TESTIMONY OF COMMISSIONER MIGNON L. CLYBURN FEDERAL COMMUNICATIONS COMMISSION BEFORE THE SUBCOMMITTEE ON COMMUNICATIONS, TECHNOLOGY, AND THE INTERNET COMMITTEE ON ENERGY AND COMMERCE UNITED STATES HOUSE OF REPRESENTATIVES March 25, 2010 Thank you Mr. Chairman, Ranking Member Stearns, and members of the Subcommittee. It is an honor and a privilege to appear before you today alongside my esteemed colleagues to discuss the National Broadband Plan. Over the last nine months, the FCC undertook the mammoth task of developing a broadband blueprint for the Nation that aims to bolster our standing as a world leader in technology, business, and inclusion. Under Chairman Genachowski’s leadership, this process was conducted in an unprecedented open and transparent manner in order to ensure that we maximized opportunities for public input. The Plan tackles nearly every aspect of our Nation’s broadband challenge, taking a pragmatic approach to a number of problems previously deemed intractable. For example, the cost and timetable for obtaining access to poles, ducts, conduit, and rights- of-way have slowed deployment and investment in networks for years. The Plan takes this obstacle head on with common sense recommendations for expediting the process and lowering unnecessary costs, as well as by supporting current Congressional proposals to increase efficiency and cost savings through “Dig Once” legislation. There are three issues in particular that I wanted to touch on during my brief time here with you today. In my view, each of these warrants our utmost and immediate attention: (1) fostering the development of a nationwide, interoperable public safety network; (2) ensuring an environment conducive to universal broadband adoption; and (3) cultivating vibrant competition in the broadband marketplace. Developing a nationwide, interoperable public safety network is no easy task. This fact, however, is no excuse for where we stand today. It is inconceivable that, in the almost nine years since the tragic events of September 11, 2001, we still have not meaningfully addressed this critical need. The National Broadband Plan attempts to meet this challenge. It offers concrete steps for a nationwide public safety wireless broadband network – a network that will provide needed functionality and interoperability for the public safety community. The recommendations for the Emergency Response Interoperability Center and Congressional funding for the network in particular, address two of the most fundamental building blocks necessary to make this network a reality. For the first time, the Commission is recommending a Plan that involves input from all stakeholders and has a strong chance of success. The Plan itself recognizes a rigorous program for the agency to make sure we get the details right, and the Commission has already put these ideas in motion by hosting a technical panel last week to review some of the finer points of the proposed network. Another indispensable part of the Plan concerns the issue of broadband adoption. Approximately one-third of Americans have not adopted broadband at home. While some view this percentage as a success, there are reasons to be concerned. High-speed Internet is the gateway to opportunity and is fast-becoming a requirement for meaningful citizenship. If you want to apply for a job, get more information on health-related issues, take classes that are unavailable in your town, unlock economic opportunities, or, before   - 2 - long, be able to obtain government services, you will have to have direct, high-speed access to the Internet. If we steamroll ahead without our fellow Americans joining us on- line, we will merely be reinforcing an underclass that will weigh heavily on our progress as a nation. In addition to the innovative programs suggested in the Plan to combat adoption barriers such as digital literacy and relevance, the Plan offers a critical recommendation with respect to the high cost of broadband. Specifically, the Plan recommends wholesale reform to the Universal Service Fund (USF) to both make it more efficient and enable it to directly support broadband service. This process requires assessing and adjusting nearly every aspect of the current USF support methods, as well as the intercarrier compensation system. We must consider all the costs incurred to provide broadband as well as the revenues derived from broadband networks and adjust our support mechanisms accordingly. Moreover, support should be targeted to those areas – on a technology-neutral basis – where broadband deployment and service would not be economical. The third element central to a successful broadband strategy is competition. Competition is the lifeblood of investment, innovation, and affordable prices. Without it, industry has little reason to upgrade its facilities and improve its services. A cable industry executive recently noted as much, informing investors that there is simply no need for the company to roll out the faster Internet speeds available today in areas where it does not have competition from another high-speed provider. Thus, only in those areas where Americans are lucky enough to have more than one provider with truly high-speed capability will providers like this one have any economic incentive to offer better service.   - 3 -   - 4 - And the same goes for prices. There is little question that where there is limited or no competition, consumers pay higher prices for broadband. Indeed, just recently we saw a new spike in prices levied by providers on the lowest tiers of service. When these across-the-board increases occur, our role as stewards of the public interest requires us to examine the market carefully and take appropriate action where necessary. In closing, I would like to express my gratitude to my colleagues and my enthusiasm for working with them to address the challenges ahead. I also want to recognize the important work of the Committee, and look forward to engaging constructively with you on the most important telecommunications issues of the day. The American people rely on us to work cooperatively to ensure that we implement a National Broadband Plan that is good for consumers and that helps drive our economy. Thank you for the opportunity to appear before you today, and I look forward to answering any questions you may have.