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Hearing Examines Implementation of Incentive Auction

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WASHINGTON, July 24, 2013 — The House Subcommittee on Communications and Technology held a hearing Tuesday on the upcoming spectrum auction, focusing primarily on possible restrictions on larger carriers and efforts to ensure that broadcasters are treated fairly.

The question of whether or not to impose restrictions on AT&T Inc. and Verizon Communications Inc. dominated much of the conversation.  While none of the witnesses advocated for entirely excluding the carriers, Harold Feld, Senior Vice President of Public Knowledge, recommended a “no piggies” rule that would prevent any one bidder from purchasing what he considers to be too many licenses.

T-Mobile Vice President of Regulatory Affairs Kathleen Ham supported Feld’s rule, citing the importance of spectrum to all mobile carriers.

“Spectrum is the air we breathe,” she said. “Without it, we cannot compete, and we cannot innovate.”

However, Joan Marsh, Federal Regulatory Vice President of AT&T, pointed out that T-Mobile has been running advertisements claiming that its networks are less congested than those of AT&T and Verizon, implying that T-Mobile has no pressing need for additional spectrum beyond the need of any other carrier. She also noted that Sprint, which also stands to benefit from restrictions on the two larger carriers, has a larger spectrum portfolio than both AT&T and Verizon.

Ham, however, argued that lower band spectrum was especially important to be able to compete due to its greater ability to penetrate physical obstacles. Marsh disputed the high value that Ham placed on these bands of spectrum. Although she acknowledged that its penetrative ability is an asset, she stated that bandwidth and capacity of spectrum is far more important.

Rep. Henry Waxman, D-CA, asked the panel about whether to allow a hypothetical situation in which a single bidder purchases all available spectrum licenses within a market. While Feld and Ham answered no, Preston Padden, Executive Director of the Expanding Opportunities for Broadcasters Coalition said that the regulators should defer to the market forces of the auction. Marsh added that such an outcome was highly unlikely, with past open and free auctions still resulting in diverse winners.

The subcommittee also considered the revenue impacts of restrictions on spectrum concentration in the auction. Money raised by the auction has already been allocated to a number of uses, including developing a first-responder network, reducing the deficit, and covering the moving costs of broadcasters displaced by the repacking of spectrum.

Ham argued that the restrictions would raise revenue by encouraging numerous bidders to participate in the auction. However, Marsh argued that limiting the ability of AT&T and Verizon to participate would reduce the revenue. Gary Epstein, Senior Advisor and Co-Lead of the Incentive Auction Task Force of the Federal Communications Commission, remained neutral on the subject, saying that it is a complex issue that the commission is still evaluating.

The subcommittee was also concerned with the treatment of broadcasters in the auction. Rick Kaplan, Executive Vice President of Strategic Planning for the National Association of Broadcasters, laid out three criteria that the FCC should try to meet to make the auctions successful for broadcasters.

He argued that broadcasters who remain on the air should not be harmed in the form of changes in coverage areas or excessive costs in moving to a different band of spectrum. Kaplan also urged the FCC to ensure that other critical services such as low-power translators remain unharmed.

Finally, Kaplan emphasized the importance of preventing interference as a result of the auction. Particular concerns were raised about areas bordering Mexico and Canada. Epstein assured the subcommittee that the FCC was working to solve those issues and would try to provide as much certainty as possible by the time of the auction.

The issue of fair prices for broadcasters was a major concern for Padden. He asserted that payments to broadcasters for their spectrum must be large enough to attract a significant number of sellers. Padden also criticized as irrelevant the scoring that the FCC has been using based on the station itself. He noted that broadcasters are selling the spectrum, not the station, so the quality of the station should have no bearing on the price offered.

Epstein promised that the FCC would take all these viewpoints into consideration and has in fact already received and reviewed over 460 comments on the auction.

“We’re committed to an open, transparent, and inclusive process,” he said.

Josh Evans is a political science major at Grove City College. He is originally from Dover, Florida. An intern at the National Journalism Center in the summer of 2013, he is a Reporter for Broadband Census News and the News Editor for The Collegian at Grove City College.

Broadband's Impact

House Commerce Committee Aligned on Telecom, Mapping and Supply Chain Security, Says Ranking Member

Derek Shumway

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Photo from Rep. Cathy McMorris Rodgers' website

March 18, 2021 – House Energy and Commerce Committee Ranking Member Cathy McMorris Rodgers, R-Washington, said Wednesday that the committee was among the most bipartisan on issues including telecom.

Rodgers, who was speaking at the Internet Innovation Alliance with co-chair Bruce Mehlman, said that her Republican colleagues have put forth 28 solutions that would remove regulatory barriers and streamline broadband processes yet demonstrate funding is being spent wisely. She called on the government to ensure cost-effective ways to spend federal dollars.

She said the committee’s priority must be on accurate broadband mapping. That requires funding for more granular data. She also argued for national security against China, including on solar and wind energy products.

Rodgers also said she was excited about low-earth orbit satellites and the potential future they bring in connecting parts of the country with internet that have been “economically unfeasible in the past.”

Asked of her thoughts on virtual learning from home, especially how her 14-year old son with down syndrome is faring, Rodgers said she was completely in favor of reopening schools safely because not all parents have the means to provide optimal learning spaces at home.

Calling herself a working mother who could afford to provide an assistant to help her son through his school day, Rodgers said it was not the best way to learn when compared to in-person schooling.

This came after she said the country has the best networks and “some of the fastest speeds at the lowest prices in the world for internet service.”

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Congress

Former FCC Commissioners Reflect on Changes Since 1996 Telecommunications Act

Tim White

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Former Federal Communications Commissioner Mike O'Rielly on the webinar

February 9, 2021 – As 2021 marks the 25-yearanniversary of the Telecommunications Act, former Federal Communications Commissioners Mike O’Rielly and Harold Furchtgott-Roth reminisced Monday on their time in Congress as staff members when the law was passed. The Hudson Institute hosted the conversation.

The Telecommunications Act was the first major update to telecommunications law since 1934, and the two former commissioners reflected onhow much the internet has shifted the focus of technology legislation.

O’Rielly said the “heart of the legislation” was looking at local and long-distance telephone company markets and opening them to more competition, but “no one knew at the time that the internet would go in a different direction,” he said.

“No one really figured out at the time what was going to happen as broadband and online technology would take over from circuit-switch technologies,” agreed Furchtgott-Roth.

“These markets that we thought were so important back in 1996, long-distance services, they don’t exist anymore,” he said. “Technology has changed and provided a different and a superior form of competition than the [Act] could have ever imagined,” he said.

Four of the biggest tech companies today—Amazon, Google, Facebook, Tesla—didn’t even exist 25 years ago, Furchtgott-Roth said, using them as examples of how much technology and the market has changed. “All of which have a very active role directly or indirectly in the communication space,” he said.

The two also expressed surprise at how prominent some of the law’s provisions have become, and how rarely the FCC uses other provisions.

O’Rielly said that even though the preamble to the law was written as a description and had no legal merit, that language “has been abused” by courts and by the FCC even though, in his view, the preamble is “something that has no statutory weight.”

Section 230 a new focus for concern

In recent months Section 230 of the Act, which grants immunity to online platforms for content provided by their users, has become a major conversation for Congress and in public discourse, due to controversial topics like the election, COVID-19, and the U.S. Capitol riot on January 6, which led to Donald Trump’s ban from Twitter and Facebook, and the shutting down of Parler, a conservative-led competitor to Twitter.

“Everyone agrees that Section 230 is worthy of review or some type of reform, but they come from different perspectives,” O’Rielly said. Republicans and conservatives are worried about censorship on the online platforms, while Democrats on the other side are worried about the spread of misinformation without any correction or policing, he said. “Those two things make it really hard to find a middle ground, even if everyone agrees on the overall premise of some type of reform,” he said.

Furchtgott-Roth mentioned two parts of the Act that he thought would have been used more often. First, the forbearance clause from Section 10, which gives the FCC the option to not enforce parts of the Act if certain conditions are met by entities. Second, regulatory review from section 11, which allows the FCC to review its own rules.

On being questioned about reforming the Telecommunications Act, O’Rielly said that Congress needs to be forward thinking, not constantly fixing previous legislation, and that they need to be specific in their statutes for what they want and do not want federal agencies to do.

The anniversary also received praise from members of Congress and industry groups on Monday. Rep. Anna Eshoo, D-Calif, and Sen. Ed Markey, D-Mass and co-author of the Act, said Congress must revisit the law to bring up-to-speed demands for better broadband.

Meanwhile, FirstLight Fiber CEO Kurt Van Wagenen and Incompas CEO Chip Pickering suggested the new-look White House and Federal Communications Commission make broadband deployment a top agenda item to usher in connectivity in underserved areas.

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House of Representatives

Emphasis on Combating COVID-19 and Rebuilding Infrastructure at First Energy and Commerce Meeting

Derek Shumway

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Photo of Rep. Frank Pallone, Jr., Chairman of the House Energy and Commerce Committee, by Bonnie Cash used with permission

January 28, 2021—During the first organizational meeting of the House Commerce Committee of the 117th Congress, Chairman Frank Pallone of New Jersey welcomed the newest members of the House Energy and Commerce Committee.

The bulk of the Committee’s first meeting was dedicated to discussing best practices to reduce healthcare and prescription drug costs, rebuild and modernize the nation’s infrastructure, and combat climate change.

Members further discussed rebuilding and restoring the essential functions of key agencies. Strengthening the Center for Disease Control and the Environmental Protection Agency were deemed essential. Members considered the waning of the two agencies to be at “the very heart” of creating some of the nation’s most pressing current legislative and policy issues.

Members also approved governing procedures and announce subcommittee chairs, ranking members, and other subcommittee assignments.

Republican Rep. Cathy McMorris Rodgers of Washington is  the new ranking member, and the first woman in that role for the committee.

Pallone further announced Democratic members joining the Committee, including Rep. Kathleen Rice of New York, known for her interest in climate change and infrastructure. Rep. Angie Craig, of Minnesota, was touted for work on the Affordable Care Act. Rep. Kim Schrier of Washington was recognized for her work as a pediatrician.

Rep. Lori Trahan of Massachusetts has an interested in the opioid pandemic and the environment. Rep. Lizzie Fletcher of Texas is focused on first responders and firefighting foams.

Pallone addressed members of the committee in the 117th Congress

Pallone thanked members and reiterated the need to enact policies to combat COVID-19 through vaccine distribution. He criticized former President Donald Trump for lacking effective implementation strategies to vaccinate more Americans sooner.

He said policies were needed that “provide critical assistance to struggling families, rebuild our economy, and bring an end to the pandemic, so people can begin to safely return to regular practice of life.”

Pallone praised President Joe Biden’s executive orders on vaccine distribution, expanded access to testing, and utilization of the Defense Production Act, which allows continued access to medical supplies and personal protective equipment for testing and vaccination.

The committee also took time to celebrate its own 225th birthday, which occurred last month. It is the oldest committee in the House.

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