably provide the sufficient money to fund the first net system. so the fcc shouldn't be in a hurry to get the rush through when the pressure is off financially to accomplish a public goal. what we hope is that they will do it right and not just in a rush. our concerns are from the so softwear modeling this government is having difficulty with software. when we run the modeling, half the viewership or half the tv statio stations' coverage areas are impacted and that is a real problem because that disinfranchi disinfranchises a lot of people that can not afford a $200 a month cable or satellite bill and they are dependented on being included in the overair broadcasting. >> the commission said the software they want to use is the only one that can handle the calculations and the others are old by most standards and how can you use this holder? >> we have no problem with them looking at census data. that is fine. but new software doesn't also work as hhs found out. we want what works and we don't want to lose half of the

>> 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 wi