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Ðà‘((ðà25 —Ý ƒ<ÿÿ)ÝÝ  ÝÔ€þDXXXÔÒp°ÒÒаÒÓÿÿì°œXÓÔ€¼=»XþDÔÔ€¼gE»»¼=Ôà ì àòòA\VððTRONICSóóÐ ( Ðà ì àÔ€,ÞÑ,»¼gEÔÔ€‚,gc,,,ÞÑÔProfessional€Court€ReportingÐ @ Ðà ì à&€TranscriptionÌà ì àPhoenix,€Arizona €Ý ƒ?ÿÿ'ÝÝ  ÝÔ€þDXXXÔÒp°ÒÒаÒà€$$N%àÚ  Ú1Ú  Ú^³¸6Cty of PhxPhoenix Case FormatÓ  ÓÑ(°ÑÑh°ÑÒp°ÒÒаÒÓÿÿÓÖ€ŠÿÿÖÖ€ÿÿÖÓ ÿÿ ˜°œXÓÖ€ŽÿÿÖ qÝ ƒ'ÿÿ(ÝÝ  ÝÔ€þDXXXÔÒp°ÒÒаÒ߀H‹,WGCz|ThØ' p€ €À H@EThØ'HðThØ'ßÌß‹€HŒUEAz| €,¬& p€ €@ H@E €,¬&,Æ% €,¬&‹ß Ý ƒBÿÿ"ÝÝ  Ý ÉÝ ƒBÿÿ"ÝÝ  ÝÓÿÿð°œXÓÔ€XþDXXXÔÔ€XLKXXXþDÔÓµÓà‘ŒŒðà1ˆÐ  Ðà‘ŒŒðà2ˆÌà‘ŒŒðà3ˆÌà‘ŒŒðà4ˆÌà‘ŒŒðà5ˆÌà‘ŒŒðà6ˆÌà‘ŒŒðà7ˆÌà‘ŒŒðà8ˆÌà‘ŒŒðà9ˆÌà‘((ðà10ˆÌà‘((ðà11ˆÌà‘((ðà12ˆÌà‘((ðà13ˆÌà‘((ðà14ˆÌà‘((ðà15ˆÌà‘((ðà16ˆÌà‘((ðà17ˆÌà‘((ðà18ˆÌà‘((ðà19ˆÌà‘((ðà20ˆÌà‘((ðà21ˆÌà‘((ðà22ˆÌà‘((ðà23ˆÌà‘((ðà24ˆÐ Ö$Ö$. Ðà‘((ðà25 —Ý ƒ<ÿÿ)ÝÝ  ÝÔ€þDXXXÔÒp°ÒÒаÒÓÿÿì°œXÓÔ€¼=»XþDÔÔ€¼gE»»¼=Ôà ì àòòA\VððTRONICSóóÐ ( Ðà ì àÔ€,ÞÑ,»¼gEÔÔ€‚,gc,,,ÞÑÔProfessional€Court€ReportingÐ @ Ðà ì à&€TranscriptionÌà ì àPhoenix,€Arizona ±Ý ƒ?ÿÿ'ÝÝ  ÝÔ€þDXXXÔÒp°ÒÒаÒÓ ÿÿ ˜°œXÓà@¼¼0¼àˆà€$$N%àÚ  Ú1Ú  Ú^°Z–6Fed FormatFederal Case FormatÓ  ÓÓÿÿÓÑ(°ÑÑh°ÑÒp°ÒÒаÒÖ€ÿÿÖÖ€“ÿÿÖÓÿÿ °œXÓÖ€”ÿÿÖ qÝ ƒ'ÿÿ(ÝÝ  ÝÔ€þDXXXÔÒp°ÒÒаÒ߀H‘,WGCz|ThØ' p€ €À H@EThØ'HðThØ'ßÌß‹€H’UEAz| €,¬& p€ €@ H@E €,¬&,Æ% €,¬&‹ß Ý ƒBÿÿ"ÝÝ  Ý ÉÝ ƒBÿÿ"ÝÝ  ÝÓÿÿð°œXÓÔ€XþDXXXÔÔ€XLKXXXþDÔÓµÓà‘ŒŒðà1ˆÐ  Ðà‘ŒŒðà2ˆÌà‘ŒŒðà3ˆÌà‘ŒŒðà4ˆÌà‘ŒŒðà5ˆÌà‘ŒŒðà6ˆÌà‘ŒŒðà7ˆÌà‘ŒŒðà8ˆÌà‘ŒŒðà9ˆÌà‘((ðà10ˆÌà‘((ðà11ˆÌà‘((ðà12ˆÌà‘((ðà13ˆÌà‘((ðà14ˆÌà‘((ðà15ˆÌà‘((ðà16ˆÌà‘((ðà17ˆÌà‘((ðà18ˆÌà‘((ðà19ˆÌà‘((ðà20ˆÌà‘((ðà21ˆÌà‘((ðà22ˆÌà‘((ðà23ˆÌà‘((ðà24ˆÐ Ö$Ö$. Ðà‘((ðà25 —Ý ƒ<ÿÿ)ÝÝ  ÝÔ€þDXXXÔÒp°ÒÒаÒÓÿÿì°œXÓÔ€¼=»XþDÔÔ€¼gE»»¼=Ôà ì àòòA\VððTRONICSóóÐ ( Ðà ì àÔ€,ÞÑ,»¼gEÔÔ€‚,gc,,,ÞÑÔProfessional€Court€ReportingÐ @ Ðà ì à&€TranscriptionÌà ì àPhoenix,€Arizona ®Ý ƒ?ÿÿ'ÝÝ  ÝÔ€þDXXXÔÒp°ÒÒаÒÓÿÿ °œXÓà@¼¼0¼àˆà€$$N%àÚ  Ú1Ú  ÚPž¿Ô4Fed IndexFederal IndexÑ(°ÑÑh°ÑÒ€°ÒÒX°ÒÖ€ÿÿÖÖ€–ÿÿÖÖ€™ÿÿÖÓ'ÿÿèÈÀ!°œX'Ó qÝ ƒ'ÿÿ(ÝÝ  ÝÔ€þDXXXÔÒ€°ÒÒX°Ò߀H—,WGCz|ThØ' p€ €À H@EThØ'HðThØ'ßÌß‹€H˜UEAz| €,¬& p€ €@ H@E €,¬&,Æ% €,¬&‹ß Ý ƒBÿÿ"ÝÝ  Ý ÉÝ ƒBÿÿ"ÝÝ  ÝÓÿÿð°œXÓÔ€XþDXXXÔÔ€XLKXXXþDÔÓµÓà‘ŒŒðà1ˆÐ  Ðà‘ŒŒðà2ˆÌà‘ŒŒðà3ˆÌà‘ŒŒðà4ˆÌà‘ŒŒðà5ˆÌà‘ŒŒðà6ˆÌà‘ŒŒðà7ˆÌà‘ŒŒðà8ˆÌà‘ŒŒðà9ˆÌà‘((ðà10ˆÌà‘((ðà11ˆÌà‘((ðà12ˆÌà‘((ðà13ˆÌà‘((ðà14ˆÌà‘((ðà15ˆÌà‘((ðà16ˆÌà‘((ðà17ˆÌà‘((ðà18ˆÌà‘((ðà19ˆÌà‘((ðà20ˆÌà‘((ðà21ˆÌà‘((ðà22ˆÌà‘((ðà23ˆÌà‘((ðà24ˆÐ Ö$Ö$. Ðà‘((ðà25 —Ý ƒ<ÿÿ)ÝÝ  ÝÔ€þDXXXÔÒ€°ÒÒX°ÒÓÿÿì°œXÓÔ€¼=»XþDÔÔ€¼gE»»¼=Ôà ì àòòA\VððTRONICSóóÐ ( Ðà ì àÔ€,ÞÑ,»¼gEÔÔ€‚,gc,,,ÞÑÔProfessional€Court€ReportingÐ @ Ðà ì à&€TranscriptionÌà ì àPhoenix,€Arizona`­¿¶:Fed Title PgFederal Title PageÓÓÑ(°ÑÑh°ÑÒp°ÒÒаÒÖ€ÿÿÖÖ€›ÿÿÖÖ€žÿÿÖÓ$ÿÿ˜  pȰœX$Ó qÝ ƒ'ÿÿ(ÝÝ  ÝÔ€þDXXXÔÒp°ÒÒаÒ߀Hœ,WGCz|ThØ' p€ €À H@EThØ'HðThØ'ßÌß‹€HUEAz| €,¬& p€ €@ H@E €,¬&,Æ% €,¬&‹ß Ý ƒBÿÿ"ÝÝ  Ý ÉÝ ƒBÿÿ"ÝÝ  ÝÓÿÿð°œXÓÔ€XþDXXXÔÔ€XLKXXXþDÔÓµÓà‘ŒŒðà1ˆÐ  Ðà‘ŒŒðà2ˆÌà‘ŒŒðà3ˆÌà‘ŒŒðà4ˆÌà‘ŒŒðà5ˆÌà‘ŒŒðà6ˆÌà‘ŒŒðà7ˆÌà‘ŒŒðà8ˆÌà‘ŒŒðà9ˆÌà‘((ðà10ˆÌà‘((ðà11ˆÌà‘((ðà12ˆÌà‘((ðà13ˆÌà‘((ðà14ˆÌà‘((ðà15ˆÌà‘((ðà16ˆÌà‘((ðà17ˆÌà‘((ðà18ˆÌà‘((ðà19ˆÌà‘((ðà20ˆÌà‘((ðà21ˆÌà‘((ðà22ˆÌà‘((ðà23ˆÌà‘((ðà24ˆÐ Ö$Ö$. Ðà‘((ðà25 —Ý ƒ<ÿÿ)ÝÝ  ÝÔ€þDXXXÔÒp°ÒÒаÒÓÿÿì°œXÓÔ€¼=»XþDÔÔ€¼gE»»¼=Ôà ì àòòA\VððTRONICSóóÐ ( Ðà ì àÔ€,ÞÑ,»¼gEÔÔ€‚,gc,,,ÞÑÔProfessional€Court€ReportingÐ @ Ðà ì à&€TranscriptionÌà ì àPhoenix,€Arizonaf°Úž8Bank FormatBankruptcy Case FormatÓ  ÓÓÿÿÓÑ(°ÑÑh°ÑÒp°ÒÒаÒÖ€ ÿÿÖÖ€£ÿÿÖÓÿÿ °œXÓÖ€¤ÿÿÖ qÝ ƒ'ÿÿ(ÝÝ  ÝÔ€þDXXXÔÒp°ÒÒаÒ߀H¡,WGCz|ThØ' p€ €À H@EThØ'HðThØ'ßÌß‹€H¢UEAz| €,¬& p€ €@ H@E €,¬&,Æ% €,¬&‹ß Ý ƒBÿÿ"ÝÝ  Ý ÉÝ ƒBÿÿ"ÝÝ  ÝÓÿÿð°œXÓÔ€XþDXXXÔÔ€XLKXXXþDÔÓµÓà‘ŒŒðà1ˆÐ  Ðà‘ŒŒðà2ˆÌà‘ŒŒðà3ˆÌà‘ŒŒðà4ˆÌà‘ŒŒðà5ˆÌà‘ŒŒðà6ˆÌà‘ŒŒðà7ˆÌà‘ŒŒðà8ˆÌà‘ŒŒðà9ˆÌà‘((ðà10ˆÌà‘((ðà11ˆÌà‘((ðà12ˆÌà‘((ðà13ˆÌà‘((ðà14ˆÌà‘((ðà15ˆÌà‘((ðà16ˆÌà‘((ðà17ˆÌà‘((ðà18ˆÌà‘((ðà19ˆÌà‘((ðà20ˆÌà‘((ðà21ˆÌà‘((ðà22ˆÌà‘((ðà23ˆÌà‘((ðà24ˆÐ Ö$Ö$. Ðà‘((ðà25 —Ý ƒ<ÿÿ)ÝÝ  ÝÔ€þDXXXÔÒp°ÒÒаÒÓÿÿì°œXÓÔ€¼=»XþDÔÔ€¼gE»»¼=Ôà ì àòòA\VððTRONICSóóÐ ( Ðà ì àÔ€,ÞÑ,»¼gEÔÔ€‚,gc,,,ÞÑÔProfessional€Court€ReportingÐ @ Ðà ì à&€TranscriptionÌà ì àPhoenix,€Arizona ®Ý ƒ?ÿÿ'ÝÝ  ÝÔ€þDXXXÔÒp°ÒÒаÒÓÿÿ °œXÓà@¼¼0¼àˆà€$$N%àÚ  Ú1Ú  ÚXžÃô6Bank IndexBankruptcy IndexÑ(°ÑÑh°ÑÒ€°ÒÒX°ÒÖ€ÿÿÖÖ€¦ÿÿÖÖ€©ÿÿÖÓ'ÿÿèÈÀ!°œX'Ó qÝ ƒ'ÿÿ(ÝÝ  ÝÔ€þDXXXÔÒ€°ÒÒX°Ò߀H§,WGCz|ThØ' p€ €À H@EThØ'HðThØ'ßÌß‹€H¨UEAz| €,¬& p€ €@ H@E €,¬&,Æ% €,¬&‹ß Ý ƒBÿÿ"ÝÝ  Ý ÉÝ ƒBÿÿ"ÝÝ  ÝÓÿÿð°œXÓÔ€XþDXXXÔÔ€XLKXXXþDÔÓµÓà‘ŒŒðà1ˆÐ  Ðà‘ŒŒðà2ˆÌà‘ŒŒðà3ˆÌà‘ŒŒðà4ˆÌà‘ŒŒðà5ˆÌà‘ŒŒðà6ˆÌà‘ŒŒðà7ˆÌà‘ŒŒðà8ˆÌà‘ŒŒðà9ˆÌà‘((ðà10ˆÌà‘((ðà11ˆÌà‘((ðà12ˆÌà‘((ðà13ˆÌà‘((ðà14ˆÌà‘((ðà15ˆÌà‘((ðà16ˆÌà‘((ðà17ˆÌà‘((ðà18ˆÌà‘((ðà19ˆÌà‘((ðà20ˆÌà‘((ðà21ˆÌà‘((ðà22ˆÌà‘((ðà23ˆÌà‘((ðà24ˆÐ Ö$Ö$. Ðà‘((ðà25 —Ý ƒ<ÿÿ)ÝÝ  ÝÔ€þDXXXÔÒ€°ÒÒX°ÒÓÿÿì°œXÓÔ€¼=»XþDÔÔ€¼gE»»¼=Ôà ì àòòA\VððTRONICSóóÐ ( Ðà ì àÔ€,ÞÑ,»¼gEÔÔ€‚,gc,,,ÞÑÔProfessional€Court€ReportingÐ @ Ðà ì à&€TranscriptionÌà ì àPhoenix,€Arizonafªiý:Bank Title PBankruptcy Title PageÓÓÑ(°ÑÑh°ÑÒp°ÒÒаÒÖ€ÿÿÖÖ€«ÿÿÖÖ€®ÿÿÖÓ! ÿÿ˜ x°œX!Ó qÝ ƒ'ÿÿ(ÝÝ  ÝÔ€þDXXXÔÒp°ÒÒаÒ߀H¬,WGCz|ThØ' p€ €À H@EThØ'HðThØ'ßÌß‹€H­UEAz| €,¬& p€ €@ H@E €,¬&,Æ% €,¬&‹ß Ý ƒBÿÿ"ÝÝ  Ý ÉÝ ƒBÿÿ"ÝÝ  ÝÓÿÿð°œXÓÔ€XþDXXXÔÔ€XLKXXXþDÔÓµÓà‘ŒŒðà1ˆÐ  Ðà‘ŒŒðà2ˆÌà‘ŒŒðà3ˆÌà‘ŒŒðà4ˆÌà‘ŒŒðà5ˆÌà‘ŒŒðà6ˆÌà‘ŒŒðà7ˆÌà‘ŒŒðà8ˆÌà‘ŒŒðà9ˆÌà‘((ðà10ˆÌà‘((ðà11ˆÌà‘((ðà12ˆÌà‘((ðà13ˆÌà‘((ðà14ˆÌà‘((ðà15ˆÌà‘((ðà16ˆÌà‘((ðà17ˆÌà‘((ðà18ˆÌà‘((ðà19ˆÌà‘((ðà20ˆÌà‘((ðà21ˆÌà‘((ðà22ˆÌà‘((ðà23ˆÌà‘((ðà24ˆÐ Ö$Ö$. Ðà‘((ðà25 —Ý ƒ<ÿÿ)ÝÝ  ÝÔ€þDXXXÔÒp°ÒÒаÒÓÿÿì°œXÓÔ€¼=»XþDÔÔ€¼gE»»¼=Ôà ì àòòA\VððTRONICSóóÐ ( Ðà ì àÔ€,ÞÑ,»¼gEÔÔ€‚,gc,,,ÞÑÔProfessional€Court€ReportingÐ @ Ðà ì à&€TranscriptionÌà ì àPhoenix,€Arizona ]Ý ƒ?ú'ÝÝ  ÝÒ\°ÒÒ\°ÒÔ€°®±°XXÔÔ€°°̸ °°°®±Ôà@­ ­ $ìàUNITED€STATESˆÐ ° Ðà@ÛÛìàFEDERAL€COMMUNICATIONS€COMMISSIONˆÌÔ€° Îë ! °°°̸ÔÔ€± OC ! !° ÎëÔÌß?€+(' >  %dE\±  %?ß+ó¸_  CG TimesBold*Ͼ¦ `CG Times Ö€Ö Ö€Ö wÝ ƒ?ú'ÝÝ  ÝÒ°ÒÓ$ÿÿXØ 0 °œX$Óà€°"°"8"(#àÚ  Ú1Ú  Ú ŸÝ ƒ<ú)ÝÝ  ÝÒ°ÒÓ$ÿÿXØ 0 °œX$Óà@àHeritage€Reporting€CorporationˆÌà@ÐÐ&à(202)€628„4888 ŸÝ ƒ<ú)ÝÝ  ÝÒ°ÒÓ$ÿÿX¸ °œX$Óà@àHeritage€Reporting€CorporationˆÌà@ÐÐ&à(202)€628„4888  ÿÿCƒ‰•›£«±Right ParRight-Aligned Paragraph NumbersI.A.1.a.(1)(a)i)a)#|x«<þ6X9`(CourierXôxþ6X@ɹ`7ûX@)n4 2Times New RomanBoldTTXXun4ps=×;X2 ÕvãA,ArialBold ItalicTTTT¼¼‹ ÕvãxÆÈ×;¼˜0 q˜A`ArialTTItalicTTTT,,: q˜PÆ…×;,P+ó¸_  CG TimesBoldcTTTT°°ôó¸_ pì¶i7û°*Ͼ¦ `CG TimesdcTTTT  ŸÏ¾¦ PìE37û P˜HP LaserJet 4Si/4Si MX,,,,0($¡¡abUUD_-&0.wpLƒÿU‹ÿÀÀÀÝ ƒ»!ÝÝ  ÝØØÑ  ÑÖ€¯ÿÿÖÔ_ÔIn€Re:€à ` à€€€€€€€€€€€€€€€€€€€€)Ð ‰  Ðà  àà ` àà ¸ à€€€€€€€€€€€€€€€)ÌA€NEW€FCC€FOR€THE€€€€€€€€€€€€€)€€Ì21ST€CENTURY€€€€€€€€€€€€€€€€€€)ÌÌÌÌÌÌÌà  àÌÌÌÌÌÌÌÌÌVolume:à ` à1Ð YÐ ÐÌÌPages:à ` à1€through€105Ð )  ÐÌPlace:à ` àWashington,€D.C.Ð  !€ ÐÌDate:à ` àSeptember€30,€1999Ñ€²ÑÑ€³ÑÐ é"` ÐÐ  Ù#P ÐÑ ²³Ñâ ²âÖ€¯Öâ ³²âÖ€ÿÿÖâ ³âÑ  ÑÒ°ÒÓ$ÿÿXØ 0 °œX$ÓÖ€´ÖÖ€µÐÖññÓ3³Óññà@ÀÀ(àBefore€theˆÌà@\ \ àFEDERAL€COMMUNICATIONS€COMMISSIONˆÌà@´´"àWashington,€D.C.€€20554ˆÌÌÌÓ  ÓFollow„Up€Public€ForumÌÓ  Óà Ø àà 0 àà  àÌÓ  ÓA€NEW€FCC€FOR€THEÌ21ST€CENTURYÌÓ  ÓÌÌÌÌà Ø àà 0 àà  àThe€PortalsÌà Ø àà 0 àà  à445€12th€Street,€S.W.Ìà Ø àà 0 àà  àCommissioners€Meeting€RoomÌà Ø àà 0 àà  àWashington,€D.C.Ì€€Ìà Ø àà 0 àà  àThursday,Ìà Ø àà 0 àà  àSeptember€30,€1999ÌÌà Ø àà 0 àThe€parties€met,€pursuant€to€the€notice€of€the€ÌÌChairman,€at€10:00€a.m.ÌÌà Ø àà 0 àBEFORE:€€HON.€WILLIAM€KENNARD€€€€€Ìà Ø àà 0 à€€€€€€€€€ChairmanÌÌà Ø àà 0 àAPPEARANCES:ÌÌà Ø àà 0 àòòOn€behalf€of€the€Federal€Communications€Ð ú’ Ðà Ø àà 0 àCommissionóó:Ð ¡9 ÐÌà Ø àà 0 àWILLIAM€KENNARD,€ChairmanÌà Ø àà 0 àSUSAN€NESS,€CommissionerÌà Ø àà 0 àKATHY€BROWN,€Chief€of€StaffÌà Ø àà 0 àROBERT€PEPPER,€Office€of€Plans€and€PolicyÌà Ø àà 0 àLISA€GATHRER,€Office€of€Plans€and€PolicyÌà Ø àà 0 àMARY€BETH€RICHARDSÌÌÌà Ø àà 0 àòòPreviously€Participated€in€the€Industry€Forumóó:Ð '!¿) ÐÌà Ø àà 0 àALAN€F.€CIAMPORCEROÌà Ø àà 0 àGTE€Services€CorporationÌÌà Ø àà 0 àJONATHAN€SALLETÌà Ø àà 0 àMCI„Worldcom,€Inc.ÌÐ  ¸%P0 Ðà Ø àà 0 àPAT€MAHONEYÌà Ø àà 0 àSatellite€Industry€AssociationÌÌà Ø àà 0 àMICHELLE€FARQUARÌà Ø àà 0 àHogan€and€HartsonÌà Ø àà 0 àCounsel€to€Western€Wireless€Corp.ÌÌà Ø àà 0 àDAVID€TURETSKYÌà Ø àà 0 àTeligentÌÌà Ø àà 0 àROY€NEELÌà Ø àà 0 àUnited€States€Telephone€AssociationÌÌÌà Ø àà 0 àòòPreviously€Participated€in€Consumer€Forumóó:Ð Š"  ÐÌà Ø àà 0 àJENELL€TRIGGÌà Ø àà 0 àTelecom€Opportunity€InstituteÌÌà Ø àà 0 àJOANNE€KUMKEAWAÌà Ø àà 0 àThe€Office€for€the€Advancement€of€TelehealthÌÌà Ø àà 0 àAL€SONNENSTRAHLà  àÐ ÂZ Ðà Ø àà 0 àConsumer€Action€Network€of€Death€&€Hard€of€¼à Ø àà 0 àHearing€ConsumersÌÌà Ø àà 0 àKAREN€STRAUSSÌà Ø àà 0 àNational€Association€of€the€DeafÌÌà Ø àà 0 àDEBRA€BERLYNÌà Ø àà 0 àCompetition€Policy€InstituteÌà Ø àà 0 àÌà Ø àà 0 àCLAUDE€STOUTÌà Ø àà 0 àTelecommunication€for€the€DeafÌÌà Ø àà 0 àòòPreviously€Participated€in€Academic€Forumóó:Ð =Õ# ÐÌà Ø àà 0 àSTEVE€POCIASKÌà Ø àà 0 àJoel€Popkin€&€Company€Economic€ConsultingÌÌà Ø àà 0 àLARRY€SPIWAKÌà Ø àà 0 àPhoenix€Center€for€Advanced€Legal€&€Economic€¼à Ø àà 0 àPublic€Policy€StudiesÌÌà Ø àà 0 àPETER€CRAMTOMÌà Ø àà 0 àUniversity€of€MarylandÌÌà Ø àà 0 àJANNETTE€DATESÌà Ø àà 0 àBlack€College€Communication€AssociationÐ  ¸%P0 Ðà Ø àà 0 àJUDY€HARKINSà  àÐ h Ðà Ø àà 0 àGallaudet€UniversityÌÌà Ø àà 0 àòòNew€Participantsóó:Ð ]õ ÐÌà Ø àà 0 àJIM€BLITZÌà Ø àà 0 àDavis€Wright€Tremaine€LLPÌÌà Ø àà 0 àRICH€BARTHÌà Ø àà 0 àMotorola€CorporationÌÌà Ø àà 0 àKOFI€OFORIÌà Ø àà 0 àBlack€College€Communication€AssociationÌÌà Ø àà 0 àPAM€STEWARTÌà Ø àà 0 àMaryland€Public€Utility€CommissionÌà Ø àà 0 àÌà Ø àà 0 àROBERT€MCDOWELLÌà Ø àà 0 àCompetitive€Telecommunications€AssociationÌÌÐ  t  ÐññÓ3³ÓññññÙ ÙØ ØññññÑÀ°ÑññññÑH°ÑññÓ=€þDXÐXdÐd=ÓññÓ3³3³Óññà@üü)àòòÔ  ÔññÔ Ý ÔññI€N€D€E€XóóÔ  ÔññÔ Ý ÔññˆÐ x ÐÌ€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€ÌWelcome€and€Introduction€by€Kathy€Brown,€Chief€of€Staffà€°"°"J(#à5ˆÐ = Å ÐOpening€Remarks€„€Chairman€Kennardà€°"°"J(#à6ˆÐ Ô \ ÐRemarks€by€Commissioner€Nessà€8"8"I(#à10ˆÐ k ó  ÐGround€rules€„€Kathy€Brown,€Chief€of€Staff€and€Moderatorà€8"8"I(#à10ˆÐ Š  ÐSession€1:€€Create€a€Model€Agency€for€the€Digital€Ageà€8"8"I(#à14ˆÐ ™!  ÐSession€2:€€Promote€Competition€in€all€CommunicationsÏMarketsà€8"8"I(#à60ˆÐ ÇO ÐSession€3:€€Create€Opportunities€for€All€Americans€toÏBenefit€From€the€Communications€Revolutionà€8"8"I(#à69ˆÐ õ} ÐSession€4:€€Manage€Spectrum€in€the€Public€Interestà€8"8"I(#à87ˆÐ Œ ÐWrap„Up€by€Kathy€Brown,€Chief€of€Staffà€À!À!H(#à101ˆÐ #« ÐÌÌÌÓoUÿÿðøX`H!ðKHN PøRPU¨WZX\°^a`c¸ehhjÀlopqÈs vÿÿXØ 0 èoÓòòóóÌForumÓ<ÿÿðøÿÿ ðøX`H!ðK’X<Ó€Began:€€€10:00€a.m.à  àForum€Ended:€€€12:40€p.m.ññÐ "ž$ ÐÌÌÌÌÌññÐ   +(&0 ÐññÙ ÙØ ØññÓ=€þDX(XdXÐXd=ÓÓ-ÿÿð` ¸ ÿÿðø-ÓññÓÝ Óññà@,,#àòòÔ  ÔññÔ Ý ÔññP€R€O€C€E€E€D€I€N€G€SÔ  ÔññÔ Ý ÔññóóˆÐ x ÐÌà ` àà ¸ àCHIEF€OF€STAFF€BROWN:€€Good€morning,€everyone.€ÏHow€are€you?€€Hi,€Janell.€€Ìà ` àà ¸ àI€can't€tell€you€how€grateful€I€am€to€all€of€youÏwho€have€agreed€to€come€back€yet€for€another€day€to€help€usÏthink€about€the€future€of€the€FCC.€€For€those€newcomers,€letÏme€also€thank€you€very€sincerely€for€joining€us€and€beingÏhere€to€give€us€some€input€on€what€we€believe€is€anÏextraordinarily€important€document€that€we€have€putÏtogether,€really,€with€your€help.Ìà ` àà ¸ àI€hope€as€you've€looked€through€that€document,Ïyou've€read€it€closely,€that€you€recognize€yourself.€€If€youÏdon't,€I€suspect€I'll€hear€about€that€today.€€That€is€why€weÏare€here,€we€want€to€hear€from€you.€€We€want€to€understandÏdeeply€the€needs€of€our€constituent€community,€both€theÏvarious€and€many€consumer€groups€that€we€serve,€as€well€asÏthe€industry€that€we€regulate.Ìà ` àà ¸ àSo€I,€again,€welcome€you€today€and€thank€youÏsincerely,€again,€for€being€here.€€Ìà ` àà ¸ àI'd€like€to€introduce€to€you€the€Chairman.€€I€knowÏI€don't€need€to€introduce€him€to€you€but€it€is€always€funÏfor€me€to€do€so.€€The€best€chairman€of€the€FCC,€the€mostÏwonderful€man€in€the€city€to€work€for,€I€give€you€ChairmanÏKennard.Ð  +(&0 Їà ` àà ¸ àCHAIRMAN€KENNARD:€€Thank€you,€Kathy.€€It€is€easyÏto€be€the€best€when€you€are€the€only€chairman€of€the€FCC.Ìà ` àà ¸ à(Laughter.)Ìà ` àà ¸ àThat's€easy.€€Thank€you,€very€much.€€Ìà ` àà ¸ àOne€of€the€things€about€being€Chairman€of€the€FCCÏis€that€you€become€sort€of€an€instant€authority€and€expertÏof€all€things€involving€communications.€€People€are€alwaysÏcoming€to€me€and€asking€me€to€make€predictions€about€what€isÏgoing€to€happen€in€the€marketplace.€€"Well,€Mr.€Chairman,Ïwhen€will€all€people€in€America€have€broad€band?"€or€"WhenÏare€we€going€to€have€true€local€competition?"€or€"When€willÏpeople€truly€turn€to€their€wireless€phones€as€a€realÏsubstitute€for€the€wire€line€phones?"Ìà ` àà ¸ àIf€you've€noticed,€you€don't€hear€me€making€a€lotÏof€predictions.€€I€usually€decline€these€opportunitiesÏbecause€the€one€thing€that€I€have€learned€about€being€inÏthis€business€today€is€that€most€predictions€are€wrongÏbecause€the€world€is€changing€so€fast,€technology€is€soÏdynamic,€the€marketplace€is€so€dynamic€that€most€people€whoÏmake€predictions,€even€the€most€sophisticated€well„trainedÏpeople€in€the€know€get€it€wrong.Ìà ` àà ¸ àThe€one€thing€that€we€do€know€about€this€field€isÏthat€it€is€changing€very€rapidly.€€It€will€continue€to€doÏso.€€We€also€know€that€the€internet€and€the€wholeÏtransformation€to€a€digital€economy€is€very€chaotic,€veryÐ  +(&0 Ðunpredictable,€but€very€good€for€these€markets€and€for€thisÏeconomy.Ìà ` àà ¸ àNo€one€could€have€predicted€the€growth€of€theÏwireless€industry€in€this€country,€most€people€got€it€wrong.€ÏNobody€predicted€the€rise€of€the€internet,€most€people€gotÏit€wrong,€including€most€people€who€were€in€policy€makingÏpositions.Ìà ` àà ¸ àIn€1994€there€were€3€million€online€subscribers€inÏAmerica.€€Today€50€million€households€are€online€and€thereÏare€almost€200€million€online€subscribers€worldwide.€€NobodyÏpredicted€that€this€thing,€the€internet,€would€grow€thatÏfast.Ìà ` àà ¸ àI'm€telling€you€all€of€this€because€fundamentallyÏwe're€involved€in€an€exercise€that€requires€that€we€makeÏsome€predictive€judgements€about€what€the€marketplace€isÏgoing€to€look€like€so€we€can€design€an€FCC€that€is€relevantÏin€that€marketplace.€€Ìà ` àà ¸ àThe€five€year€plan€that€we€have€designed,€I€think,Ïhas€a€very€hefty€dose€of€humility€because€it€fundamentallyÏrecognizes€that€we€don't€know€exactly€where€these€marketsÏare€going.€€Ìà ` àà ¸ àIn€the€past€the€FCC€was€organized€around€aÏmarketplace€that€moved€a€lot€more€slowly€and€was,€in€fact,Ïmore€predictable,€so€we€could€organize€ourselves€into€neatÏlittle€niches€and€we€would€have€what€used€to€be€a€BroadcastÐ  +(&0 ÐBureau€and€is€now€the€Mass€Media€Bureau€and€a€CableÏTelevision€Bureau€and€a€Common€Carrier€Bureau,€basically,Ïwith€the€presumption€that€we€could€micromanage€everythingÏthat€happened€in€one€little€industry€segment.€€Ìà ` àà ¸ àWell,€you€all€know€that€those€days€are€gone.€€So,Ïour€strategic€plan,€I€think,€recognizes€that.€€It€has,€IÏthink,€the€benefits€of€being€very€general€but€also€makingÏsome€specific€policy€objectives€and€goals€and€timetablesÏthat€we€want€to€achieve€but€fundamentally€recognizes€that€inÏan€era€of€convergence€we€can't€predict€where€all€this€isÏgoing€and€what€we€should€be€doing€is€focusing€our€attentionÏon€those€areas€where€we€know€consumer€welfare€will€beÏundermined€and€that€is€where€there€are€competitiveÏbottlenecks.Ìà ` àà ¸ àSo,€if€you€look€at€our€plan,€as€I€know€many€of€youÏhave€and€many€of€you€in€fact€had€a€role€in€helping€us€writeÏit,€you€see€that€we€are€focusing€a€lot€of€our€attention€onÏtrying€to€identify€where€those€bottlenecks€are€and€putting€aÏlot€more€effort€on€the€enforcement€side€of€the€house€toÏbreak€open€those€bottlenecks€and€enforce€the€rules€of€theÏroad€for€consumers.Ìà ` àà ¸ àI€think€this€is€just€the€right€balance.€€I€hopeÏyou€think€we€got€it€right,€if€you€didn't€I'm€sure€you€willÏtell€us€this€morning,€because€I€wanted€to€convey€to€you€thisÏmorning€that€this€effort€is€real,€it€is€happening.€€Many€ofÐ  +(&0 Ðthe€things€that€we've€outlined€in€the€strategic€plan€haveÏalready€happened.€€Ìà ` àà ¸ àWe€are€on€the€verge€of€setting€up€two€new€bureaus,Ïincluding€a€new€enforcement€bureau€which€will€help€shift€theÏemphasis€of€the€agency€more€into€the€enforcement€arena€soÏthat€we€can€make€sure€that€these€competitive€rules€thatÏwe're€will€be€enforced€so€that€we€can€make€sure€that€whereÏthere€are€market€failures€and€people€in€the€disabilityÏcommunity€don't€get€serviced€that€we€will€have€a€fair,Ïeffective,€and€fast€enforcement€regime.Ìà ` àà ¸ àI€wanted€to€be€here€today€basically€to€thank€you.€ÏI€see€many€return€faces.€€I€appreciate€that€you€are€hangingÏin€there€with€us,€I'm€glad€you€are€because€this€is€a€seriousÏeffort.€€We€are€going€to€do€something€here,€we€are€doingÏsomething€here.€€Ìà ` àà ¸ àIt€is€an€effort€that€I€see€as€very€muchÏevolutionary.€€The€process€really€began€before€we€put€outÏthis€blueprint,€it€began€when€we€started€talking€about€aÏyear€ago€setting€up€these€two€new€bureaus,€which€we€will€doÏfairly€soon.Ìà ` àà ¸ àSo,€please,€hang€in€there€with€us,€continue€toÏhave€a€role€in€the€process.€€Your€input€is€being€heard,€itÏis€being€reflected€in€our€drafts€and€our€documents.€€YouÏwill€help€us€shape€the€FCC€for€the€next€millennium.€€It€willÏbe€a€very€different€FCC€than€the€one€you€see€before€youÐ  +(&0 Ðtoday.€€Thank€you€for€being€here.€Ìà ` àà ¸ àCHIEF€OF€STAFF€BROWN:€€Thank€you,€Mr.€Chairman.€ÏWe'll€let€Commissioner€Ness€settle€herself€a€minute.€€Ìà ` àà ¸ àCOMMISSIONER€NESS:€€Hi.Ìà ` àà ¸ àCHIEF€OF€STAFF€BROWN:€€We've€just€doneÏintroductions€and€you're€on.Ìà ` àà ¸ àCHAIRMAN€KENNARD:€€Are€you€settled€now?Ìà ` àà ¸ à(Laughter.)Ìà ` àà ¸ àCOMMISSIONER€NESS:€€I'm€very€settled.€€I'mÏCommissioner€Ness.€€Hello.€€I'm€really€pleased€that€you€allÏare€here,€that€you're€talking€about€these€issues.€€These€areÏthings€that€obviously€we've€been€thinking€about,€not€justÏfor€the€last€few€months€but€for€an€extended€period€of€time.€Ìà ` àà ¸ àAn€awful€lot€is€going€on€in€this€industry,€in€caseÏfolks€here€haven't€noticed,€as€I€know€you€all€have.€€We€needÏto€think€through€how€we€best€can€organize€ourselves€to€beÏmost€responsive€to€what€is€happening€on€so€many€differentÏlevels€in€the€industry.€€So,€I'm€not€going€to€say€anythingÏfurther,€other€than€to€thank€you€all€for€your€participation.€ÏI€look€forward€to€speaking€with€you€and€hearing€about€yourÏcomments.€€Thank€you€very€much.Ìà ` àà ¸ àCHIEF€OF€STAFF€BROWN:€€With€that,€a€couple€moreÏcomments€from€me€and€then€we'll€open€the€floor.€€When€weÏlest€met,€I€think€it€was€primarily€with€the€consumer€citizenÏgroup,€the€recommendation€was€made€that€we€try€to€combineÐ  +(&0 Ðthe€groups.€€In€our€first€set€of€forums€we€heard€from€theÏindustry,€we€heard€from€academia,€we€heard€from€consumerÏgroups€and€that€it€would€be€good,€and€perhaps€profitable,Ïfor€all€sides€of€these€debates,€for€you€to€be€together€andÏto€be€able€to€hear€and€listen€to€each€other.€€So,€we€triedÏto€do€that€today.€€Again,€I€thank€you€all€for€engaging€inÏthis€exercise€experiment€with€us.Ìà ` àà ¸ àThose€of€you€who€have€engaged€in€strategicÏplanning€know€that€a€strategic€planning€exercise€attempts€toÏset€direction,€it€attempts€to€set€direction€over€time.€€InÏorder€to€have€some€clarity€with€respect€to€direction€oneÏtries€to€distill€where€you€are€going€into€a€couple€ofÏpowerful€statements.€Ìà ` àà ¸ àWe€tried€to€do€that€and€you€see€that€the€strategicÏplan€is€broken€up€into€four€areas.€€Now,€we€understand€thatÏunder€those€general€directions€there€is€much€implementationÏthat€has€to€take€place€and€many€policy€choices€that€are€toÏbe€made.€€But€one€of€the€primary€and€fundamental€questionsÏis,€"Is€this€the€right€direction,€are€we€going€the€rightÏway?"Ìà ` àà ¸ àThen€under€that,€of€course,€is,€"Having€chosenÏthat€direction€what€is€your€battle€plan?"€€Ìà ` àà ¸ àThe€third€question€that€I€think€is€so€incrediblyÏimportant€is,€"What's€your€time€table?"Ìà ` àà ¸ àWhat€you€have€in€front€of€you,€I€think,€is€aÐ  +(&0 Ðdocument€that€sets€direction€and€starts€to€talk€about€theÏbattle€plan.€€It€doesn't€quite,€I€think,€flesh€out€all€ofÏthe€time€tables,€although,€I€want€to€assure€you€that€weÏinternally€are€doing€just€that.€€We€have€matrixes€at€thisÏpoint€that€will€boggle€your€mind€but€may€also€please€youÏbecause€we€understand€that€if€you€say€you're€going€to€doÏsomething€in€five€years€that€you€have€to€start€to€take€veryÏspecific€steps€in€year€one€and€try€to€think€about€year€twoÏand€onward.€€And€so€we€can€talk€a€little€bit€about€that€andÏI€will€certainly€take€your€comments€on€that€but€I€wanted€toÏassure€you€that€we€understand€that€that€has€to€happen.Ìà ` àà ¸ àThe€next€area,€of€course,€one€always€has€to€thinkÏabout€is€resources.€€If€one€really€picks€a€direction,€has€aÏplan,€has€a€time€table,€the€question€is,€"Do€you€have€theÏpeople€to€do€it€and/or€do€you€have€the€systems€to€do€it?€€DoÏyou€have€the€electronic€systems€to€do€it?"€€In€ourÏinformation€age€and€with€the€direction€we've€chosen,€whichÏis€to€make€us€a€digital€agency,€those€are€very€highlyÏrelevant€questions€and€it€is€a€very€highly€relevant€time€toÏbe€thinking€about€it,€given€that€we€got€a€continuingÏresolution€yesterday€and€very€iffy€with€respect€to€what€theÏresources€will€be€for€this€agency.Ìà ` àà ¸ àFinally,€it€seems€to€me,€and€while€this€has€gottenÏmost€of€the€play,€it€is€probably€the€last€thing€one€thinksÏabout,€"What€is€your€organization€around€getting€all€thatÐ  +(&0 Ðplan€done?€€What€is€the€most€efficient€way€to€do€it?"€Ìà ` àà ¸ àAgain,€those€of€us€who€have€looked€at€these€kindsÏof€things€there€are€any€number€of€ways€to€get€it€done,€anyÏnumber€of€efficient€ways€to€get€it€done€but€one€needs€toÏpick€away€and€do€it€and€get€everybody€on€board.€€Ìà ` àà ¸ àSo,€that€is€the€kind€of€thinking€that€we've€beenÏdoing.€€I€think€it€is€the€kind€of€thinking€you€seeÏreflected,€I€hope€it€is,€in€the€plan.€€Ìà ` àà ¸ àWhat€we€would€like€this€morning€is€some€feedbackÏon€the€general€direction€and€then€those€specific€items.€€TheÏway€we€tried€to€organize€the€conversation€is€around€the€fourÏareas€that€we've€picked.€€So,€let€me€just€say€them€out€loud.Ìà ` àà ¸ àFirst,€we€mean€to€create€a€model€agency€for€theÏdigital€age.€€Secondly,€we€mean€to€promote€competition€inÏall€communications€markets.€€Third,€we€mean€to€createÏopportunities€for€all€Americans€to€benefit€from€theÏcommunication€revolution.€€And,€finally,€it€is€our€mission,Ïwe€believe,€to€manage€the€spectrum€in€the€public€interest.€ÏThose€are€the€four€broad€directional€areas.€€We€thought€itÏwould€be€enlightening€to€go€through€them€one„by„one.Ìà ` àà ¸ àThe€schedule€is€that€we€will€take€a€half€hour€onÏeach€of€these€areas.€€I€know€this€group€fairly€well,€IÏsuspect€you€will€overlap€and€you€will€say€whatever€you€wantÏto€say€whenever€you€want€to€say€it€but€I€will€try€toÏorganize€and€the€staff€will€try€to€organize€your€comments€soÐ  +(&0 Ðthat€they€are€in€some€sort€of€organizational€structure€whenÏwe're€finished.Ìà ` àà ¸ àA€couple€of€ground€rules.€€We,€I€think,€last€timeÏtried€to€build€on€each€others€ideas€as€best€we€can.€€WeÏtried€not€to€make€too€long€speeches.€€It€is€a€fairly€largeÏgroup,€I'll€ask€you€to€keep€your€comments€to€under€twoÏminutes,€if€you€can.Ìà ` àà ¸ àWe€were€very€successful€in€sort€of€using€the€AspenÏapproach€of€raising€your€tent€card€so€that€I€can€acknowledgeÏyou.€€Make€sure€I€see€your€name.Ìà ` àà ¸ àFor€purposes€of€our€interpreters€and€also€becauseÏwe€are€on€the€internet€and€captioning,€may€I€ask€that€youÏstate€your€name€prior€to€speaking€and€really€yourÏperspective€or€your€organization€would€be€helpful€as€well.Ìà ` àà ¸ àAre€there€any€questions?€€Any€concerns?€€Yes?€€YouÏneed€a€name€tag.€€Lisa.€€We€can€take€care€of€that.€€Ìà ` àà ¸ àVOICE:€€(Comments€made€off€mike.)Ìà ` àà ¸ àCHIEF€OF€STAFF€BROWN:€€Okay,€so€with€that,€we€talkÏ„„€did€I€cover€everything,€Pepper?€€Okay.€€Ìà ` àà ¸ àWith€that,€the€first€area€of€the€report€dealt€withÏcreating€a€model€agency€for€the€digital€age.€€We€talkedÏabout€a€flatter,€faster,€more€functional€organization.€€LetÏme€throw€the€floor€to€you€and€let€me€not€speak€anymore.€€WhoÏwould€like€to€start?€€Ìà ` àà ¸ àCHAIRMAN€KENNARD:€€You€got€it€right€in€the€nick€ofÐ  +(&0 Ðtime.Ìà ` àà ¸ àCHIEF€OF€STAFF€BROWN:€€Pam,€go€ahead.Ìà ` àà ¸ àMS.€STEWART:€€This€is€Pam€Stewart.€€I€am€from€theÏState€of€Maryland€Relay€and€my€comments€will€basically€beÏfrom€a€TRS,€telecommunications€relay,€point€of€view.€€Ìà ` àà ¸ àI€think€the€most€important€thing,€as€far€as€TRS,Ïis€to€make€sure€that€the€FCC€stays€a€leader€in€functionalÏequivalency.€€We€have€a€lot€of€good€regulations,€we€needÏenforcement€more€in€TRS€than€we€need€it€anyplace€elseÏbecause€we€don't€have€the€competition€there€to€drive€theÏmarket€itself.€€So,€until€we€can€get€the€market€there€so€itÏis€a€competitive€driven€market€we€need€the€FCC€to€streamlineÏthe€ways€to€get€things€done€for€TRS.Ìà ` àà ¸ àCHIEF€OF€STAFF€BROWN:€€Thank€you.€€Steve?Ìà ` àà ¸ àMR.€POCIASK:€€Hi,€I'm€Steve€Pociask.€€I'm€withÏJoel€Popkin€&€Company.€€Ìà ` àà ¸ àReviewing€the€plan€„„€and€I'll€try€to€address€myÏcomments€mostly€to€this€session.€€In€writing€strategic€plansÏin€the€past€„„€I€mean,€I€see€a€lot€of€good€plans€in€thisÏplan€but€in€the€interest€of€improvement€I'm€going€to€suggestÏa€few€areas€where€there€may€be€some€opportunities€to€improveÏit.Ìà ` àà ¸ àFor€one,€the€way€the€plan€is€written€it€is€notÏclear€to€me€what€the€strategic€imperative€should€be.€€ByÏthat,€there€is€little€information€about€what€theÐ  +(&0 Ðdeficiencies€are€that€lead€to€the€conclusion€that€thereÏneeds€to€be€these€various€strategies€in€place.Ìà ` àà ¸ àI'll€just€take€an€example€that€is€relevant€to€thisÏsession.€€I€can€understand€the€need€to€increase€knowledgeÏand€expertise.€€That€is€sort€of€a€noble€goal€but€it€is€notÏclear€that€there€was€a€deficiency€as€an€example€stated€inÏhere€in€the€plan.€€Ìà ` àà ¸ àThere€are€a€number€of€examples€of€that€where€IÏthink€if€you€look€for€„„€first€I€have€to€ask€myself€areÏthese€the€right€strategies€but€let's€just€accept€that€goingÏforward.€€That€is€the€one€thing,€though,€that€I€think€weÏneed€to€focus€on,€what€the€strategic€imperatives€are.€€IÏdon't€know€that€there€was€like€an€analysis€of€the€strengthsÏof€weaknesses€of€the€organization,€the€opportunities€andÏthings€such€as€that€that€would€normally€go€into€a€strategicÏplan.€€But€let's€just€accept€the€strategies€as€good.Ìà ` àà ¸ àThe€second€area€I€think€that€is€an€area€ofÏimprovement€is€how€do€we€know€that€there€is€success?€€I€seeÏin€here€that€there€are€performance€measures€but€they€are€notÏwhat€I€would€consider€to€be€sort€of€market€focusedÏmilestones.€€By€that€what€I€think€would€be€more€helpful,Ïrather€than€say€that€reorganization€will€take€place€over€theÏnext€four€years€but€actually€state€as€much€as€possibleÏexactly€what€the€benefits€to€the€consumers€will€be€as€aÏresult€of€these€things.Ð  +(&0 Ðà ` àà ¸ àSo,€I€don't€think€that€we've€actually€tied€theÏbenefits€of€these€strategic€plans€to€consumer€benefits.€€So,Ïhiring€15€percent€more€engineers€„„€just€to€use€that€exampleÏagain€„„€it€is€not€clear€to€me€that€that€benefits€consumersÏin€what€way€and€that€the€benefits€are€greater€than€the€cost.€ÏAgain,€as€I€said,€it€seems€to€be€a€good€goal€but€it€is€notÏclear€to€me€what€the€benefits€are€to€consumers.Ìà ` àà ¸ àThose€are€a€couple€things€that€I€feel€that€theÏplan€is€a€little€bit€weak€on.Ìà ` àà ¸ àCHIEF€OF€STAFF€BROWN:€€Thank€you.€€Roy.Ìà ` àà ¸ àMR.€NEEL:€€Thank€you,€Kathy.€€I'm€Roy€Neel.€€IÏrepresent€the€United€States€Telephone€Association,€whichÏrepresents€the€more€than€a€thousand€local€exchange€carriersÏin€the€country,€the€only€part€of€the€telecommunicationsÏindustry€that€serves€virtually€every€telecommunicationsÏconsumer,€the€only€part€of€the€telecom€industry€with€theÏvirtually€unqualified€commitment€to€universal€telephoneÏservice.Ìà ` àà ¸ àThis€is€a€terrific€forum.€€This€commission€at€thisÏparticular€point€in€time,€in€my€experience€of€23€years,€isÏthe€most€open€and€receptive€Commission€that€I€have€everÏdealt€with.€€Ìà ` àà ¸ àOur€beef€is€more€in€the€outcome€of€policyÏconsiderations€than€in€the€good€work€you€do€in€receivingÏcomment.Ð  +(&0 Ðà ` àà ¸ àEarlier€this€year€I€wrote€to€the€Chairman€askingÏthat€the€Commission€undertake€a€major€consideration€ofÏconvergence.€€I'm€really€pleased€that€this€is€embraced€inÏthe€draft€strategic€plan€but€it€seems€to€me€and€to€the€localÏexchange€industry,€the€structural€change€will€just€not€doÏthe€job.€€It€is€just€not€sufficient€that€the€forum€shouldÏfocus€on€policies€and€rules€that€encourage€investment€and€onÏcustomers€as€opposed€to€competitors€and€with€a€goal€to€bringÏequitable€regulatory€treatment€to€all€those€companies€thatÏchoose€to€provide€services€in€this€converged€marketplace,Ïirrespective€of€irrelevant€or€historical€regulatoryÏclassifications.Ìà ` àà ¸ àOne€of€the€problems€is€that€you€have€a€five€yearÏtime€frame.€€Five€years€is€just€entirely€too€long.€€In€fiveÏyears€the€FCC€could€be€a€candidate€for€sunset.€€So,€thisÏneeds€to€be€accelerated.Ìà ` àà ¸ àAnd€truer€form€has€got€to€address€outlook,€asÏopposed€to€simply€structure.€€We€have€competition€in€someÏform€in€virtually€every€communication€market€but€there€isÏroom€for€a€lot€more€competition.€€Ìà ` àà ¸ àThe€fundamental€premise€of€regulation€is€that€itÏis€a€poor€but€a€necessary€surrogate€in€the€absence€ofÏcompetition.€€So,€it€is€self€evident€that€regulation€mustÏdecrease€as€competition€becomes€more€vigorous.€€We€wouldÏhope€that€the€Commission€would€accept€deregulation€as€a€co„Ð  +(&0 Ðequal€mandate,€along€with€increasing€competition.€€Ìà ` àà ¸ àThere€is€a€direct€and€inverse€relationship€betweenÏcompetition€and€deregulation.€€I€just€think€it€is€absolutelyÏwrong€for€the€Commission€to€think€that€in€a€competitiveÏcommunications€market€that€it€should€have€any€role€as€aÏmarket€facilitator.€€It€just€seems€almost€like€an€oxymoron.€ÏIt€needs€to€accept€the€fact€that€the€end€goal€should€be€toÏput€itself€out€of€business.€€Ìà ` àà ¸ àIt€is€appropriate€to€have€as€a€goal€to€create€aÏmodel€agency€for€the€digital€age€but€we€think€applicationÏprocesses€should€be€sped€up,€in€most€cases€limited€to€90Ïdays€for€review€and€determination€and€that€any€effort€at€bi„¼annual€review€be€very€aggressive€and€work€toward€eliminatingÏunnecessary€rules€throughout€the€system.€€Thank€you.Ìà ` àà ¸ àCHIEF€OF€STAFF€BROWN:€€Thank€you,€Roy.€€Robert.Ìà ` àà ¸ àMR.€MCDOWELL:€€Hi.€€Robert€McDowell€with€theÏCompetitive€Telecommunications€Association.€€We€have€overÏ350€members€in€t€he€competitive€community,€integratedÏcommunications€providers,€interexchange€carriers,Ïcompetitive€local€exchange€carriers,€internet€serviceÏproviders,€et€cetera.Ìà ` àà ¸ àFirst€of€all,€Mr.€Chairman€and€Kathy,€I'd€like€toÏthank€you€very€much€for€inviting€us€here€again€to€thisÏforum.€€We€certainly€appreciate€all€of€the€thought€that€hasÏgone€into€the€Chairman's€proposal.Ð  +(&0 Ðà ` àà ¸ àWe€want€to€make€sure€at€CompTel€that€as€the€FCCÏdoes€manage€the€transition€from€a€monopoly€drivenÏmarketplace€to€a€competitive€or€competition€drivenÏmarketplace€that€it€doesn't€forget€some€of€its€statutoryÏduties€and€also€it€doesn't€forget€the€fact€that€we're€notÏthere€yet.€€Competition€just€simply€is€not€there€yet.Ìà ` àà ¸ àWe€don't€want€the€FCC€to€walk€away€from€itsÏenforcement€duties€under€the€law€or€we€will€never€haveÏmeaningful€competition.€€Ìà ` àà ¸ àCompTel€proposed€to€Congress,€at€CongressmanÏGilmore's€request,€a€plan€for€restructuring€the€FCC.€€ThatÏplan€included€consolidating€the€common€carrier€cable,€massÏmedia€and€wireless€bureaus€into€one€bureau€that€CompTelÏwanted€to€be€called€the€"Competition€Bureau."€€ThatÏCompetition€Bureau€would€be€divided€into€two€halves,€oneÏhalf€that€dealt€with€monopoly€driven€industries€or€thoseÏwhere€there€was€sufficient€market€power€to€renderÏcompetition€difficult€or€impossible€and€the€other€dealingÏwith€the€areas€that€were€more€competitive.Ìà ` àà ¸ àThe€side€that€would€deal€with€the€monopoly€drivenÏindustries,€of€course€would€address€issues€arising€underÏSection€231€or€271€of€the€1976€Act.€€Ìà ` àà ¸ àWe€want€the€new€Enforcement€Bureau,€which€weÏapplaud,€to€act€swiftly€and€to€act€with€teeth.€€We€have€toÏbe€careful€as€we€stare€into€the€new€dawn€of€the€post„271Ð  +(&0 Ðworld€into€the€whole€area€of€backsliding.€€So,€there€appearsÏto€be€a€common€tension€between€wanting€to€deregulate€toÏfoster€competition€and€then€having€that€deregulationÏdisappear€too€quickly,€or€that€regulation€that€wouldÏdisappear€to€quickly,€to€where€we€are€not€preventingÏbacksliding.Ìà ` àà ¸ àSo,€as€we€enter€this€new,€sort€of€past€the€soundÏbarrier€into€the€new€world€we€want€you€to€remember€we're€notÏthere€yet€and€to€remain€vigilant.€€Ìà ` àà ¸ àThank€you€very€much€for€inviting€us,€again.Ìà ` àà ¸ àCHIEF€OF€STAFF€BROWN:€€Thank€you.€€Michelle.Ìà ` àà ¸ àMS.€FARQUAR:€€Michelle€Farquar,€speaking€on€behalfÏof€Western€Wireless€Corporation.Ìà ` àà ¸ àFirst,€I€want€to€complement€the€FCC€forÏundertaking€this€effort€and€for€producing€such€a€strongÏfirst€document.€€Ìà ` àà ¸ àOn€behalf€of€Western€I€wanted€to€note€that€oneÏarea€that€may€not€be€addressed€in€the€plan€currently€is€whatÏI€would€call€industry€or€outside€initiatives.€€So€much€ofÏthe€FCC's€work€going€forward,€especially€during€thisÏtransition€period€and€into€the€future,€are€really€initiatedÏnot€by€the€FCC€itself€but€by€outside€forces€and€functions.€Ìà ` àà ¸ àThe€vehicles€for€that€are€slim€and€sometimesÏdifficult€and€cumbersome€and€may€not€have€a€very€routineÏprocess.€€Sometimes€things€like€petitions€for€rulemaking,Ð  +(&0 Ðpetitions€for€pre„emption,€petitions€for€waiver,€petitionsÏfor€declaratory€ruling,€the€€process€may€not€be€clear.€ÏSometimes€it€takes€awhile€for€those€to€get€on€public€notice.€ÏThe€FCC,€I€think,€needs€to€express€a€greater€openness€toÏsuch€vehicles,€maybe€come€up€with€some€new€ones,€also,€giveÏfeedback€earlier€in€the€process€as€to€whether€this€isÏsomething€that€may€have€legs€or€not.€€And,€also,€try€toÏexpedite€treatment€of€these€as€they€come€in.Ìà ` àà ¸ àCHIEF€OF€STAFF€BROWN:€€Thanks,€Michelle.€ÏJonathan?Ìà ` àà ¸ àMR.€SALLET:€€I'm€Jonathan€Sallet,€Chief€PolicyÏCounsel€of€MCI„Worldcom.Ìà ` àà ¸ àLet€me€just€make€a€couple€of€points,€not€in€anyÏformal€statement€but€to€the€effect€of€the€strategic€plan,Ïwhich€I€think€is€very€important.€€I€think€it€is€very€usefulÏfor€an€organization€to€try€and€take€a€look€out€in€the€yearsÏto€come,€difficult€to€often€times€see€past€the€controversiesÏof€day„to„day€life€but€important.Ìà ` àà ¸ àI€think€in€your€structural€suggestions€you€haveÏmade€two€that€I€would€like€to€discuss€specifically.€€One€isÏthe€creation€of€a€competition/policy€bureau€function.€€IÏwould€be€inclined€myself€to€eliminate€the€backslash€to€makeÏthis€point.€€Ìà ` àà ¸ àI€think€the€FCC€ought€to€be€focusing€its€futureÏrole€and€questions€of€competition€policy.€€I€say€thatÐ  +(&0 Ðbecause€I€think€much€of€the€debate€about€regulation€versusÏderegulation€has€a€certain€sterile€quality€to€it.€€WeÏregulate€for€certain€purposes.Ìà ` àà ¸ àI€suggest€that€in€the€future€FCC€action€will€beÏconcentrated€on€questions€of€competition€policy€and€thatÏtherefore€your€distinction€that€you€suggest€in€this€planÏbetween€non„competitive€and€competitive€markets€and€as€oneÏmoves€down€to€greater€„„€to€the€place€where€there€areÏgreater€competitive€markets€across€the€board,€issues€ofÏcompletion€policy€will€still€be€important.€€Ìà ` àà ¸ àMarket€failures€will€not€be€all€legislated€out€ofÏexistence.€€There€may€be€fewer.€€That€would€be€a€wonderfulÏthing€but€we€have€no€reason€to€think€that€they€will€notÏappear€and,€therefore,€it€seems€to€me€it€is€quite€a€goodÏidea€to€focus€the€policy€efforts€of€the€Commission,€as€it€isÏreinvented,€on€issues€of€competition€policy,€marketÏstructure,€the€existence€of€bottlenecks,€and,€if€necessary,Ïthe€actions€needed€to€be€taken€with€them€because€I€thinkÏthat€is€a€view€that€is€in€greater€depth€and€considerablyÏmore€sophistication€than€an€inquiry€that€simply€says,€"Do€weÏregulate?€€Do€we€not€regulate?"Ìà ` àà ¸ àSecond€point,€the€creation€of€an€enforcementÏbureau€strikes€me€as€an€extremely€good€idea.€€EnforcementÏissues€have€a€certain€similarity€and€as€markets€convergeÏthose€issues€will€converge€as€well.€€It€seems€to€me€it€helpsÐ  +(&0 Ðaccentuate€my€first€point,€that€is€to€say€there's€aÏcompetition€policy€perspective€and€when€issues€need€be€dealtÏwith€enforcement€is€a€way€to€do€that.Ìà ` àà ¸ àI€will€say€one€„„€make€one€point€about€this,Ïalthough€I€absolutely€agree€with€the€structuralÏrecommendation.€€I€will€try€to€heed€my€own€admonition€not€toÏlapse€entirely€into€the€day„to„day.€€Ìà ` àà ¸ àOur€own€experience€with€enforcement€of€"lay"€isÏthat€the€FCC€has€put€a€lot€more€resources€into€it,€there€areÏpeople€who€are€working€very€hard€to€get€it€done,€and€weÏthink€that€will€be€better€with€an€enforcement€bureau€but,Ïnonetheless,€we€see€issues€that€seem€to€us€to€take€a€veryÏlong€time€to€get€resolved.€€Complaints€we€filed€that€areÏsitting€there€two€years€after€filing.€€Sometimes€processesÏthat€are€not€yet€fully€attuned€to€cutting€through€to€theÏheart€of€an€issue€and€resolving€it€one€way€or€another.Ìà ` àà ¸ àSo,€without€suggesting€that€there€are€endemicÏproblems,€I€do€think€it€would€be€wrong€to€pass€by€this€issueÏwithout€urging€you€at€the€present€time€with€the€creation€ofÏthe€enforcement€bureau€and€now€to€find€ways€to€deal€withÏwhat€add€up€to€be€large€scale€issues,€although€on€a€day„to„¼day€basis€they€do€not€seem€to€be€systemic€or€organizational.Ìà ` àà ¸ àBecause€in€a€fast€paced€world€of€the€kind€youÏdescribe€in€your€strategic€plan,€moving€quickly€through€anÏenforcement€process,€as€you€have€recognized,€is€veryÐ  +(&0 Ðimportant.€€I€think€it€is€fair€to€say€we're€not€there€yet.Ìà ` àà ¸ àOne€last€point,€on€information€flow,€which€is€partÏof€your€model€agency.€€It€seems€to€me€that€is€exactly€right.€ÏI€urge€that€some€of€the€aspects€of€this€be€put€into€placeÏright€away.€€Just€to€give€one€extremely€minor€example,€it€isÏsometimes€the€case,€I€am€told,€that€in€the€last€days€before,Ïsay,€sunshine€on€a€major€proceeding€a€lot€of€people€file€aÏlot€of€paper.€€It€is€just€coincidence€of€timing,€I€guess.€Ìà ` àà ¸ àIt€is€sometimes€important€to€the€staff€that€otherÏpeople€comment€on€that€paper€in€these€sometimes€proposalsÏand€new€facts€and€yet€the€current€system€often€takes€a€longÏtime€just€to€get€stuff€on€the€ex„partes€notice€of€publicÏnotice€so€that€other€parties€can€get€it.€€That€is€a€purelyÏlogistical€problem€but€it€is€the€kind€of€problem€that€can€beÏsolved€quickly€and€show€great€effect€as€an€early€sign€of€theÏsuccess€of€the€strategic€plan.Ìà ` àà ¸ àThank€you.Ìà ` àà ¸ àCHIEF€OF€STAFF€BROWN:€€Thank€you,€Jonathan.€ÏJannette.Ìà ` àà ¸ àMS.€DATES:€€Good€morning,€Mr.€Chairman€and€MadamÏModerator.€€Thank€you€so€much€for€this€opportunity.€€I€amÏvery€pleased€to€address€this€issue€of€a€new€FCC€for€the€21stÏCentury.Ìà ` àà ¸ àI€am€with€the€Black€College€CommunicationÏAssociation.€€There€are€about€40€programs€at€historicallyÐ  +(&0 Ðblack€colleges€that€have€communications€programs.€€IÏrepresent€that€body.€€I€am€also€Dean€of€the€School€ofÏCommunications€at€Howard.Ìà ` àà ¸ àFor€the€FCC€to€lead€the€way€in€this€informationÏage,€it€seems€to€me€that,€as€you€state,€we€have€to€ensureÏthat€mass€communications€serves€every€American.€I€think€oneÏof€the€ways€to€do€that,€in€our€opinion,€is€to€piggyback€onÏwhat€Ms.€Farquar€said€a€moment€ago€about€outsideÏinitiatives.€€In€fact,€we€believe€that€private€industryÏreally€has€to€participate€readily€with€organizations€such€asÏours€in€some€ways€that€will€help€all€of€us€in€many€ways.€€IÏwill€tell€you€what€I€mean€by€that.€Ìà ` àà ¸ àIf€we€have€some€of€the€private€industry€supportÏfor€those€of€us€in€higher€education,€and€I'm€thinkingÏparticularly€about€the€historically€black€colleges€that€areÏlooking€at€ways€to€improve€the€learning€environment€forÏtheir€students.€€Our€students,€that€is€black€students,€willÏbe€better€prepared€to€enter€the€workplace€of€the€nextÏmillennium.Ìà ` àà ¸ àOne€of€the€things€that€we€know€is€true€is€thatÏhistorically€black€colleges€have€been€under€served€and€underÏfunded.€€So,€our€students€do€not€have€the€technology€and€theÏtelecommunication€systems€in€place€that€some€of€theÏmainstream€colleges€have€for€getting€their€studentsÏcompetitive.€€So,€our€students€need€this€kind€of€supportÐ  +(&0 Ðfrom€private€industry.Ìà ` àà ¸ àIt€seems€to€me€that€when€we€talk€about€trying€toÏbe€certain€that€we€have€voices€in€the€communicationsÏindustry€that€are€more€varied,€that€are€diverse,€that€we'veÏgot€to€do€something€to€help€black€colleges€because€that€isÏwhere€a€large€percentage€of€the€diversity€that€AfricanÏAmericans€bring€to€the€table€comes€from,€as€many€of€us€know.Ìà ` àà ¸ àBlack€colleges€cannot€in€good€faith€hold€out€toÏour€students€that€jobs€will€be€available€to€them€uponÏgraduation€if€in€fact€we€know€that€we're€not€preparing€themÏbecause€we€do€not€have€the€technology€and€theÏtelecommunications€systems€in€place€to€get€them€ready€forÏthat.Ìà ` àà ¸ àSo,€it€is€our€argument€that€in€fact€in€thisÏstructure€that€we€are€talking€about€for€the€FCC€that€it€inÏfact€would€encourage€and€strongly€motivate€people€in€privateÏindustry€to€give€help€and€support€to€historically€blackÏcolleges.€€We€applaud€the€Commission's€commitment€to€promoteÏopportunities€to€expand€direct€participation€in€existing€andÏfuture€communications€businesses,€as€it€states€so€clearlyÏbut€we€clearly€do€believe€that€this€support€will€make€allÏthe€difference€in€the€world.Ìà ` àà ¸ àWithout€our€voices€the€diversity€that€we€areÏtalking€about€will€not€be€there.€€If€we€do€not€have€strongÏhistorically€black€colleges€to€continue€that€pipeline€thenÐ  +(&0 Ðthose€voices€will€be€silenced.Ìà ` àà ¸ àCHIEF€OF€STAFF€BROWN:€€Thank€you,€Jannette.€€Pat.€ÏWe€will€work€up€the€table.€€Do€you€want€to€start?Ìà ` àà ¸ àMS.€MAHONEY:€€Thank€you.€€I'm€Pat€Mahoney,Ïrepresenting€the€Satellite€Industry€Association.€€I€wouldÏlike€to€congratulate€the€Chairman€and€the€Commission€on€theÏdraft€of€this€massive€undertaking.€€I€appreciate,€again,€theÏopportunity€to€participate€in€this€process€and€alsoÏappreciate€that€the€document€does€address€many€of€the€issuesÏand€points€that€were€raised€in€the€earlier€fora.Ìà ` àà ¸ àWith€respect€to€creating€the€model€agency,€we€haveÏsome€questions€and€concerns,€as€well€as€comments.€€We€areÏpleased€that€there€is€a€recognition€of€the€need€for€aÏcontinued€need€for€an€international€bureau€but€we€questionÏwhere€satellites€will€be€if€there€is€also€a€break€out€ofÏlicensing€and€policy€functions.Ìà ` àà ¸ àBoth€SIA€and€the€Satellite€BroadcastingÏCommunications€Association€address€the€issue€in€the€firstÏforum€about€the€importance€and€the€significance€to€theÏindustry€at€the€time€of€the€creation€of€the€internationalÏbureau€consolidation€of€all€of€the€satellite€functions€inÏone€bureau.€Ìà ` àà ¸ àIt€is€important€that€they€remain€together,€weÏbelieve.€€It€is€also€important€that€they€remain€in€theÏinternational€bureau€because€even€the€domestic€satellitesÐ  +(&0 Ðhave€international€implications€and€international€decisions,Ïinternational€„„€well,€implications,€I€guess€is€the€best€wayÏto€put€it.€€These€really€do€need€to€be€together.Ìà ` àà ¸ àThe€expertise€needs€to€be€there.€€The€function€ofÏworking€within€the€ITU€and€with€other€countries,€theÏcoordination€process,€it€is€really€important€that€all€of€theÏsatellite€functions€stay€together.€€And€that€seems€to€beÏsomewhat€inconsistent€with€the€idea€of€convergence.€€WeÏrecognize€that€satellites€are€providing€services€that€otherÏterrestrial€systems€and€other€types€of€services€areÏproviding,€so€it€is€an€issue€that€is€somewhat€inconsistentÏwith€the€goal€of€breaking€down€the€bureaus€into€functionsÏand€we€recognize€that.Ìà ` àà ¸ àThere€is€another€issue€that€ended€up€requiring€aÏlot€of€time,€not€just€from€the€satellite€industry€this€yearÏbut€for€about,€I€think,€seven€associations,€representingÏthousands€of€companies,€and€that€is€created€out,€I€think,€inÏpart€a€concern€that€the€Commission€needs€to€work€on€itsÏrelations€with€Congress€and€other€agencies.€€I€don't€knowÏwhere€that€lies€in€this€structure.Ìà ` àà ¸ àPerhaps€the€Consumer€Information€Bureau€could€beÏmore€like€a€public€or€external€affairs€bureau.€€There€needsÏto€be€definite€focus€on€the€relations€with€Congress€and€theÏrelationships€with€other€agencies.€€Ìà ` àà ¸ àThe€time€that€was€spent€on€the€defenseÐ  +(&0 Ðauthorization€bills€really€educating€members€of€Congress€andÏtheir€staff€on€this€spectrum,€on€what€the€FCC€does€and€whatÏthe€NTIA€does€really€shouldn't€have€been€industry€in€thereÏtrying€to€educate€members€of€Congress€and€their€staff€onÏthese€issues.€€Ìà ` àà ¸ àWe€found€much€suspicion€about€the€FCC€and€aÏreluctance€to€believe€what€the€FCC€tells€Congress€or€tellsÏcongressional€staff.€€And,€so,€I€think€that€is€a€reallyÏimportant€function€the€Commission€needs€to€focus€on.€€I'mÏnot€sure€where€that€lies€in€the€reorganized€„„€in€theÏproposed€reorganization.Ìà ` àà ¸ àThere€was€a€point€made€by€Mr.€Neel€in€theÏbeginning€about€changing€the€underlying€rules.€€I€read€whereÏyou€were€going€to€consolidate€the€policy€rulemakingÏfunction,€I€would€think€that€that€would€be€something€thatÏwould€come€out€of€that.€€I€would€hope€that€would.€€I€thinkÏof€a€recent€example€of€a€proceeding€that€originally€involvedÏother€services,€not€just€mass€media,€and€when€the€report€andÏorder€came€out€it€is€clearly€limited€to€mass€media€and€yetÏthe€issues€have€implications€or€are€involved€in€otherÏservices€and€that€is€attribution€proceeding.Ìà ` àà ¸ àSo,€if€you€were€representing€or€you€were€part€ofÏanother€industry€and€you€wondered€what€the€Commission'sÏpolicy€was€on€attribution€now€it€is€not€really€clear€if€itÏis€with€respect€to€mass€media.€€But€I€hope€that,€like€Mr.Ð  +(&0 ÐNeel€expressed,€it€is€the€underlying€rules€that€also€will€beÏlooked€at€in€a€convergence€„„€with€a€view€towardsÏconvergence.Ìà ` àà ¸ àFinally,€with€respect€to€the€procedural€issues,Ïthere€are€some€excellent€ideas.€€Here€is€one€area€whereÏdefinitely€it€is€clear€that€you€listened€to€the€commentsÏthat€were€made€at€the€forum.Ìà ` àà ¸ àThere€is€one€provision€that€talks€aboutÏalternative€dispute€resolution€in€the€negotiatedÏrulemakings.€€While€those€are€good,€I€think€we€gave€in€theÏfirst€forum€an€example€of€where€the€staff€and€theÏInternational€Bureau€actually€is€going€beyond€the€negotiatedÏrulemaking€proceeding.€€Where€the€negotiated€rulemakingÏprocedure€took€several€years€in€the€satellite€area€to€aÏprocess€where€they€invited€all€the€applicants€in,€proposedÏsome€ideas,€worked€with€the€applicants,€and€the€processÏappears€that€it€will€be€completed€in€a€year,€which€is€veryÏunusual€at€the€FCC€in€a€proceeding€where€originally€thereÏwere€nine€mutually€exclusive€applicants.Ìà ` àà ¸ àSo,€I€wouldn't€limit€your€attempt€to€look€at€waysÏto€expedite€process€to€alternative€dispute€resolutions€andÏnegotiated€rulemakings.€€Ìà ` àà ¸ àCHIEF€OF€STAFF€BROWN:€€Thank€you.Ìà ` àà ¸ àMS.€MAHONEY:€€Thank€you.Ìà ` àà ¸ àCHIEF€OF€STAFF€BROWN:€€We€have€about€15€moreÐ  +(&0 Ðminutes.€€Believe€it€or€not€we've€used€all€that€time.€€LetÏme€try€to€get€people€whose€cards€are€up€but€let's€try€to€getÏeveryone.€€Debra.Ìà ` àà ¸ àMS.€BERLYN:€€Kathy,€first€I€would€like€to€commendÏall€of€you€on€the€job€that€you€did€in€taking€about€theÏcomments€of€about€60€people€in€10€hours€and€putting€it€allÏinto€a€very€concise€and€readable€document.€€I€think€it€is€anÏexcellent€plan.Ìà ` àà ¸ àI€just€have€a€very€few€comments.€€I€was€going€toÏhold€them€but€I€see€that€we're€getting€more€into€theÏgeneral.€€I'll€try€and€address€a€couple€things€in€the€firstÏpart€here.Ìà ` àà ¸ àFirst€of€all,€as€I€did€note€that€you€didÏincorporate€some€of€the€comments€we€made€in€the€ConsumerÏForum.€€In€the€interest€of€consumers,€I€think€it€is€anÏexcellent€idea€to€move€toward€a€100€percent€electronicÏfiling.€€As€someone€who€struggles€each€time€to€getÏinformation,€to€get€reply€comments,€I€think€it€is€anÏexcellent€idea.€€I€don't€know€how€folks€out€there€do€it€andÏthe€bottom€line€is€they€don't.€€I€think€you'll€see€much€moreÏparticipation€as€it€becomes€easier.Ìà ` àà ¸ àI€do€think,€however,€that€you€might€need€to€holdÏsome€exceptions,€that€there€may€be€some€who,€hard€as€it€mayÏbe€to€imagine,€will€not€have€access€to€a€network€and€mayÏneed€to€continue€paper€filing€and€getting€information.Ð  +(&0 Ðà ` àà ¸ àAlso€on€the€general€note,€I'd€like€to€see€thisÏplan€„„€I€know€the€Chairman€has€mentioned€this€„„€haveÏflexibility€to€move€and€change€with€the€successes€andÏfailures€as€we€move€from€a€regulatory€environment€to€aÏcompetitive€one.€€I€think€that€is€critical.Ìà ` àà ¸ àAlthough€five€years€may€seem€like€a€long€time€IÏthink€it€will€be€quickly€upon€us€and€during€that€five€yearÏperiod€there€will€be€many€changes.Ìà ` àà ¸ àFinally,€this€is€an€excellent€idea,€to€mix€theÏconsumers€with€the€industry.€€We€mentioned€that€in€theÏconsumer€session.€€I€thought€of€that€as€an€idea€that€wouldÏbe€a€broader€one€that€could€apply€in€the€future€as€well.€€IÏthink€there€are€many€issues€of€consumer€protection€issuesÏthat€would€be€best€served€by€sitting€down€at€the€beginningÏwith€consumers€and€the€industry€in€trying€to€work€togetherÏon€solutions.Ìà ` àà ¸ àCHIEF€OF€STAFF€BROWN:€€Thank€you,€Debra.€€Diane.Ìà ` àà ¸ àMS.€DAVIDSON:€€Thank€you.€€In€the€respect€ofÏbrevity€I€will€dispense€with€the€preliminaries€and€just€makeÏa€very€few€specific€points€on€the€proposal.Ìà ` àà ¸ àCHIEF€OF€STAFF€BROWN:€€Could€I€just€remind€you,Ïyour€names€and€your€„„Ìà ` àà ¸ àMS.€DAVIDSON:€€Oh,€I'm€sorry.€€Diane€Davidson€fromÏthe€Walt€Disney€Company.Ìà ` àà ¸ àFirst€off,€I€think€that€many€of€the€suggestionsÐ  +(&0 Ðand€the€specific€details€are€very€good.€€There€are€a€lot€ofÏgood€ideas€in€here,€specifically€making€efforts€to€eliminateÏthe€layers€of€review€in€the€decision€making€process€will€goÏalong€way€towards€speeding€things€up.€€I€commend€effortsÏalong€those€lines.€€In€addition,€enforced€timetables€willÏalso€be€very€important.€€Ìà ` àà ¸ àTo€that€end€I€would€like€to€suggest€that€in€theÏbiannual€review€process€that€is€discussed.€€I€think€that€youÏdefinitely€need€strong€definite€deadlines€for€completion€ofÏthe€biannual€reviews.€€And€to€that€end,€when€you€talk€aboutÏalternative€dispute€resolution€and€negotiated€rulemakings.€ÏI€think€that€those€processes€can€be€very€helpful€and€veryÏuseful€in€many€situations,€however,€I€believe€there€are€aÏnumber€of€situations€where€that€is€going€to€delay€theÏprocess,€rather€than€speed€it€up.Ìà ` àà ¸ àParticularly€in€the€context€of€biannual€reviews,€IÏthink€that€in€order€to€try€to€adhere€to€deadlines€an€effortÏwill€probably€need€to€be€made€to€cut€off€the€negotiationÏpart€and€get€on€with€the€decision€making€part.Ìà ` àà ¸ àIn€addition,€one€comment.€€I€am€not€really€sureÏabout€the€idea€of€a€restructured€bureau€as€a€prototypeÏbureau.€€My€concern€there€is€that€that€bureau€will€still€beÏrooted€in€a€specific€technology.€€It€seems€to€me€that€thereÏwill€be€a€lot€of€time€spent€and€I'm€not€sure€that€it€willÏreally€be€worth€the€effort.€€Instead,€I€think€the€idea€ofÐ  +(&0 Ðthe€interbureau€task€forces€and€using€them€more€is€a€veryÏgood€idea€and€perhaps€an€idea€along€those€lines€would€be€toÏmake€a€focus€on€creating€interbureau€task€forces€that€areÏmodeled€on€the€ultimate€structure€of€the€Commission€that€isÏenvisioned€in€this€report.€€Perhaps€that€may€be€a€better€useÏof€resources€than€trying€to€take€one€bureau€and€restructureÏit.Ìà ` àà ¸ àI€think€my€last€point€is€that€an€emphasis€onÏparticipation€in€the€WTO€and€all€the€other€internationalÏfunctions€is€increasingly€important€for€everyone€in€theÏindustry.€€I€know€that€for€my€own€company€there€are€a€lot€ofÏpeople€in€my€company€that€need€to€be€educated,€myselfÏincluded,€on€these€very€complicated€processes.€€I€think€thatÏprograms€at€the€Commission€to€try€to€make€people€betterÏunderstand€how€this€works€might€also€be€a€good€idea€to€getÏindustry€participation€here.€€Ìà ` àà ¸ àThank€you€very€much€for€this€opportunity.Ìà ` àà ¸ àCHIEF€OF€STAFF€BROWN:€€Thank€you,€Diane.€€Jim.Ìà ` àà ¸ àMR.€BLITZ:€€Thank€you.€€Thank€you€to€theÏCommission€for€this€very€worthwhile€effort€and€for€theÏopportunity€to€speak€at€this€forum€today.€€I'm€Jim€BlitzÏwith€the€law€firm€of€Davis€Wright€Treamine.€€I'm€speakingÏnot€on€behalf€of€any€client€but€as€a€communications€lawÏpractitioner€who€has€practiced€in€front€of€most€everyÏCommission€bureau€and€office€for€over€almost€20€years€atÐ  +(&0 Ðthis€point.Ìà ` àà ¸ àOne€thing€I've€noticed€in€the€course€of€myÏpractice€is€the€significant€differences€that€exist€betweenÏthe€way€the€various€bureaus€operate,€the€way€they€processÏapplications,€the€way€they€convey€information€to€the€publicÏand€sometimes€even€within€a€specific€bureau,€in€terms€of€howÏthose€functions€are€performed.€€That€leads€me€to€support€theÏconcept€of€reorganizational€changes€along€more€functionalÏrather€than€service€oriented€lines.€€Ìà ` àà ¸ àCertainly€the€concept€of€an€enforcement€bureau€isÏoverdue.€€I€also€strongly€support€the€idea€of€a€licensingÏbureau€that€would€incorporate€all€licensing€functions€of€theÏexisting€bureaus€and€offices.€€One€example€as€to€why€that€isÏso€necessary€is€assignments€and€transfers€of€licenses.€ÏLarge€transactions€that€the€Commission€routinely€processesÏnow€always€involves€stations€in€multiple€services.Ìà ` àà ¸ àThe€current€procedures€require€the€applicants€andÏtheir€attorneys€to€prepare€and€file€numerous€applications,Ïmany€different€forms€requesting€often€duplicativeÏinformation.€€Services€require€different€types€ofÏinformation,€some€use€different€attribution€rules,€someÏrequire€submission€of€ownership€charts,€organizationalÏcharts,€some€require€submission€of€articles€ofÏincorporation.€€Some€services€grant€special€temporaryÏauthority€for€assignments€and€transfers,€others€do€not.Ð  +(&0 Ðà ` àà ¸ àThe€procedures€could€be€consolidated€and€should€beÏconsolidated€into€a€single€application€with€singleÏprocedures.€€Exhibits€would€be€useable€if€there€areÏinquiries€that€are€unique€to€a€specific€service€but€the€vastÏmajority€of€information€could€be€in€a€single€form€andÏprocessed€by€a€single€staff€asking€information€about€theÏseller,€the€buyer,€the€licenses€affected,€the€qualificationsÏof€the€buyer,€other€ownership€interests€of€the€buyer€and€soÏforth.à ¸ àÐ 0¸  Ðà ` àà ¸ àThis€would€also€give€a€centralized€place€forÏprocessing€of€the€application,€streamlining€informationÏgathering,€conserving€Commission€resources,€reducingÏduplicative€staff€inquiries,€and€giving€greater€certainty€toÏthe€public€as€well.Ìà ` àà ¸ àSimilarly,€other€licensing€functions€of€theÏCommission€could€be€consolidated,€such€as€initial€licensing,Ïmodification,€and€renewals.€€If€there€are€issues€specific€toÏa€certain€service,€such€as€Ms.€Mahoney€expressed,€those€canÏbe€processed€by€specialists€within€the€bureau€or€perhapsÏeven€a€grant€within€the€bureau€that€has€a€certainÏspecialization€but€as€far€as€the€vast€majority€of€licensingÏscenarios€it€would€make€more€sense€and€be€far€easier€for€theÏapplicants€in€the€public€to€do€that€through€a€single€bureau.Ìà ` àà ¸ àThe€second€point€I€wanted€to€touch€on€in€relationÏto€that€would€be€the€utility€of€a€consolidated€database€ofÐ  +(&0 Ðeverything€that€is€filed€with€the€Commission.€€TheÏCommission€has€taken€great€strides€recently€in€using€its€webÏsite€and€posting€information€on€license€status€and€theÏexistence€of€licenses€but€applications€that€are€filed,Ïpetitions,€letters,€ex€parte€notices,€as€Mr.€Sallett€noted,Ïall€of€them€could€be€listed€on€a€single€consolidatedÏdatabase€that€would€be€maintained€through€the€Secretary'sÏoffice.€€Ìà ` àà ¸ àMuch€of€this,€I€believe,€is€maintained€currentlyÏin€some€form€through€the€Commission's€fee€contractor€onÏfeeble€applications€but€some€consolidated€database€thatÏlists€everything€filed€with€the€Commission€and€the€status€ofÏit.€€That€would,€of€course,€be€available€on€the€internet.ÏWould€greatly€facilitate€the€information€flow.€Ìà ` àà ¸ àThank€you.Ìà ` àà ¸ àCHIEF€OF€STAFF€BROWN:€€Jim,€thank€you.€€If€I€canÏinterject€just€an€information€point.€€For€the€last€threeÏyears€our€request€for€funds€to€do€those€two€things€have€beenÏdenied.€€I€just€want€to€make€that€case€because€I€think€it€isÏan€important€one€to€make.€€Is€that€right,€three€years€in€aÏrow?Ìà ` àà ¸ àWe€have€put€forth€a€proposal€to€do€exactly€whatÏyou€suggest,€that€is€that€there€would€be€a€one€stopÏlicensing€kind€of€function€and€also€that€we€would€have€aÏsystem€where€you€could€access€the€information€you€need.Ð  +(&0 Ðà ` àà ¸ àAs€you€all€know,€putting€together€your€ownÏbusiness€and/or€firms,€that€is€a€fairly€initial€capitalÏintensive€kind€of€undertaking€but€then€reaps€enormousÏbenefits,€it€seems€to€me,€over€the€ensuing€years.€€So,€thisÏis€a€tension,€it€seems€to€me,€between€the€plan€and€theÏimplementation€that€I€think€it€is€worthwhile€you€allÏunderstand.Ìà ` àà ¸ àLarry.Ìà ` àà ¸ àMR.€SPIWAK:€€Thank€you,€Kathy.€€Larry€Spiwak€fromÏthe€Phoenix€Center.€We€are€an€international€think€tank,Ïstretching€all€the€way€from€New€Zealand€to€Denmark.Ìà ` àà ¸ àBy€background,€I've€actually€worked€here€as€aÏsenior€line€attorney.€€I€think€the€proposal€sets€out€a€veryÏambitious€plan.€€There€is€a€lot€of€really€great€stuff€inÏthere€about€the€reorganization€of€the€FCC.€€Ìà ` àà ¸ àI€think€the€reality€of€it€though,€out€on€theÏstreet,€is€that€it€is€met€with€a€large€degree€of€cynicism.€ÏSo,€the€idea€of€an€enforcement€bureau€is€really€great,€theÏquestion€is€is€do€you€really€mean€it?€€Are€you€going€to€doÏit€actively€and€aggressively?€€The€idea€of€moving€documentsÏfast€through€the€Commission€is€a€great€thing€on€paper€but€doÏyou€mean€it?€€Is€it€really€going€to€happen?Ìà ` àà ¸ àI€was€on€the€phone€yesterday€with€a€client€and€IÏtold€him€I€was€going€to€be€doing€this€thing€and€sort€ofÏchuckling€over€it.€€He€said,€"Well,€tell€them€this."€€He€isÐ  +(&0 Ða€new€entrant€trying€to€serve€rural€America.€€He€has€comeÏin,€he€has€tried€to€deal€with€the€Commission.€€And€they€say,Ï"You€know,€we're€not€even€going€to€bother€because€we€go€inÏand€we€talk€to€them€and€they€say,€'Yeah,€we're€going€to€helpÏyou€out.'€€We€don't€hear€anything€for€eight€months."€€ThatÏis€a€real€world€anecdote€that€is€happening€out€there.€€So,Ïif€this€process€is€going€to€work€it€is€going€to€take€a€veryÏaggressive€leadership.€Ìà ` àà ¸ àHaving€been€part€of€a€reinventing€government€groupÏhere€at€the€Commission,€which€is€no€longer€here,€and€havingÏbeen€here€when€the€Cable€Bureau€was€formed,€I€mean,€this€wasÏall€supposed€to€be€increased€management€and€flatter,€etÏcetera,€et€cetera,€and€all€of€a€sudden€the€lines€ofÏbureaucracy€sprouted€up.€€I€mean,€that's€the€nature€of€theÏbeast€here.Ìà ` àà ¸ àSo,€you€run€a€real€danger€in€any€restructuringÏthat€you€end€up€having,€with€all€good€intentions,€what€IÏcall€the€embedded€plant€of€people€have€been€here€and€are€inÏpositions€of€power,€use€the€restructuring€to€sort€ofÏconsolidate€the€power.€€So,€you€end€up€in€the€effort€to€doÏsomething€good,€you€end€up€just€sort€of€entrenching€theÏexisting€status€quo.Ìà ` àà ¸ àPossible€remedies€to€that,€I€would€again€suggestÏforming€a€competition€division,€not€a€competition€bureau€butÏwhat€the€Commission€used€to€have€which€was€a€smallÐ  +(&0 Ðinterdisciplinary€bunch€of€folks,€lawyers,€economists,€MBAs,Ïwho€were€not€part€of€the€bureaus€and€who€were€deliberatelyÏsupposed€to€come€in€and€provide€an€alternative€viewpoint€orÏanalysis€to€the€existing€bureaus,€whatever€you€want€to€callÏthe€bureaus.Ìà ` àà ¸ àThe€advantage€of€that€is€regardless€of€win€or€loseÏis€that€you€ended€up€having€some€competing€ideas€within€theÏCommission,€such€that€whatever€the€Commission€did€at€leastÏit€was€all€the€issues€were€fully€vetted.Ìà ` àà ¸ àI€would€say€I€would€also€agree€with€the€issue€ofÏthe€Secretary€and€the€central€filing.€€As€you've€heard€allÏthe€anecdotes€earlier€today,€I€mean,€who€knows€where€thingsÏare€filed€with.€€I€mean,€even€when€I€was€at€the€Commission,Ïofficial€document€sometimes€come€in€and€they€are€sitting€inÏsomebody's€files€and€there€is€no€central€repository.€€IÏwould€recommend€strongly€that€the€FCC,€which€I€think€it€doesÏas€it€moves€to€more€electronic€filing€it€is€doing€anÏexcellent€job€with€that€but€having€at€least€some€point€whereÏanything€that€comes€in€it€gets€photostated€on€a€PDF€file€soÏeverybody€can€get€it€quickly€on€the€Web.€€I€do€commend€theÏFCC€for€an€excellent€Web€site.€€Ìà ` àà ¸ àThose€are€my€points.€€Thank€you.Ìà ` àà ¸ àCHIEF€OF€STAFF€BROWN:€€Thank€you.€€Al.Ìà ` àà ¸ àMR.€SONNENSTRAHL(by€interpreter):€€Good€morning.€ÏMy€name€is€Al€Sonnenstrahl.€€I€represent€the€Consumer€ActionÐ  +(&0 ÐNetwork€of,€I€would€say,€about€14€to€15€nationalÏorganizations€of€deaf€and€heard€of€hearing€Americans.Ìà ` àà ¸ àFirst€of€all,€I'd€like€to€applaud€the€FCC€forÏopening€the€door€to€the€public€and€to€people€withÏdisabilities.€€We€do€have€to€remember€where€we've€startedÏhere€with€the€FCC.Ìà ` àà ¸ àThe€reason€that€the€FCC€was€formed€years€ago€wasÏto€monitor€the€monopoly€of€one€telephone€company€and€now€weÏhave€more€than€one€telephone€company€and€we€appear€to€have€aÏlot€of€competition€going€on€today.€€However,€for€people€withÏdisabilities,€people€who€employ€people€with€hearingÏdisabilities,€the€monopoly€continues.Ìà ` àà ¸ àWe€don't€have€any€laws€or€rules€that€monitor€theÏaudio€aspects.€€I€don't€believe,€that€is,€that€the€FCC€hasÏany€rules€that€has€to€do€with€the€use,€to€enforce,€that€is,Ïthe€use€of€audio.€€However,€we€do€need€those€rules€in€orderÏto€enforce€text,€captioning,€and/or€print€information€in€theÏprint€format.Ìà ` àà ¸ àBecause€we€are,€sadly€to€say,€we€are€in€the€worldÏof€hearing€people,€in€other€words,€the€audio€is€a€given.€€WeÏdon't€bother€to€regulate€that€aspect.€€We€do€have€someÏpeople€though€with€hearing€disabilities€and€those€of€us€withÏthose€disabilities€depend€on€information€through€a€printÏformat€of€different€types.€€So,€please€don't€forget€thatÏaspect€that€we€do€have€some€programs€that€need€to€beÐ  +(&0 Ðmonitored€in€order€to€ensure€full€access€to€all€people€withÏdisabilities,€especially€those€with€hearing€disabilities.€€Ìà ` àà ¸ àThank€you.Ìà ` àà ¸ àCHIEF€OF€STAFF€BROWN:€€Thank€you,€Al.€€Before€IÏcall€the€next€speaker€let€me€broaden€this.€€I'm€sure€withÏthe€cards€I€see€up€this€will€be€fine€to€do.€€As€well€asÏtrying€to€formulate€a€model€agency€for€the€digital€age€weÏtalked€about€competition€as€one€of€our€core€functions€toÏpromote€competition€in€all€markets€and€we€said€that€ourÏobjectives€are€to€eliminate€barriers€to€entry,€to€deregulateÏas€competition€develops,€to€enforce€the€rules€to€businessesÏso€they€can€compete€fairly,€and€to€promote€competition€inÏthe€international€markets.Ìà ` àà ¸ àAs€we€continue€this€discussion€let€me€incorporateÏthose€thoughts€too.€€David,€I'm€sure€you€can€touch€on€anyÏnumber€of€them.Ìà ` àà ¸ àMR.€TURETSKY:€€I'll€adapt€and€include€those€asÏwell,€very€briefly.€€Ìà ` àà ¸ àCHIEF€OF€STAFF€BROWN:€€I'll€go€to€Claude€next.€ÏDavid,€go€ahead.Ìà ` àà ¸ àMR.€TURETSKY:€€I€just€wanted€to€also€applaud€theÏFCC€for€a€terrific€process€and€a€very€good€and€thoughtfulÏreport.Ìà ` àà ¸ àI€would€just€ask€that€„„€and€this€is€probably€theÏnext€level€digging€a€little€deeper€„„€that€we€think€aboutÐ  +(&0 Ðthe€reasons€behind€some€of€the€good€approaches€that€you'veÏsuggested€and€what€necessarily€comes€with€those.€€InÏparticular,€I€think€the€focus€on€enforcement€that€is€in€theÏfirst€section€of€the€report€is€a€terrific€idea,€it€isÏcrucial,€and€it€is€necessary€to€achieve€your€competitionÏobjectives,€and€all€of€our€competition€objectives€as€well.€ÏBut,€as€we€think€about€that€I€think,€we€need€to€think€aboutÏenforcement€policy€as€well.Ìà ` àà ¸ àEnforcement€involves€a€variety€of€levels€ofÏactivity.€€It€involves€„„€and€here€informal€disputeÏmechanisms€are€valuable€„„€resolving€individual€cases€thatÏmay€or€may€not€involve€tremendously€broad€policy€issues.€ÏBut€also€enforcement,€properly€practiced,€involvesÏcalculation€of€the€deterrent€effect€of€the€activity.€€To€doÏthat€the€FCC,€I€think,€needs€to€think€about€enforcement€andÏthe€Enforcement€Bureau€not€only€as€a€dispute€resolver€butÏalso€as€an€entity€that€ought€to€have€investigative€abilitiesÏand€ought€to€be€able€not€merely€to€put€things€back€the€wayÏthey€should€have€been€some€time€ago€to€resolve€a€dispute€butÏought€to€also€be€able€to€take€such€bold€action€that€there€isÏa€deterrent€effect€from€the€activities€of€the€bureau,€orÏwhatever€it€will€be€called.€€That€is€really€crucial.Ìà ` àà ¸ àFrom€my€law€enforcement€background,€we€try€toÏresolve€cases€but€we€also€try€to€make€points.€€When€I€sayÏ"make€points"€I€don't€mean€we€ignored€the€law€or€tried€toÐ  +(&0 Ðtrump€something€up.€€All€I€mean€is€that€in€your€caseÏselection€and€the€amount€of€resources€you€devote€and€theÏinvestigative€tools€you€use€you€have€to€bring€some€sort€ofÏfocus€as€to€where€the€problem€areas€are€in€the€industry.Ìà ` àà ¸ àSo,€I€would€urge€people€not€only€to€think€ofÏenforcement€as€for€a€dispute€resolution€but€rather€to€thinkÏof€it€as€an€aggressive€deterrent€oriented€function€as€well.Ìà ` àà ¸ àThe€other€„„€and€I€would€say€that€that€isÏparticularly€important€in€an€evolving€market€that€is€notÏreally€competitive€yet€but€is€sort€of€moving€along€andÏcontinuing€toward€competition.€€This€will€be€particularlyÏimportant€with€carrier„to„carrier€issues,€I€think,€and€willÏremain€important€for€a€longer€time.Ìà ` àà ¸ àOn€the€consumer€side,€I€think,€as€markets€becomeÏcompetitive,€I€applaud€the€report€for€noting€that€there€isÏan€increased€focus€on€interaction€in€communication€withÏagencies€like€the€Federal€Trade€Commission.€€I€said€before,ÏI€think€once€a€market€really€moves€well€into€the€competitiveÏframework,€other€than€kind€of€carrier„to„carrier€issues€andÏspectrum€issues,€for€example,€where€there€is€really€uniqueÏcomplications€there,€the€consumer€and€outward€facing€side,Ïwhether€you€get€a€bill€and€whether€it€is€accurate€and€allÏthat,€in€the€competitive€market€is€the€sort€of€regular€gristÏof€agencies€like€the€FTC.€€So,€I€applaud€you€for€talkingÏabout€communications€there.Ð  +(&0 Ðà ` àà ¸ àI€also€applaud€the€focus€on€investment€in€staff.€ÏI€think€that€is€crucial.€€It€is€the€kind€of€thing€thatÏsometimes€gets€forgotten€in€budgetary€crunches€and€the€rest,Ïso€I€applaud€that.Ìà ` àà ¸ àCHIEF€OF€STAFF€BROWN:€€Even€in€times€of€surplus.€ÏSorry.Ìà ` àà ¸ à(Laughter.)Ìà ` àà ¸ àMR.€TURETSKY:€€There€you€go.€€The€last€thing,Ïjumping€to€your€competition,€to€the€end€of€your€competition,Ïnumber€two€agenda€item.€€I€think,€having€been€in€theÏgovernment€and€having€talked€with€regulatorsÏinternationally,€I'm€not€sure€everybody€appreciates€just€howÏinfluential€the€FCC€can€be€in€promoting€competition€policyÏby€interacting€formally€and€informally€with€regulators,Ïpolicy€makers,€and€others€from€abroad.Ìà ` àà ¸ àI€think€that€that€is€a€fairly€subtle€and€discreetÏfunction€often.€€I€think€it€is€mentioned€in€the€report€and,ÏI€for€one,€have€seen€how€influential€and€important€that€is.€ÏIt€is€something€also€we€shouldn't€lose€site€of€in€the€budgetÏprocess€when€people€talk€about€whether€they€have€the€moneyÏto€travel€or€not.€€The€kind€of€opportunity€that€can€open€upÏfor€U.S.€and€other€businesses,€the€kind€of€benefits€thatÏwill€reap€across€the€board€are€tremendous.Ìà ` àà ¸ àCHIEF€OF€STAFF€BROWN:€€Thank€you,€David.€€Claude,Ïmay€I€go€back€to€you€now?Ð  +(&0 Ðà ` àà ¸ àMR.€STOUT€(through€an€interpreter):€€Thank€you.€€IÏam€Claude€Stout.€€I€am€with€the€Telecommunications€for€theÏDeaf,€Incorporated.€€I€am€among€several€„„€I€represent€oneÏof€several€national€organizations€that€represent€over€28Ïmillion€Americans€who€are€deaf,€hard€of€hearing,€orÏdeaf/blind.€€In€representing€those€people€I€would€like€toÏapplaud€the€FCC€for€a€very€pro„disability€perspectiveÏamongst€the€Commission.€€€This€forum€really€reflects€yourÏcommitment€and€efforts€in€that€regard.Ìà ` àà ¸ àI€am€thrilled€with€some€of€the€indications€in€thisÏdocument€of€the€intention€that€you€indicated€to€serve€theseÏpopulations,€especially€in€regard€to€the€internationalÏtelecommunications€services€and€continue€with€the€intermuralÏtask€force€to€look€at€some€of€the€disability€issues,Ïespecially€in€regard€to€the€Disability€Issues€Task€Force.Ìà ` àà ¸ àI€do€have€two€or€three€concerns.€€I€believe€thatÏone€of€the€plans€is€to€stress€more€what€we€call€federal€andÏstate€interaction.€€If€the€FCC€is€here€as€a€newly€revampedÏorganization€I€think€that€many€of€the€states€would€be€wellÏencouraged€to€follow€suit,€many€public€commissions€who€haveÏnot€yet€indicated€a€concern€or€observation€of€disabilityÏissues.€€Ìà ` àà ¸ àWe€would€encourage€those€50€public€utilityÏcommissions€to€work€with€the€FCC€to€address€disabilitiesÏissues€because€what€you€have€decided€should€be€minimalÐ  +(&0 Ðstandards€for€telecommunications€services€we€would€like€toÏsee€those€50€states€also€pursue€minimal€standards€in€orderÏto€raise€the€standards€for€TRS€services.Ìà ` àà ¸ àIf€you€encourage€them€not€only€to€meet€yourÏminimal€standards€but€to€go€further€then€I€think€that€we'llÏbe€able€to€see€further€progress€represented€amongst€theÏindividual€states.€€We€would€also€like€to€see€the€individualÏstates€to€be€able€to€increase€TRS€services€and€recognizeÏthat€in€their€legislation.€€Ìà ` àà ¸ àI'd€also€like€to€applaud€your€plans€to€adjust€FCCÏin€terms€of€offices€based€on€function,€rather€than€onÏtechnology.€€Having€heard€arguments€of€convergence,€again€IÏagree€with€that.€€Having€the€Disabilities€Issues€Task€ForceÏwithin€the€FCC€I€would€like€a€mechanism€for€ensuring€thatÏeach€of€those€bureaus€is€able€to€take€advantage€of€theÏexpertise€and€input€available€from€the€DITF.€€Ìà ` àà ¸ àI€wouldn't€want,€for€example,€your€EnforcementÏBureau€to€be€use€„„€I€would€want,€rather,€your€EnforcementÏBureau€to€have€user€friendly€communication€with€theÏdisability€community€and€to€be€able€to€benefit€fromÏinformation€from€DITF€as€it€regards€to€accessible€Web€siteÏservices,€TTY€telephone€lines,€and€the€whole€gamut€so€thatÏthese€constituencies€feel€comfortable€in€being€able€toÏaccess€and€communicate€to€those€bureaus.Ìà ` àà ¸ àAs€people€with€disabilities,€we€are€workingÐ  +(&0 Ðtowards€working€for€better€relationship€with€industry.€€TheÏreorganization€plans€at€FCC€bode€well€for€that€because€weÏcan€rest€assured€that€knowing€that€the€work€out€in€the€fieldÏcan€be€reflected€back€to€you.€€In€coming€back€to€the€FCC€weÏwant€to€know€that€we€can€expect€quick€turn€around,€quickÏresponse,€and€action€from€you.Ìà ` àà ¸ àAgain,€thank€you€for€the€effort.Ìà ` àà ¸ àCHIEF€OF€STAFF€BROWN:€€Thank€you,€Claude.€€Jenell.Ìà ` àà ¸ àMS.€TRIGG:€€Thank€you,€Kathy.€€Good€morning.€€I'mÏS.€Jenell€Trigg.€I'm€Executive€Director€and€COO€of€theÏTelecom€Opportunity€Institute.€€Thank€you€again€for€allowingÏme€to€share€some€comments.Ìà ` àà ¸ àMy€remarks€are€going€to€cover€both€the€firstÏsection€and€the€second€section€because€I€think€there€is€aÏrelationship€between€the€two€in€terms€of€elimination€ofÏmarket€entry€barriers.Ìà ` àà ¸ àI€think€the€Commission€has€done€a€commendable€jobÏin€addressing€the€first€draft€reconciling€all€of€ourÏdifferent€interests,€as€well,€including€all€our€comments.€€Ìà ` àà ¸ àMr.€Pociask€mentioned€something€that€I€thought€wasÏinteresting€in€terms€of€trying€to€put€what€yourÏrecommendations€are€in€structure,€what€the€benefit€is€to€theÏconsumer€and€the€public€interest.€€I€would€like€to€addressÏtwo€specific€areas.€€One,€when€we€talked€about€theÏincreasing€of€staff€for€engineers€or€technologists€I€believeÐ  +(&0 Ðwe€also€mentioned€in€the€consumer€forum€an€increase€inÏfinancial€capital€market€experience€and€business€experience.€ÏI€think€that€is€critical€so€that€way€you€can€reconcile€theÏinterests€of€the€public€record€when€they€come€in€and€whatÏthe€real€impact€is€on€your€regulations€and€whether€they€beÏattorneys€or€engineers€or€whatever€with€business€experienceÏI€think€that€is€important€to€add€as€well.Ìà ` àà ¸ àYou€mentioned€something€very€interesting,€Kathy,Ïabout€the€licensing,€one€stop€licensing,€and€how€it€is€veryÏcapital€intensive.€€Small€businesses,€minority€businessesÏand€women€businesses€certainly€know€this.€€Why€not€frame€theÏlicensing€part€of€it€in€a€market€entry€barriers€context?€€Ìà ` àà ¸ àYes,€as€you've€said€in€your€strategic€plan€that€itÏallows€the€Commission€to€leverage€of€staff€and€streamlineÏstandardize€your€regulatory€process€but€it€also€eliminates€aÏmajor€market€entry€barrier€for€new€entrants.€€If€you€look€atÏthe€financial€benefit€to€the€consumers,€again€back€to€Mr.ÏPociask's€comments€to€the€public€interest,€of€what€yourÏstructure€does€I€think€maybe€there€is€a€way€we€can€getÏapproval€for€the€licensing€process.Ìà ` àà ¸ àLet's€also€use€Section€257.€€You€have€a€statutoryÏmandate€under€the€1996€Act€to€eliminate€market€entryÏbarriers€for€small€businesses€and€yet€I'm€surprised€thatÏnowhere€in€the€strategic€plan€is€that€section€cited.€€And,Ïyet,€it€has€a€direct€impact€on€how€I€think€successful€youÐ  +(&0 Ðwill€be€in€ensuring€there's€competition€for€everyone€acrossÏall€markets,€particularly€since€the€statute€requires€theÏCommission€to€conduct€a€periodic€review€every€three€yearsÏafter€your€first€report.€€Ìà ` àà ¸ àYour€first€report€was€issued€on€May€8,€1997€andÏyour€3€years€happens€right€at€the€beginning€of€yourÏstrategic€plan€and€even€in€the€middle€of€your€strategicÏplan.€€So,€you've€really€got€over€your€five€year€performanceÏperiod€two€market€entry€barrier€Section€257€reports.Ìà ` àà ¸ àI€think€it€would€be€helpful€to€incorporate€a€257Ïprocess€across€the€board,€that€way€you€can€address€not€onlyÏmarket€entry€barriers€for€small€businesses€but€also€forÏminority€and€women€owned€businesses,€which€supports€the€endÏof€universal€service,€your€niche€market€serving€everyone.€Ìà ` àà ¸ àSo,€I€would€love€to€see€a€Section€257€strategicÏplan€implemented.€€You've€done€a€fine€job€on€the€firstÏreport,€how€are€you€going€to€implement€and€integrate€theÏsecond€and€third€reports€throughout€your€processes?Ìà ` àà ¸ àCHIEF€OF€STAFF€BROWN:€€Thank€you,€Janell.Ìà ` àà ¸ àMS.€TRIGG:€€Thank€you.Ìà ` àà ¸ àCHIEF€OF€STAFF€BROWN:€€Alan.€€I€really€didn'tÏforget€you.Ìà ` àà ¸ àMR.€CIAMPORCERO:€€It€would€be€justified€if€youÏdid.Ìà ` àà ¸ àCHIEF€OF€STAFF€BROWN:€€No,€no.Ð  +(&0 Ðà ` àà ¸ àMR.€CIAMPORCERO:€€Five€years€„„€I'm€AlanÏCiamporcero€with€GTE.€€Five€years€is€just€too€long€to€comeÏup€with€a€comprehensive,€fair,€coherent€convergence€policy.€ÏYou€all€know€that.Ìà ` àà ¸ àIt€won't€satisfy€the€industry€and€it€is€not€goingÏto€satisfy€Congress.€€I€think€you€guys€need€to€come€up€withÏsomething€that€Congress€is€going€to€say,€"Yeah,€we'll€helpÏyou€with."€rather€than€something€they€are€going€toÏcriticize.Ìà ` àà ¸ àIt€is€a€cliche€now€that€internet€change€happens€inÏdog€years.€€It€is€a€cliche€because€it€is€true.€€But,€thinkÏof€five€years€ago€and€where€we€were.€€The€world€was€nothingÏlike€it€is€now.€€So,€you€can't€wait€five€years€or€four€yearsÏor€three€years€to€do€this.€€You've€got€to€start€now€with€theÏreform.Ìà ` àà ¸ àI€was€talking€to€Mary€Beth€before€and€I€understandÏher€problems.€€She's€got€budgets€stretching€out€two€or€threeÏyears€from€now€that€she€is€working€on.€€How€do€you€do€thisÏin€an€immediate€way,€given€the€complexity€of€running€a€bigÏagency€like€this?Ìà ` àà ¸ àOne€possibility,€I€was€looking€at€the€suggestions,Ïthe€key€policy€initiatives.€€Bullet€number€one€is€begin€byÏselecting€one€current€technology€specific€bureau€as€a€testÏcase.€€Why€not€instead€of€doing€that,€instead€of€doing€thatÏcreate€right€away€an€office€of€convergence?€€You€could€evenÐ  +(&0 Ðcall€it€"Bureau€of€Convergence"€but€I€think€that€mightÏcreate€problems€on€the€Hill€and€people€saying€that€you'reÏgoing€to€regulate€the€internet,€which€I€know€you€don't€wantÏto€do€and€I€don't€want€you€to€do.Ìà ` àà ¸ àBut€why€not€create€an€office€of€convergence€andÏstarting€funnelling€dockets€through€that€office€and€let€theÏlegacy€problems€go€to€the€legacy€bureaus?€€For€the€peopleÏwho€think€we're€going€to€turn€bad€and€pick€on€people€once€weÏget€what€we€want,€fine.€€That's€a€real€concern.€€Let€the€oldÏbureau€handle€that€but€don't€let€that€poison€the€policy€thatÏis€really€important,€the€policy€that's€really€going€toÏdetermine€what€the€next€20,€30,€40€years€look€like.€€We€knowÏwhat€that€is,€it€is€data€policy,€it€is€internet€policy.Ìà ` àà ¸ àSo,€just€a€suggestion.€€Rather€than€putting€a€lotÏof€work€on€reforming€an€existing€bureau,€why€not€get€startedÏright€away€with€the€new€initiative€and€let€the€other€stuffÏwither€away?Ìà ` àà ¸ àThanks.Ìà ` àà ¸ àCHIEF€OF€STAFF€BROWN:€€Let€me€just€put€someÏquestions€out€on€that€because€I€think€it's€a€provocativeÏidea.€€It€seems€that€there€is€everyday€kind€of€business€thatÏhas€to€go€on€at€the€agency.€€We€spoke€about€that,€Jim,€aÏlittle€bit€before,€just€the€normal€transactional€kind€ofÏthings€that€have€to€happen€and€they€have€to€happen€fasterÏand€they€have€to€happen€in€a€more€transparent€way€and€in€aÐ  +(&0 Ðmore€efficient€way.€€It€seems€to€me€that€that's€all€of€theÏlicensing€issues€that€we've€talked€about€and€some€sort€ofÏinformation€system€where€people€have€immediate€information.Ìà ` àà ¸ àThen€there€are€the€policies.€€So,€it€seems€to€meÏyou€can€get€that€going€and€ought€to€get€that€going.€€ThenÏthere€are€the€policy€issues€that€we€face€around€competition,Ïconsumer€protection,€spectrum€management,€and,€clearly,Ïconvergence.€€We€are€struggling.€€We€are€listening€hard€toÏyou€about€how€we€can€take€what€we€currently€do,€our€veryÏindustry€specific€kinds€of€bureaus,€and€morph€that€into€whatÏthe€industry€itself€is€morphing€into.€€Ìà ` àà ¸ àThat€takes€a€lot€of€energy,€by€the€way,€and€a€lotÏof€administrative€management€skill€and€expertise€andÏresources€to€get€that€done.€€It€also€takes€a€vision€of€howÏyou€do€it.€€Obviously€there€are€competing€concerns€among€andÏbetween€the€industry€itself€as€to€how€that€might€look.Ìà ` àà ¸ àI€always€listen€to€Pat€who€tells€me,€"No,€that'sÏsatellite,€it's€got€to€stay€with€that€International€Bureau."€ÏIt€is€very€interesting€that€when€you€listen€to€parts€of€theÏindustry€they€would€also€like€to€sort€of€not€be€disruptedÏtotally€either.€€Ìà ` àà ¸ àSo,€it€would€be€helpful,€as€you€are€talking€thisÏthrough€maybe€adding€your€comments€to€this,€how€do€you€seeÏthat€beyond€the€big€idea€of€a€convergence€office?€€How€wouldÏyou€see€it€working?€€How€do€you€think€you€would€interactÐ  +(&0 Ðwith€the€Commission€on€big€rulemaking€policy€issues?€€WhatÏwould€it€feel€like€to€sit€in€a€room€with€your€colleaguesÏfrom€the€wireless€side€or€the€wired€side€or€the€satelliteÏside€and,€increasingly,€the€broadcast€side?€€You€all€whoÏhaven't€even€talked€to€each€other€very€much€over€many€years,Ïhow€would€that€feel€and€what€does€that€look€like€when€weÏreally€start€to€operationalize€this€idea€of€convergence?Ìà ` àà ¸ àAs€you€talk,€if€you€could€talk€about€that€thatÏwould€be€helpful€to€me€as€well.€€Ìà ` àà ¸ àJudy,€I€don't€think€you've€had€an€opportunity€yet.Ìà ` àà ¸ àCHAIRMAN€KENNARD:€€Neither€has€Peter.Ìà ` àà ¸ àCHIEF€OF€STAFF€BROWN:€€Or€Peter,€okay.Ìà ` àà ¸ àMS.€HARKINS:€€I€wanted€to€thank€the€Bureau,€likeÏothers€have,€for€doing€such€a€well€laid€out€and€clear€reportÏand€for€including,€prominently,€the€mention€of€accessibilityÏof€people€with€disabilities€because€I€think€it€has€to€beÏsaid€again€and€again.€€I€appreciate€the€aggressiveÏleadership€of€the€Commission€in€this€area€and,€I€think,Ïcarrying€that€through€the€plan.Ìà ` àà ¸ àIn€the€disability€area€we€don't€often€talk€aboutÏcompetition€and€barriers€to€entry€but€I€just€wanted€to€bringÏin€disability€under€this€discussion€because€I€think€one€ofÏthe€things€you€do€want€us€to€do€is€go€away€and€work€withÏindustry€and€not€be€in€here€so€much.€€That€is€what€we€wantÏto€do€as€well.Ð  +(&0 Ðà ` àà ¸ àAs€the€Chairman€indicated€earlier,€we€are€dealingÏwith€this€as€a€market€failure.€€The€very€large€companiesÏwill€never€see€people€with€specific€disabilities€as€aÏsignificant€enough€market.€€Therefore,€the€barrier€to€entryÏproblem€becomes€very€important€because€small€businesses€haveÏalways€been€and€will€continue€to€be€important€innovators€forÏpeople€with€disabilities.€€They,€like€others,€have€problemsÏwhen€there€are€barriers€to€entry.Ìà ` àà ¸ àIf€you€look€at€something€like€local€competitionÏand€the€wireless€offerings€as€being€viewed€as€competitors€toÏwire€line€local€service,€if€we€have€access€problems€in€theÏwireless€area€that€is€not€exactly€true€for€persons€withÏdisabilities€so€wire€line€will€probably€continue€for€aÏlonger€time€to€be€the€venue€of€choice,€the€technology€ofÏchoice€for€them.€€So,€in€all€of€these€areas€the€ability€ofÏsmall€companies€to€come€in€and€innovate€for€people€withÏdisabilities€will€be€very€important.Ìà ` àà ¸ àCHIEF€OF€STAFF€BROWN:€€Thank€you,€Judy.€€Peter,€IÏdon't€think€you've€had€an€opportunity.Ìà ` àà ¸ àMR.€CRAMTOM:€€Thank€you,€very€much.€€Peter€CramtomÏfrom€the€University€of€Maryland.Ìà ` àà ¸ àFirst,€I'd€like€to€say€I€very€much€agree€with€whatÏAlan€said€in€setting€up€an€office€of€convergence€orÏsomething€like€that,€with€the€idea€being€that€you€don't€wantÏto€let€the€bureaucracies€of€the€past€contaminate€the€future.€Ð  +(&0 ÐIf€that€happens€the€FCC€could€become€irrelevant€and/or€worseÏbe€destructive€in€its€ultimate€goals,€which,€of€course,€itÏdoesn't€want€to€do€and€judging€from€these€and€other€forumsÏis€working€hard€to€prevent.Ìà ` àà ¸ àFor€me,€the€last€time€I€was€here€I€said€the€FCC'sÏmantra€should€be,€"Make€markets€work€better."€€I€continue€toÏwant€to€hammer€that€point.€€Anytime€a€decision€is€being€madeÏsimply€ask€yourself,€"Will€this€make€markets€work€better?"€ÏIf€the€answer€is,€"Yes."€then€go€for€it.€€If€the€answer€is,Ï"No."€move€onto€something€else.Ìà ` àà ¸ àLots€of€applications€of€that€„„€it€was€mentionedÏalready,€the€idea€that€there€is€consensus€that€you€need€aÏcentralized€database€for€information€and€communications€thatÏcome€before€the€Commission.€€That€is€a€great€idea.€€It€wasÏsuggested€that€as€soon€as€something€comes€in€photocopy€itÏand€put€it€in€the€PDF€and€put€it€on€the€Website.€€Well,€andÏyou€pointed€out€correctly€that€the€Congress€hasn't€given€youÏthe€funds€to€do€that.€Ìà ` àà ¸ àWell,€I€think€there€are€ways€for€you€to€do€itÏwithout€Congress€giving€you€funds.€€That€is,€I€believe€thatÏyou€actually€spend€a€lot€€more€money€by€having€lessÏefficient€dissemination€of€information€and€that€now€„„Ïgranted,€technology€is€going€to€help€tremendously€in€this€„„Ïbut,€today€I€think€we're€at€a€point€where€the€FCC€can€moveÏforward€on€this€front€in€creative€ways€and€get€the€job€done,Ð  +(&0 Ðeven€if€Congress€doesn't€see€the€infinite€wisdom€of€thisÏidea.Ìà ` àà ¸ àSo,€one€just€little€simple€idea€is€to€put€theÏburden,€as€much€as€you€can,€of€the€cost€of€providingÏinformation€on€the€side€of€the€person€submitting€theÏinformation€because€it€is€actually€a€very€low€cost.€€So,Ïrather€than€you€photocopying€things€have€the€submitter€„„Ïhave€a€requirement€that€it€be€submitted€in€PDF.€€Now,€isÏthat€an€entry€barrier?€€No,€everybody€is€capable€or€shouldÏbe€capable€of€producing€a€PDF€file€or€some€other€portableÏdocument€format.Ìà ` àà ¸ àIt€becomes€a€little€bit€more€difficult€answeringÏquestions€for€organization,€in€terms€of€does€this€makeÏmarkets€work€better€because€it€is€sort€of€one€step€for€you.€ÏBut,€I€do€think,€one€can€apply€to€that€same€reasoning€inÏcoming€up€with€an€organization€and€certainly€theÏperpetuation€of€bureaucracies€and€more€difficultÏdissemination€of€this€information€is€not€making€markets€workÏbetter.Ìà ` àà ¸ àCHIEF€OF€STAFF€BROWN:€€Let€me,€before€I€take€theÏsecond€round€around€the€room,€suggest€that€our€scheduleÏcalled€for€a€break€here.€€Do€people€think€they'd€like€that?€ÏLet€me€give€you€all€a€10€minute€break€but€before€you€do,€aÏcouple€of€things.€€Ìà ` àà ¸ àFirst,€I€wanted€to€publicly€compliment€LisaÐ  +(&0 ÐSockett,€who€is€not€here€„„€she€is€about€to€give€birth,€IÏthink,€in€the€next€day€or€two€„„€and,€Lisa€Gathrer,€who€isÏover€here€for€drafting€the€report.Ìà ` àà ¸ àI€think€all€of€you,€no€matter€where€you€might€comeÏout€on€any€particular€issue,€must€have€been€as€impressed€asÏI€with€the€drafting€of€this€report.€€So,€I€just€want€toÏpublicly€acknowledge€Lisa€Sockett€of€the€Office€of€Plans€andÏPolicy€and€Lisa€Gathrer,€currently€of€the€Office€of€PlansÏand€Policy,€under€Pepper's€tutelage€here,€for€getting€theÏdrafting€done.Ìà ` àà ¸ àSecondly,€I'd€like€to€let€everybody€know€that€MaryÏBeth€Richards,€who€has€many€years€of€experience€in€this€areaÏand,€frankly,€in€my€view,€responsible€for€many€of€theÏimprovements€that€have€been€made€already€in€the€agency€withÏrespect€to€licensing,€et€cetera.€€The€Chairman€has€askedÏMary€Beth€to€head€the€implementation€effort€and€so€she€willÏbe€a€crucial€person€as€we€go€forward.€€She€is€very€crucialÏto€us,€as€you€know.€€I€think€she€is€crucial€to€you€as€wellÏand€will€remain€that€way.Ìà ` àà ¸ àFinally,€I€want€to€mention€that€in€addition€to€theÏpublic€forums€that€we've€held,€we€held€an€internal€employeeÏforum€and€we€will€be€doing€that€again€as€well.Ìà ` àà ¸ àWe€actually€found,€and€I€don't€want€in€anywayÏsuggest€that€our€public€forums€haven't€been€extraordinary,Ïbut€that€our€internal€forum€was€also€extraordinary.€€In€thisÐ  +(&0 Ðbuilding,€on€these€floors,€are€people€of€incredibleÏcreativity,€innovation,€and€energy.€€When€we€sat€with€ourÏown€folks€and€started€to€listen€to€the€ideas€that€existÏright€here€I€can€assure€you€that€we€were€very€enthusiastic.€ÏSo,€we€will€be€doing€another€round€of€that€and€I€wanted€youÏto€know€that.€€Ìà ` àà ¸ àTen€minute€break€and€I'll€call€you€back€and€thenÏI'll€go€back€around.€€Thank€you.Ìà ` àà ¸ à(Whereupon€a€brief€recess€was€taken€from€11:15Ïa.m.€until€11:30€a.m.)Ìà ` àà ¸ àCHIEF€OF€STAFF€BROWN:€€Thank€you,€everyone.€Ìà ` àà ¸ àCHAIRMAN€KENNARD:€€Pam€is€ready.€€Diane,€Diane,ÏLarry.Ìà ` àà ¸ àCHIEF€OF€STAFF€BROWN:€€People.€€Thank€you.€€WhyÏdon't€we€spend€another€5€or€no€more€than€10€minutes€on€theÏdiscussion€we€were€having€and€then€I'd€like€to€switch€orÏmove€onto€some€of€the€consumer€issues€and€also€the€spectrumÏissues.€€I€don't€need€to€keep€you€here€for€another€hour€butÏif€we€need€another€hour€we'll€take€another€hour.€€Let's€seeÏhow€that€works.€€Pam,€why€don't€you€begin?Ìà ` àà ¸ àMS.€STEWART:€€Okay.€€I'm€Pam€Stewart€from€MarylandÏRelay.€€Ìà ` àà ¸ àI€would€just€like€to€strongly€encourage€you,€asÏyou€go€through€all€of€this€restructuring€and€convergenceÏissues€and€all€of€that,€you€have€an€extremely€„„€as€I€knowÐ  +(&0 Ðyou€are€aware€„„€an€extremely€aggressive€knowledgeableÏDisabilities€Task€Force€here.€€They€are€very€proactive.€ÏThey€go€out€and€get€the€information,€not€only€on€TRS€but€onÏall€issues,€cellular,€911,€everything€to€do€withÏdisabilities.Ìà ` àà ¸ àI€would€strongly€encourage€you€on€all€parts€ofÏthis€to€have€them€deeply€involved€because€quite€often€whatÏyou€don't€think€on€the€surface€would€be€a€disability€issue,Ïwhen€they€look€at€it€they€can€bring€something€up€to€you€soÏthat€things€can€be€done€and€taken€care€of€proactively,Ïrather€than€have€to€go€back€later€and€try€to€make€a€fix€toÏmake€things€accessible.€€So€things€won't€happen€like€caller„¼ID€that€you€have€TRS€people€can't€have.€€Thank€you.Ìà ` àà ¸ àCHIEF€OF€STAFF€BROWN:€€Thank€you,€Pam.€€Let's€goÏback€to€Robert.Ìà ` àà ¸ àMR.€MCDOWELL:€€A€couple€of€things.€€I'm€not€sureÏif€we're€on€Session€2€or€not.Ìà ` àà ¸ àCHIEF€OF€STAFF€BROWN:€€Well,€finish€wherever€youÏwere.Ìà ` àà ¸ àMR.€MCDOWELL:€€Well,€it€overlaps,€it€convergesÏonce€again.€€One€word€again,€enforcement.€€In€terms€ofÏpromoting€competition€in€all€communications€markets€and€alsoÏspeaks€to€Session€3,€which€is€service€for€all€Americans.Ìà ` àà ¸ àEnforcement€will€promote€and€preserve€competition.€ÏWe're€especially€concerned,€as€I€said€before,€aboutÐ  +(&0 Ðbacksliding€once€we€enter€the€post„271€world.€€It€wasÏsuggested€earlier€that€the€FCC€should€really€just€put€itselfÏout€of€business€and€that€would€cure€all€the€evils€here.€Ìà ` àà ¸ àWell,€you€can't€put€yourself€out€of€business,Ïprovided€we€have€two€things€we've€focused€on.€€One€isÏuniversal€service,€you've€got€to€be€there€for€that.€€TheÏother,€of€course,€is€for€enforcement€while€we're€in€theÏmiddle€of€this€transition€from€a€monopoly€driven€marketplaceÏto€a€competition€driven€marketplace.Ìà ` àà ¸ àWe€also€need€enforcement,€however,€not€justÏagainst€monopolies€but€against€competitors.€€That€also€helpsÏcompetition.€€It€also€helps€universal€service,€not€just€inÏthe€area€of€slamming€and€cramming€but€those€are€the€two€thatÏcome€to€mind€initially.Ìà ` àà ¸ àWe€also€don't€want€you€to€forget€about€privateÏsector€solutions€to€some€situations,€such€as€a€third€partyÏliability€administrator,€for€instance,€that€we€proposed€toÏadminister€slamming€complaints,€et€cetera.Ìà ` àà ¸ àThe€second€point€is,€again€when€it€comes€toÏcompetition,€remember€that€we're€not€there€yet.€€PleaseÏremember€that.€€Some€say€that's€because€the€1996€Act€is€notÏ3.5,€as€one€might€think,€it€is€really€only€about€8€monthsÏold.€€The€monopolies€that€appealed€the€Act€that€they€hadÏearlier€endorsed€challenged€your€authority€to€implement€itÏand€they€lost€that€point€but€that€was€only€this€pastÐ  +(&0 ÐFebruary.€€They€continue€to€win€on€many€other€fronts€soÏdon't€put€yourself€out€of€business€yet.€€Competition€isn'tÏhere€yet€on€a€local€level.Ìà ` àà ¸ àThank€you.Ìà ` àà ¸ àCHIEF€OF€STAFF€BROWN:€€Larry.Ìà ` àà ¸ àMR.€SPIWAK:€€Thank€you,€Kathy.€€This€is€sort€ofÏboth€2€and€3,€because€you€say€you€want€to€promoteÏcompetition€in€all€communications€markets€and€you€want€toÏcreate€opportunities€for€all€Americans€to€benefit€from€theÏcommunications€revolution.Ìà ` àà ¸ àIf€you€have€a€vibrant€competitive€market€with€goodÏeconomic€market€performance€Americans€will€benefit.€€That€isÏthe€whole€purpose.€€The€public€interest€is€a€consumerÏwelfare€maximization€standard.€€Ìà ` àà ¸ àSo,€again,€where€are€we€standing€then?€€I€thinkÏagain€it€comes€back€to€an€issue€of€regulatory€cynicism.€€IÏdon't€doubt€anybody's€intention€here€that€they€really€wantÏto€see€competition€but€what€do€we€see?€€On€the€one€hand€weÏsee€we€want€to€have€local€competition,€yet€we€allow€all€theÏindustries€to€reconcentrate.€€We€want€to€promoteÏinternational€competition,€yet€we€are€in€the€middle€of€theÏtelecoms€trade€war.€€Ìà ` àà ¸ àI€think€the€problem€is€is€that,€with€due€respectÏto€the€Chairman€earlier€said€we€have€no€idea€where€it€is€allÏgoing.€€I€don't€think€that€is€a€correct€way€of€approachingÐ  +(&0 Ðthe€issue€here.€€I€think€the€agency€„„€the€empirical€dataÏbears€out€that€those€FCC€paradigms€that€have€been€successfulÏhave€articulated€a€very€clear€long€term€view€of€industryÏstructure.€€It€is€not€the€same€of€managing€what€the€marketÏis€but€that€saying€that€we€want€to€market€with€low€switchingÏcosts,€low€barriers€to€entry,€vigorous€price€and€non„priceÏcompetition.Ìà ` àà ¸ àSo,€I€think€what€we€need€then,€because€firms€actÏin€relation€to€the€structure€of€the€market€they're€in.€€IfÏyou€live€in€a€toxic€market€structure€you€are€going€to€makeÏtoxic€decisions.€€If€you€live€in€a€market€that€is€conduciveÏto€competitive€rivalry€you€are€going€to€compete.Ìà ` àà ¸ àSo,€I€think€the€best€way€to€approach€this,€whichÏhasn't€been€done€so€far,€is€I€think€the€FCC€is€lacking€butÏneeds€a€clear€analytical€framework€with€how€to€solve€theÏproblems€of€the€day.€€There€is€sort€of€this€piecemeal,€adÏhoc,€indeed€I€would€argue€political€approach€that€has€beenÏgoing€on€on€a€wide€variety€of€areas.Ìà ` àà ¸ àThis€is€a€complex€task€but€if€you€think€about€it,ÏI€think€through€this€prism,€you'll€get€it.€€I€think€theÏprism€should€be€„„€the€FCC€should€ask€itself€a€very€simpleÏquestion€every€single€thing€that€it€does.€€Does€its€actionsÏpromote€or€deter€entry?€€Ìà ` àà ¸ àThe€issue€here€is€that€we€don't€want€to€split€theÏpie€by€some€sort€of€incommon€perpetual€censured€resaleÐ  +(&0 Ðmodel.€€We€want€to€grow€the€pie.€€So,€you€need€entry.€€IfÏyou€want€to€move€from€a€market€characterized€by€one€firm€toÏmultiple€firms€you€need€tangible€entry.Ìà ` àà ¸ àI€think,€unfortunately,€whether€by€deliberate€orÏomission,€the€FCC€has€done€very€little€promote€entry.€€So,€IÏthink€coming€up€with€a€clear€view€of€where€we€are€going,€asÏopposed€to€sort€of€saying€in€the€abstract,€"Competition€isÏgood."€is€the€only€way€it€is€going€to€move€forward.€€If€not,ÏI€think€this€regulatory€cynicism€is€just€going€to€continue.€ÏI€think€the€American€public,€given€the€structure€that€we'reÏseeing€develop,€is€going€to€be€very€upset.Ìà ` àà ¸ àThank€you.Ìà ` àà ¸ àCHIEF€OF€STAFF€BROWN:€€Steve.Ìà ` àà ¸ àMR.€POCIASK:€€Yes,€thank€you.€€This€is€SteveÏPociask€with€Joel€Popkin€&€Company.Ìà ` àà ¸ àI'd€like€to€address€just€a€couple€of€things.€€OneÏis€Kathy's€concern€over€resources,€another€with€Larry'sÏconcern€over€regulatory€cynicism.€€Ìà ` àà ¸ àFirst,€I€want€to€say€that€I€agree€with€what€AlanÏhas€suggested€here€about€the€convergence€bureau.€€I€think€itÏis€a€good€idea.Ìà ` àà ¸ àI€think€another€area€that€the€FCC€may€want€toÏfocus€in€terms€of€its€addressing€within€the€strategic€planÏis€specific€methods€in€which€to€stop€calcified€processesÏthat€are€in€place€to€reduce€hand€off€reviews€and€the€steps,Ð  +(&0 Ðsort€of€as€you€might€find€from€a€benchmarking€type€process.Ìà ` àà ¸ àIn€the€plan€we€see€that€there€is€a€discussion€ofÏefficient€dissemination€of€information.€€We€see€that€thereÏis€streamlining,€a€discussion€of€mechanization,Ïderegulation,€creating,€you€know,€the€convergence€„„€or€aÏconvergence€bureau,€actually€but€what€is€discussed€here€isÏthat€the€convergence€will€provide€opportunities€to€perhapsÏreduce€the€number€of€bureaus.Ìà ` àà ¸ àI€mean,€all€these€things€lead€to€better€outcomesÏwith€less€cost.€€So,€to€that€regard€I€think€if€we€look€atÏthe€resource€problem€I€think€there€needs€to€be€some€sort€ofÏprioritization€of€the€resources€and€the€way€that€wouldÏmaximize€consumer€benefits.Ìà ` àà ¸ àTo€use€the€price€cap€analogy,€where€is€theÏproductivity€„„€consumer€productivity€dividend€here?€€WhereÏdoes€this€plan€demonstrate€that€deregulation€means€lessÏregulation€and€less€regulatory€costs?€€There€should€be€aÏdirect€measure€to€that€for€consumers€or€even€tax€payerÏsavings.Ìà ` àà ¸ àWhere€does€this€plan€say€that€convergence€meansÏfewer€bureaus€which€means€less€cost?€€I€think€if€we€canÏbuild€some€of€those€concepts€into€measurable€milestones€theÏplan€would€be€much€more€successful€to€take€high€levelÏstrategy€and€build€them€down€into€tactics€and€day„to„dayÏoperation,€otherwise,€to€Larry's€point,€I€think€what€we€mayÐ  +(&0 Ðhave€is,€"Well,€it's€a€nice€plan€but€it€will€never€actuallyÏreap€the€benefits."€€That€is€the€source€that€some€of€theÏregulatory€cynicism,€I€think,€that€he€is€picking€up.€Ìà ` àà ¸ àThank€you.Ìà ` àà ¸ àCHIEF€OF€STAFF€BROWN:€€Thank€you,€Steve.€€Larry.Ìà ` àà ¸ àMR.€SARJEANT:€€Yes,€a€couple€of€things,€Kathy.€ÏThank€you.€€Ìà ` àà ¸ àFirst,€I€wanted€to€endorse€the€comments€of€DianeÏfrom€Disney€with€respect€to€biannual€review€and€theÏimportance€of€timely€decision€making€in€that€context.Ìà ` àà ¸ àI€wanted€to€clarify,€in€case€there€was€someÏquestions€bout€what€Roy€said€earlier.€€While€I€don't€thinkÏit€is€constructed€as€to€who€appealed€what€how€and€when,€IÏthink€Roy's€point€was€simply€this,€five€years€out€none€of€usÏare€smart€enough€to€see€what€the€world€will€be€then.€€So,€toÏthe€extent€that€this€process€is€going€to€be€useful,€it€needsÏto€be€accelerated€in€the€time€frame.€€We'll€take€care€ofÏfive€years€out€when€we€get€there€and€have€a€better€view€ofÏwhat€that€will€be.Ìà ` àà ¸ àIn€terms€of€convergence,€I€think€Alan's€idea€is€anÏexcellent€idea€and,€certainly,€USTA€would€support€thatÏnotion.Ìà ` àà ¸ àFinally,€on€the€question€you€raised€earlier€aboutÏhow€you€would€go€about€moving€down€the€road€of€what€I€willÏcall€"holistic"€rulemaking€or€convergence„based€rulemaking.€Ð  +(&0 ÐSome€of€us€actually€do€have€some€experience€in€pulling€theÏdisparate€pieces€together.€€From€my€experiences€with€U.S.ÏWest€and€One€Voice€and€international€operations€withÏdomestic€and€wireless€and€cable€and€wire€line,€it€has€toÏstart€with€a€common€database€of€facts.€€Ìà ` àà ¸ àWe€have€to€be€able€to€pull€the€disparate€pieces€ofÏinformation€together.€€Everybody€won't€agree€on€what€theÏright€common€set€of€facts€are€but€there€has€to€be€a€commonÏset€of€facts€as€the€starting€point€for€the€analysis€and€itÏhas€to€go€beyond€any€particular€industry€in€order€to€haveÏthat€kind€of€holistic€discussion€and€decision€making.Ìà ` àà ¸ àCHIEF€OF€STAFF€BROWN:€€Michelle.€€Thank€you,ÏLarry.Ìà ` àà ¸ àMS.€FARQUAR:€€Michelle€Farquar.€€I€wanted€to€speakÏspecifically€to€the€convergence€or€need€for€convergenceÏbetween€goals€one€and€three.€€Specifically,€Wester€WirelessÏwas€very€pleased€to€see€the€universal€service€goals€listedÏunder€goal€three€with€respect€to€the€form€and€autotechnologyÏneutral€basis€and€also€improving€penetration,€on€the€oneÏhand.Ìà ` àà ¸ àOn€the€other€hand,€if€it€proceeds€under€theÏcurrent€course€and€track€with€the€docket„by„docket€slowÏprocedures,€both€within€the€FCC€and€the€joint€board€and€theÏstates€it€could€take€not€5€years€but€maybe€10€years€toÏreally€get€where€we€need€to€be.Ð  +(&0 Ðà ` àà ¸ àI€would€like€to€encourage€the€FCC€to€look€at€newÏtechniques€and€tools€it€can€use,€maybe€on€an€informal€basis,Ïin€terms€of€giving€states€better€guidance€on€these€issues,Ïmaybe€even€on€an€informal€level€at€the€staff€level,€asÏopposed€to€at€the€commissioner€level€to€try€to€achieve€someÏof€these€goals€and€reforms€sooner,€especially€with€respectÏto€the€eligible€telecom€carrier€process€with€the€states,Ïwhich€is€becoming€a€patchwork€quilt€quite€quickly.€€Ìà ` àà ¸ àOne€good€example€of€that€is€Western€Wireless€nowÏhas€three€different€results,€one€just€yesterday,€fromÏMinnesota€granting€it€ETC€status;€one€from€South€DakotaÏdenying€an€ETC€status;€and€one€from€Wyoming,€which€punted€onÏthe€issue€and€said,€"The€FCC€should€resolve€this."€all€onÏvirtually€identical€sets€of€facts.€€I€know€it€feels€veryÏstrongly€that€the€FCC€needs€to€help€it€on€working€on€theseÏissues€and€working€through€that.€€I€think€that€same€methodÏand€approach€could€on€some€of€the€issues€under€goal€three€asÏwell.Ìà ` àà ¸ àCHIEF€OF€STAFF€BROWN:€€Let€me€move€folks€thenÏtoward€the€third€area€that€we've€identified€as€ourÏdirectional€mission€and€that€is€to€promote€opportunities€forÏall€Americans€to€benefit€from€the€communications€revolution.€ÏLet€me€suggest€that€this€area,€just€like€the€competitionÏarea€and€just€like€our€administrative€side,€is€reallyÏchanging€because€of€convergence.€€The€needs€of€consumers€areÐ  +(&0 Ðchanging€because€of€competition.€€Ìà ` àà ¸ àThe€underlying€goals€and€values,€really,€of€theÏwhole€American€notion€of€communication,€however,€seem€toÏremain€the€same.€€That€is,€there€is€a€notion€in€this€countryÏof€ubiquity.€€There€is€a€notion€about€universality,€if€weÏlook€at€telephone€service,€if€we€look€at€free€over€the€airÏbroadcast.€€There€is€a€notion€that€we€want€to€ensure€thatÏthese€opportunities€reach€everyone.Ìà ` àà ¸ àSomeone€said,€I€think€it€was€Larry,€that€if€theÏmarket€works€everyone€will€see€the€benefits.€€Yet,€we€sitÏwith€various€consumer€groups€who€raise€their€hand€and€say,Ï"Not€me€yet."€€What€do€we€do€about€that?€€Should€we€doÏanything?€€Does€government€have€a€role,€does€it€not?€€WhatÏis€the€role€of€industry?€€What€is€the€role€of€the€consumerÏgroups€themselves€with€respect€to€these€issues?€€Ìà ` àà ¸ àWe've€heard€a€lot€about€rural€America.€€We€hear€aÏlot€about€innercity€America.€€We€hear€a€lot€about€folks€onÏNative€American€lands€who€have€40€percent€telephoneÏpenetration.€€We€hear€a€lot€about€folks€who€have€access€toÏthe€internet€and€those€who€don't.€€We€hear€a€lot€about€theÏdisabled€community€who€doesn't€yet€have€full€access€to€allÏour€technologies.€€So€the€question€becomes,€"What,€ifÏanything,€is€the€role€of€the€FCC,€of€government€generallyÏand€the€FCC€specifically€in€this€area?"Ìà ` àà ¸ àWe've€tried€to€list€a€couple€of€things€that€weÐ  +(&0 Ðthink€are€core€to€the€mission€and€we€certainly€invite,€now,Ïyour€comments€on€those.Ìà ` àà ¸ àAl,€may€I€start€with€you?Ìà ` àà ¸ àMR.€SONNENSTRAHL€(through€an€interpreter):€€IÏbelieve€that€„„€again,€my€name€is€Al€Sonnenstrahl€from€theÏConsumer€Action€Network.€€Ìà ` àà ¸ àI€believe€that€the€FCC€should€expand€their€roleÏand€work€with€other€federal€agencies€that€may€need€moreÏinvolvement€in€interagency€efforts€because,€for€example,Ïaccess€to€information€is€more€and€more€important€in€today'sÏworld.€€But,€each€agency€has€different€responsibilities€andÏmany€jurisdictions€involved.€€For€example,€with€theÏDepartment€of€Education€their€responsibilities€for€educationÏof€children,€especially€people€with€disabilities,€DepartmentÏof€Education€has€a€responsibility€to€ensure€that€everyÏdisabled€child€has€equal€access€to€information,€depending€onÏhow€they€are€able€to€monitor€how€up„to„date€the€area€ofÏtechnology€is€for€that€child.Ìà ` àà ¸ àMany€deaf€children€are€lost€in€a€mainstreamÏprogram€because€the€school€systems,€in€their€particularÏdistricts,€don't€have€equal€access€to€providing€informationÏto€people€with€hearing€loss.€€It€may€be€that€the€FCC€shouldÏbe€more€involved€in€that€area.Ìà ` àà ¸ àCHIEF€OF€STAFF€BROWN:€€Thank€you.€Kofi,€we€willÏhear€from€you.Ð  +(&0 Ðà ` àà ¸ àMR.€OFORI:€€Good€morning.€€My€name€is€Kofi€Ofori.€ÏI€am€here€today€representing€the€Black€CollegeÏCommunications€Association,€a€consortium€of€38€schools'Ïcommunications€at€historically€black€colleges€andÏuniversities.€€ññà€(#(#K(#àññÌà ` àà ¸ àI€see€a€lot€of€familiar€faces€in€the€room.€€It€isÏa€pleasure€to€be€back€here€again.€€At€the€outset€I€just€wantÏto€make€some€comments€about€this€fundamental€thrust€towardsÏreliance€upon€marketplace€forces.€€Ìà ` àà ¸ àThe€Commission€has€said€that€it€wants€to€achieveÏcompetition,€in€other€words,€give€consumer€choices,€which€isÏfine,€at€the€same€time€it€says€it€wants€to€have€ubiquitousÏaccess,€particularly€in€the€area€of€advanced€communicationÏservices.€€I€think€the€Commission€needs€to€continue€to€thinkÏabout€again€whether€these€dual€goals€of€consumer€choice€andÏubiquitous€access€can€be€achieved€only€by€relying€uponÏmarketplace€forces€to€achieve€that.€€There€is€no€evidenceÏthat€solely€relying€upon€the€marketplace€will€achieveÏubiquitous€access,€particularly€in€the€area€of€advancedÏcommunications€concerns.Ìà ` àà ¸ àMore€to€specific€interests€of€the€Black€CollegeÏCommunications€System,€Dr.€Dates€was€here€earlier€thisÏmorning€and€made€some€points€that€pertain€to€organizationalÏstructure.€€I€wanted€to€read€a€proportion€of€our€preparedÏremarks€that€address€this€session€three.Ð  +(&0 Ðà ` àà ¸ à€"The€Black€College€Communications€AssociationÏapplauds€the€Commission's€commitment€to€promotingÏopportunities,€to€expand€direct€participation€in€existingÏand€future€communications€businesses,€as€stated€in€SectionÏC„2€of€the€Draft€Strategic€Plan.€€However,€such€a€commitmentÏis€empty€if€the€Commission€neglects€to€identify€funds€toÏcomplete€Addoran€studies€in€order€for€affirmative€actionÏprograms€to€withstand€judicial€scrutiny."Ìà ` àà ¸ àSo€we€feel€it€is€very€important€that€theÏCommission,€if€it€is€really€serious€about€achieving€thisÏobjective€in€terms€of€access€on€a€representation€for€allÏAmericans€that€it€must€complete€these€Addoran€studies.Ìà ` àà ¸ àBCCA€also€believes€that€the€key€policy€initiativesÏunder€Section€C„2€should€be€amended€to€require€broadcastersÏand€telecommunications€firms€to€identify€steps€that€theyÏhave€taken€to€overcome€the€digital€divide€that€exists€inÏhigher€education,€particularly€at€colleges€and€universitiesÏthat€supply€them€with€the€vast€majority€of€minority€studentsÏwith€degrees€in€mass€communications,€film,€and€journalism.Ìà ` àà ¸ àSixty€percent€of€the€African€Americans€graduatingÏwith€degrees€from€communication€programs€attend€HBCUs.€ÏHowever,€when€we€compare€the€resources€of€schools'Ïcommunications€established€by€HBCUs€with€the€resources€ofÏthe€white€schools'€communications€we€find€vast€differencesÏthat€materially€undermine€the€ability€of€black€students€toÐ  +(&0 Ðcompete€in€the€work€force.Ìà ` àà ¸ àIn€a€truly€competitive€environment€one€set€ofÏcompetitors€cannot€be€handicapped€merely€because€they€cannotÏafford€to€attend€a€school's€communication€that€offers€theÏbest€in€terms€of€information€technology€and€endowed€faculty.€ÏThe€Black€College€Communications€Association€is€taking€stepsÏto€overcome€the€digital€divide€that€exists€in€its€notes.€ÏOur€annual€video€conference€that€will€be€held€October€27€ofÏthis€year€will€address€many€of€these€issues.€€We€are€proudÏof€the€fact€that€Chairman€Kennard€has€agreed€to€speak€atÏthis€conference.Ìà ` àà ¸ àHowever,€our€work€cannot€be€done€alone,€withoutÏthe€help€of€the€private€sector.€€Although€there€are€manyÏways€in€which€the€private€sector€can€be€of€assistance€thereÏare€two€that€are€very€significant.€€The€private€sector€canÏassist€BCCA€member€institutions€in€their€efforts€to€ensureÏthat€course€offerings€keep€pace€with€the€dynamic€changesÏthat€have€occurred€in€the€marketplace.Ìà ` àà ¸ àOriginally€established€in€the€early€1970s,€theÏcurricula€at€BCCA€member€institutions€must€be€revised€toÏreflect€the€convergence€that€has€taken€place€in€technologyÏin€the€marketplace€over€the€past€30€years.Ìà ` àà ¸ àSecond,€there€is€a€need€for€the€private€sector€toÏhelp€underwrite€the€cost€of€suitable€information€technologyÏthat€will€enable€BCCA€faculty€and€students€to€enjoy€theÐ  +(&0 Ðbenefits€of€distance€learning€and€to€engage€in€collaborativeÏresearch€and€studies.Ìà ` àà ¸ àAgain,€we€applaud€the€steps€the€Commission€hasÏtaken€in€the€past€and€plan€to€take€in€the€future€in€terms€ofÏpromoting€inclusion€in€the€communications€arena.€€However,Ïwe€urge€the€Commission€not€to€lose€site€of€the€fact€thatÏhigher€education€plays€an€important€role€in€terms€ofÏsupplying€the€marketplace€with€people€that€have€the€skillsÏand€talents€to€make€America€competitive.€Ìà ` àà ¸ àIf€there€are€insufficiencies€in€the€sector€ofÏhigher€education€then€there€will€be€insufficiencies€in€theÏmarketplace,€insufficiencies€that€will€ultimately€detractÏfrom€the€ability€of€industry€to€be€ethnically€diverse€and€toÏserve€the€growing€multi„ethnic€market.Ìà ` àà ¸ àIn€closing,€I€believe€that€the€Commission€isÏbreaking€new€ground€that€will€set€the€stage€for€theÏregulatory€framework€of€the€future.€€EEO€enforcement€andÏstrategic€partnerships€between€private€sector€and€higherÏeducation€are€two€cornerstones€that€I€believe€should€be€partÏof€the€regulatory€future.€Ìà ` àà ¸ àThank€you.Ìà ` àà ¸ àCHIEF€OF€STAFF€BROWN:€€Thank€you.€€Peter.Ìà ` àà ¸ àMR.€CRAMTOM:€€Thank€you.€€Peter€Cramtom,ÏUniversity€of€Maryland,€still.Ìà ` àà ¸ à(Laughter.)Ð  +(&0 Ðà ` àà ¸ àFirst,€I€wanted€to€make€one€comment€related€toÏsomething€that€was€said€earlier,€just€to€clarify.€€I€thinkÏit€is€clarification,€anyway,€on€something€that€Steve€said.ÌThat€is,€when€measuring€the€success€of€the€reducedÏregulation€one€simply€should€not€look€at€the€FCC€budget€toÏsee€if€that€has€gone€down.€€That€narrow€view€would€beÏtotally€inappropriate.€€For€example,€it€might€be€much€moreÏcostly€to€promote€competitive€markets€than€it€is€to€regulateÏa€monopolist.€€So€one€really€has€to€look€at€the€bang€for€theÏbuck.€€Every€dollar€the€FCC€is€spending,€how€much€value€areÏwe€getting€for€that.€€My€guess€is€if€the€FCC€does€its€jobÏwell€it€is€going€to€be€tremendously€high,€much€higher€thanÏmost€any€company€could€produce,€if€they€are€doing€their€jobÏreally€well.€€That€is€what€I€hope€the€FCC€will€do€and€I'mÏconfident€they€are€going€to€work€hard€to€do€that.Ìà ` àà ¸ àNow,€on€the€issue€of€opportunities€for€all€let€meÏcomment€on€Larry's€point€that€if€markets€work€the€rest€willÏfollow.€€I€believe€that€that€really€should€be€your€guidingÏprinciple.€€I€think€there€is€a€lot€of€evidence€to€suggestÏthat€that€is€successful.€€It€may€take€a€little€while€for€itÏto€trickle€down€to€everybody€but€it€eventually€will.€ÏDigital€technologies€allow€it€trickle€much€much€faster.€€SoÏthat's€why€getting€the€markets€right€really€is€the€key€step.Ìà ` àà ¸ àNow,€getting€the€markets€right€might,€as€I€said,Ïinvolve€„„€because€these€are€not€trivial€markets€to€getÐ  +(&0 Ðright€„„€it€may€involve€a€substantial€expenditure€ofÏresources€on€the€part€of€the€FCC€but€they€have€to€beÏextremely.€€These€would€be€resources€to€reduce€entryÏbarriers,€to€reduce€transaction€costs€in€the€markets,€toÏprovide€and€define€property€rights€clearly.€€The€FCC€must€beÏvery,€very,€very€careful€when€it€steps€in€thinking€that€itÏis€doing€something€to€help€some€particular€group€because€ifÏthey€don't€„„€I€think€it€is€great€and€necessary€to€step€inÏand€help€particular€groups€on€occasions.€€Ìà ` àà ¸ àThere€are€good€ways€to€do€it€and€bad€ways€to€doÏit.€€The€problem€is€usually€when€you€step€in€you€do€it€theÏwrong€way.€€For€example,€to€be€specific,€in€spectrum€optionsÏtwo€instruments€were€used.€€Well,€there€were€set€asides€forÏsmall€businesses,€then€there€was€also€bidding€products€andÏinstallment€payments.€€Take€the€C„block€auctions,€smallÏbusinesses,€they€need€installment€payments,€one€might€think.€ÏYet,€a€set€aside€action€that€is€restricted€to€smallÏbusinesses€it€is€not€at€all€clear€you€need€to€give€thisÏtargeted€group€something€that€is€already€a€set€aside€to€theÏgroup,€but€what€was€the€consequence€of€the€installmentÏpayments?€€Ìà ` àà ¸ àBasically,€the€rewards€didn't€go€to€the€smallÏbusiness€group,€they€went€to€bankruptcy€attorneys.€€MoreÏthan€anybody€else€that€is€the€only€group€that€benefitted.€ÏAt€whose€expense?€€Everybody's€expense.€€Consumers€expense,Ð  +(&0 Ðlargely.€€Most€of€the€C„block€spectrum€remains€unused€orÏunderdeveloped€because€installment€payments€were€used€toÏhelp€that€particular€group,€the€small€businesses.Ìà ` àà ¸ àNow,€in€contrast,€bidding€credits€workedÏwonderfully.€€Bidding€credits€are€a€subsidy€to€new€entrants.€ÏThat€is€reducing€entry€barriers€and€that€is€a€tremendousÏvehicle€to€direct€subsidy€to€new€entrants.€€So€I€applaud€theÏFCC€for€using€those€directed€measures€that€are€consistentÏwith€markets.€€Using€measures€that€are€inconsistent€withÏmarkets€is€simply€bad€economics.Ìà ` àà ¸ àCHIEF€OF€STAFF€BROWN:€€Thank€you.€€Jenell.Ìà ` àà ¸ àMS.€TRIGG:€€Thank€you,€Kathy.€€S.€Jenell€Trigg,Ïwith€the€Telecom€Opportunity€Institute.€€By€the€way,€we€sayÏTTOI€for€short.Ìà ` àà ¸ àThis€section€of€the€strategic€plan€is€veryÏinteresting€to€us,€particularly€since€we€are€a€non„profitÏcorporation,€dedicated€to€promoting€career€opportunities€inÏtelecommunications€for€minorities,€women,€and€at€risk€youth.€ÏWe€are€also€helping€to€bridge€the€digital€divide€across€theÏcountry€for€providing€internet€computer€use€trainingÏcourses.Ìà ` àà ¸ àInteresting€that€you€mentioned€C„block.€€I€have€myÏown€opinion€on€C„block,€but€the€underlying€concern€is,€ofÏcourse,€access€to€capital€for€small€business,€minorities,Ïand€women.€€In€order€to€address€specifically€or€narrowlyÐ  +(&0 Ðtailored€if€we€need€to€address€particularly€minority€andÏwomen€ownership,€I'm€surprised€that€the€report€did€notÏmention€some€of€the€external€factors€in€terms€of€some€of€theÏlegal€obstacles€in€addressing€minority€ownership,Ïparticularly.€Ìà ` àà ¸ àI€am€also€surprised€that€the€report€did€notÏdiscuss€its€efforts€to€do€an€Addoran€Study,€which€has€beenÏlong€coming,€a€full€blown€Addoran€Study€that€looks€at€theÏlegal€predicate,€looks€at€the€factual€and€the€anecdotal€andÏstatistical€evidence€to€promote€minority€businesses.€€ThatÏis€absolutely€necessary.Ìà ` àà ¸ àIf€you€are€really€going€to€address€opportunitiesÏfor€all€it€is€important€to€have€a€diverse€entrepreneurÏopportunity€for€minorities€and€women,€not€just€because€it€isÏpolitically€correct€but€because€it€is€economically€correct.€ÏSmall€businesses,€minorities€businesses,€women€ownedÏbusinesses€serve€niche€markets€that€no€one€else€reaches.€ÏThey€serve€under€served€markets€that€no€one€else€reaches€orÏfinds€economically€conducive€to€do€so.Ìà ` àà ¸ àSo€the€Commission€has€an€obligation,€yes,€indeed,Ïto€promote€small€minority€and€women,€but€unless€you've€gotÏthe€actual€data€to€support€any€regulation,€that€is€„„€and€IÏhate€to€use€the€term€"race€based"€„„€but€you've€got€to€haveÏan€Addoran€Study.€€I€would€love€to€see€the€strategic€planÏinclude€steps€for€an€Addoran€Study.€€If€indeed€it€is€costÐ  +(&0 Ðprohibitive,€and€I€know€it€is€because€I've€done€some€of€theÏresearch€when€I€was€here€at€the€FCC,€then€let's€look€at€someÏof€that€interagency€relationships.€€Let's€look€at€a€jointÏpartnership,€possibly€with€the€SBA€and€Department€ofÏCommerce€and€NTIA€to€do€a€full€blown€telecommunicationsÏstudy€on€entry€barriers€for€minorities€and€women.Ìà ` àà ¸ àSo€I€encourage€the€Commission€to€look€at€theÏAddoran€Studies,€some€of€the€minority€and€women€issues,Ïeconomic€issues,€more€so€access€to€capital,€in€this€overallÏplan.Ìà ` àà ¸ àCHIEF€OF€STAFF€BROWN:€€Thank€you.€€Pam.Ìà ` àà ¸ àMS.€STEWART:€€Pam€Stewart€with€Maryland€Relay.€Ìà ` àà ¸ àThose€of€us€in€relay€would€just€love€to€see€relayÏbe€totally€competitive€issue€where€it€didn't€have€to€beÏregulated€but€it€is€just€not€there€yet.Ìà ` àà ¸ àCompetition€is€extremely€limited€in€the€TRS€areaÏbecause€the€existing€market€is€very€small,€but€the€potentialÏmarket€is€extremely€large.€€Although€most€of€us€don't€knowÏor€do€business€with€a€deaf€or€heard€of€hearing€person,€justÏabout€all€of€us€know€someone€who€has€hearing€loss€whoÏdoesn't€use€the€phone€anymore€or€misunderstands€or€asks€youÏto€make€phone€calls€for€them.€€These€are€all€potential€relayÏusers.Ìà ` àà ¸ àTo€get€these€people€to€use€the€relay€and€then€makeÏit€a€potential€viable€market€for€competition€to€open€up€weÐ  +(&0 Ðwould€like€the€FCC€to€get€involved€with€some€nationalÏadvertising.€€We€cannot€depend€on€the€phone€companies,€theÏproviders€themselves,€to€do€it€because€it€is€a€competitionÏissue€with€them.Ìà ` àà ¸ àIf€we€could€have€the€FCC€do€national€advertisingÏto€let€every€American€out€there€know€that€when€they€startÏlosing€hearing€or€start€losing€the€ability€to€speak€theyÏdon't€have€to€stop€doing€business€with€everybody€else,€thatÏthey€can€use€relay,€that€they€have€it€there€to€use,€then€itÏwill€enlarge€the€market€and€make€it€a€competitive€marketÏthat€phone€companies€will€want€to€get€in€and€not€have€to€beÏregulated€and€told€to€get€in.Ìà ` àà ¸ àCHIEF€OF€STAFF€BROWN:€€I€noted€that€Maryland€RelayÏactually€had€a€bunch€of€PSAs€and€some€spots.€€I€just€noticedÏthem€on€the€TV€recently.€€Was€that€funded€by€you,€the€state,Ïby€whom?Ìà ` àà ¸ àMS.€STEWART:€€Yes,€we€did.€€Maryland€is€very€Ïproactive€in€advertising.€€In€our€RFP€we€put€money€aside.€ÏMaryland€is,€by€far,€the€minority€in€that.€€Most€statesÏrelays€are€tucked€in€a€little€tiny€place€in€the€PFC€andÏsomebody€has€this€as€100th€of€their€job.€€As€you€know,€thatÏkind€of€thing€doesn't€get€„„Ìà ` àà ¸ àCHIEF€OF€STAFF€BROWN:€€There€it€was€on€our€TV.Ìà ` àà ¸ àMS.€STEWART:€€Right,€it€is€a€very€important€choiceÏthat€our€boss,€Kirk€Becker,€decided€that€this€has€to€beÐ  +(&0 Ðsomething€that€is€done€in€Maryland€because€we€do€have€anÏextremely€large€deaf€and€hard€of€hearing€community€here€inÏMaryland.€€I'm€sure€you€are€all€aware€of€that,€with€GalludetÏbeing€right€here.€€A€lot€of€people€come€from€all€over€theÏworld€and€stay€in€the€Maryland/D.C.€area.Ìà ` àà ¸ àThe€other€thing€that€we€think€is€very€important€isÏthe€education€of€TRS€for€the€general€public.€€Again,€to€makeÏthis€so€that€it€is€a€viable€option€to€all€those€people€whoÏhave€hearing€loss€through€aging€and€now€also€with€our€youngÏpeople€with€the€trends€in€listening€to€music.€€I'm€sureÏyou've€all€stood€on€a€corner€and€had€your€heart€go€beatingÏbecause€somebody€with€all€of€their€windows€up€has€theirÏmusic€so€loud€that€it€is€affecting€you€as€they€drive€by.€ÏWell,€it€is€also€affecting€their€ears.€€So€we're€going€toÏhave€a€very,€very€large€community€here€that€has€significantÏhearing€loss.€€There€have€been€a€lot€of€studies€done€onÏthat.Ìà ` àà ¸ àThe€existing€technology€and€enhancements€that€areÏaccessible€for€everybody€else€right€now€on€your€standardÏphone€are€not€available€in€most€TRS€systems.€€Just€littleÏthings€like€carrier€of€choice,€being€able€to€pickup€any€10„¼10„whatever€number€can't€be€done€through€relay€right€now.€€IÏthink€Caller„ID,€we€can't€have€Caller„ID€because€the€anty€isÏnot€passed€from€the€incoming€caller€to€the€outgoing€partyÏright€now.€€Just€things€that€we€all€take€for€granted,€aÐ  +(&0 Ðperson€is€paying€for€on€their€home€phone€for€a€regularÏstandard€phone€call€but€they€cannot€get€it€through€TRS.Ìà ` àà ¸ àDue€to€the€current€TRS€market€technical€changesÏenhancements€to€TRS€platforms€are€not€cost€effective€andÏtherefore€they€are€not€undertaken€without€mandatory€FCCÏregulations.€€So€we€would€just€like€to,€again,€stress€thatÏyou€guys€really€keep€involved€in€that€and€help€us€get€theÏword€out€to€everybody€out€there€so€that€eventually€TRS€willÏbe€its€own€market€and€phone€companies€will€want€to€getÏinvolved€in€it€because€it€is€a€profitable€business.Ìà ` àà ¸ àCHIEF€OF€STAFF€BROWN:€€Thank€you,€Pam.€€Joanne.Ìà ` àà ¸ àI'm€Joanne€Kumekawa€with€The€Office€for€theÏAdvancement€of€Telehealth.€€Thank€you€for€letting€me€beÏhere.€€I'm€going€to€address€some€of€the€things€that€KathyÏactually€talked€about€at€the€beginning€of€this€section.Ìà ` àà ¸ àWe€try€to€provide€healthcare€services€to€theÏunderserved.€€Those€folks€are€the€ones€Kathy€talked€aboutÏoriginally.€€I€mean€people€on€tribal€lands,€folks€in€insularÏareas€like€the€Pacific€and€people€in€rural€areas.€€These€areÏthe€people€who€have€not€had€competition€come€to€their€area.€Ìà ` àà ¸ àWe€provide€health€services,€using€advancedÏtechnologies€and€computer€technologies€but€without€theÏinfrastructure€it€is€very€difficult€to€not€only€provide€theÏadvance€telecommunications€technologies€but€also€theÏhealthcare.Ð  +(&0 Ðà ` àà ¸ àMost€of€these€folks€don't€have€access€to€basicÏhealthcare.€€So€when€you€are€talking€about€getting€theseÏservices€out€to€these€folks€you€are€also€talking€about€theirÏability€to€access€not€just€TV€or€telephone€but€also€accessÏto€basic€healthcare.Ìà ` àà ¸ àAgain,€like€everybody€else,€we€really€want€to€workÏclosely€with€the€FCC,€particularly€in€the€universal€serviceÏarea€because€not€only€are€you€going€to€get€telephones€outÏthere€but€you're€going€to€get€diagnoses€for€a€heart€attack.€ÏSome€of€these€folks€have€to€travel€300€miles€just€to€see€aÏnurse.€€With€advanced€communications€they€can€do€aÏconsultation€by€going€to€their€local€clinic,€which€is€a€lotÏcloser,€and€it€can€save€their€lives.Ìà ` àà ¸ àMy€aunt,€for€example,€has€to€be€Medivaced€out€ofÏHela,€Hawaii€to€the€Big€Island€in€the€Pacific.€€It€is€notÏthat€it€is€a€really€rural€area€„„€and€I've€lived€there€„„Ïbut€most€of€the€specialists€are€off€island€and€it€can€meanÏlife€or€death€for€these€folks.€€So€having€the€access€to€theÏtelecommunications€means€more€than€just€a€phone€call€to€yourÏmom.Ìà ` àà ¸ àSo,€as€Kathy€knows,€we€have€a€lot€of€issues€aboutÏhow€universal€service€can€help€these€particular€areas€andÏprovide€them€either€with€discounts€for€healthcare€or€justÏfunding€for€infrastructure.Ìà ` àà ¸ àCHIEF€OF€STAFF€BROWN:€€Thank€you,€Joanne.€€Al,€IÐ  +(&0 Ðthink€you're€up.Ìà ` àà ¸ àMR.€SONNENSTRAHL:€€Again,€I'm€Al€Sonnenstrahl€fromÏConsumer€Action€Network.€€I€would€like€to€reinforce€some€ofÏthe€comments€that€Pam€Stewart€had€just€made€in€regards€toÏrelay€services.Ìà ` àà ¸ àI€notice€in€the€report€on€number€17€of€theÏAppendix€D€that€it€mentions€the€provision€of€internationalÏrelay€services.€€Here€it€also€talks€about€the€interstateÏrelay€services€and€foreign€relay€services€that€are€aÏwonderful€approach.€€But,€my€concern€is€more€in€terms€of€theÏquality€of€the€relay€services.Ìà ` àà ¸ àWe€depend€on€intrastate€relay€services€in€realityÏand€there€is€no€competition€within€intrastate€relayÏservices.€€That€causes€a€lot€of€variation€in€the€quality€ofÏservice€provided€throughout€the€country.€€For€example,Ïduring€Hurricane€Floyd€the€Florida€Relay€Service€was€closedÏfor€a€few€days€and€the€deaf€community€had€no€access€toÏinformation€at€all.Ìà ` àà ¸ àFlorida€was€one€of€many€states€that€had€theÏmonopoly€of€relay€services.€€There€is€no€way€to€get€anotherÏrelay€service€for€an€intrastate€service€there.€€So€whicheverÏend€you€are€going€for,€through€an€interstate€relay€service,Ïwhich€is€being€regulated€by€the€state€or€an€intrastate,€byÏthe€FCC,€as€Mr.€Stout€mentioned,€we€need€to€develop€strongerÏties€with€those€states'€PUCs€in€order€to€make€sure€that€theÐ  +(&0 Ðrelay€services€are€standardized€throughout€the€country€andÏare€consistent.Ìà ` àà ¸ àI€would€encourage€competition€for€the€intrastateÏrelay€services.€€Amen.Ìà ` àà ¸ àCHIEF€OF€STAFF€BROWN:€€Thank€you.€€One€thing€aÏforum€like€this€may€do,€and€this€I€think€goes€to€any€numberÏof€consumer€issues,€is€to€focus€on€the€issue€Peter€broughtÏup,€what€are€the€market€based€kinds€of€techniques€that€canÏbe€used€to€address€these€very€real€consumer€problems.€€OneÏof€the€things€I€would€like€to€suggest€to€all€of€you,€and€youÏdon't€need€us€from€the€FCC€sitting€here€to€do€it,€is€to€tryÏand€engage€with€each€other,€consumer€with€industry€andÏperhaps€some€of€the€economists€and€folks€who€understandÏthese€mechanisms,€to€come€up€with€an€approach€that€may€work.Ìà ` àà ¸ àRelay€is€a€very,€I€think,€wonderful€example€of€aÏsystem€that€got€put€in€place€one€way,€that€is€it€was€veryÏexclusively€put€into€place€for€one€particular€group€and€hasÏshown€itself€to€be€highly€beneficial,€not€to€just€that€oneÏgroup€but€to€many€now,€where€there€have€been€some€attemptsÏto€bring€competition€and€where€there€have€been€some€clearÏbarriers.Ìà ` àà ¸ àIt€would€be€a€wonderful€exercise,€in€my€view,€forÏfolks€to€sit€down€and€think€through€that€model€and€how€itÏcan€increase€and€enhance€consumer€benefits.€€Just€anÏexample,€I€think,€of€the€kinds€of€things,€at€least,€we€haveÐ  +(&0 Ðbeen€thinking€about€and€would€like€very€much€to€see€a€sortÏof€concerted€effort€by€the€constituent€groups€to€the€FCC.Ìà ` àà ¸ àLet€me€move€on€to€spectrum€management.€€It€is€theÏlast€of€the€areas.Ìà ` àà ¸ àOne€of€our€most€valuable€resources€in€this€countryÏis€our€airwaves.€€Many€of€our€advanced€technologies€areÏdependent€upon€use€of€those€airwaves.€€We€see€as€part€of€ourÏcentral€mission,€the€management,€at€least€on€the€commercialÏside€together€with€our€colleagues€over€at€NTIA€on€theÏgovernment€side€of€those€airways.€€Ìà ` àà ¸ àI€think€this€commission€has€led€the€world€inÏcoming€up€with€ways€to€ensure€that€we€have€a€moreÏcompetitive€market€through€use€of€the€airwaves.€€We€know€weÏhave€more€to€do.€€There€is€always€more€to€do.€€ParticularlyÏas€technology€changes€there€is€more€opportunity€to€doÏdifferent€things.Ìà ` àà ¸ àWe€have€listed€as€our€goals€here€to€create€moreÏefficient€spectrum€markets€and€to€increase€the€amount€ofÏspectrum€available.€€So€feedback€on€that,€please.€€Rich.Ìà ` àà ¸ àMR.€BARTH:€€Thank€you,€Kathy.€€Perhaps€it€isÏappropriate€that€since€Com€Daily€listed€me€as€the€firstÏspeaker€of€the€day,€because€alphabetically€I€cam€first€onÏthe€list,€that€I'm€the€last€speaker€of€the€day€because€theÏspectrum€management€issue€is€the€one€that€Motorola,€myÏemployer,€feels€most€passionate€about€with€respect€to€thisÐ  +(&0 Ðparticular€agenda.Ìà ` àà ¸ àI'd€like€to€begin€by€making€sort€of€some€broadÏcomments€about€your€next€steps€forward€with€respect€toÏimplementing€the€report,€drop€down€to€some€specific€processÏproblems€with€respect€to€spectrum€management,€and€thenÏhighlight€one€issue,€a€key€issue€for€us,€on€spectrumÏmanagement€that€we€believe€needs€some€focus€in€theÏCommission's€deliberations.Ìà ` àà ¸ àAt€the€broadest€level€we€have€heard€someÏdiscussion€today€of€concerns€regarding€cynicism€in€theÏimplementation€of€a€plan€that€appears€to€be€this€bold€andÏthis€far€reach.€€We€have€heard€some€concerns€about€theÏbureaucracies€taking€captive€those€who€want€to€implementÏsome€of€the€very€positive€changes€here.€€I€would€suggestÏthat€the€Commission€does€have€some€serious€process€problemsÏthat€really€should€be€addressed€along€the€way€toÏimplementing€the€plan.€€Ìà ` àà ¸ àI€think€that€industry€is€not€particularlyÏattracted€to€a€Commission€and€I'm€sure€the€Commission€itselfÏis€not€particularly€pleased€with€some€of€the€processÏproblems€that€in€fact€start€at€the€very€top.€€Ìà ` àà ¸ àWhen€there€are€votes€taken€at€agenda€meetings€onÏitems€that€are€supposedly€written€and€then€it€takes€months,Ïliterally,€to€get€those€items€out€you€start€to€put€intoÏquestion€the€Commission's€procedures€and€processes€in€goingÐ  +(&0 Ðabout€its€work,€its€transparency€that€you€referred€toÏearlier€and€the€important€need€for€that.Ìà ` àà ¸ àI€think€that€the€Commission€needs€to€examine,€atÏits€most€fundamental€level,€the€procedures€and€processesÏthat€it€is€using.€€Interestingly,€Motorola€has€adoptedÏinternally€a€process€that€the€U.S.€Government€has€the€focusÏand€spotlight€on€and€that,€indeed,€is€the€Baldridge€criteriaÏfor€performance€excellence.€€€I€think€that€the€CommissionÏwould€do€well€in€its€seeking€to€implement€these€fairly€boldÏand€dramatic€changes€if€it€stepped€back,€took€a€breath,€andÏlooked€at€how€it€is€going€to€implement€them,€rather€thanÏbusy€itself€with€trying€to€do€so€right€off€the€bat.Ìà ` àà ¸ àThe€Baldridge€criteria€include€some€fundamentalÏissues,€such€as€leadership€and€the€quality€of€the€leadershipÏthat€is€going€about€the€implementation€of€the€process€„„Ïwith€no€criticism€to€Mary€Beth€who€you€have€identified€asÏthe€leader€of€the€implementation€effort.Ìà ` àà ¸ àStrategic€planning,€the€metrics€that€severalÏpeople€have€identified€here€that€I€think€are€a€little€bitÏmissing.€€You've€got€time€tables€for€doing€things€but€notÏnecessarily€the€metrics€for€evaluating€where€you€are€todayÏwith€respect€to€your€effectiveness€at€implementing€thingsÏand€where€you€want€to€be€in€the€future.€€Ìà ` àà ¸ àIt€is€hard,€the€Baldridge€criteria€are€aboutÏresults€and€that€is€what€I€think€you€are€most€concerned€withÐ  +(&0 Ðis€the€results€with€implementing€your€plan.€€By€steppingÏback€again€and€going€after€more€rigorous€process€I€think€youÏwould€find€you'd€get€there€quicker,€which€you€have€heardÏmany€calls€for€today,€rather€than€the€five€year€plan,€andÏget€there€far€more€effectively.Ìà ` àà ¸ àThe€particular€arena€of€spectrum€management€IÏthink€is€one€that€causes€us€concern,€as€we€have€said€in€theÏen€banc€hearings€several€months€ago€and€I€would€reallyÏreiterate€today.€€You€have€in€the€Commission€a€process€forÏspectrum€management€that€is€excellent€insofar€as€how€far€itÏgoes,€which€is€to€the€bureau€chief€level.€€There€are€effortsÏthere€to€hammer€out,€almost€literally,€by€the€chair€of€yourÏSpectrum€Committee€internally,€efforts€by€Dale€Hatfield€toÏtry€to€resolve€the€myriad€of€spectrum€issues€that€come€upÏbefore€the€Commission€on€a€day„to„day€basis,€questions€thatÏaffect€the€competitiveness€of€various€segments€ofÏparticularly€the€wireless€industry.Ìà ` àà ¸ àThat€process€does€not€go€far€enough.€€Once€everyÏseveral€year€en€bancs€on€the€issue€of€spectrum€managementÏthat€engage€the€chairman€and€the€other€four€commissionersÏare€very€helpful€but€every€couple€of€years€is€not€theÏfrequency€that€those€individuals€need€to€take€up€some€ofÏthese€serious€issues.€Ìà ` àà ¸ àSo€we€said€it€back€in€April,€we've€had€anÏexcellent€round€of€meetings€with€some€of€the€key€staff€andÐ  +(&0 Ðhave€gotten,€I€would€suggest,€quite€a€bit€of€agreement€thatÏsomething€more€needs€to€be€done.€€But€particularly€in€theÏinterim€period€between€now€and€when€you€finally€get€to€someÏsort€of€nirvana,€new€state€of€organization€that€resolvesÏissues€more€effectively€I€would€submit€that€you€quickly€needÏto€implement€a€mechanism,€a€spectrum€council€at€a€higherÏlevel.€€A€spectrum€commissioner€was€suggested€by€one€of€theÏFCC€staff,€just€like€you€have€a€defense€commissioner,€anÏinternational€commissioner,€a€Y2K€commissioner.€€A€spectrumÏcommissioner€has€been€used€in€the€past€effectively€by€theÏFCC€and€I€think€should€be€considered€again.Ìà ` àà ¸ àThe€most€important€issue€that€this€new€body,€IÏthink,€could€take€up€is€the€one€of€flexibility€in€spectrumÏmanagement.€€The€word€"flexibility"€is€used€by€everyone€veryÏfreely€and€everyone€who€uses€the€word€with€respect€toÏspectrum€management€has€a€different€meaning€attached€to€it.€ÏIt€allows€for€a€great€deal€of€apparent€agreement€by€everyoneÏas€to€the€meaning€of€the€word,€when€indeed€there€is€not€aÏlot€of€agreement€with€the€meaning€of€the€word.Ìà ` àà ¸ àI'd€like€to€draw€an€analogous€situation€to€anotherÏMotorola€issue,€which€is€a€$1.5€billion€investment,€notÏdissimilar€to€many€that€are€made€in€the€wireless€industryÏbut€in€this€case€it€is€our€$1.5€billion€investment€in€aÏsemiconductor€facility€in€China.€€We€could€send€over€theÏbuilding€equipment,€we€could€send€over€all€the€semiconductorÐ  +(&0 Ðassembly€pieces€of€equipment€that€costs€hundreds€of€millionsÏof€dollars€per€piece€and€we€could€send€back€to€China€the€200Ïexperts€that€we've€trained€to€manage€that€facility€and€giveÏthem€flexibility€to€build€semiconductor€chips.Ìà ` àà ¸ àI€suggest€if€we€did€that€it€would€be€akin€toÏburning€$1.5€billion€in€an€incinerator,€rather€than€settingÏup€a€facility€that€should€be€flexible€in€meeting€consumerÏand€customer€demands.Ìà ` àà ¸ àYou€send€in€a€construction€team€to€build€theÏbuilding€with€plans.€€You€send€in€the€technicians€to€put€theÏassembly€line€together.€€But€then€you€give€those€techniciansÏand€the€workers€on€the€line€enormous€flexibility€in€whatÏthey€produce,€how€they€produce€it,€buying€new€equipment€thatÏoffers€greater€productivity.Ìà ` àà ¸ àWhat€I'm€suggesting€is€flexibility€is€necessary€atÏa€certain€point€in€the€process€of€building€a€structureÏaround€which€people€can€make€investments€that€make€sense.€ÏAbsent€that€structure,€absent€some€sort€of€framework€thatÏcalls€for€some€sort€of€service€model€and€rules€for€spectrum,Ïyou€will€find€chaos€in€the€marketplace€that€will€put€us€backÏinto€the€kind€of€results€with€spectrum€utilization€of€theÏWCS€auctions.Ìà ` àà ¸ àThe€word€"flexibility"€is€critical.€€It€is€used€inÏthe€report€here,€and€it€is€used€in€a€fairly€controlledÏfashion€with€respect€to€the€other€issues€of€spectrumÐ  +(&0 Ðmanagement.€€But€to€us,€you€are€facing€imminent€decisions€onÏissues€such€the€allocation€of€spectrum€in€the€746€to€806Ïband€that€is€required€to€be€auctioned€in€the€near€term€and,Ïmost€likely,€is€going€to€be€required€by€Congress€to€beÏauctioned€next€year.€€Ìà ` àà ¸ àThere€is€no€reason€the€flexibility€can't€beÏdetermined€by€a€high€level€council€to€be€within€certainÏparameters.€€And€that€allocation,€to€certain€kinds€ofÏservices,€particularly€3G€and€private€mobile€services,Ïshouldn't€be€accomplishable€within€the€time€that€CongressÏwill€probably€allot€you.Ìà ` àà ¸ àAll€of€the€FCC€procedures€and€processes€don't€haveÏto€take€years€to€implement.€€Having€the€proper€framework€forÏdecision€making,€having€the€proper€framework€for€issues€suchÏas€flexibility€and€the€structure.€€I€think€the€CommissionÏcould€find€itself€far€more€effective€in€meeting€the€needs€ofÏall€of€the€marketplace€that€are€represented€in€this€roomÏtoday.€€Thank€you.Ìà ` àà ¸ àCHIEF€OF€STAFF€BROWN:€€Thank€you,€Rich.€€Pat.Ìà ` àà ¸ àMS.€MAHONEY:€€Thank€you,€Kathy.€€Pat€Mahoney,€withÏthe€Satellite€Industry€Association.€€The€SIA€supports€theÏCommission's€goal€for€increased€flexibility€and€mostÏdefinitely€in€spectrum€but€we€have€some€concerns.Ìà ` àà ¸ àListening€to€the€last€topic,€when€especiallyÏtalking€about€the€needs€of€populations€that€receive€noÐ  +(&0 Ðservice,€I'm€sure€I€don't€need€to€remind€people€thatÏsatellites€are€ubiquitous€and€can€reach€all€areas€andÏpopulations.€€They€need€to€be€commercially€viable€and€theyÏneed€spectrum€and€that's€why€the€Commission€has€to€considerÏsome€of€the€unique€aspects€of€satellites€and€satelliteÏlicensing€and€regulation.Ìà ` àà ¸ àThe€U.S.€is€responsible€for€the€health€of€theÏsatellite€industry€worldwide.€€The€U.S.€is€the€leader€of€theÏsatellite€issue€worldwide.€€Satellites€take€long€lead€timeÏto€construct;€they€have€incredible€investment€costs;€greatÏrisks;€and,€as€the€Commission€has€recognized,€auctions€won'tÏwork€in€the€satellite€industry,€particularly€for€global€orÏinternational€spectrum.€€Therefore,€the€questions€of€whatÏabout€when€you€have€shared€users€of€spectrum€„„€and€most€ofÏthe€use€of€spectrum€is€shared€„„€what€are€the€respectiveÏrights€of€the€users?€€What€happens€when€one€industry€got€itsÏspectrum€through€an€auction€but€the€other€user€of€theÏspectrum,€the€co„primary€user,€did€not,€especially€if€theÏone€that€did€not€get€its€spectrum€through€the€auctionÏprocess€needs€to€improve€or€update?Ìà ` àà ¸ àWhat€happens€when€one€industry€has€renewalÏexpectancy€and€the€others€do€€not?€€In€the€satelliteÏindustry,€historically,€there€is€no€concept€of€renewalÏexpectance€so€what€happens€at€the€end€of€a€system€when€theÏoperator€wants€to€continue€to€provide€service€and€wants€toÐ  +(&0 Ðimprove€to€keep€up€with€technology€that€has€grown€in€theÏintervening€years€but,€in€the€meantime,€there€are€users€ofÏthe€spectrum€for€other€purposes€that€obtained€their€spectrumÏfrom€auction€and€believe€that€any€new€use€of€the€spectrumÏwould€be€contrary€to€their€interests?Ìà ` àà ¸ àOne€other€concern€that€we€have€is€in€the€pursuitÏof€making€more€spectrum€available€that€the€Commission€not€beÏtempted,€and€we€think€the€Commission€is€tempted,€to€giveÏspectrum€to€services€that€can€be€auctioned,€because€moneyÏcan€be€generated€versus€allocating€it€for€satellites€whereÏthe€Commission€has€recognized€spectrum€cannot€be€auctioned.Ìà ` àà ¸ àFinally,€with€respect€to€globalization€and,Ïtowards€the€end€of€this€section,€where€the€CommissionÏspecifically€talks€about€the€need€to€build€regional€andÏglobal€acceptance€of€U.S.€spectrum€views€and€initiatives€byÏengaging€other€governments€and€organizations€in€constructiveÏdiscussions.Ìà ` àà ¸ àI€think€that€at€a€minimum€that€we€would€requestÏthat€that€be€rewritten.€€The€Commission€cannot€act€in€aÏvacuum€and€then€go€around€in€the€world€and€try€and€sell€itsÏposition€and€abdicate€that€the€rest€of€the€world€follow€itsÏposition.Ìà ` àà ¸ àThe€Commission€ought€to€be€working€with€otherÏadministrations€to€achieve€consensus€and€to€become€moreÏactive€in€the€ITU€and€other€regional€intergovernmentalÐ  +(&0 Ðorganizations€to€build€consensus.€€It€will€actually€lead€theÏCommission€to€what€it€wants€to€do,€but€I€certainly€wouldn'tÏsay€it€the€way€it€is€said€here.€€Thank€you.Ìà ` àà ¸ àCHIEF€OF€STAFF€BROWN:€€Let€me€remind€everyone€thatÏwe€will€have€„„€we€do€have€an€e„mail€address€set€up.€€ForÏthose€kind€of€very€specific€things,€I€suggest€that€you€giveÏit€to€us€in€writing€because€I€think€we€will€probably€be€ableÏto€absorb€it€better,€particularly€folks€who€are€goingÏanother€round€on€this.€€Peter.Ìà ` àà ¸ àMR.€CRAMTOM:€€Thank€you.€€Peter€Cramtom,ÏUniversity€of€Maryland.€€Ìà ` àà ¸ àFirst,€I€want€to€apologize€a€little€bit€that€soÏfar€when€auctions€are€mentioned€only€blemishes€have€beenÏmentioned.€€I€think€I've€heard€two,€which€I€think€is€all€theÏauction€blemishes€that€there€were,€the€C„block€and€WCS.€€SoÏwhen€one€is€looking€at€making€markets€work€better€one€shouldÏlook€at€what€has€happened€with€the€auction€program€as€aÏphenomenal€success€overall,€which€it€really€has€been.€€ItÏhas€brought€tremendous€value€to€every€consumer€in€the€UnitedÏStates€and€benefits€around€the€world.Ìà ` àà ¸ àSo€on€spectrum€management€policy,€this€is€a€veryÏdifficult€problem.€€So€more€spectrum,€yeah,€more€spectrum€isÏa€good€thing€but€the€timing€of€the€release€of€spectrum€isÏactually€a€serious€issue.€€WCS€is€a€good€example€of€that.€ÏIt€takes€time€to€build€the€structure€and€reduce€theÐ  +(&0 Ðuncertainties€and€have€the€technology€develop€so€thatÏinfrastructure€can€be€effectively€used€and€valued€byÏindustry.Ìà ` àà ¸ àIn€the€auction€program€one€of€the€things€that€canÏbe€further€developed€that€I€know€people€are€talking€about€isÏtwo„sided€auctions.€€Right€now€„„€so€far€the€FCC€has€been€inÏthe€business€of€selling€spectrum€licenses€but,€indeed,€thereÏare€lots€of€situations€where€there€are€incumbents€out€thereÏand€they€should€be€able€to€throw€their€spectrum€into€the€potÏand€sell€it€within€the€same€auction€so€bidders€would€haveÏthe€flexibility€to€move,€to€buy€or€sell,€depending€on€whatÏthe€marketplace€was€saying.Ìà ` àà ¸ àIn€terms€of€the€marketplace,€I€think€it€is€veryÏimportant€to€have€„„€when€deciding€on€allocations,€to€haveÏmarket„based€tests€whenever€possible.€€Kathy€was€talkingÏabout€devices€that€can€help€disadvantaged€groups€or€certainÏspecial€interests€that€aren't€well€served€by€simply€openÏcompetition.€€Well,€it€tends€to€be€those€instruments€thatÏare€market„based,€have€some€market„based€focus,€and€that€isÏthe€domination€of,€say,€bidding€credits€over€installmentÏpayments€or€even€set€asides.Ìà ` àà ¸ àI€agree€completely€with€Rich€on€flexibility,€thatÏisn't€just€everybody,€yeah,€go€do€whatever€you€want.€€TheÏstructure€is€needed,€at€least€in€probably€our€lifetimes.€ÏGranted,€down€the€road,€just€wide€open€space€andÐ  +(&0 Ðinstantaneous€real€time€spectrum€options€for€all€the€bandÏwidth€that's€there€is€going€to€be€the€thing€of€the€day,€butÏtoday€we€need€a€little€bit€more€structure€to€get€us€there.Ìà ` àà ¸ àCHIEF€OF€STAFF€BROWN:€€Thank€you,€Peter.€€I'mÏgoing€to€go€to€Michelle€and€then€Al€and€then€I'm€going€toÏwrap€up,€unless€somebody€else€tells€me€now€that€they€haveÏsomething€more€that€they€want€to€do.€€So,€Michelle,€can€I€goÏto€you?Ìà ` àà ¸ àMS.€FARQUAR:€€Michelle€Farquar,€speaking€simply€asÏa€former€bureaucrat€at€this€point.Ìà ` àà ¸ à(Laughter.)Ìà ` àà ¸ àCHIEF€OF€STAFF€BROWN:€€No,€bureau€chief.Ìà ` àà ¸ àMS.€FARQUAR:€€Bureau€chief.Ìà ` àà ¸ à(Laughter.)Ìà ` àà ¸ àA€couple€of€quick€points.€€First,€Kathy€had€askedÏearlier€about€the€convergence€model.€€I€think€spectrumÏmanagement€is€a€great€example€where€that€has€already€startedÏhappening€within€the€FCC€and€bureau€chiefs€and€bureau€staffÏhave€been€forced€to€work€together.€€Overall€the€process€hasÏdone€well,€it€keeps€improving€over€time,€I've€noticed.€€IÏthink€it€is€a€great€model€for€having€that€broaden€theÏcompetition€in€other€policy€areas.€€It€has€been€painful,€IÏthink,€but€it€can€work€and€should€work€and€I€think€it€willÏwork€better€once€the€bureau€staff€remove€those€industryÏoriented€hats€that€they€have€always€worn€in€the€past.Ð  +(&0 Ðà ` àà ¸ àThen€I€also€wanted€to€point€out€two€almostÏcontradictory€dichotomies€between€one€issue€that€is€notÏreally€raised€in€the€report€and€that€is€the€role€of€the€FCCÏstaff€and€bureaus€versus€the€role€of€the€commissioners€on€aÏrange€of€issues,€all€process€oriented,€and€also€the€role€ofÏthe€FCC€versus€other€government€agencies.Ìà ` àà ¸ àI€think€overall€the€FCC€commissioners€have€notÏspent€enough€time€or€don't€have€the€time€maybe€to€focus€onÏspectrum€management€big€picture€issues.€€A€lot€of€that€hasÏbeen€de€facto€delegated€to€the€staff€and€to€other€governmentÏagencies.€€It€creates€a€bit€of€a€black€box€for€the€generalÏpublic€and€also€leads€to€situations€like€the€recent€3GÏdecision€by€the€Federal€Government€that€may€deny€theÏwireless€industry€adequate€3G€spectrum€where€there€is€no€FCCÏcommissioner€stamped€decision€on€such€issues.€€Maybe€that€isÏthe€type€of€decision€that€should€be€approved€by€a€regulatoryÏagency,€as€opposed€to€some€black€box€process€where€there€isÏfeedback€received€from€industry€but€then€suddenly€it'sÏremoved€from€the€hands€that€know€and€you're€not€sure€whatÏthe€outcome€is€and€why€it€has€been€reached.Ìà ` àà ¸ àOn€the€other€hand,€the€commissioners€may€spend€tooÏmuch€time€in€their€docket„by„docket€decision€making€on€theÏnitty€gritty€nuts€and€bolts€that€could€be€done€better€at€theÏstaff€level.€€So€I€wanted€to€point€out€some€of€those€issues.Ìà ` àà ¸ àCHIEF€OF€STAFF€BROWN:€€I€still€note€all€the€timeÐ  +(&0 Ðhow€much€the€sort€of€deliberation€is€driven€by€whateverÏissue€the€industry,€frankly,€thinks€is€hot€at€the€moment.€ÏIt€discourages€me€because€the€issue€that€may€be€hot€at€theÏmoment€may€well€be€an€important€issue€but€it€is€not€alwaysÏthe€overriding€issue.€€It€is€not€always€the€theoreticalÏunderpinnings€of€the€issue.€€So€part€of€our€processes€as€weÏthink€about€this€is€how€to€get€to€the€foundational€issues,Ïperhaps€a€little€bit€more€in€focus.€€Ìà ` àà ¸ àAl,€could€I€ask€you€to€wrap€up€for€us?Ìà ` àà ¸ àMR.€SONNENSTAHL:€€This€is€Al€Sonnenstahl€fromÏConsumer€Action€Network.€€In€talking€about€flexibility€andÏinflexibility€of€the€spectrum,€I€look€at€the€TV,€I€see€theÏcaptioning€services€here€„„€and€this€is€based€on€line€21,Ïwhich€makes€the€captioning€possible.€€In€other€words,€thatÏis€a€line€that€is€reserved€for€the€captioning.€€Ìà ` àà ¸ àNow,€I'm€not€in€this€field€in€depth€but€I'm€tryingÏto€think€in€terms€of€the€future€and€the€possibility€ofÏexploring€reserving€particular€parts€of€the€spectrum€forÏspecial€purposes.€€For€small€populations,€for€example,€theÏemergency€access€system,€the€emergency€alerting€system.€€IÏuse€a€pager€and€I€could€envision€a€way€that€a€pager€could€beÏtied€to€a€particular€frequency€where€some€kind€of€systemÏcould€be€used€to€reach€out€using,€you€know,€to€those€limitedÏnumber€of€folks€for€particular€purchases.Ìà ` àà ¸ àAs€Pam€Stewart€mentioned,€we€need€to€get€theÐ  +(&0 ÐDisabled€Issues€Task€Force€more€involved€in€these€kinds€ofÏaspects.€€I€think€they€can€be€involved€in€the€discussions€asÏto€spectrum,€in€looking€at€exploring€possibilities€of€havingÏsome€of€the€spectrum€reserved€for€people€with€disabilities.Ìà ` àà ¸ àCHIEF€OF€STAFF€BROWN:€€Thank€you,€Al.€€Well,€IÏwant€to€thank€you€and€hope€that€you€listened€and€learned,€asÏI€have,€as€we€seek€all€the€various€perspectives€on€whereÏwe're€going€in€this€telecommunications€revolution€and€howÏthe€FCC€ought€to€keep€up€with€it€in€many€ways.Ìà ` àà ¸ àWe,€obviously,€have€many€challenges€before€us€toÏmeet€what€is€an€extraordinary€time.€€There€are€thingsÏhappening€„„€I€sat€here,€I€just€thought,€"Oh€my€Lord,€IÏwonder€in€the€last€two€hours€„„€because€I€knew€what€wasÏgoing€on€this€morning€„„€how€many€firms€have€combined€orÏactually€decided€not€to€do€business€and€how€many€consumersÏthink€they€got€a€god€deal€this€morning€and€how€manyÏconsumers€think€they€got€a€bad€deal€this€morning."€€It€isÏall€sitting€on€my€desk€right€now,€I€can€assure€you.Ìà ` àà ¸ à(Laughter.)Ìà ` àà ¸ àBut€it€is€happening€that€fast€that€it€is€sometimesÏdizzying€and€overwhelming.€€These€kind€of€forums€and€thisÏkind€of€occasion,€frankly,€to€focus€on€a€strategic€plan€asÏnot€perfect€as€it€yet€may€be,€is€an€opportunity,€actually,Ïto€look€at€the€present,€look€at€the€future.€€I€think,€Larry,Ïthat€five€years€doesn't€take€care€of€itself.€€If€we€didn'tÐ  +(&0 Ðdo€what€we€were€doing€five€years€ago€we€wouldn't€be€where€weÏare€now.€€So€while€I€do€believe€that€things€will€change€in€aÏway€we€perhaps€can't€quite€anticipate,€I€think€I€agree€withÏLarry€that€there€are€some€things€that€if€we€do€them€wrongÏnow€will€have€horrible€consequences,€and€if€we€do€them€rightÏnow€will€actually€yield€the€right€consequences€out.€€So€itÏis€worthwhile€for€us€to€sit€and€really€think€about€thoseÏthings€deeply.Ìà ` àà ¸ àSome€of€the€feedback€I€just€heard€was,€again,€aÏlot€about€convergence.€€We€will€again€think€about€that.€€IÏthought€we€got€some€valuable€push€back€on€what€our€firstÏsteps€ought€to€be€in€addressing€that€issue,€so€the€bigÏpolicy€issues.Ìà ` àà ¸ àAgain€we€hear€about€day„to„day€trying€to€doÏbusiness€with€us€and€how€easy€or€how€hard€that€is€and€how€weÏhad€better€address€that€sooner,€rather€than€later.€€AndÏagain€that€issue€of€speed,€always€that€issue€of€speed.€€BothÏ„„€I€think€I€was€hearing€a€lot€about€informal€decisionÏmaking€processes,€different€kinds€of€decision€makingÏprocesses€that€we€ought€to€think€about€and€invent.€€But€IÏalso€heard€that€we€had€ought€to€look€at€our€regularÏprocesses,€like€getting€the€order€out€the€door,€and€makingÏsure€that€those€things€are€also€under€control.Ìà ` àà ¸ àI€heard€strongly€that€we€need€a€matrix€and€we€needÏbenchmarking€for€success€and€we€need€performance€measures.€Ð  +(&0 ÐI€can€tell€you,€because€we've€sat€together€now€so€manyÏtimes,€that€in€a€regulatory€agency€there€are€obviouslyÏthings€we€can€do€and€folks€on€the€inside€want€to€count€sortÏof€the€numbers€of€pieces€of€paper€they€put€out€the€door,Ïwhich€of€course€is€not€any€sort€of€notion€of€success.Ìà ` àà ¸ àOn€the€other€hand,€if€what€your€notion€of€successÏis€that€you€have€a€competitive€market€and/or€you€have€moreÏconsumers€served,€of€course€there€are€zillions€of€externalÏfactors€that€affect€that€success.€€So€you€see€thisÏpush/pull,€particularly€inside€government€with,€"Well,€IÏreally€am€not€responsible€fully€for€that€satellite€gettingÏup."€€There€are€20€other€reasons€why€it€may€or€may€not€workÏbut,€certainly,€we€are€responsible€for€creating€anÏenvironment.€€Measurements€of€that€are€very€difficult,€veryÏdifficult€qualitative€measurements.Ìà ` àà ¸ àSo€I€invite€any€feedback.€€It€is€the€hardest€partÏof€this.€€Any€feedback€you€would€like€to€give€us€on€what€theÏqualitative€measurements€ought€to€be,€on€what€the€matrixesÏcould€look€like,€and€what€benchmarks€are.€€I€would€urge€youÏto€start€with€actually€what€the€qualitative€benchmarks€areÏand€then€we€can€argue€over€the€timing.€€I€know€both€of€themÏare€very€important€„„€do€it€in€a€year€or€do€it€in€threeÏyears€„„€that's€an€important€question€in€and€of€itself.Ìà ` àà ¸ àBut€getting€the€benchmarks€right,€seems€to€me,Ïalso€very€important.€€A€child€first€sits€up€and€then€a€childÐ  +(&0 Ðcrawls€and€then€a€child€walks.€€So€we€know€there€are€thingsÏthat€one€has€to€do€in€order,€or€at€least€in€some€sort€ofÏorganizational€kind€of€way.€€To€the€extent€you€could€give€usÏfeedback€on€that,€we€would€appreciate€it.Ìà ` àà ¸ àNext€steps.€€We€will€take€everything€we€have€beenÏgiven,€we€will€do€some€more€work€internally.€€We€know,€andÏyou€didn't€raise€it€today€but€we€know€there€are€some€gaps€inÏour€own€report.€€The€public€safety€area€some€folks€have€toldÏme€is€not€adequately€addressed.€€I€don't€think€we€haveÏadequately€addressed€yet€our€whole€merger€review€issue.€€IÏthink€Congress€is€telling€that€to€us€loudly.Ìà ` àà ¸ àI€think€events€are€forcing€us€to€realize€thatÏextent€of€our€jurisdiction€and€our€resources€on€a€rapidlyÏchanging€industry€is€going€to€cause€us€to€look€closely€atÏthat.€€I€heard€very€loudly€that€our€biannual€review€shouldÏnot€just€be€some€sort€of€symbolic€thing€but€really€needs€toÏbe€a€vehicle€for€a€lot€of€the€deregulatory€kinds€of€thingsÏwe€ought€to€do€to€get€rid€of€regulations€that€are€really€inÏthis€day€and€age€much€too€costly.€€So€we€know€we€need€to€doÏthose€things.Ìà ` àà ¸ àYou€will€see€in€the€next€couple€of€months€ourÏrolling€out€both€the€organizational€change,€the€biannualÏreview€issues,€the€issues€on€how€we€can€be€better€faster.€ÏAnd€you€will€see€us€clawing€and€fighting€for€the€money€weÏneed€to€actually€become€a€digital€age€agency.Ð  +(&0 Ðà ` àà ¸ àSo€I€again€thank€you€all€for€being€here.€€IÏappreciate,€sincerely€appreciate€your€input€and€hope€youÏwill€stay€in€touch€with€us.€€Thank€you.Ìà ` àà ¸ à(Whereupon,€at€12:40€p.m.,€the€forum€wasÏadjourned.)Ì\\Ì\\Ì\\Ì\\Ì\\Ì\\Ì\\Ì\\Ì\\Ì\\Ì\\Ì\\Ì\\Ì\\Ì\\Ì\\Ì\\Ì\\Ì\\ññÌ\\ññÐ   +(&0 ÐññÓ t ÓññÓ=€þDXÐXdX(Xd=ÓññÓ3³ÓññññÙÙññØjØññÖ€ÖññÓ-ÿÿX¸ ÿÿð` ¸ ` -ÓÖ€´ðÖÖ€¶µàÖò òññÓ3³3³Óññà@ðð"àòòREPORTER'S€CERTIFICATEó óóóˆÐ À ÐÌÌò òFCC€DOCKET€NO.ó ó:à  àN/AÐ µõ ÐÌò òCASE€TITLEó ó:à  àA€NEW€FCC€FOR€THE€21ST€CENTURYÐ C ÐÌò òHEARING€DATEó ó:à  àSeptember€30,€1999Ð Q‘ ÐÌò òLOCATIONó ó:à ¸ àà  àWashington,€D.C.Ð Ÿ ß  ÐÌà ¸ àI€hereby€certify€that€the€proceedings€and€evidenceÏare€contained€fully€and€accurately€on€the€tapes€and€notesÏreported€by€me€at€the€hearing€in€the€above€case€before€theÏFederal€Communications€Commission.ÌÌÌDate:€€€_09„30„99_€€€€€€€€€€€__Sharon€Bellamy_____________Ì€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€Official€ReporterÌ€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€Heritage€Reporting€CorporationÌ€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€1220€L€Street,€N.W.,€Suite€600Ì€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€Washington,€D.C.€20005„4018ÌÌÌà@<<!àò òòòTRANSCRIBER'S€CERTIFICATEó óóóˆÐ h¨ ÐÌÌà ¸ àI€hereby€certify€that€the€proceedings€and€evidenceÏwere€fully€and€accurately€transcribed€from€the€tapes€andÏnotes€provided€by€the€above€named€reporter€in€the€above€caseÏbefore€the€Federal€Communications€Commission.ÌÌÌDate:€€€_10„11„99_€€€€€€€€€€€€__Rose€Kolb___________________Ì€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€Official€Transcriber€Ì€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€Heritage€Reporting€CorporationÌÌÌò òà@<<!àòòPROOFREADER'S€CERTIFICATEó óóóˆÐ ŠÊ& ÐÌà ¸ àI€hereby€certify€that€the€transcript€of€theÏproceedings€and€evidence€in€the€above€referenced€case€thatÏwas€held€before€the€Federal€Communications€Commission€wasÏproofread€on€the€date€specified€below.ÌÌÌDate:€€€_10„12„99_€€€€€€€€€€€€__Lorenzo€Jones_______________Ì€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€Official€ProofreaderÌ€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€Heritage€Reporting€Corporation