AUTHORITYID | CHAMBER | TYPE | COMMITTEENAME |
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hsif00 | H | S | Committee on Energy and Commerce |
[House Hearing, 115 Congress] [From the U.S. Government Publishing Office] DISCUSSION DRAFT: NATIONAL TELECOMMUNICATIONS AND INFORMATION ADMINISTRATION REAUTHORIZATION ACT OF 2018 ======================================================================= HEARING BEFORE THE SUBCOMMITTEE ON COMMUNICATIONS AND TECHNOLOGY OF THE COMMITTEE ON ENERGY AND COMMERCE HOUSE OF REPRESENTATIVES ONE HUNDRED FIFTEENTH CONGRESS SECOND SESSION __________ JUNE 26, 2018 __________ Serial No. 115-146 [GRAPHIC NOT AVAILABLE IN TIFF FORMAT] Printed for the use of the Committee on Energy and Commerce energycommerce.house.gov _________ U.S. GOVERNMENT PUBLISHING OFFICE 35-141 WASHINGTON : 2019 ----------------------------------------------------------------------------------- For sale by the Superintendent of Documents, U.S. Government Publishing Office, http://bookstore.gpo.gov. For more information, contact the GPO Customer Contact Center, U.S. Government Publishing Office. Phone 202-512-1800, or 866-512-1800 (toll-free).E-mail, gpo@custhelp.com. COMMITTEE ON ENERGY AND COMMERCE GREG WALDEN, Oregon Chairman JOE BARTON, Texas FRANK PALLONE, Jr., New Jersey Vice Chairman Ranking Member FRED UPTON, Michigan BOBBY L. RUSH, Illinois JOHN SHIMKUS, Illinois ANNA G. ESHOO, California MICHAEL C. BURGESS, Texas ELIOT L. ENGEL, New York MARSHA BLACKBURN, Tennessee GENE GREEN, Texas STEVE SCALISE, Louisiana DIANA DeGETTE, Colorado ROBERT E. LATTA, Ohio MICHAEL F. DOYLE, Pennsylvania CATHY McMORRIS RODGERS, Washington JANICE D. SCHAKOWSKY, Illinois GREGG HARPER, Mississippi G.K. BUTTERFIELD, North Carolina LEONARD LANCE, New Jersey DORIS O. MATSUI, California BRETT GUTHRIE, Kentucky KATHY CASTOR, Florida PETE OLSON, Texas JOHN P. SARBANES, Maryland DAVID B. McKINLEY, West Virginia JERRY McNERNEY, California ADAM KINZINGER, Illinois PETER WELCH, Vermont H. MORGAN GRIFFITH, Virginia BEN RAY LUJAN, New Mexico GUS M. BILIRAKIS, Florida PAUL TONKO, New York BILL JOHNSON, Ohio YVETTE D. CLARKE, New York BILLY LONG, Missouri DAVID LOEBSACK, Iowa LARRY BUCSHON, Indiana KURT SCHRADER, Oregon BILL FLORES, Texas JOSEPH P. KENNEDY, III, SUSAN W. BROOKS, Indiana Massachusetts MARKWAYNE MULLIN, Oklahoma TONY CARDENAS, California RICHARD HUDSON, North Carolina RAUL RUIZ, California CHRIS COLLINS, New York SCOTT H. PETERS, California KEVIN CRAMER, North Dakota DEBBIE DINGELL, Michigan TIM WALBERG, Michigan MIMI WALTERS, California RYAN A. COSTELLO, Pennsylvania EARL L. ``BUDDY'' CARTER, Georgia JEFF DUNCAN, South Carolina Subcommittee on Communications and Technology MARSHA BLACKBURN, Tennessee Chairman LEONARD LANCE, New Jersey MICHAEL F. DOYLE, Pennsylvania Vice Chairman Ranking Member JOHN SHIMKUS, Illinois PETER WELCH, Vermont STEVE SCALISE, Louisiana YVETTE D. CLARKE, New York ROBERT E. LATTA, Ohio DAVID LOEBSACK, Iowa BRETT GUTHRIE, Kentucky RAUL RUIZ, California PETE OLSON, Texas DEBBIE DINGELL, Michigan ADAM KINZINGER, Illinois BOBBY L. RUSH, Illinois GUS M. BILIRAKIS, Florida ANNA G. ESHOO, California BILL JOHNSON, Ohio ELIOT L. ENGEL, New York BILLY LONG, Missouri G.K. BUTTERFIELD, North Carolina BILL FLORES, Texas DORIS O. MATSUI, California SUSAN W. BROOKS, Tennessee JERRY McNERNEY, California CHRIS COLLINS, New York FRANK PALLONE, Jr., New Jersey (ex KEVIN CRAMER, North Dakota officio) MIMI WALTERS, California RYAN A. COSTELLO, Pennsylvania GREG WALDEN, Oregon (ex officio) C O N T E N T S ---------- Page Hon. Marsha Blackburn, a Representative in Congress from the State of Tennessee, opening statement.......................... 1 Prepared statement........................................... 3 Hon. Michael F. Doyle, a Representative in Congress from the Commonwealth of Pennsylvania, opening statement................ 3 Prepared statement........................................... 5 Hon. Leonard Lance, a Representative in Congress from the State of New Jersey, opening statement............................... 6 Prepared statement........................................... 7 Hon. Frank Pallone, Jr., a Representative in Congress from the State of New Jersey, opening statement......................... 41 Prepared statement........................................... 42 Witnesses Michael D. Gallagher, CEO, Entertainment Software Association.... 8 Prepared statement........................................... 10 Answers to submitted questions............................... 94 John Kneuer, President, JKC Consulting........................... 20 Prepared statement........................................... 23 Answers to submitted questions............................... 97 Joanne S. Hovis, President, CTC Technology and Energy............ 29 Prepared statement........................................... 31 Answers to submitted questions............................... 99 Submitted Material Statement of the Computer & Communications Industry Association.. 64 The Entertainment Software Association's Motion for Leave to Intervene in Support of Petitioners............................ 66 Statement of the Coalition for a Secure and Transparent Internet. 73 Statement of the Telecommunications Industry Association......... 74 Article entitled, ''Wired to Fail,'' Politico, June 28, 2015..... 80 Statement of Organizations fighting against human trafficking.... 91 Letter of May 11, 2018, from Messrs. Shimkus and Ruiz to Alphabet, Inc.................................................. 92 Statement of the Telecommunications Industry Association......... 74 DISCUSSION DRAFT: NATIONAL TELECOMMUNICATIONS AND INFORMATION ADMINISTRATION REAUTHORIZATION ACT OF 2018 ---------- TUESDAY, JUNE 26, 2018 House of Representatives, Subcommittee on Communications and Technology, Committee on Energy and Commerce, Washington, DC. The subcommittee met, pursuant to call, at 1:15 p.m., in room 2322 Rayburn House Office Building, Hon. Marsha Blackburn (chairman of the subcommittee) presiding. Members present: Representatives Blackburn, Lance, Shimkus, Latta, Guthrie, Bilirakis, Johnson, Flores, Brooks, Collins, Walters, Costello, Doyle, Welch, Loebsack, Ruiz, Eshoo, Butterfield, Matsui, McNerney, and Pallone (ex officio). Staff present: Jon Adame, Policy Coordinator, Communications and Technology; Robin Colwell, Chief Counsel, Communications and Technology; Kristine Fargotstein, Detailee, Communications and Technology; Sean Farrell, Professional Staff Member, Communications and Technology; Adam Fromm, Director of Outreach and Coalitions; Elena Hernandez, Press Secretary; Paul Jackson, Professional Staff, Digital Commerce and Consumer Protection; Tim Kurth, Deputy Chief Counsel, Communications and Technology; Lauren McCarty, Counsel, Communications and Technology; Austin Stonebraker, Press Assistant; Evan Viau, Legislative Clerk, Communications and Technology; Jeff Carroll, Minority Staff Director; Jennifer Epperson, Minority FCC Detailee; Alex Hoehn-Saric, Chief Counsel, Communications and Technology, Jerry Leverich, Minority Counsel; Dan Miller, Minority Policy Analyst; Jon Monger, Minority Counsel; Andrew Souvall, Minority Director of Communications, Outreach and Member Services; C.J. Young, Minority Press Secretary. OPENING STATEMENT OF HON. MARSHA BLACKBURN, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF TENNESSEE Mrs. Blackburn. The Subcommittee on Communications and Technology will now come to order. The chair now recognizes herself for 5 minutes for an opening statement. And I want to welcome you to our hearing on reauthorizing the NTIA. This should be a very familiar topic to everyone in the room as NTIA reauthorization was also my very first hearing as chair of this subcommittee on February 2nd of 2017. Since then, we have held nine hearings related to the work of the NTIA, including an oversight hearing this spring with the new NTIA administrator. I'd like to thank our witnesses for being here. Ms. Hovis has been particularly generous with her time, as this is her third appearance before the subcommittee this Congress on NTIA- related topics. We welcome Mr. Kneuer back to the subcommittee as well, and are pleased to welcome Mr. Gallagher as the fourth former NTIA administrator that we have heard from. We appreciate your perspectives on the agency and also what music you might have been listening to when the NTIA was last reauthorized. Of course, as somebody coming from middle Tennessee, I'll give you a little hint. Mr. Doyle was dancing the line dance in Pittsburgh to the music of Billy Ray Cyrus and ``Achy Breaky Heart.`` I know it. Mr. Doyle. I kind of doubt that but---- [Laughter.] Mrs. Blackburn. I think I am probably right, and it's also--1992 is the year that Miley Cyrus was born. This shows you how long it has been. Make no mistake, the bill before us today is a rural broadband bill, and a very important one at that. Many of us hear over and over again about the desperate need to connect unserved Americans, and we are willing to invest toward that goal. But we must ensure good stewardship of those dollars. We know that without Federal involvement, rural areas will continue to be left behind. So the best thing that we can do to promote rural broadband is to help the Federal Government get its act together. Mr. Tonko and Mr. Lance's ACCESS BROADBAND Act would establish a new office within NTIA to do just that. As we saw at our last markup, this bill has strong bipartisan support. There is just one problem: without giving NTIA the resources it needs to start up and follow through on this new function, our subcommittee's vision will never be realized. And the same can be said of our bipartisan consensus that NTIA should be pulling in the latest information across the government to develop an accurate nationwide map of broadband service to guide deployment efforts. We first gave NTIA this task in the American Recovery and Reinvestment Act of 2009 and we reaffirmed the priority in RAY BAUM'S Act. Our vision was then enacted in the omnibus, but with funding to get the job started, more will need to be done. That's why we have targeted our discussion draft so squarely at giving NTIA both the authority and resources to get to work on these two bipartisan, urgently needed initiatives. Our discussion draft also asserts our leadership and priorities on other important areas in NTIA's purview, including internet governance, supply chain vulnerabilities, and getting our first responders the very best, most accurate location information when someone calls 911. And here is the alternative. For 26 years, we have funded NTIA without an authorization from this committee, and every time we fail here, we fail the jurisdiction of this committee. But with the level of consensus we have on our vision of NTIA's leadership on rural broadband, that would be a real shame, and I don't intend for us to let that happen. So at this time, I yield back the balance of my time and I yield to Mr. Doyle 5 minutes for an opening statement. [The prepared statement of Mrs. Blackburn follows:] Prepared statement of Hon. Marsha Blackburn Good afternoon and welcome to our hearing on reauthorizing the NTIA. This should be a familiar topic to everyone in the room as NTIA reauthorization was also my first hearing as chair of this subcommittee on February 2nd of 2017. Since then, we have held nine hearings related to the work of NTIA, including an oversight hearing this spring with the NTIA Administrator. I'd like to thank our witnesses for being here. Ms. Hovis has been particularly generous with her time, as this is her third appearance before the subcommittee this Congress on NTIA- related topics. We welcome Mr. Kneuer back to the subcommittee as well, and are pleased to welcome Mr. Gallagher as the fourth former NTIA Administrator we have heard from. We appreciate your perspectives on the agency, and also what music you might have been listening to when the NTIA was last reauthorized. I'll give you a little hint, it was the year that Miley Cyrus was born. Make no mistake, the bill before us today is a rural broadband bill, and a very important one at that. Many of us hear over and over again about the desperate need to connect unserved Americans, and we are willing to invest toward that goal, but we must ensure good stewardship of those dollars. We know that without Federal involvement, rural areas will continue to be left behind. So the best thing we can do to promote rural broadband is to help the Federal Government get its act together. Mr. Tonko and Mr. Lance's ACCESS BROADBAND Act would establish a new office within NTIA to do exactly that. As we saw at our last markup, it has our strong bipartisan support. There's just one problem: without giving NTIA the resources it needs to start up and follow through on this new function, our subcommittee's vision will never be realized. And the same can be said of our bipartisan consensus that NTIA should be pulling in the latest information across the government to develop an accurate, nationwide map of broadband service to guide deployment efforts. We first gave NTIA this task in the American Recovery and Reinvestment Act of 2009, and we reaffirmed the priority in RAY BAUM'S Act. Our vision was then enacted in the omnibus, but with funding to get the job started, but more will be needed. That's why we have targeted our discussion draft so squarely at giving NTIA both the authority and the resources to get to work on these two bipartisan, urgently needed initiatives. And I hope we will be able to move it forward on a bipartisan basis. Our discussion draft also asserts our leadership and our priorities on other important areas in NTIA's purview, including internet governance, supply chain vulnerabilities, and getting our first responders the very best, most accurate location information when someone calls 911. Here is the alternative. For 26 years we have funded NTIA without an authorization from this Committee. And every time we fail here, we fail the jurisdiction of this Committee. But with the level of consensus we have here on our vision of NTIA's leadership on rural broadband, that would be a real shame, and I don't intend for it to happen. At this time, I will yield to the ranking member of the subcommittee, Mr. Doyle, for 5 minutes for an opening statement. OPENING STATEMENT OF HON. MICHAEL F. DOYLE, A REPRESENTATIVE IN CONGRESS FROM THE COMMONWEALTH OF PENNSYLVANIA Mr. Doyle. Thank you, Madam Chair, for holding this hearing and thank you to the witnesses for appearing before us today. The National Telecommunications and Information Administration plays a critical role of advising the President on telecommunications and information policy issues. NTIA also manages federal spectrum usage and has been a key partner in freeing up more spectrum for commercial use. In doing so, they have generated tens of billions in revenue for the Federal Government--a mission that I strongly believe we can do more to help them accomplish. The AIRWAVES Act, a bipartisan bicameral bill that I've sponsored with Mr. Lance, along with Senators Gardner and Hassan, furthers this mission by freeing up additional federal spectrum for commercial use and paves the way for our nation's 5G future. AIRWAVES frees up a combination of licensed and unlicensed spectrum to meet our nation's diverse spectrum needs. The bill also sets up a new mechanism to help deploy broadband in rural and underserved communities by directing a portion of the spectrum auction revenue to wireless broadband deployment. Madam Chair, this legislation is supported by a number of our colleagues on this committee on both sides of the aisle and I think it merits consideration by this subcommittee. I think this legislation could go a long way to accomplishing many of our shared goals. Going back to NTIA, the agency also administers grant programs to deploy broadband and other advance technologies, including the very successful $4 billion BTOP broadband program. The lessons learned from this program led to the creation of Broadband USA, a one-stop shop that helps state, local governments, industry, and nonprofits obtain the tools they need to expand broadband deployment and promote digital inclusion. I am happy to see that the reauthorization draft before us includes Mr. Tonko's bipartisan ACCESS BROADBAND Act, which we voice voted out of this subcommittee 2 weeks ago. This legislation puts into statute many of the things that NTIA is already doing through the Broadband USA program. I am also happy to be a cosponsor of this legislation. This is a good start, but if we are going to help our rural and underserved communities address their broadband needs, we need to put our money where our mouth is and dedicate more dollars to solving this problem, particularly if we ever want to get people connected in rural and tribal communities as well as in Puerto Rico and other areas suffering from storm-related damage and outages. Ranking Member Pallone's LIFT America Act sets out $40 billion in funds to help address our nation's broadband shortfalls. This is the kind of commitment we need if we want to address these problems, because if we continue to just sit here, these problems aren't going to solve themselves. The draft reauthorization also directs NTIA to continue working on the national broadband map, another Recovery Act program that, like BTOP, has run out of money. I agree with the majority that having accurate broadband maps is important both for the government and for consumers and communities. We can't solve a problem that we don't know the scale of. Looking at the mapping debacle in the FCC's Mobility Fund II's proceedings demonstrates the need for better data. The agency also represents and advocates on behalf of the United States internationally on matters of internet governance and telecommunications policy. In this time of fractured alliances and tumultuous trade policy, a globally unified free and open internet is more important than ever. NTIA, as our representatives to a number of these global internet governance organizations, needs to advance that message through what seems to be a great deal of noise from our government. NTIA also does critical spectrum research at the lab in Colorado, which we need to do more to support. They've also been a critical partner in housing and launching FirstNet, our nation's public safety broadband network, which I am happy to note every state has opted into. They have also done good work developing policies on a range of complex technical subjects including privacy, cybersecurity, and the digital economy. Madam Chair, I support this agency and I support giving this agency more resources to accomplish its many missions. I look forward to hearing from the witnesses and working with you on this legislation, and I yield back. [The prepared statement of Mr. Doyle follows:] Prepared statement of Hon. Michael F. Doyle Thank you, Madam Chairman for holding this hearing, and thank you to the witnesses for appearing before us today. I just want to start by saying that I'm concerned we don't have someone from the agency we are planning to reauthorize here to testify. While I appreciate the time and effort the witnesses have taken out of their schedules to appear before us today, I'm deeply concerned that without participation from representatives of the agency itself we will not be fully able to understand the needs of the agency and how best this subcommittee can help them in accomplishing their mission. That issue aside, the National Telecommunications and Information Administration plays the critical role of advising the President on telecommunications and information policy issues. NTIA also manages Federal spectrum usage and has been a key partner in freeing up more spectrum for commercial use, in doing so they have generated tens of billions in revenue for the Federal Government--a mission that I strongly believe we can do more to help them accomplish. The Airwaves Act, a bipartisan-bicameral bill that I have sponsored with Mr. Lance, along with Senator's Gardner and Hassan, furthers this mission by freeing up additional federal spectrum for commercial use and paves the way for our nation's 5-G future. The Airwaves Act frees up a combination of licensed and unlicensed spectrum to meet our nation's diverse spectrum needs. The bill also sets up a new mechanism to help deploy broadband in rural and underserved communities, by directing a portion of the spectrum auction revenue to wireless broadband deployment. Madam Chairman, this legislation is supported by a number of our colleagues on this committee on both sides of the aisle, and I think it merits consideration by this subcommittee. I think this legislation could go a long way to accomplishing many of our shared goals. Going back to NTIA, the agency also administers grant programs to deploy broadband and other advanced technologies, including the very successful $4 billion B-TOP broadband program. The lessons learned from this program led to the creation of Broadband-USA, a one-stop shop that helps states, local governments, industry, and non-profits obtain the tools they need to expand broadband deployment and promote digital inclusion. I'm happy to see that the reauthorization draft before us includes Mr. Tonko's bipartisan Access Broadband Act, which we voice voted out of this subcommittee 2 weeks ago. This legislation puts into statute many of the things that NTIA is already doing through the Broadband USA program. I'm also happy to be a cosponsor of this legislation It's a good start, but if we are going to help our rural and underserved communities address their broadband needs, we need to put our money where our mouth is and dedicate more dollars to solving this problem, particularly if we ever want to get people connected in rural and tribal communities as well as in Puerto Rico and other areas suffering from storm related damage and outages. Ranking Member Pallone's Lift America Act sets out 40 billion dollars in funds to help address our nation's broadband shortfalls. This is the kind of commitment we need if we want to address these problems. If we continue to just sit here, these problems aren't going to solve themselves. The draft reauthorization also directs NTIA to continue working on the National Broadband Map, another Recovery Act program that, like B-TOP, has run out of money. I agree with the majority that having accurate broadband maps is important both for the government and for consumers and communities. We can't solve a problem that we don't know the scale of. Looking at the mapping debacle in the FCC's Mobility Fund 2 proceeding demonstrates the need for better data. The NTIA also represents and advocates on behalf of the United States internationally on matters of internet governance and telecommunications policy. In this time of fractured alliances and tumultuous trade policy, a globally unified free and open internet is more important than ever. NTIA, as our representative to a number of these global internet governance organizations, needs to advance that message, through what seems to be a great deal of noise from our government. NTIA also does critical spectrum research at the lab in Colorado, which we need to do more to support. They have also been a critical partner in housing and launching First-NET, our nation's public safety broadband network, which, I'm happy to note, every state has opted into. They also have done good work developing policies on a range of complex technical subjects including: privacy, cybersecurity, and the digital economy. Madam Chairman, I support this agency, and I support giving this agency more resources to accomplish its many missions. I look forward to hearing from the witnesses and working with you on this legislation. Mrs. Blackburn. The gentleman yields back. Mr. Lance, you are recognized on Chairman Walden's. OPENING STATEMENT OF HON. LEONARD LANCE, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF NEW JERSEY Mr. Lance. Thank you very much, Chairman Blackburn, and our thanks to the distinguished panel for appearing before us today. Following the landmark bipartisan passage of RAY BAUM'S Act earlier this year, which reauthorized the FCC for the first time since 1990, we are now looking to reauthorize the NTIA for the first time since 1992. I commend the chairman for fulfilling the subcommittee's authorizing duties. I am pleased that the draft legislation also includes the ACCESS BROADBAND Act, which I introduced last year with Congressman Tonko and that we recently reported unanimously out of this subcommittee. The bill would create a new office within NTIA tasked with tracking all Federal broadband support programs across several agencies, and ensuring Federal broadband funds are used efficiently. It is important to recognize that Federal funds for broadband deployment are finite and must be focused on the areas of the country that need them the most. This new office will help make sure that agencies are not duplicating each other's efforts by overbuilding broadband infrastructure. While the standalone bill continues through the committee process, I believe it still makes sense also to include it with the reauthorization language before us today. During my conversations with the NTIA before and after introduction of ACCESS BROADBAND, the agency emphasized the need for additional resources to implement this new office properly. By reauthorizing NTIA for the first time in 26 years, we provide it with those additional resources. I thank the panel for being with us and look forward to discussing these and other important issues facing the NTIA. I ask unanimous consent from the chairman to enter a letter of support from the Computer and Communications Industry Association into the record. Mrs. Blackburn. Without objection. [The information appears at the conclusion of the hearing.] Mr. Lance. Thank you, Chairman, and I yield back the balance of my time. [The prepared statement of Mr. Lance follows:] Prepared statement of Hon. Leonard Lance Thank you Chairman Blackburn and thank you to our distinguished panel for appearing before us today. Following the landmark, bipartisan passage of RAY BAUMS Act earlier this year, which reauthorized the FCC for the first time since 1990, we are now looking to reauthorize the NTIA for the first time since 1992. I commend the Chairman for fulfilling the Subcommittee's authorizing duties. I am pleased that the draft legislation also includes the ACCESS BROADBAND Act, which I introduced last year with Congressman Tonko and that we recently reported unanimously out of this subcommittee. The bill would create a new office in within NTIA tasked with tracking all Federal broadband support programs across several agencies, and ensuring Federal broadband funds are used efficiently. It is important to recognize that Federal funds for broadband deployment are finite and must be focused on the areas of the country that need it the most. This new office will help make sure that agencies are not duplicating each other's efforts by overbuilding broadband infrastructure. While the standalone bill continues through the Committee process, I believe it still makes sense to include it with the reauthorization language before us today. During my conversations with NTIA before and after introduction of ACCESS BROADBAND, they have emphasized the need for additional resources to implement this new office properly. By reauthorizing NTIA for the first time in 26 years, we provide them with those additional resources. I thank the panel for being with us and look forward to discussing these and other important issues facing the NTIA. Mrs. Blackburn. Anyone seeking the balance of the time the gentleman yields back? And Mr. Pallone has not arrived. Is there anyone seeking Mr. Pallone's time? No one seeking Mr. Pallone---- That concludes the member opening statements. The chair would like to remind members that pursuant to the committee rules, all members' opening statements will be made a part of the record. We want to thank all of our witnesses for being here today and taking time to testify before the subcommittee. Today's witnesses will have the opportunity to give opening statements, followed by a round of questions from members. Our panel for today's hearing will include the Honorable Michael Gallagher, former NTIA administrator and the current CEO of the Entertainment Software Association; the Honorable John Kneuer, former NTIA administrator and the current President of JKC Consulting; and Ms. Joanne Hovis, the President of CTC Technology and Energy. We appreciate each of you being here today and preparing your testimony for the committee. We will begin today with you, Mr. Gallagher. You are recognized for 5 minutes for an opening statement. STATEMENTS OF THE HONORABLE MICHAEL D. GALLAGHER, CEO, ENTERTAINMENT SOFTWARE ASSOCIATION; THE HONORABLE JOHN KNEUER, PRESIDENT, JKC CONSULTING; JOANNE S. HOVIS, PRESIDENT, CTC TECHNOLOGY AND ENERGY STATEMENT OF MICHAEL GALLAGHER Mr. Gallagher. Good afternoon, Chairman Blackburn and Ranking Member Doyle. My name is Mike Gallagher and I am the CEO of the Entertainment Software Association. Today, however, I am here in my capacity as the former NTIA administrator. I served as both Deputy Assistant Secretary and Assistant Secretary from the years 2001 to 2006. I am also delighted to be here at the side of my good friend and colleague, John Kneuer. He and I overlapped 3 years together. So, many of the accomplishments that the administration achieved in our space we did together and he was terrific as a team member when we were together and he was even better as an assistant secretary. Our country and NTIA are also richly well served by having David Redl as its new administrator. He has both the energy and the experience to drive the agency where we need to be in a very complex world in front of us. And before addressing substantive issues, I'd like to begin by saying I strongly endorse the committee's efforts to reauthorize NTIA and to focus the agency on the policy objectives that are core to the agency's competencies and expertise. NTIA is a low-cost high-impact agency that plays a vital role in expanding broadband access for all Americans and in protecting the missions of both the military and other government agencies as well as promoting the growth of the private sector through its spectrum management efforts. It also has a great tradition of doing so in a bipartisan manner, which is reflective of the draft that we are here to speak about today. My written testimony specifically points to several issues of very significant importance for NTIA leadership and that enjoy this committee's support. The first is the imperative rural broadband growth. It is important, but as a country, the benefits of broadband technology extend absolutely as far as possible to everyone and that includes taking continued efforts and redoubling efforts to make sure that that remains a key focus. Alongside of that and along with a great track record are the spectrum policy enhancements. Specifically, I point to three areas where NTIA has a history of accomplishing important work and leading the country and the world on how to deploy spectrum policy and, first, is in dynamic spectrum access. Ten years ago, in the 5 GHz band, we were able to double the amount of spectrum for wi-fi by using dynamic spectrum access technologies. That same approach could bear significant fruit in the years ahead for the country, and that's both for government and for private sector uses. It's also important that we identify additional unlicensed spectrum. We enjoy the fruits of unlicensed spectrum with all the devices that we carry with us. The continued growth of that is a top priority for NTIA and that's important for us to have it remain center of target. And then, finally, it's also important to maintain the focus on achieving exclusive private sector spectrum and having more of that come from the federal government to the private sector through auction because of new technologies that make that possible. I also fully endorse the committee's efforts too on the WHOIS database. It's critical important that the WHOIS database maintain a very high profile in all of our international engagements and that it is a top priority for law enforcement, it's a priority for copyright holders like the industry that I represent, and for other issues relative to cyber-crime. The national broadband map and the creation of the Office of Internet Connectivity and Growth are also tremendous steps forward. I fully support those. Having a central clearinghouse where these programs can be administered in a very efficient way, it makes great sense and it's of even higher importance. As forecasted by dozens of witnesses over the last 25 years before this committee, the world is increasingly connected. Broadband has gone from a vision of George Gilder to the reality that's in the hands of each of us and over 4 billion people around the world. That connected world presents tremendous opportunities and risks, and it's imperative that NTIA be focused and resourced to drive success for all of us in the years ahead. I commend the committee for its draft reauthorization legislation and I look forward to answering any questions. [The prepared statement of Mr. Gallagher follows:] [GRAPHICS NOT AVAILABLE IN TIFF FORMAT] Mrs. Blackburn. The gentleman yields back. Mr. Kneuer, you are recognized for 5 minutes. STATEMENT OF JOHN KNEUER Mr. Kneuer. Good afternoon, Chairman Blackburn, Ranking Member Doyle, Ranking Member Pallone, members of the subcommittee. It's an honor to be back here before you. My name is John Kneuer. From 2003 to 2007, it was my privilege to serve first as the Deputy Assistant Secretary and then as the Assistant Secretary at NTIA. Since leaving government in 2007, I've worked in the private sector as a board member, consultant, advisor to companies and institutions with an interest in domestic and international telecommunications. But I am appearing before you today in my personal capacity and my testimony and comments are my own. I would like to start by commending you, Chairman Blackburn, and the committee for undertaking the hard work of the reauthorization. In my experience, even though NTIA is explicitly an executive branch agency and the assistant secretary serves at the pleasure of the president, the exercise of government authority in the service of the citizenry is most effective and accountable when there is an established clarity of mission agreed upon by both the administration and the sources of its funding in the Congress. Regular reauthorization of executive branch agencies can provide that clarity and, following up on Mike's comments about David Redl, a proud alumni of this committee, I think that experience and his judgement--he's someone who's particularly well suited to navigate both the executive branch equities while responding to the appropriate oversight of Congress. This is my second opportunity to testify before this committee on the subject of the NTIA reauthorization. At last year's hearing, the focus of my testimony was on the dual responsibilities of NTIA as both the principal advisor of the president on telecommunications policy as well as the management of the Federal radio government spectrum. Because of the demands of this dual responsibility, NTIA has developed a specialized technical competency that provides expertise to policymakers across the government with interest in technical matters in everything from spectrum to internet governance to the broadband economy. But in addition to this technical expertise, NTIA has developed a valuable expertise in coordinating interagency equities in the service of broader government priorities. I believe it is this interagency policy coordination function that is most relevant to the draft legislation under consideration. While the legislation being considered covers a broad range of issues before NTIA--and I will endeavor to answer any questions on any of these subjects--for purposes of time I will focus my testimony on those sections of the legislation where I believe my experience is the most relevant. So from time to time, NTIA has been granted authority to administer large-scale infrastructure grant programs intended to advance access to communications networks for underserved communities. Sometimes these are targeted and limited in scope, like the public safety grant programs, and sometimes more widespread, as in the Broadband Technology Opportunities Program. However, in each instance, NTIA was required to coordinate with institutions across the government for either execution or measurement of the effectiveness of this program. This experience should enable NTIA to effectively coordinate the broadband map as well as the Office of Internet Connectivity and Growth. One of the challenges in effectively distributing broadband infrastructure funds is accuracy in measuring the extent to which broadband networks are already being deployed by market participants. Scarce resources should be deployed where there are actual gaps in coverage rather than in competition with private capital. But because different government agencies gather information in different formats from different sources, it makes sense to have a single repository for all this information that can be synthesized into a format that can be consistently applied and relied upon by various grant and loan- issuing agencies across the government. I believe NTIA has the experience and the personnel to perform these functions. With regard to the sense of the Congress on cybersecurity and supply chain vulnerabilities, NTIA is particularly well suited to engage in these important matters that cut cross commercial interests as well as important government equities. By providing the perspective of industry into the interagency process, NTIA can help bridge the gap between the executive branch interests with national and homeland security responsibilities and keep private sector interest so that they all support our collective cyber defenses. Similarly, NTIA can serve as a conduit from government agencies with cyber responsibilities to the private sector to ensure that information flows in both directions to maximum effect. In addition, from its position within the Department of Commerce, NTIA has access to the broad resources of the International Trade Administration and the Bureau of Industry and Security on supply chain matters that implicate either our trade agreements or the intersection of national security and high technology. Finally, with regard to the collection and availability of WHOIS data, WHOIS data has been a foundational feature of the domain name system. As far back as 1982, before there was an internet, ARPANET had WHOIS requirements so people could understand who was supporting the network. WHOIS requirements were included in every memorandum of understanding between NTIA and ICANN from 1998 to 2016. With the transition of the IANA contract, timely, unrestricted, and accurate WHOIS remains a feature of ICANN's process. The sense of the Congress underscores this important role. Historically, NTIA has been the U.S. government entity in charge of protecting WHOIS obligations and I believe NTIA remains the proper repository for this policy coordination and advocacy before ICANN. Again, I appreciate the opportunity to testify. I will remain available to the committee throughout this process as you consider the authorization and I will look forward to your questions. [The prepared statement of Mr. Kneuer follows:] [GRAPHICS NOT AVAILABLE IN TIFF FORMAT] Mrs. Blackburn. The gentleman yields back. Ms. Hovis, you are recognized. STATEMENT OF JOANNE HOVIS Ms. Hovis. Thank you, Chairman Blackburn, Ranking Member Doyle, members of the subcommittee. I am Joanne Hovis and I am President of CTC Technology and Energy. I am also CEO of the Coalition for Local Internet Choice, a nonprofit entity that brings together public and private entities that believe solving our nation's broadband challenges requires a full range of options including locally- driven efforts to deploy networks and create public-private partnerships. My work focuses on assisting state, local, and tribal government to build broadband strategy and plans and on helping them to develop public-private collaborations that improve broadband infrastructure and services, address affordability challenges, and provide digital education to enable members of the community to maximize the benefits of the broadband internet in their lives. I've encountered NTIA in my state and local level broadband work throughout the country for over a decade. My comments today focus on the important and successful role NTIA has played in broadband policy and expanding broadband service and device availability and in expanding digital literacy. As you consider this reauthorization, I encourage you to think expansively about NTIA's important role in building broadband capabilities in infrastructure, going forward. NTIA has this important role to fill in improving the broadband environment nationally but it also has unique expertise and experience within the Federal Government to do so and this role is essential because our work of expanding broadband access is far from done. Large areas of rural America as well as significant sections of our urban communities lack adequate affordable broadband. Addressing these gaps in access and opportunity requires expansive thinking about funding new infrastructure and capabilities, enabling new educational and inclusion programs, and supporting access to computers and other broadband-enabled devices. For that reason, I commend you on the current reauthorization efforts as well as on the ACCESS BROADBAND Act, the LIFT America Act, and other pending legislation focused on access, urban deserts, and rural broadband funding. There is a critical role for Federal, state, and local entities in solving these problems and filling these gaps as well as for private sector companies and other stakeholders, and NTIA is uniquely experienced at creating bridges among all these entities. As is discussed in greater detail in my written comments, NTIA has really done a terrific job over many years in grant making, in convening stakeholders, in stimulating public- private collaboration and partnerships, and in providing technical assistance through the Broadband USA program. I refer to my written testimony, which goes into detail on many of those topics, but let me share with you, based on my personal experience, some of why I think NTIA's track record in building funding programs to support expansion of broadband, particularly in rural areas, the track record is very sound. In particular, through the BTOP program, which was referenced by my fellow panellists here, there was an impressive, laudable, and frankly, less recognized--in Washington than it deserved--effort by NTIA. In a short period of time after passage of the Recovery Act, the team at NTIA built a robust and proven grant program and then successfully administered it in subsequent years with remarkably little controversy. In fact, the program and NTIA's administration of it was welcomed with enormous enthusiasm and appreciation in communities impacted by it throughout the country. This enthusiasm resulted in part from the extraordinary hunger for better broadband in significant parts of our country and in part from the way that NTIA had consulted with communities, companies, first responders, educators, and other stakeholders and built a program that was optimized to confer the greatest possible benefit in unserved and underserved areas. At the same time, the program is also thoughtfully and efficiently designed to focus the federal investment on middle mile infrastructure to key anchor institutions such as firehouses, police stations, and remote government facilities while incenting private sector investment in the last mile to reach homes and businesses. The vision was successfully realized in significant parts of the country. I visited or observed dozens of the projects that NTIA funded in this way and let me share just a couple of quick examples in my brief remaining time. An example that may be of real interest is rural Garrett County in far western Maryland, a remote Appalachian community deeply impacted by the decline in the coal economy, which has struggled to get broadband in a number of its remote mountainous areas and, as a result, has also struggled to attract and retain businesses and teleworkers. The county's current success in attracting a private partner to fund and deploy last-mile residential service in the most remote and inaccessible mountain areas. It's testimony, in part, to NTIA's efforts. NTIA granted funding to a state-led middle-mile network that reached many of the most remote schools, libraries, and public safety facilities in the state, and county leaders then further invested in additional fiber both to reach additional remote schools and to serve as a platform for last-mile deployment. In 2015, a private partner agreed to leverage some of that fiber and local funding in order to build a fixed wireless network that will provide the potential of service to up to 3,000 currently unserved homes and hundreds of homes are already receiving service under this network. I am grateful for your attention and I refer you to my written testimony for more examples. Thank you so much. [The prepared statement of Ms. Hovis follows:] [GRAPHICS NOT AVAILABLE IN TIFF FORMAT] Mrs. Blackburn. The gentlelady yields back, and before we move to questions we will now recognize Mr. Pallone for his opening. OPENING STATEMENT OF HON. FRANK PALLONE, JR., A REPRESENTATIVE IN CONGRESS FROM THE STATE OF NEW JERSEY Mr. Pallone. Thank you, Madam Chairman. The National Telecommunications and Information Administration, or NTIA, plays a critical role in establishing and coordinating communications policies for the administration both domestically and internationally. Given the importance of the agency, I am disappointed that my Republican colleagues have circulated a discussion draft that does little more than reintroduce Congressman Tonko's ACCESS BROADBAND Act, which the subcommittee recently marked up and has already reported to the full committee. Mr. Tonko's bill establishes an office in NTIA to streamline the management of Federal broadband resources and I hope that this is not an effort to strip this bill away from Mr. Tonko, who worked hard to advance this important legislation. Besides the contribution from Mr. Tonko, the majority's bill fails to provide NTIA the authority and direction it needs to address America's 21st century needs. The administration acknowledges the need for broadband infrastructure investment. But President Trump and the Republican majority have failed to act. We must think big in reauthorizing the NTIA. In May of last year, committee Democrats introduced the LIFT America Act, which provides $40 billion over 5 years to deploy secure and resilient broadband to 98 percent of the country through a program administered by the NTIA. The LIFT America Act ensures that every state has access to funds to help bridge the digital divide that remains in too many parts of this country, both rural and urban. As the Internet of Things continues to expand, we should increase NTIA's efforts to address cybersecurity threats. We must ensure that the Trump administration's alienation of our international allies does not hamper our ability to protect an open internet and the free flow of information from Russian and Chinese efforts at the International Telecommunications Union and other forums. We must also ensure that the NTIA has the resources and authority needed to improve public safety communications. Democratic members have actively engaged on many of these issues and we should consider them as part of any reauthorization. Now, while limited on substance, the discussion draft does increase NTIA's authorization level to the last Obama administration request. But this does not reflect the additional tasks and duties we now seek, and unfortunately, the most important witness for this hearing--Administrator Redl--is not here to answer questions regarding whether the NTIA has the authority and resources necessary to achieve its current mission, much less the task it should be pursuing. So before we move forward with the reauthorization, we need the current administration's views on the draft legislation. And finally, Madam Chairman, as a result of the Trump administration's policies, thousands of children are still separated from their parents and we still do not have any sufficient answers about how they're going to reunite--reunify, I should say, these families. Parents have been left wondering where their children are, whether they are being treated OK, and when they will see them again. Efforts of parents seeking to call their children to hear their voices and comfort them have been stymied because of unconscionable rates charged at the detention centers, and I visited one of these on Father's Day in Elizabeth, New Jersey. And according to news reports, phone calls at one facility cost $8 a minute, which I think is outrageous. I think it's bad enough that the Trump administration separated more than 2,300 children from their parents, but now through these detention facilities asylum seekers are being extorted. These outrageous rates are one more insult as desperate parents try to weave their way through the bureaucracy to find their children and it's inexcusable. So I would call on the Trump administration to provide detained parents free phone calls to reach their children. It's the least they can do for a policy that never should have been instituted in the first place. I would hope the administration would take this action on its own but, failing that, I will be introducing a bill today directing the FCC to reinstate the recent inmate calling order which covers immigration detention facilities and to promulgate rules to enable detained parents to call their children without charge. I would also like to reiterate the request that every Democratic committee member made last week--they will hold a hearing on how these children are going to be reunited with their parents. The Energy and Commerce Committee's oversight responsibility must include holding a hearing on this catastrophic policy and implementation failure, and I think that Secretary Azar should testify before us. I thank you, Madam Chairman, for letting me use this time and I yield back. [The prepared statement of Mr. Pallone follows:] Prepared statement of Hon. Frank Pallone, Jr. The National Telecommunications and Information Administration (NTIA) plays a critical role in establishing and coordinating communications policies for the Administration both domestically and internationally. Given the importance of the agency, I am disappointed that my Republican colleagues have circulated a discussion draft that does little more than reintroduce Congressman Tonko's ACCESS BROADBAND Act, which the subcommittee recently marked up and has already reported to the full committee. Mr. Tonko's bill establishes an office in NTIA to streamline the management of federal broadband resources. I hope that this is not an effort to strip this bill away from Mr. Tonko who worked hard to advance this important legislation. Besides the contribution from Mr. Tonko, the majority's bill fails to provide NTIA the authority and direction it needs to address America's 21st Century needs. The Administration acknowledges the need for broadband infrastructure investment but President Trump and the Republican Majority have failed to act. We must think big in reauthorizing the NTIA. In May of last year, Committee Democrats introduced the LIFT America Act, which provides $40 billion over 5 years to deploy secure and resilient broadband to 98 percent of the country through a program administered by the NTIA. The LIFT America Act ensures that every State has access to funds to help bridge the digital divide that remains in too many parts of this country--both rural and urban. As the Internet-of-Things continues to expand, we should increase NTIA's effort to address cybersecurity threats. We must ensure that the Trump Administration's alienation of our international allies does not hamper our ability to protect an open Internet and the free flow of information from Russian and Chinese efforts at the International Telecommunications Union and other forums. We must also ensure that the NTIA has the resources and authority needed to improve public safety communications. Democratic Members have actively engaged on many of these issues and we should consider them as part of any reauthorization. While limited on substance, the discussion draft does increase NTIA's authorization level to the last Obama Administration request, but this does not reflect the additional tasks and duties we now seek. And, unfortunately, the most important witness for this hearing, Administrator Redl, is not here to answer questions regarding whether the NTIA has the authority and resources necessary to achieve its current mission much less the tasks it should be pursuing. Before we move forward with a reauthorization, we need the current Administrator's views on the draft legislation. Finally, Mr. Chairman, as a result of the Trump Administration's policies, thousands of children are still separated from their parents, and we still do not have any sufficient answers about how they are going to reunify these families. Parents have been left wondering where their children are, whether they are being treated OK, and when they will see them again. Efforts of parents seeking to call their children--to hear their voices and comfort them--have been stymied because of unconscionable rates charged at the detention centers. According to news reports, phone calls at one facility cost $8 a minute--that's outrageous! It's bad enough the Trump Administration separated more than 2,300 children from their parents, but now, through these detention facilities, asylum seekers are being extorted. These outrageous rates are one more insult as desperate parents try to weave their way through the bureaucracy to find their children. It is inexcusable. I call on the Administration to provide detained parents free phone calls to reach their children. It is the least they can do for a policy that never should have been instituted in the first place. I would hope the Administration would take this action on its own, but failing that, I will be introducing a bill today directing the FCC to reinstate the recent inmate calling Order--which covers immigration detention facilities-- and to promulgate rules to enable detained parents to call their children without charge. I would also like to reiterate the request that every Democratic Committee member made last week that we hold a hearing on how these children are going to be reunited with their parents. It would be a complete abdication of this Committee's oversight responsibility for Republicans to refuse to hold a hearing on this catastrophic policy and implementation failure. Secretary Azar must testify before this Committee. Thank you, I yield back. Mrs. Blackburn. The gentleman yields back, and this concludes our statements from our witnesses. And at this point, we will move into the Q and A portion of our hearing and I recognize myself for 5 minutes. At our very first NTIA reauthorization hearing, I had commented about my concern of the lack of coordination when it came to Federal resources in different agencies that were trying to implement components to address broadband infrastructure or access adoption rates, research, things of that nature. And, of course, our draft legislation includes the Office of Internet Connectivity. So what I would like to hear from each of you is, how do you think this office can and should work to coordinate all of these efforts? And Mr. Gallagher, we'll start with you. Mr. Gallagher. Thank you, Madam Chairman. So, for purposes of bringing all of this under one roof or putting it in one place, then having an inventory of the resources that are being spent right now is vitally important. NTIA has accomplished similar interagency missions in the past. OSM, the spectrum agency, works that way. The way it administers its duties for ICANN are also done in interagency coordination basis. There is a DNA component where their capabilities are prone to be able to do this very well. It's also important as a taxpayer that we see how much the dollars are, where they're going, and then what's being achieved with them, and that can only be done when there's one single view that's administered from over the top. The encouragement that I would add as this discussion evolves is that there's a strong leadership role from the White House and from OMB. The Office of Management and Budget has significant influence and impact on all of the agencies. So NTIA, during the time when I was there, when we would have challenges, it wasn't because of lack of will at the Department of Commerce or a lack of competence of the team that was there. It was because other agencies were reluctant to participate because it wasn't in their mission to do so or in their interests, and I think aligning those interests through guidance to those agencies, having the White House role be strong, having the role of inventory clarification value to the taxpayer, moving that through as part of the prism that this would be looked through, would be steps in the right direction. Mrs. Blackburn. Thank you. Mr. Kneuer. Mr. Kneuer. I agree with all of that. The challenge is that the sources of funds reside in different departments sometimes. So you have got the RUS in the Department of Agriculture. We've got NTIA and others that issue grants. You've got--even in Agriculture beyond RUS. Sometimes in DHS there are emergency preparedness funds that wind up being devoted to broadband services. Again, I think this gets to the point of the importance of reauthorization. Giving NTIA the responsibility and ability to bring into one place all of the different ways that the government measures all of the different ways the government is spending money doesn't just help them more efficiently deploy the money through the executive branch. But it gives the Congress visibility into how the money is being spent, is it getting to the part of the communities that it needs to. So you can make future appropriations authorization decisions based on affected information and data. So, again, I think NTIA has the resources and experience of doing that. Having it in NTIA is the most logical of any other places that you could put it. In terms of using that information inside the executive branch to make the right decision, I agree with Mike--a lot of that has to come from OMB riding above any of the individual agencies. But all of those decisions will be better targeted if you have better information. And the way to do that, I think, is this legislation. Mrs. Blackburn. OK. Good. Ms. Hovis. Ms. Hovis. Thank you, Chairman Blackburn. I'm very much in agreement here with my fellow panelists about the incredible importance of this set of functions and NTIA's ability to do so and its ability to bring to bear experience in order to do so. And I could say that we have all noted the same challenges in this very large and complex entity that is the Federal Government with multiple entities charged with different kinds of responsibility for funding, mapping, engaging what is happening with regard to broadband. I think that better and more comprehensive and more centralized collection of data and accurate data and granular data would be a massive, massive contribution to building important information and understanding of what is actually happening with regard to broadband. And if we are able to understand through a central entity, such as NTIA, not only what all the existing funding programs are and what they are funding and where, but also where there has been verification and enforcement that that funding was used as intended and that the capabilities that were intended to be funded by the Federal Government were actually deployed as well as accurate and granular mapping. It would be an enormous contribution and enable development of very good policy. Mrs. Blackburn. The gentlelady yields back. Mr. Doyle, you are recognized for 5 minutes. Mr. Doyle. Thank you, Madam Chair. Mr. Kneuer and Mr. Gallagher, as former NTIA administrators, so I am just curious how you think the NTIA will be navigating upcoming global internet governance discussions such as the ITU's upcoming conference in Dubai. Given our administration's strained relationship with our allies, its increasingly hostile relationship with China, and our relationship with Russia, which I am really not sure how to characterize, how do you think that's going to go? Mr. Kneuer. Traditionally, the ITU and some of the telecom issues really have been driven by the technical staff and, with a few exceptions, the---- Mrs. Blackburn. Mr. Kneuer, can I get you to talk directly into that mic? Thank you. Mr. Kneuer. Yes. Sorry. The broader geopolitical issues rarely, but not never, get involved. I think the ability of NTIA to collect the technical expertise of various government agencies, so whether it's been the Defense Department or the intel communities or others who rely on spectrum and telecommunications engage in sort of robust bilateral discussions with our allies and with interested parties has been sort of the way this has gone. So even though the meetings themselves may take place in Dubai, our diplomats and NTIA staff have been, typically, in pretty constant contact with their counter parties in other governments. So it's not to say that the geopolitical challenges don't enter into these multilateral negotiations. These are, after all, very often U.N.-sponsored delegations. But I think the technical matters typically speak for themselves and historically and, hopefully, ideally the larger geopolitical issues stay in the background. Mr. Doyle. Thank you. Ms. Hovis, given the success of the Obama administration's BTOP program, do you think that the type of investments laid out in Ranking Member Pallone's LIFT America Act or the share of the spectrum auction revenue set aside for wireless broadband deployment by the AIRWAVES legislation would significantly contribute to closing the broadband divide in this country. And at what point do you imagine we will close the broadband divide in this country if we simply continue on our current path? Ms. Hovis. On our current path, we are not going to close the divide and we may actually, in some areas, exacerbate it because the realities of the economics of broadband are that private investment funds will go where they will see the greatest return. That's how the private sector works. It's how we want it to work and how we want our system to work, and that means that we are likely to see increased investment in enhanced capabilities--5G, more deeper fiber, et cetera--in certain kinds of suburban and urban areas, in certain urban areas with high income levels, average income levels, for example, but not in rural areas, not in areas of low population, and not in certain areas of low income. And as a result, we may actually see a significant exacerbation of the digital divide over time. So yes, I very much agree that the LIFT America Act and certain kinds of appropriation, the funding for rural broadband and for solving urban deserts would be enormously helpful and I think, in fact, it's critical. And the track record has been very, very solid and I hope-- my example of the Appalachian community in western Maryland that I talked about is one of hundreds of examples, I think, of communities that have been enormously benefited by that investment and by the way it was administered by NTIA and I certainly personally hope we'll see a good deal more because I spend a lot of my time on the road in rural America and I see enormous, enormous gaps that we have a long way to go in filling. Mr. Doyle. Thank you very much. Mr. Gallagher, I know you're here in your capacity as a former NTIA administrator, but you're always the CEO of the Entertainment Software Association, which represents the video game industry--an industry that's now larger than the film and music industries combined. Video games these days outperform the biggest Hollywood blockbusters and, increasingly, video games are downloaded online, and online games are become spectator events and the future of the industry seems to be shifting from consoles to the cloud, all of which rely on a free and open network that is fast, has low latency and high capacity. I know ESA filed in federal court seeking to intervene in the case against the FCC's repeal of net neutrality rules. That filing said, ``absent these protections, ESA and its member companies will have no effective legal recourse against broadband provider conduct that impairs consumers' online video game experiences.'' So my question is whether you and your association oppose the repeal of the net neutrality rules as your association's legal filing indicates and whether you support restoring those rules, as your filing indicates, as I am trying to do with my CRA resolution. Mr. Gallagher. First, I really enjoyed the introduction to the question. [Laughter.] Terrific. And then as to the specifics on net neutrality, yes, we filed the motion to intervene in that litigation because it's important for us, on behalf of our members, to make sure that we do have an open and free and high capacity and high quality internet available for gamers and game makers. We've been clear about that for years. And what we've also seen is that the pendulum swinging back and forth between whoever controls the pen at the FCC causes uncertainty for investors. It causes uncertainty for those who are seeking to make the economy of tomorrow happen in a digital way, and the world is very much connected. These opportunities need to be present and thriving here in the U.S. What we've done is---- Mr. Doyle. Madam Chair, I see our time has expired. I would like to ask unanimous consent to add ESA's court filing to the record. Mrs. Blackburn. Without objection. [The information appears at the conclusion of the hearing.] Mrs. Blackburn. Mr. Lance, you're recognized for 5 minutes. Mr. Lance. Thank you, Chairman. Mr. Gallagher and Mr. Kneuer, you both mentioned in your testimony the importance of giving the NTIA more resources. Could you please expand on this, using your own experience leading the agency and in the context of how its mission and duties have evolved since the last time it was reauthorized? I am also interested specifically in your perspective on whether or not these additional resources are necessary to implement the Office of Internet Connectivity and Growth as the NTIA has indicated to me? Mr. Kneuer. Mr. Kneuer. So I think there is adequate staffing. As the BTOP program winds down, those moneys are spent. The staff that were administering that are the same staff that I think would likely be involved in the new office contemplated by this legislation. I think the important thing in terms of the amount of funding--and I do not have visibility into the current budgets of NTIA and I wouldn't want to speak for precise dollar figures--but the way to think about it is that all of the money that we are putting into NTIA to drive broadband really needs to be thought of as seed capital. By having better information, we are going to more fully leverage the amount of money that comes from whatever variety of sources there are. The economic growth and productivity gains that come from broadband being deployed in communities that don't otherwise have access to it, that has to be kept in mind and focused as the objective for budgeting. So while I don't have the great sense of what the precise numbers are, I think the exercise that needs to be undertaken is making sure that the money that we spend we can look at and find a direct linkage to either--it's going to more than be offset by savings in the efficient allocation of other resources or it's going to generate economic growth far in excess of the money that we devote to the project. Mr. Lance. Thank you. Mr. Gallagher. Mr. Gallagher. I would focus on three areas, and the overarching focus is where do we need NTIA to take us over the next 10 years, if that's the relevant time frame for the committee, and then does it have the resources to accomplish those key focuses. The three that I would point to, one is international, two is OSM, or the Office of Spectrum Management, and third is a coordinator role across the Federal Government. And the roles have changed. Now, many of these functions remain the same. They have the same office names as when I was there, as when John was there, but their challenges are quite different. Everything that happens now is global. Everything that our industry is engaged in is worldwide in nature. That's the thinking process, and when we were at the Department of Commerce, one of the key talking points and things that we'd repeat, 95 percent of the world's customers live outside the United States. So NTIA should be focused and be resourced to be very effective in that environment. One thing I would add to this is it's been brought to my attention that a level of the position within the Department of Commerce oftentimes can be problematic in dealing with foreign governments--that if there was a higher level to the position like under secretary as opposed to assistant secretary, that would create greater impact for Secretary Redl as he goes about his duties. Second is OSM. I believe the Office of Spectrum Management is using the very same equipment that they used when I was there 10 years ago. The return we've gotten from sound spectrum policy is enormous. More investment and then making sure they have the resources to be even better at their job is money well spent. And then the final point is on this coordination role. The more we ask NTIA to do in that regard you need to make sure that there's enough resources--primarily, people--to make sure that that happens, and again, I look to Office of Management and Budget and this committee to set where those levels are. Mr. Lance. Thank you very much to the distinguished panel and, Chairman, I yield back 46 seconds. Mrs. Blackburn. The gentleman yields back. Mr. Loebsack, you're recognized. Mr. Loebsack. Thank you, Madam Chair. I really appreciate, obviously, the testimony today. I am an Iowan. I've got 24 counties--a lot of rural areas. I don't know what the total square miles is. It's something like 12,000 or so. It's a pretty big area--and I get around every weekend, and I know for a fact that our coverage in Iowa isn't anything like what the FCC says it is officially. So I've been very interested in making sure that we have accurate data when it comes to where broadband is deployed around the country. And there is bipartisan and bicameral agreement that the maps the FCC is relying on now are flawed and quite inaccurate, and I did introduce the bill, the Rural Wireless Act, with my good friend from Pennsylvania, Ryan Costello, to improve the reliability and the validity of the data needed to create the maps and I am really happy it was passed--included in the RAY BAUM'S Act that the President signed into law earlier this year. So I am really hoping that better maps are on the horizon. A lot of folks in Iowa, all across the country in rural areas, are hoping that better maps are on the horizon. Hope isn't enough. I am glad the discussion draft reaffirms the NTIA's role in producing a national broadband map that's accurate. However, we may need to work together as the bill progresses to ensure that we are doing all that we can to ensure that the maps are as reliable as possible. And, Mr. Gallagher, just a couple of quick questions for you today. I do appreciate your comments and your testimony about the need for more granular data, particularly in rural areas where a census block isn't necessarily the right geographic measurement to reflect the realities of broadband availability. So, Mr. Gallagher, I would just like to ask you first what obstacles might NTIA face in collecting such granular data? Mr. Gallagher. Well, the first obstacle is it may not exist by doing it, like, household to household and so looking for the sourcing on the data is really important. One area that I would look to for all rural areas, not just in Iowa but around the country, is you do have state Public Utility Commissions that are in charge of wired communications and increasingly have been involved in deployment of public safety networks and other areas where their maps may be supplemental and offer more granular data because it is their role to fundamentally be local. Mr. Loebsack. Do you have any other ideas--that was my second question, actually--ideas about how to produce better data? Mr. Gallagher. I think that there are increasingly applications and technologies that are developed that do miraculous things for very low cost and those--a survey of those mapping technologies, a survey of elements that follow the development of broadbands so, like, derivative types of activities, would be able to develop the contours of where broadband exists if you know what people are doing. Like, for example, if they're playing Pokemon Go they must have access to the internet because their phones are connected--those types of things might be where the data could be more practically extracted at a lower cost. Mr. Loebsack. OK. That's great. Well, that's pretty much what I have as far as questions and comments. This is something I've been beating sort of like a dead horse for quite a while. The chair knows that and--but we do have good bipartisan support for this and I want to make sure that the FCC does the right thing so that we know where the heck we have coverage and where we don't. And I don't want to create any false illusions out there, or false expectations, if you will, on the part of folks in Iowa and all around rural America. When somebody says, oh, there's 96 percent coverage, we know there's not, and so we have to make sure that we have some truth in advertising when it comes to finding the ways to measure this and get the accurate data really, really quickly. So thank you very much. I yield back my time. Mrs. Blackburn. The gentleman yields back, and I just got a notice that votes will come sometime between 3:10 and 3:25 so we will try to complete our hearing before then. Mr. Johnson, you're recognized for 5 minutes. Mr. Johnson. Thank you, Madam Chair, and thank you for holding such an important hearing. NTIA has not been reauthorized since 1992 and it's essential that it has the funding and tools it needs to accomplish its objectives. I am particularly pleased to see the components relating to the broadband mapping and deployment issue. My legislation, the Mapping Now Act, which was included in the omnibus, reasserts NTIA's authority on broadband mapping. It is essential that we have an accurate map showing areas that are unserved and underserved so that we know where available resources should be focused. This discussion draft tasks NTIA with facilitating more accurate granular maps of broadband coverage with input from the FCC and other federal resources in addition to states and public-private partnerships. NTIA is in a good position to compile data from multiple sources, not just the FCC's Form 477 data, that would help create a more accurate and complete picture of broadband coverage. I am hopeful that this legislation would provide NTIA with necessary funds and authority to work with other agencies and implement creative solutions for broadband mapping and to break down the barriers to broadband deployment. So to my questions--when NTIA was first charged with creating the national broadband map under the 2009 American Recovery and Reinvestment Act, the data on the map was not always correct. In many cases, that is because it was reported on a state- by-state basis and each state had a different way in which it collected the data. This often led to the data being unreliable. For example, at one point it showed that one state in the Northeast had full satellite coverage but the next state that shared almost the same latitude and longitude had no satellite coverage. Now, I don't think it's the case that Vermont and New Hampshire can be so completely different in terms of their ability to be covered by satellite. So my question is this, and we'll just go down the line starting with you, Mr. Gallagher. How can NTIA ensure that the mistakes from the past are not repeated with any new mapping efforts? Mr. Gallagher. The first place to start is to ask the question, put out an NOI saying, all right, this was done in the past--what are the mistakes--develop an inventory of those and an understanding, and then go through and systematically can be done and, of course, how much it costs in order to be able to close those gaps. That's the most important thing is just to ask the question and understand where you came up short, be very honest about it, and then just get back in there and do it again. Also, in the span of time since the map was first developed there may have been additional technologies that have been-- become available or applications or services that could be done--where this could be done very cheaply. Just one example is we developed a map of our own industry in the U.S. We've had this need--it's called areweinyourstate.org--and we found that there were over 3,000 companies in our industry. Spread them out, and we organized them by congressional district. Now, this was done with manual labor and a great outside--a great intern on the inside and a great partner in an outside vendor and done at very reasonable cost. What's being done here is much more complex, but it just shows that the push of service quality means there could be ways to close those gaps. Mr. Johnson. Mr. Kneuer. Mr. Kneuer. Yes. I also think there are--different institutions have different incentives to gather this information for their own purposes, whether they are commercial purposes, different government agencies have different access to information, whether it is the--not just the existence of service but are there network elements under the control of the government that might be useful in providing additional services, whether it is fiber links from the Energy Department or towers controlled by public safety or natural resource agencies. So, with a lot of what we've been talking about this afternoon, it's NTIA's ability to survey all of those different sources of information, whether they are in disparate government entities, government agencies, whether they are held by the carriers, whether they are held by application providers who, for their own commercial interests, have a real monetary incentive to figure out where the coverage is and where the gaps are, to gather all of that and synthesize that in very much the same way. It's going to be very much, and I think it is a perfect complement to the Office if Internet Growth and Connectivity. It is getting access to each of these different constituent pieces--sources of funding, sources of information--and synthesizing them together so that you don't have these--there should be obvious failures if a satellite sees the Northeast of the United States the same, right. So those sorts of things. By having, collating, overlooking different sources of information you can correct those areas. Mr. Johnson. Thank you. Ms. Hovis, sorry I didn't get to you. But Madam Chair, I will yield back. Mrs. Blackburn. The gentleman yields back. Ms. Eshoo, you're recognized for 5 minutes. Ms. Eshoo. Thank you, Madam Chairwoman. I noted that when you made your opening statement you spoke about this being a bill for rural Americans and I think that we all hope that that will really be the result. But while this bill provides funding, I think it's important to point out that it doesn't direct the agency enough on either the authority or the direction on how to use the funding to address the needs of Americans in the digital age. So we've got our work cut out for us here. I want to thank the three witnesses for being here today. I want to thank you for your public service. This is my 24th year on this subcommittee. It's kind of extraordinary for me to use that number. It's hard to believe 24 years. But I think this is the first time in terms of a reauthorization act that we don't have the agency represented here. I think it's wonderful that you're giving your opinion about what you think the agency should do. But I find this to be highly unusual. Now, I know David Redl was here in March. But I still think, Madam Chairwoman, that it's very important and it's still really appropriate to be discussing the draft of a reauthorization with someone--with a key official--I think David Redl--an NTIA official on this. So let me get to my questions. But I wanted to point that out because it's the first time that I've ever experienced this. So it is what it is. But I think that we need to make sure that NTIA comes and when we have a review with the key person from there. So to Mr. Gallagher and Mr. Kneuer, do you know what steps the assistant secretary is taking relative to overseeing FirstNet and its contract with AT&T? Mr. Gallagher. I do not. Ms. Eshoo. Do you, Mr. Kneuer? Mr. Kneuer. Not with specificity. Ms. Eshoo. OK. Mr. Kneuer. Just in terms of how the role of NTIA overseeing FirstNet, which---- Ms. Eshoo. Well, we know that they oversee it. I want to know--because I think you're here in some way, shape, or form to speak for NTIA. Do you know what the current NTIA plans are to address the gaps between the maps? It says show coverage and the actual coverage of high-speed broadband. Mr. Kneuer. I do not. Ms. Eshoo. Does anyone know? Mr. Gallagher. No. Ms. Eshoo. No one knows. OK. If this authorization were to become the enacted budget for NTIA, do you know what portion of the new resources would be aimed at improving NTIA's oversight of FirstNet? Mr. Gallagher. I do not. Ms. Eshoo. Anyone know? Mr. Kneuer. No. Ms. Eshoo. Maybe to Ms. Hovis--do you know what the specific challenges are that NTIA faces in mapping broadband coverage accurately today and are they technological? Are they methodological, and what do you think that they should be doing to get an accurate study? Ms. Hovis. My primary concern about the broadband mapping is that some of the underlying data is at such a low level of granularity that we don't really have anything like an accurate picture. The big part---- Ms. Eshoo. Well, I know that, but I am asking what--do you think it's beyond technological or methodological? How are we going to get accurate information? If we don't have a roadmap, then we don't know where we are going and what we are doing. Ms. Hovis. The data---- Ms. Eshoo. That's what a roadmap is. Or the map, in this situation--so what do you think the main issue is that we should be pursuing? Ms. Hovis. From my perspective, the main issue is that the data collected by the FCC through the 477 is not giving us sufficient information. We are getting---- Ms. Eshoo. And the source of that lack of being able to get it is what? What do you recommend? Ms. Hovis. The information is self-reported by the providers and it is frequently self-reported at the level of if a single location within a census block is served, the entire census block can be shown as served, which I sometimes think of as allowing my high school daughter to---- Ms. Eshoo. Well, I remember years ago, in the Bush administration, if it was in a zip code then everyone was covered, which--this is like Pete and repeat. So, well, I'm happy that you all came. Thank you again for your service and, Madam Chairwoman, I think that we need the assistant secretary to come in and speak about the reauthorization. I think that's very important. With that, I yield back. Mrs. Blackburn. The gentlelady yields back. Mrs. Brooks, you're recognized for 5 minutes. Mrs. Brooks. Thank you, Madam Chairwoman. Thank you so much to all of our witnesses for being here today. Something that we heard about at a earlier NTIA hearing had to do with the fact that we are fairly behind the race for 5G of South Korea, Japan, and other countries. I am curious, Mr. Kneuer, in your opinion, how are we doing in the 5G race? Mr. Kneuer. I think 5G is in its infancy where it's sort of the beginning of the beginning, not even the end of the beginning. But I think 5G is sort of the cross-cutting issue that answers much of what we've been talking about here. For the first time with 5G, wireless applications will give the same kinds of speeds and comparable speeds as landline applications at a much, much lower cost of deployment and much more readily suited to serve hard-to-reach areas. So the issues for NTIA around 5G are recognizing that but very much it's spectrum to spectrum to spectrum. We need low- band spectrum. We need mid-band spectrum. We need high-band spectrum. With all of that, I think the inherent incentives in the U.S. economy and in the U.S. telecommunications marketplace give us a key advantage over some of the countries that some people may look at and say that they're ``leading.`` If you have got a single carrier or a couple of dominant carriers, the U.S. market has been one that has been a massive incentive for as much investment in as many carriers as possible. I think if we repeat those examples and provide the spectrum that allows each of our main market participants to continue to compete, we will have the most robust and the most widespread 5G networks in the world. Mrs. Brooks. Does our current discussion draft that we are discussing address the issues that you're referring to? I am curious that--of each of the panel members. Mr. Kneuer. I think the establishment of the Internet Connectivity Office will help in identifying where those issues are. The issues around spectrum in general, which may not be specifically called out in this draft but are explicit in the reauthorization of the agency and the things that NTIA does, I think so. Mrs. Brooks. Does anyone else have a different opinion or further opinion on 5G? Mr. Gallagher. Mr. Gallagher. What I would say is I would echo John's thoughts--that we are at the very beginning of this--it's way too early to declare a winner--and that in the U.S. we have all of the elements to be fantastically successful in the deployment of 5G. When you look at the demand for the services, like, what's the extra speed going to mean, we'll be able to translate that into economic value a lot faster than other economies around the world and that will be the engine that pulls this in a very commercial way to worldwide success. Mrs. Brooks. Thank you. Ms. Hovis. Ms. Hovis. Congresswoman, I think this is incredibly important, and I actually just returned a matter of days ago from South Korea where I spent a good amount of time looking at infrastructure both in the cities and, even more importantly, in rural areas. And I don't think we are right at the beginning. We have not lost anything, and we are well positioned to win the race for 5G. The one thing that I noted in South Korea that I thought was so important is that their rural areas will get better wireless and better 5G than our rural areas will because there's existing infrastructure there, and that speaks to the reauthorization bill and the need for more rural infrastructure and fiber for our communities and that is what will enable 5G because there will be no wireless without wires to support it. Mrs. Brooks. OK. Thank you. Shifting gears a moment to--we learned this in dealing with a bill to reauthorize the Poison Control Center in our work on opioids out of this committee. But I learned about problems relative to our 911 services and it caused me to be concerned as to whether or not other emergency lines like suicide hotlines, veteran crisis lines, apparently, if someone were to call they aren't necessarily-- the centers aren't locating the calls. They're taking what area code is showing up on the phone rather than geolocating the actual phone. I think most people don't assume that's what's happening. So while I have a 317 area code here and I were to make a call, I would be routed improperly, or it could be. Are we going to be fixing issues like this and is NTIA-- what will their role be? If any of you have an opinion on that. Mr. Gallagher. What I would offer is that so much of what you just described those challenges--they lie in the province of the states and how they deploy 9-1-1, and then the FCC and its role in overseeing how that works. And so it's not in the sweet spot of what NTIA does except for ITS, which is the lab that's run by NTIA. They do research on these types of things and how to improve accuracy and performance. Mrs. Brooks. OK. Thank you. I yield back. Mrs. Blackburn. The gentlelady yields back. Mr. McNerney, you're recognized for 5 minutes. Mr. McNerney. I thank the chair. I thank the witnesses. I apologize for missing your testimony but you did have written statements, which we reviewed beforehand. I am concerned about the security risk posed by the vast number of devices coming to the market on IOT, and I have introduced legislation to improve the security. Mr. Gallagher, NTIA's recent botnets report outlines a series of goals that are intended to give stakeholders guidance on what steps they should be taking to secure their systems networks. What are specific resources the NTIA needs to ensure that meaningful action is taken by its stakeholders? Mr. Gallagher. I think, unfortunately, the resources are going to be more necessary by those that need to implement the recommendations than those that formulated them themselves. The Federal Government has had many challenges when it comes to implementing its own solutions on a technical basis. This is going to require action in the marketplace and by manufacturers and then, ultimately, by consumers to make sure that their behavior reinforces the values in those reports. Mr. McNerney. Thank you. Mr. Kneuer, the NTIA has held a series of multi-stakeholder meetings on IOT security upgradeability and patching. The most recent one was held last November. Are you aware of what progress the NTIA has made with this multi-stakeholder process since November? Mr. Kneuer. I am not familiar with the details of that particular multi-stakeholder process. But it is indicative of the contribution that NTIA can make as sort of standing as an intersection between having lots of communication with the market participants and the commercial entities and, at the same time, having visibility through their contacts with the national security intel Homeland Security agencies where they can serve as a conduit of sort of identifying threats, passing information back and forth, and serving that sort of a function. Mr. McNerney. OK. Mr. Gallagher, you're shaking your head yes? Mr. Gallagher. Well, I am just agreeing with John. Mr. McNerney. OK. Well, as an engineer, I think it's important that the agencies principally responsible for advising the President on telecommunications and information policy be equipped with the technical expertise needed to develop policy. Mr. Gallagher, how many engineers does the NTIA currently employ? Mr. Gallagher. I don't know the answer to that. Mr. McNerney. Well, earlier this month before the Senate Committee on Commerce, Administrator Redl said that, ``I believe the greatest challenge for advancing IOT will be cybersecurity.`` How many engineers does NTIA have on staff that would specifically work on cybersecurity? Mr. Gallagher. Again, that's specific information. I am sure it's available from other sources but I don't have it. Mr. McNerney. Mr. Kneuer, in reauthorizing the NTIA, it's critical that we understand what resources the agency currently allocates toward technical expertise and I am hoping that you might be able to provide me with more specific answers for the questions that I just asked Mr. Gallagher. How many engineers specifically focus on IOT security? Mr. Kneuer. So I don't have visibility into the number of engineers assigned right now. When Mike and I were there, there was something like 180 engineers in the agency. But I think what is important is that NTIA's access to technical expertise is not limited to its in-staff resources. So there are vast resources that NIST, which is the flagship government technical agency--there are resources within the NSA. There are resources within the Defense Department that they're able to access, as I've said, when they--and then share that information with the commercial sector and also help identify vulnerabilities and events that are taking place in the commercial environment, and communicating that into the broader government-wide effort, and I think it's going to have to be a government-wide effort. This won't be an NTIA only solution. Mr. McNerney. Well, OK. I will grant you that. Unfortunately, NTIA doesn't have anyone here today. So we can't really get enough visibility to determine if they have the resources that they need. Ms. Hovis, could you discuss the importance of the public- private partnerships in rural and underserved broadband deployment? I have a lot of that in my district. Ms. Hovis. Well, at its core, a public-private partnership helps to change the economics of broadband in an area where the economics simply don't work. Ideally, there would be private sector investment everywhere and there would be rationale and economic viability for private sector investment. But that's, unfortunately, not how infrastructure works of any sort, particularly in rural areas, and there are simply going to need to be places where the public sector has a significant role. The places where that's been most successful there has been collaboration between public and private, and frequently, efforts on the public sector side at the Federal, state, and local levels to collaborate with the private sector to solve these problems and to improve the economics of the build out. Mr. McNerney. Thank you. I guess I better yield back. Mrs. Blackburn. The gentleman yields back. Mr. Costello, you're recognized for 5 minutes. Mr. Kneuer. Sure, and with regards to the specific case that was an enforcement action, not surprised that NTIA wasn't specifically involved in that part of the negotiation. But I think NTIA does sort of sit in the middle of the intersection of national security and our communications networks. It would be a partner with other agencies within the Department of Commerce, the Bureau of Industry and Security, which has a specific mission to look after cross-border trade and technology that involves our national security--the International Trade Administration, which is responsible for our international trade commitments, but most importantly and, I think, most relevant, as the agency that has direct contact with the carrier set that is relying on these network elements that may be subject to vulnerabilities. So its policy coordinating function through its natural interface with the defense, intelligence, and homeland security agencies with the national security inside the White House and with its counterparts inside the Commerce Department. So---- Mr. Costello. So you, likewise, agree that having NTIA lead an interagency effort to strategically share supply chain threat information with the private sector should be one of its core competencies? Mr. Kneuer. Yes. Mr. Costello. Mr. Gallagher, in your testimony you touched upon the benefits of increased unlicensed spectrum use and successful spectrum sharing in the 5 gigahertz band, starting in 2003. Can you expand on that example and talk about some of the future benefits of unlicensed spectrum use in the context of 5G deployment? Also, in your opinion, what, if anything, should Congress do to leverage NTIA's expertise and role in unlicensed spectrum use? Mr. Gallagher. So unlicensed spectrum has been one of the gold mines of our tech economy over the last 15 years. If you look at wi-fi and how pervasively we use it in our homes and our businesses, it's been just a powerhouse of very, very cheap, very efficient transmission of data. Now, ultimately, all of that ties back to a fiber architecture and gets transmitted over more robust networks. But the promise of unlicensed has been proven to be very, very true and very real. So finding more of that it makes great sense because if you have encountered the interference in your home from multiple devices, as we all carry more and more of them, we access richer and richer services, it does put a load on those and there is a potential for interference. So more of that type of spectrum will continue to feed the growth in that area, lowers the burden on our license services. I think the aspiration of unlicensed that we have yet to achieve is I would call carrier class unlicensed spectrum use where you would have, basically, the quality of a licensed service done in an unlicensed way. That remains something that's out of reach at the moment. It hasn't really been delivered yet in the marketplace. In the times when John and I were serving it looked like that was going to happen, and it hasn't really come to fruition. But that's an area of further explanation. Mrs. Blackburn. The gentleman yields back. Mr. Butterfield, you're recognized for 5 minutes. Mr. Butterfield. Thank you very much, Madam Chairman, and thank you to the three witnesses for your testimony today. We have votes around 3:15 and so I am going go cut mine short and not go through the full 5 minutes, Madam Chairman. But let me just ask the three witnesses, I am from a rural low income community in eastern North Carolina and I think we can all agree that we have a digital divide in this country. It's no question that affluent developed communities have broadband. Low income rural communities, many of them, do not. Can you just tell me, each of you, in your own words in plain English why we have this digital divide and what we can do to bridge this divide and bring it to an end in my lifetime? Ms. Hovis. Congressman, I think you articulated the problem exactly right. The challenges that private investment goes--it follows the money and where the opportunity is and we need to build bridges in terms of investment and funding at the state, local, and federal level to support private investment and to add to it and to make it economically viable and interesting for the private sector to support markets where they might not otherwise go and to make it possible for other entities to provide services in those markets where the private sector may choose not to go and that, in my opinion, should include counties and municipalities and nonprofit and public-private partnerships and collaborations because we need to use every tool in the toolbox if we are going to bridge those gaps. Mr. Kneuer. I will just keep banging on the 5G drum for a minute. There is the reality of the economic return, based on the cost of the deployment of the networks. In the very high cost for hard-to-serve areas, the economic incentive breaks down on delivering service to those areas. As 5G becomes a reality, that economic equation will change dramatically and I think we have a promise of wireless networks closing dramatically the gaps that would need to be filled by the kinds of public and private partnerships and by government support. Mr. Gallagher. And I would just add my voice to the solution will be wireless. It will be a lot lower cost per person or per unit of data than what has been deployed in the past. The technology has come to this stage where now we carry devices in our pockets that 5 years ago would have cost tens of thousands of dollars. Now, there are new versions coming out every year. Flat screen TVs used to be ridiculously expensive. They're now borderline disposable, and these types of end of the network uses for broadband--they've brought down the cost in the home for those that need the service in rural areas as well as in the networks themselves. So as we continue to get better and better at better technologies, richer technologies, lower cost devices on the other end, it'll help close that gap. Mr. Butterfield. All three of you agree 5G is the future? Ms. Hovis. If I may add, Congressman. Mr. Butterfield. Yes. Ms. Hovis. I very much agree with my colleagues here. We are all extremely optimistic about the wireless future. But there is no rural wireless without a wire to support that wireless service and that means we can't just say, well, we don't have to worry about wired infrastructure in rural areas because wireless will take care of it. That wireless component is only the very end of the network and if we are going to give folks in rural communities the kinds of services that we all expect every day in our urban communities, we are going to have to make sure that wire is there to support next-generation wireless deployment, and we've got a long way to go on that. Mr. Butterfield. Thank you. Mr. Gallagher. I would just amend by saying wireless back haul is in service now and is a step toward helping close that gap that exists on the wired space. Mr. Butterfield. OK. All right. Thank you, Madam Chair. Mrs. Blackburn. The gentleman yields back. Mr. Guthrie, you're recognized. Mr. Guthrie. Thank you. Thank you very much, and I will be brief too because I know we have at least another question over here. So, many counties regionalised their dispatch centers, and not only does it allow for pooled technical resources--9-1-1 services is what I am talking about--it also provides for the redundancies in the system so that if one county dispatch center shuts down, the other can cover for them because they share the same equipment. As we work for further deployment of NG 9-1-1, how can NTIA work to support the ongoing and future initiatives of these regional dispatch centers. I will just open it to anyone. Does any---- Mr. Gallagher. The first thing I would say is convening, and that's a very strong power of NTIA historically is bring people together to share best practices so that as the public safety law enforcement network responsible leaders, when they get together they're able to see that there's a cheaper and better way of doing something, they learn that from one another. The other, again I would point to is ITS as NTIA does do research on the telecommunications services themselves and potentially could assist in formulating lower cost ways or more robust ways of providing the same service. Mr. Guthrie. OK. And I know there's been discussion in elevating the NTIA administrator to an under secretary, and somebody else may ask more about that. So but I want to focus on if the elevation of the title adds to what we may call gravitas, internationally, what would it do interagency for the deployment of Federal spectrum and auctioning Federal spectrum? Mr. Kneuer. I think it's directionally helpful. As a practical matter, NTIA functions inside the department as an under secretary already. There's no layer in between NTIA and the secretary. Typically, an assistant secretary might report to an undersecretary, who then reports to the secretary of commerce. NTIA actually has one step elevated stature in that it also reports dotted line directly to the President. So in terms of the governance, it's functioning as an under secretary already. But in terms of protocol and interagency negotiations, if you're synced up with an assistant secretary at the Defense Department who then is talking to an under secretary before they get to the secretary, it's just one more layer in between. So I think there is, it would be directionally helpful inside managing the interagency process and it would more accurately reflect where the agency sits within the department by making an under secretary. Mr. Guthrie. So thanks. And then really quick also, mapping. I know we've talked about mapping and it's been addressed. But I would like to share my support for more granular mapping that's been talked about and better data and better verification as well. Do you have suggestions for improving verification strategies? I know you have talked a little bit earlier. I know I was in and out with another meeting, Ms. Hovis, if you---- Ms. Hovis. I don't know how this happens, but I think that--wherever I travel I speak to stakeholders and officials in rural communities who say to me, why is the map showing us as served when we know we are not served, and there needs to be some kind of formal mechanism for feedback and opportunity to challenge the map where it's not accurate and resources for the map then to be corrected because I understand it's expensive and difficult for providers to provide certain kinds of data. But the rural communities, the rural businesses that are suffering from the fact that the map has not got accurate data and therefore they're not eligible for certain kinds of programs or certain kinds of support at the state and Federal level. Very, very frustrating for them, and it is the Federal Government that is putting this data together. Mr. Guthrie. Well, that's important, too, because my area it has rural areas you just look at and say you know there's issues that need to be addressed. My home town is Bowling Green, which is kind of tied in with our chairwoman's community--boom town of Nashville. We are a boom town as well. And you hear from people who are developing and trying to accommodate the growth and stuff moving forward is that a lot of people won't want to move into certain neighborhoods or they can't develop areas because there's no profit. If you're going to build a nice home you're moving in you want access to broadband. So that's limiting what can happen. But if you look at a map, you would say that Warren County, that has gone from 70,000 to 125,000 in the last 20 years, would be served. But it depends on where you live, and so that's what's important. And I was going to not use all my time but I almost did. I yield back. [Laughter.] Mrs. Blackburn. The gentleman yields back. Mr. Shimkus, you're recognized. Mr. Shimkus. Thank you, Madam Chairman. Great hearing. It's good to see you all again. I am going to start really following up on my colleague, Mr. Guthrie's question on the under secretary debate and is-- because you talked--Mr. Kneuer, you talked internally. Let's talk externally. We've been involved in the NATO parliamentary assembly. I do some stuff in the Baltic regions. Titles matter internationally. Anyone want to comment on a title change just for the international aspects of what NTIA has to do? Mr. Kneuer. Yes. I think it's more relevant in the international context than in the interagency domestically. We can sort of manage that here. In my experience traveling, they were very confused by the NTIA role and the title, are you the minister of communications, which in foreign countries could be one of the leaders of the cabinet, right. So some clarity with an under secretary helps them understand it. It gives commonality with our counterparts in the State Department who travel internationally. There's more of a clarity of what the role is. So I think the elevation of the title actually probably carries a little bit more currency in international negotiations than it does--you can manage it here. You just have to---- Mr. Shimkus. Right. Mr. Gallagher, you seem to be shaking your head. Do you agree with that analysis? Mr. Gallagher. Yes. I think 90 percent of the benefit of this is coming in the international arena and it comes from respect from the foreign delegations. It's very important for us to keep in mind that they don't have the turnover we do. Our political system--we move through political appointees. There, they tend to be there for very long periods of time. The title helps cut through that gap and experience. Mr. Shimkus. Great. Thank you. And I want to focus on a part of the discussion draft, which is WHOIS database, and I-- many of you follow me. I was involved with the IANA on transition and ICANN debate, and there was kind of a commitment during that discussion that the WHOIS database would continue. Now, throw in the uncertainty with the European Union and the general data protection regulation. Can you talk to me about the importance of keeping the WHOIS database and this European concern and how we crunch through this? Mr. Gallagher. Mr. Gallagher. It's absolutely vital that the WHOIS database is taken very seriously and continues to have the emphasis that it has had for a very long period of time. In virtually every bilateral meeting that I had or any other international meeting, the Department of Justice, Department of Homeland Security, the intelligence community, the White House all the way through made sure it was always on our agenda at NTIA to underscore the importance of WHOIS. That's paramount that that continue, even with any conflict with the GDPR. The conflict is something that is misplaced if that's the way it's perceived. The mission of WHOIS to intellectual property holders, law enforcement, is paramount to whatever those concerns might be about individual privacy. Mr. Shimkus. Anyone else want to chime in on that? Mr. Kneuer. I think there is no separation anywhere in the USG and, I even think, at ICANN with regards to the importance of WHOIS and the commitment to collect reliable publicly accessible WHOIS data. This conflict of laws with the GDPR, I think WHOIS is going to be sort of the pointy end of the spear on that. There are lots and lots of different places where the GDPR is running into conflicts of law. So I think this is going to be an exercise we are going to have to undertake. I think NTIA remains well suited to be the U.S. point in working with ICANN, protecting that, and if it turns out that there needs to be a U.S. legal solution to clarify and supersede the GDPR, that's something that they can consider as well. Mr. Shimkus. Thank you, and I want to submit for the record the Coalition for a Secure and Transparent Internet to the record. Mrs. Blackburn. Without objection. [The information appears at the conclusion of the hearing.] Mr. Shimkus. And I will just end on I sent a letter along with Congressman Ruiz to GoDaddy highlighting and fleshing this out either. So it's very important and I appreciate your answers and look forward to having that part of the language. And I yield back. Mrs. Blackburn. The gentleman yields back. And Mr. Welch has no questions or comments. We are delighted that he's here. We should ask him where he was in 1992, the last time Congress did this. Well, seeing that there are no further members wishing to ask questions for the panel, I want to thank each of you for being here today and for helping us. As you can see, there is broad bipartisan agreement on moving forward with the rural broadband and with NTIA--their participation, and so we thank you for your insight. Before we conclude, I ask unanimous consent to enter the following documents into the record: a letter from NTIA, a Politico article, ``Wired to Fail,`` a letter to me from organizations fighting human trafficking, a letter from CCIA-- that is offered by Mr. Lance--a letter from CSTI, offered by Mr. Shimkus, ESA's court filing, offered by Mr. Doyle, the Shimkus-Ruiz letter regarding WHOIS and the database. Without objection, so ordered. [The information appears at the conclusion of the hearing.] Mrs. Blackburn. Pursuant to committee rules, all members are reminded that they have 10 business days in which to submit additional questions, and we would ask each of you--our witnesses--to respond within 10 business days. Seeing there is no further business to come before the committee, the subcommittee is adjourned. [Whereupon, at 3:23 p.m., the committee was adjourned.] [Material submitted for inclusion in the record follows:] [GRAPHICS NOT AVAILABLE IN TIFF FORMAT] [all]
MEMBERNAME | BIOGUIDEID | GPOID | CHAMBER | PARTY | ROLE | STATE | CONGRESS | AUTHORITYID |
---|---|---|---|---|---|---|---|---|
Rush, Bobby L. | R000515 | 7921 | H | D | COMMMEMBER | IL | 115 | 1003 |
Upton, Fred | U000031 | 7991 | H | R | COMMMEMBER | MI | 115 | 1177 |
DeGette, Diana | D000197 | 7859 | H | D | COMMMEMBER | CO | 115 | 1479 |
Shimkus, John | S000364 | 7939 | H | R | COMMMEMBER | IL | 115 | 1527 |
Schakowsky, Janice D. | S001145 | 7929 | H | D | COMMMEMBER | IL | 115 | 1588 |
Walden, Greg | W000791 | 8115 | H | R | COMMMEMBER | OR | 115 | 1596 |
Blackburn, Marsha | B001243 | 8154 | H | R | COMMMEMBER | TN | 115 | 1748 |
Burgess, Michael C. | B001248 | 8182 | H | R | COMMMEMBER | TX | 115 | 1751 |
Rodgers, Cathy McMorris | M001159 | 8209 | H | R | COMMMEMBER | WA | 115 | 1809 |
Matsui, Doris O. | M001163 | 7810 | H | D | COMMMEMBER | CA | 115 | 1814 |
McNerney, Jerry | M001166 | 7816 | H | D | COMMMEMBER | CA | 115 | 1832 |
Bilirakis, Gus M. | B001257 | 7881 | H | R | COMMMEMBER | FL | 115 | 1838 |
Castor, Kathy | C001066 | 7883 | H | D | COMMMEMBER | FL | 115 | 1839 |
Loebsack, David | L000565 | 7915 | H | D | COMMMEMBER | IA | 115 | 1846 |
Sarbanes, John P. | S001168 | 7978 | H | D | COMMMEMBER | MD | 115 | 1854 |
Walberg, Tim | W000798 | 7992 | H | R | COMMMEMBER | MI | 115 | 1855 |
Clarke, Yvette D. | C001067 | 8072 | H | D | COMMMEMBER | NY | 115 | 1864 |
Welch, Peter | W000800 | 8204 | H | D | COMMMEMBER | VT | 115 | 1879 |
Latta, Robert E. | L000566 | 8095 | H | R | COMMMEMBER | OH | 115 | 1885 |
Scalise, Steve | S001176 | 7959 | H | R | COMMMEMBER | LA | 115 | 1892 |
Guthrie, Brett | G000558 | 7954 | H | R | COMMMEMBER | KY | 115 | 1922 |
Harper, Gregg | H001045 | 8021 | H | R | COMMMEMBER | MS | 115 | 1933 |
Lance, Leonard | L000567 | 8049 | H | R | COMMMEMBER | NJ | 115 | 1936 |
Lujan, Ben Ray | L000570 | 8058 | H | D | COMMMEMBER | NM | 115 | 1939 |
Tonko, Paul | T000469 | 8082 | H | D | COMMMEMBER | NY | 115 | 1942 |
Schrader, Kurt | S001180 | 8118 | H | D | COMMMEMBER | OR | 115 | 1950 |
Olson, Pete | O000168 | 8178 | H | R | COMMMEMBER | TX | 115 | 1955 |
Kinzinger, Adam | K000378 | 7931 | H | R | COMMMEMBER | IL | 115 | 2014 |
Bucshon, Larry | B001275 | 7947 | H | R | COMMMEMBER | IN | 115 | 2018 |
Long, Billy | L000576 | 8015 | H | R | COMMMEMBER | MO | 115 | 2033 |
Johnson, Bill | J000292 | 8096 | H | R | COMMMEMBER | OH | 115 | 2046 |
Duncan, Jeff | D000615 | 8143 | H | R | COMMMEMBER | SC | 115 | 2057 |
Flores, Bill | F000461 | 8173 | H | R | COMMMEMBER | TX | 115 | 2065 |
McKinley, David B. | M001180 | 8222 | H | R | COMMMEMBER | WV | 115 | 2074 |
Cardenas, Tony | C001097 | H | D | COMMMEMBER | CA | 115 | 2107 | |
Ruiz, Raul | R000599 | H | D | COMMMEMBER | CA | 115 | 2109 | |
Peters, Scott H. | P000608 | H | D | COMMMEMBER | CA | 115 | 2113 | |
Brooks, Susan W. | B001284 | H | R | COMMMEMBER | IN | 115 | 2129 | |
Hudson, Richard | H001067 | H | R | COMMMEMBER | NC | 115 | 2140 | |
Cramer, Kevin | C001096 | H | R | COMMMEMBER | ND | 115 | 2144 | |
Collins, Chris | C001092 | H | R | COMMMEMBER | NY | 115 | 2151 | |
Mullin, Markwayne | M001190 | H | R | COMMMEMBER | OK | 115 | 2156 | |
Walters, Mimi | W000820 | H | R | COMMMEMBER | CA | 115 | 2232 | |
Dingell, Debbie | D000624 | H | D | COMMMEMBER | MI | 115 | 2251 | |
Costello, Ryan A. | C001106 | H | R | COMMMEMBER | PA | 115 | 2266 | |
Doyle, Michael F. | D000482 | 8132 | H | D | COMMMEMBER | PA | 115 | 316 |
Engel, Eliot L. | E000179 | 8078 | H | D | COMMMEMBER | NY | 115 | 344 |
Eshoo, Anna G. | E000215 | 7819 | H | D | COMMMEMBER | CA | 115 | 355 |
Green, Gene | G000410 | 8185 | H | D | COMMMEMBER | TX | 115 | 462 |
Barton, Joe | B000213 | 8162 | H | R | COMMMEMBER | TX | 115 | 62 |
Pallone, Frank, Jr. | P000034 | 8048 | H | D | COMMMEMBER | NJ | 115 | 887 |
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