Federal Updates

Federal Update -- Week of February 26, 2010

Comcast and NBCU Joint Venture:   House Judiciary Committee holds hearing.  On Thursday the House Judiciary Committee held a 5 hour hearing on the proposed Comcast and NBCU joint venture. Witnesses at the hearing included Comcast Chairman Brian Roberts and NBCU President Jeff Zucker. Committee Chairman John Conyers gave members of the Committee wide latitude to ask questions which along with some lengthy meandering questions by some Members contributed to the length of the hearing.

 
This was Roberts and Zuckers third appearance before congressional committees in as many weeks.  Questions and concerns by committee members focused on a plethora of issues including jobs, employment practices, net neutrality and media concentration.  Below are issues and concerns raised by California committee members during the hearing.
 
·         Logren:  Raised question about potential of merger to affect growth of delivery of television over the internet and raised concerns about net neutrality.
 
·         Schiff:  Hoped that merger would raise awareness of pipeline providers to concerns of intellectual property since Comcast would now increase its participation in the content side of the business through NBCU.
 
·         Berman:  Stated that the proposed joint venture had a couple of appeals to him. He said that things which get the distribution side of the business to understand the creative side are welcome and this joint venture could help do that. Berman noted that Universal Studios is in his district and that this is a jobs issue for him.  He asked Zucker and Roberts to address the jobs issue and specifically regarding commitment #12 (2 new independent services added each of next 3 years) and how that related to independent producers.
 
·         Waters:  Waters focused her questions on diversity. She questioned both Roberts and Zucker on the lack of female and African-Americans on their boards of directors. In addition, she pressed Zucker on the lack of programming directed at African-Americans and produced by African –Americans. The concern over diversity issues was also raised by several other committee members including Sheila Jackson-Lee of Texas.
 
·         Lungren:  Lungren asked how we know that the programming you own and control won’t go up in price to your competitors. He said it was only human nature to benefit yourself. He asked what is the impact of the merger going to be in my district to my constituents.  Is the joint venture going to be a problem for consumers or am I going to say why didn’t this happen earlier? He asked if NBC affiliates would be weaker as a result of the joint venture. He also raised the ala carte issue which has been an ongoing concern for him. He said he wanted the Western Channel but could only get it as part of a package and eventually his wife disconnected it because of the cost. He also said that there was competition in the marketplace and that he was not a loyal customer but switched providers based on cost and service.
 
·         Issa:  Issa opened with a humorous plea for consideration of the under-representation of Lebanese-Americans in the media pointing to Tony Shaloub as Monk as one of the few examples. He then focused on how the marketplace has changed dramatically over the years and the incredible explosion of bandwidth and channels over the last 20 years and how the consumer advocates on the panel were not focused on the dramatic changes that had happened in the media marketplace.
 
·         Chu:  Chu raised the retransmission consent issue and asked if there was a need to adopt reforms to the process. She said during her recent district work period the issue of piracy had been raised with her and that she had heard that piracy cost LA $106,000 jobs. She also asked about net neutrality and an open internet and finally asked about Comcast’s relationship to Hulu.
 

 Federal Update - Week of February 19, 2010

Congress has been on its State and District Presidents Day Work Period this week. During the past week CCTA and its Members met with several Members of Congress while they were home.  Next week Congress will return to Washington and several hearings relevant to cable have been scheduled.

U.S. Senate Commerce Subcommittee on Communications, Technology, and the Internet. On Tuesday February 23rd at 7:00 am (PST) the Senate Commerce Subcommittee on Communications, Technology, and the Internet will hold a hearing entitled “Improving Energy Efficiency through Technology and Communications Innovation.” The hearing should be available through the Committees website: http://commerce.senate.gov/  
 
According to the Committees press release this hearing will explore how expanding broadband, improving smart grid technology, and expanding consumer understanding of their energy usage can lead to dramatic energy savings as well as a reduction in greenhouse gasses.  It will also look at how firms in the information and communications industries are driving these changes.
Announced witnesses include representatives from Intel, EMC Corporation, Tendril Networks, Inc., Sprint-Nextel, and the Executive Office of the President.
 
U.S. Senate Committee on Commerce, Science, and Transportation.  Also on Tuesday February 23rd, the full Senate Committee on Commerce, Science, and Transportation will hold a hearing on “Cybersecurity:  The Next Steps to Protect our Critical Infrastructure.” The hearing will begin at 11:30 am (PST) and should also be available from the Committees website:   http://commerce.senate.gov
 
U.S. House of Representatives Judiciary Committee. The U.S. House of Representatives Judiciary Committee has just announced a hearing on “Competition in the Media and Entertainment Distribution Market.” Witnesses have not yet been announced. The hearing will take place on Thursday, February 25th at 7:00 am (PST) and will be accessible from the committees website: http://judiciary.house.gov/index.html
 
 
LEGISLATIVE ACTION IN CONGRESS
 
Satellite Television Extension and Localism Act of 2009 (STELA).  This legislation, seen as “must pass” legislation in 2009, extends the DBS compulsory license to retransmit distant signals which was set to expire on December 31, 2009. However, Congress only approved a 60-day extension but will continue to work on a comprehensive final proposal before the February 20, 2010 sunset date. This legislation was previously known as “SHVERA. “
 
Commercial Advertisement Loudness Act (CALM ACT).  The House of Representatives approved H.R. 1084, the CALM ACT, in early December. The bill authored by California Democrat Anna Eshoo (D-CA) would require the FCC to adopt regulations on commercial loudness within one year. There has not been any action on companion legislation in the Senate.
 
Net Neutrality.  Net neutrality remains a front burner issue in Washington. Both Congress and the FCC remain focused on the issues surrounding net-neutrality. Representatives Edward Markey (D-MA) and Anna Eshoo (D-CA) introduced H.R. 3458, the Internet Freedom and Preservation Act of 2009, which would codify the FCC's Broadband Policy Statement principles and would add an additional broad "non discrimination" provision.
 
Privacy.  Privacy protection is one of the key concerns of House Energy and Commerce Subcommittee Chairman Rich Boucher (D-VA). Representative Boucher has said he wants to promote greater use of the Internet by assuring users of a high degree of privacy protection "including transparency about the collection, use and sharing of information about them, and giving them control over that collection, use and sharing." Although Chairman Boucher has said he will soon introduce legislation on the subject, nothing has been introduced yet.
 
Universal Service Fund (USF).  Reforming USF has also been a priority for Chairman Boucher. He has stated that the Universal Service Fund as currently constituted is broken. One change among many Boucher would make is to allow the USF to be used for broadband deployment. In addition, Representative Doris Matsui (D-CA) has introduced a bill, H.R. 3646, to expand the USF Lifeline Assistance program to include broadband. Chairman Boucher would like to move USF legislation through his committee in the New Year.
 
Public Educational and Governmental (PEG).  Representative Tammy Baldwin (D-WI) introduced H.R. 3745, the Community Access Preservation Act (CAP ACT) which would impose new PEG related requirements on cable operators and restore PEG requirements that DIVCA and other state franchising laws removed. The legislation has not been scheduled for a hearing. The cable industry opposes the Baldwin legislation.
 
OTHER FEDERAL ACTIVITIES
 
Net Neutrality. The Federal Communications Commission Chairman Julius Genachowski announced plans in October to have the Commission codify its four internet principles and to add two additional ones to bar broadband providers from discriminatory behavior and to increase network management transparency. The industry is continuing to work with both Congress and the FCC to ensure that any adopted regulation or legislation that encourages investment and allows a robust Internet to flourish.
 
North American Numbering Council. CCTA continues to work on assuring a sufficient supply of telephone numbers. This year CCTA staff was once again appointed Cable’s voting member on the FCC’s North American Numbering Council (NANC). In that capacity, CCTA worked closely with NCTA and its members to implement rules to reduce the time required to port a telephone number from a competitor and to reduce the number of required fields necessary to effectuate a telephone port.
 
Federal Update 10-9-09
 
Committee Passes CALM Act.  On Thursday morning in a markup that lasted just one hour the House Energy and Commerce Subcommittee on Communications, Technology, and the Internet passed four bills by voice vote including H.R. 1084(Eshoo), the Commercial Loudness Mitigation ACT (CALM Act). Only two Californians, Eshoo and McNerney were present at the non-controversial and lightly attending markup.

A couple of Members expressed concerns about the CALM Act, particularly its impact on small cable television operators. Eshoo said these were last minute concerns that had not been raised during any debate or discussion of the bill and that she thought that the two one year waivers available in the legislation should address the issues of smaller operators. Eshoo did say she would continue to work with those concerned about the legislation as it moved forward for consideration at the full committee level

 

Federal Update 9-25-09

Matsui introduces legislation to help low income Americans access broadband.  On Thursday, Representative Doris Matsui (CA-05) a member of the Energy and Commerce Subcommittee on Communications, Technology, and the Internet, introduced legislation to expand the Universal Service Fund’s (USF) Lifeline Assistance program for expanded nationwide broadband adoption. The bill, entitled the Broadband Affordability Act of 2009, directs the FCC to establish a broadband program that provides assistance for low income Americans to subscribe to broadband service.

As she had at several Committee hearings, Matsui pointed out in her press release that while 96% of Californian’s have access to broadband, only 58% of Californians earning under $40,000 have subscribed to an Internet service at their home, while 97% of those earning over $80,000 subscribed to a service.

Matsui’s press release also stated that “In today’s economic climate, more and more hardworking Americans simply cannot afford to pay up to $60 a month for broadband services.”  The Matsui bill would allow USF funds to be used to offer discounted Internet service.

 The bill will be referred to the House Committee on Energy and Commerce. CCTA will work with the author as the bill moves forward in the process.

Satellite Television Modernization Act of 2009.  The Senate Judiciary Committee Thursday passed by voice vote S.1670, Satellite Television Modernization Act of 2009. The legislation included an agreement that was reached by the content and cable industry related to the phantom signals.  In his statement following the Committee vote NCTA President Kyle McSlarrow said, “We strongly support the bill’s effort to promote continuity and to include important language that resolves the so-called phantom signal issue.”  An amendment to the bill directed the copyright office to report within a year on how to phase out the compulsory license was adopted unanimously.   Senator Feinstein (D-CA) a member of the Committee, said she was happy to see the study of the compulsory license included and wanted to work with the Chairman to see that the study did not favor any one alternative. The bill will next be taken up by the Commerce Committee in the Senate.

Satellite Home Viewer Update and Reauthorization Act (SHVURA).  This week the House Judiciary Committee passed the Satellite Home Viewer Update and Reauthorization Act (SHVURA) on a strong bi-partisan vote of 34-0.

 CCTA and its Members worked closely with Members of the Judiciary Committee over the last couple of months to communicate our concerns over the "phantom signal" issue and its potential impact on consumers. The industry believes the bill as approved by the Committee reflects a fair compromise.

Two California Members spoke during the discussion of the legislation.

Howard Berman stated that he felt the legislation should deal with the phasing out of the compulsory license and that neither the cable or satellite industries were nascent industries and that the compulsory license which in his view should be eliminated had in fact been expanded over the years. He said that while an elimination of the compulsory license would not be easy, these negotiations should be handled by the free market. He pointed out that many such negotiations between programmers and operators are now handled by the marketplace. He said that this five year extension of the compulsory license should be the last. CCTA's worked closely with Mr. Berman’s office in addition to others explaining the industries concerns with any changes to the Chairman’s bill which was a carefully crafted compromise. 

Congressman Issa echoed many of Mr. Berman’s concerns and offered and then withdrew an amendment that would have reauthorized the program for only two years.

House Commerce Committee's Subcommittee on Communications;  FCC Oversight Hearing.  On Thursday the House Commerce Committee's Subcommittee on Communications held an FCC oversight hearing with all five FCC Commissioners. Below are selected comments made by California Members during their opening statements:

  • Commerce Committee Chairman Waxman.  Waxman stated that he had asked Mr. Markey to add him as a co-sponsor of HR 3458 the net neutrality legislation introduced by Mr. Markey and Ms. Eshoo. He stated that he did not think net neutrality impeded innovation nor that net neutrality and strong copyright protection were mutually exclusive. He stated that President Obama had made an open internet a "vital part of his platform" and that he supported that. He also said the Commission should consider ways to expedite construction of additional wireless broadband.
  • Mr.McNerney.  McNerney stated he had several areas of concern. The first was the special access market and he wanted to make sure the Commission went forward with a balanced policy. He also said he was interested in the amount of time the FCC gave for comments in its various proceedings. Finally he said cyber security and net neutrality were areas of interest to him.
  • Ms. Matsui.  Matsui said the urban underserved should be a priority for broadband and that the affordability of broadband needed to be enhanced. She repeated that she was going to introduce legislation that would expand the universal service fund to include broadband.
  • Ms. Eshoo.  Eshoo said we need high speeds for broadband that rank with world class standards. She also said we needed a truly competitive environment not one where "the big fish eat the small fish"
Federal Update 9-11-09

U.S. House Commerce Subcommittee on Communications, Technology, and the Internet.  On Thursday, September 10th the U.S. House Commerce Subcommittee on Communications, Technology, and the Internet held an oversight hearing on the broadband loan and grant program created by the Stimulus Act. The hearing lasted approximately 3 hours including a break in the middle for a series of votes on the floor. The two witnesses were Rural Utility Services (RUS) Administrator Jonathan Adelstein and the National Telecommunications and Information Administration (NTIA) Assistant Secretary for Communications andInformation, Lawrence Strickling. 

Thirteen Members of the Subcommittee participated in the hearing. The four Californians in attendance were Full Committee Chairman Henry Waxman, Congressman Jerry McNerney, Congresswoman Doris Matsui, and Congresswoman Anna Eshoo. 

Chairman Boucher in his opening remarks and subsequent questions expressed his concerns about several aspects of the way the first round has evolved. First, the Chairman was concerned that that there needed to be increased access to grant funding for rural areas that were excluded from the first round due to the definition of remote  which has been defined as further than 50 miles from a town of 20,000 or more. The Chairman held up a map of the country which showed that most of the Eastern United States is excluded under the agencies definitions while large portions of the West outside of California seemed eligible for funds. Another of the Chairman’s concerns was that the current process forces applicants who are applying to both agencies to first go through RUS before the NTIA could make an award. He expressed concern that if RUS rejected an applicant that timing issues might put those applicants at a disadvantage relative to other NTIA applicants. The Chairman also expressed a concern that came from his home state of Virginia that they had not been expecting all the Virginia applications that had been forward to the State by NTIA and RUS and inquired what the expectations were of the States by the two federal agencies. In subsequent statements and questions many of the other Committee Members expressed similar concerns.

California Member Comments: 

Full Committee Chairman Henry Waxman complimented both NTIA and RUS for issuing the application guidelines in a timely manner. He said that while there had been  skeptics who said that Congress had placed so many conditions on the funds that there would not been enough applicants the fact that over 2200 applications were submitted with requests for over $28 billion dollars made it clear that the public interest obligations "did not stifle applicants." At the end of his opening statement the Chairman did note that the agencies should be ready "to receive constructive criticism from both sides of the aisle." The Chairman did not ask questions after the witnesses’ testimony. 

Congresswoman Doris Matsui said that broadband adoption was a great problem which in most cases was related to income. She pointed out that while the 96% of Californians had access to broadband and over 80% of wealthier Californians had broadband in their homes that the numbers dropped dramatically when it came to poorer Californians and that only 58% of Californians who make less $40,000 have access to broadband.  She said we needed to address the issue "of affordability for all" and that she would soon be introducing legislation to expand universal service fund to include affordable lifeline broadband. She emphasized that urban low income populations should be considered "underserved" in regards to broadband grants. Matsui also noted that particularly in this economic climate that many people rely on "anchor institutions" such as schools and libraries for broadband access and that these institutions need to be supported. 

Congresswoman Anna Eshoo agreed with Representative Matsui that the community anchor institutions need to be supported. In both her opening statement and subsequent questions Eshoo emphasized that "a priority should be advanced capability and speed." She expressed concern that the rules do not "encourage higher speeds in rural areas." She expressed concern over the process by which incumbents would challenge applicants and did not want that process used to stifle competition.

Congressman McNerney made only a brief opening statement about the process and did not ask questions following the witness’s testimony.
 
During both their testimony and subsequent answering of questions the two witnesses seldom disagree with each other and emphasized the close cooperation between their agencies. In response to questions they emphasized that 768kbps was a floor for speed and that additional points were would be given for higher speeds. Strickling said that the 768kbps was used so that if 3G was the only option for an area that it could at least be considered for funding. Regarding challenges to applications he said that a disagreeing party would have to provide substantive information to rebut information in an application and that the final decision on any application would rest with NTIA and RUS. Adelstein also stated that on challenges the agencies had created unprecedented transparency which would allow comments on applications from a wide variety of people and institutions. 

Strickling also announced that the grants for broadband mapping would start to be announced in September. He also said that the next two rounds of grants could be merged into one thereby saving administrative expenses. He also assured the Committee that they would be hiring enough people to make sure they could do proper oversight to make sure there was not waste, fraud or abuse in the program. In response to Representative Matsui's question on low income he said a big focus was on adoption and that an area with less than 40% adoption was consider underserved. 

Adelstein said those who were unsuccessful in the first round would be able to reapply in the next round. Both he and Strickling acknowledged the Chairs and other Members concerns about the definition of rural and said it would be looked at prior to the next round of applications. They also said that they were sharing applications with the respective states to get the states view on overall priorities for the applications filed but not specific comment on individual applications. A state would also be free not to comment if that was its desire.

Boucher closed the hearing by reiterating his some of his concerns and stated that the subcommittee would hold at least one more hearing. 

The House Small Business Committee plans to hold a broadband hearing, tentatively scheduled for September 23rd. This is planned to be an NTIA/RUS Oversight hearing with a focus on small business concerns with the BTOP and BIP funding and application process. Two panels are planned. Lawrence Strickling (NTIA) and Jonathan Adelstein(RUS) would testify on the first panel and the second panel would be comprised of small business executives who have submitted applications or plan to.

Federal Update

FCC Chairman Comes to California.  Newly Confirmed FCC Chairman Julius Genachowski will be in Palo Alto Monday and is scheduled to appear with Representative Anna Eshoo to promote the increased use of broadband which is a top priority of both officials. That evening the Chairman will have dinner with key technology leaders and others including representatives of the cable television industry.

Eshoo who represents Silicon Valley is a key member of the Energy and Commerce Subcommittee on Communications, technology, and the internet which both helps set telecommunications policy for the country and oversees the FCC.
 
The Chairman will also appear in San Francisco Sunday, in House Speaker Nancy Pelosi's district where he will join city officials and representatives of One Economy, a non-profit that uses innovative approaches to deliver the power of technology and information to low-income people. 

Representatives Markey and Eshoo unveil net neutrality bill.  According to the Congressional Daily as reported in their publication the Tech Daily Dose Representatives Markey and Eshoo introduced net-neutrality legislation (H.R. 3458) on Friday that would prevent internet service providers such as telephone and cable companies from interfering with Web content that passes through their pipes. The publication reported that the bill would essentially bar ISP's from using the claim of network management to impose their own priorities on data traffic based on financial arrangements or other considerations. 

Congress is breaking for its Summer District Work Period and is scheduled to return September 3rd. CCTA may ask you to set up meetings with select Members of the Judiciary Committee during this period to discuss the Satellite Home Viewer Digital Television Act.

The discussion draft of this legislation released by Judiciary Committee Chairman John Conyers has several components which are problematic for cable particularly the section dealing with "phantom signals." We will be advising the key contacts of the relevant Members if we need meetings set up during this period.
 
July 24, 2009
Federal Update 

House Judiciary Committee Discussion Draft on SHVERA. The House Judiciary Committee has decided not to mark-up the Satellite Home Viewer Digital Television Act (SHVERA) of 2009 prior to the August Congressional recess. The draft of the bill has several areas which were problematic for the cable television industry particularly as it relates to “phantom” signals. 

CCTA sent out information to it Members who serve areas represented by Members of the Judiciary Committee. CCTA staff contacted the offices of California Judiciary Committee Members to inform them of our concerns. We may be asking Judiciary Committee Key Contacts to set up district meeting during the August recess period. In the next week we should be furthering additional information to you in preparation for further activity. 

July 17, 2009
Federal Update

House Judiciary Committee Releases Discussion Draft on SHVERA.  On Tuesday, House Judiciary Committee Chairman John Conyers released a discussion draft on the Satellite Home Viewer Television Act (SHVERA). The Chairman plans to soon introduce a formal bill and intends to mark-up the bill as early as July 29th. NCTA has sent a letter to the Chairman in response to the discussion draft pointing out areas of concern in the draft that include, the need to resolve the phantom signal issue; giving any “interested party” the right to engage in intrusive “audits” of the highly sensitive financial data on  each cable operator; requiring cable operators to pay royalties for each digital “multicast” stream carried at the same level established for a broadcaster’s primary programming channel bases its royalty payments; and  “phase out “of  the cable compulsory license if a broadcaster certifies that it has the rights needed for a “single source” license..
 
If you do not have a copy of the NCTA letter to the Chairman and would like a copy, please contact Jerry Yanowitz or Toni Irwin.

July 10, 2009
Federal Update

Point Smart Click Safe.  On Wednesday a diverse coalition of technology companies, including the cable television industry, along with educators, parents groups, and researchers announced a comprehensive set of recommendations that companies involved with the Internet can adopt as best practices to help keep children safe when they are on line. The coalition was joined by U.S. Representatives Debbie Wasserman Schultz(D-FL) and John Shimkus(R-IL.) who spoke as part of the group’s report.  In addition to these two Congressional speakers, eleven other Members of Congress made statements of support including two Californians, Mary Bono Mack (R-Palm Springs) and George Radanovich (R-Fresno). The complete report along with the Congressional statements can be found at www.pointsmartreport.org and www.ncta.com

CCTA Legislative & Regulatory Update
August 21, 2009
 
Federal Update:

Congress remains in recess for their August work period and will return on September 8.  During the remainder of this period when many Members are in their districts you should  continue to take this opportunity to try and meet with them to tell them about your investments in the community and the enhanced products and services you are offering. If you need any briefing material or assistance with a meeting please let us know.
 
July 31, 2009 
 
09-11-2009
Federal Update 

U.S. House Commerce Subcommittee on Communications, Technology, and the Internet.  On Thursday, September 10th the U.S. House Commerce Subcommittee on Communications, Technology, and the Internet held an oversight hearing on the broadband loan and grant program created by the Stimulus Act. The hearing lasted approximately 3 hours including a break in the middle for a series of votes on the floor. The two witnesses were Rural Utility Services (RUS) Administrator Jonathan Adelstein and the National Telecommunications and Information Administration (NTIA) Assistant Secretary for Communications andInformation, Lawrence Strickling.

Thirteen Members of the Subcommittee participated in the hearing. The four Californians in attendance were Full Committee Chairman Henry Waxman, Congressman Jerry McNerney, Congresswoman Doris Matsui, and Congresswoman Anna Eshoo. 

Chairman Boucher in his opening remarks and subsequent questions expressed his concerns about several aspects of the way the first round has evolved. First, the Chairman was concerned that that there needed to be increased access to grant funding for rural areas that were excluded from the first round due to the definition of remote  which has been defined as further than 50 miles from a town of 20,000 or more. The Chairman held up a map of the country which showed that most of the Eastern United States is excluded under the agencies definitions while large portions of the West outside of California seemed eligible for funds. Another of the Chairman’s concerns was that the current process forces applicants who are applying to both agencies to first go through RUS before the NTIA could make an award. He expressed concern that if RUS rejected an applicant that timing issues might put those applicants at a disadvantage relative to other NTIA applicants. The Chairman also expressed a concern that came from his home state of Virginia that they had not been expecting all the Virginia applications that had been forward to the State by NTIA and RUS and inquired what the expectations were of the States by the two federal agencies. In subsequent statements and questions many of the other Committee Members expressed similar concerns.

California Member Comments:

Full Committee Chairman Henry Waxman complimented both NTIA and RUS for issuing the application guidelines in a timely manner. He said that while there had been  skeptics who said that Congress had placed so many conditions on the funds that there would not been enough applicants the fact that over 2200 applications were submitted with requests for over $28 billion dollars made it clear that the public interest obligations "did not stifle applicants." At the end of his opening statement the Chairman did note that the agencies should be ready "to receive constructive criticism from both sides of the aisle." The Chairman did not ask questions after the witnesses’ testimony.

Congresswoman Doris Matsui said that broadband adoption was a great problem which in most cases was related to income. She pointed out that while the 96% of Californians had access to broadband and over 80% of wealthier Californians had broadband in their homes that the numbers dropped dramatically when it came to poorer Californians and that only 58% of Californians who make less $40,000 have access to broadband.  She said we needed to address the issue "of affordability for all" and that she would soon be introducing legislation to expand universal service fund to include affordable lifeline broadband. She emphasized that urban low income populations should be considered "underserved" in regards to broadband grants. Matsui also noted that particularly in this economic climate that many people rely on "anchor institutions" such as schools and libraries for broadband access and that these institutions need to be supported.
 

Congresswoman Anna Eshoo agreed with Representative Matsui that the community anchor institutions need to be supported. In both her opening statement and subsequent questions Eshoo emphasized that "a priority should be advanced capability and speed." She expressed concern that the rules do not "encourage higher speeds in rural areas." She expressed concern over the process by which incumbents would challenge applicants and did not want that process used to stifle competition. 

Congressman McNerney made only a brief opening statement about the process and did not ask questions following the witness’s testimony. 

During both their testimony and subsequent answering of questions the two witnesses seldom disagree with each other and emphasized the close cooperation between their agencies. In response to questions they emphasized that 768kbps was a floor for speed and that additional points were would be given for higher speeds. Strickling said that the 768kbps was used so that if 3G was the only option for an area that it could at least be considered for funding. Regarding challenges to applications he said that a disagreeing party would have to provide substantive information to rebut information in an application and that the final decision on any application would rest with NTIA and RUS. Adelstein also stated that on challenges the agencies had created unprecedented transparency which would allow comments on applications from a wide variety of people and institutions. 

Strickling also announced that the grants for broadband mapping would start to be announced in September. He also said that the next two rounds of grants could be merged into one thereby saving administrative expenses. He also assured the Committee that they would be hiring enough people to make sure they could do proper oversight to make sure there was not waste, fraud or abuse in the program. In response to Representative Matsui's question on low income he said a big focus was on adoption and that an area with less than 40% adoption was consider underserved.

Adelstein said those who were unsuccessful in the first round would be able to reapply in the next round. Both he and Strickling acknowledged the Chairs and other Members concerns about the definition of rural and said it would be looked at prior to the next round of applications. They also said that they were sharing applications with the respective states to get the states view on overall priorities for the applications filed but not specific comment on individual applications. A state would also be free not to comment if that was its desire. 

Boucher closed the hearing by reiterating his some of his concerns and stated that the subcommittee would hold at least one more hearing. 

The House Small Business Committee plans to hold a broadband hearing, tentatively scheduled for September 23rd. This is planned to be an NTIA/RUS Oversight hearing with a focus on small business concerns with the BTOP and BIP funding and application process. Two panels are planned. Lawrence Strickling (NTIA) and Jonathan Adelstein(RUS) would testify on the first panel and the second panel would be comprised of small business executives who have submitted applications or plan to.

Federal Update 9-18-0