FEDERAL COMMUNICATIONS COMMISSION WASHINGTON OFFICE OF THE CHAIRMAN The Honorable Loretta Sanchez U.S. House ofRepresentatives 1211 Longworth House Office Building Washington, D.C. 20515 Dear Congresswoman Sanchez: May 23,2016 Thank you for your letter regarding the Commission's proposal for better fostering competition in the set-top box and navigation app marketplace. One of the central issues in this proceeding is how competition can support and promote diverse and independent voices in our media landscape. Your engagement and leadership in our proceeding is invaluable and helps further the public discourse on this important issue. This February the Commission put out for public comment a proposal that would fulfill the statutory requirement of competitive choice for consumers. This action opened a fact-finding dialog to build a record upon which to base any final decision. The notice-and-comment process, as well as subsequent ex parte communications, will constitute the most complete and thorough examination of this issue ever undertaken or contemplated. Already, the record contains over 104,000 comments representing a broad range of viewpoints and data. This includes both theoretical economic studies, as well as real-life experiences. In order to provide guidance to commenters, we specifically requested information from all sides on the issues you raise in your letter- the impact on all parties in the video marketplace, the impact on content diversity and intellectual property, and the impact on consumer privacy­ as well as many other topics. As you know, the first round of comments on this proposal were filed last month. Responses are due today. However, as with all of our proceedings, we will continue accepting comments, studies and observations for the record well after our formal comment period closes. And, of course, every single one of these pages of comments will be available online for public scrutiny and comment. The ultimate record will no doubt reach multiple of hundreds of thousands of pages of information, which is why I am confident it will be the most extensive examination of the subject ever undertaken. As always, your participation in the record is appreciated. As the video ecosystem evolves it should be creating more opportunities for independent and minority-owned programming. By using the set top box as a way to limit program carriage, Page 2 -The Honorable Loretta Sanchez however, MVPDs constrict opportunities. While the most popular MVPD packages contain 200 to 500 channels, there are currently only two Hispanic-owned and four African-American owned networks. Not only is there limited carriage, but there is also limited financial support. While a channel like ESPN is paid over $7.00 per month per subscriber by MVPDs, minority channels receive pennies. What's more, minority networks are often placed on premium tiers requiring an additional payment from the consumer which also limits potential advertising revenues by limiting potential audience reach. Thus far, our record is replete with comments from minority programmers who have been locked out fi-om carriage on traditional cable networks. 83 For the sake of these entrepreneurs and the audiences they hope to reach, we must move forward. Our proposal would provide minority and independent programmers with an equal opportunity to reach their audiences. The proposal would facilitate competition in interfaces, search functions, and integration of programming sources, all of which would provide programmers with a greater ability to find audiences and consumers with a greater ability to access independent and minority programming. For those few independent and minority-owned programmers who already have carriage on the traditional pay-TV system, nothing in the Commission's proposal disrupts existing contractual relationships between programmers and MVPDs. 83 See, e.g., New England Broadband Comments, MB Docket Nos. 16-42, 97-80, at 2 (Apr. 22, 2016) ("On behalf of the dream that was the Black Education Network and on behalf of all of the other generations of quality programming strangled to demise by a merciless cable system, I enthusiastically applaud the FCC's efforts to unlock the box!"); GFNTV Comments, MB Docket Nos. 16-42, 16-41, 97-80, at 2 (Apr. 22, 2016) ("Fortunately, the FCC has the ability to create this opportunity for independent and minority programmers -- but it must act soon before cable operators can set the only gatekeepers to this online video market. We need a path to greater distribution of this content and the way to do this is to have a competitive set top box or no set top box system. Online video minority programmers will not be able to grow and thrive with the current system."); BLQBOX Comments, MB Docket Nos. 16-42, 16-41, 97-80, at 1-2 (Apr. 22, 2016) ("So why should minorities -or anyone else- care about this fight? Because as a battle wages on #OscarsSo White, there are hundreds of thousands of hours of quality programming -documentaries, shorts, lifestyle, indie movies, global movies -that don't fit well within the traditional ad-based TV model and will never make it onto broadcast, cable or even Netflix and Amazon. And for those content creators and the entrepreneurs who want to distribute that work, the only viable market is direct to consumers in the streaming world. But as long as the streaming world is locked out from the mainstream, many audiences will never find them and they will not succeed. Set-top box innovation would open that system."); The Townsend Group Comments, MB Docket Nos. 16-42, 16-41, 97-90, at 2 (Apr. 22, 2016) ("Unless we eliminate the gatekeeper system, we will forever be just talking about how to improve markets for independent and diverse programmers. The proposed Unlock the Box regulations significantly lower barriers to market entry for diverse and independent programmers. In addition, the proposal represents a positive evolution in our vide-programming ecosystem bringing us closer to the non-gatekeeper system we deserve. I urge the FCC to move deliberately implementing this proposal and finally establishing a cable marketplace that lives up to its potential."); UNIFYme.TV Comments, MB Docket Nos. 16-42, 16-41, 97-80, at 2 (Apr. 22, 2016) ("Unlock the Box gives audiences easy access to diverse progranm1ing from streaming services like UNIFY and other content providers who have been shutout from cable outlets. Cable and satellite stations have been gatekeepers who have invariably dismissed so much rich content and deprived audiences from experiences of old and/or new content."). Page 3 - The Honorable Loretta Sanchez You have been thoughtful in identifying the issues that are important to you in this proceeding. I owe you the same courtesy insofar as responding to some of the issues that have been surrounding this topic: • Debra Lee, CEO of BET, recently stated that our proposal would give away "BET programming for free." I can assure you nothing in the proposal would require anyone to give away their content for free. If there is specific language you or Ms. Lee would like to suggest to make that clear, we are interested in seeing this language. • Alfred Liggins, CEO of TV One, commented: "The programming market today is working for content providers seeking to reach consumers, including minority content providers." Comments in the record take the opposite view. For instance, GFNTV submitted comments that "minority programmers will not be able to grow and thrive with the current system."84 Ultimately, the record being developed will answer this question. • There have also been continuing allegations about copyright protections. If copyright can be protected on Smart TVs, iPads and iPhones, there is little reason to expect it cannot similarly be protected on a third party set-top-box or app. We actually incorporated the industry's CableCARD license protections into the proposal since that has been so successful in protecting content for the last 20 years. Again, if there is other language necessary to ensure copyright protections, we are interested in seeing such language. Developing a robust record addressing these issues will ultimately benefit consumers. Ninety-nine percent of today' s pay TV subscribers lease their set top box. This lack of competition has meant few choices and high prices for consumers-on average, $231 in rental fees annually for the American household. Even worse for consumers, these rental fees continue to increase. One recent analysis found that the cost of cable set-top boxes has risen 185 percent since 1994 while the cost of computers, televisions and mobile phones has dropped by 90 percent during that same time period. The record we are developing will help us address the outstanding issues you raise while delivering American consumers meaningful choice, and opening new opportunities for minority programmers. 84 GFNTV Comments, MB Docket Nos. 16-42, 16-41, 97-80, at 2 (Apr. 22, 2016) Page 4- The Honorable Loretta Sanchez Thank you for your engagement on this important issue. The wisdom inherent in a notice-and-comment proceeding is that there is time for continuing an ongoing dialog. I look forward to such a dialog with you. Sincere!~~~ ~ ~ Tom Wheeler FEDERAL COMMUNICATIONS COMMISSION WASHINGTON OFFICE OF THE CHAIRMAN The Honorable David Scott U.S. House ofRepresentatives 225 Cannon House Office Building Washington, D.C. 20515 Dear Congressman Scott: May 23,2016 Thank you for your letter regarding the Commission's proposal for better fostering competition in the set-top box and navigation app marketplace. One of the central issues in this proceeding is how competition can support and promote diverse and independent voices in our media landscape. Your engagement and leadership in our proceeding is invaluable and helps further the public discourse on this important issue. This February the Commission put out for public comment a proposal that would fulfill the statutory requirement of competitive choice for consumers. This action opened a fact-finding dialog to build a record upon which to base any final decision. The notice-and-comment process, as well as subsequent ex parte communications, will constitute the most complete and thorough examination of this issue ever undertaken or contemplated. Already, the record contains over 104,000 comments representing a broad range of viewpoints and data. This includes both theoretical economic studies, as well as real-life experiences. In order to provide guidance to commenters, we specifically requested information from all sides on the issues you raise in your letter - the impact on all parties in the video marketplace, the impact on content diversity and intellectual property, and the impact on consumer privacy­ as well as many other topics. As you know, the first round of comments on this proposal were filed last month. Responses are due today. However, as with all of our proceedings, we will continue accepting comments, studies and observations for the record well after our formal comment period closes. And, of course, every single one of these pages of comments will be available online for public scrutiny and comment. The ultimate record will no doubt reach multiple of hundreds of thousands of pages of information, which is why I am confident it will be the most extensive examination of the subject ever undertaken. As always, your participation in the record is appreciated. As the video ecosystem evolves it should be creating more opportunities for independent and minority-owned programming. By using the set top box as a way to limit program carriage, Page 2 - The Honorable David Scott however, MVPDs constrict opportunities. While the most popular MVPD packages contain 200 to 500 channels, there are currently only two Hispanic-owned and four African-American owned networks. Not only is there limited carriage, but there is also limited financial support. While a channel like ESPN is paid over $7.00 per month per subscriber by MVPDs, minority channels receive pennies. What's more, minority networks are often placed on premium tiers requiring an additional payment from the consumer which also limits potential advertising revenues by limiting potential audience reach. Thus far, our record is replete with comments from minority programmers who have been locked out from carriage on traditional cable networks. 85 For the sake of these entrepreneurs and the audiences they hope to reach, we must move forward. Our proposal would provide minority and independent programmers with an equal opportunity to reach their audiences. The proposal would facilitate competition in interfaces, search functions, and integration of programming sources, all of which would provide programmers with a greater ability to find audiences and consumers with a greater ability to access independent and minority programming. For those few independent and minority-owned programmers who already have carriage on the traditional pay-TV system, nothing in the Commission's proposal disrupts existing contractual relationships between programmers and MVPDs. 85 See, e.g., New England Broadband Comments, MB Docket Nos. 16-42, 97-80, at 2 (Apr. 22, 2016) ("On behalf of the dream that was the Black Education Network and on behalf of all of the other generations of quality programming strangled to demise by a merciless cable system, I enthusiastically applaud the FCC's efforts to unlock the box!"); GFNTV Comments, MB Docket Nos. 16-42, 16-41,97-80, at 2 (Apr. 22, 2016) ("Fortunately, the FCC has the ability to create this opportunity for independent and minority programmers -- but it must act soon before cable operators can set the only gatekeepers to this online video market. We need a path to greater distribution of this content and the way to do this is to have a competitive set top box or no set top box system. Online video minority programmers will not be able to grow and thrive with the current system."); BLQBOX Comments, MB Docket Nos. 16-42, 16-41, 97-80, at 1-2 (Apr. 22, 2016) ("So why should minorities -or anyone else- care about this fight? Because as a battle wages on #OscarsSo White, there are hundreds of thousands of hours of quality programming -documentaries, shorts, lifestyle, indie movies, global movies -that don't fit well within the traditional ad-based TV model and will never make it onto broadcast, cable or even Netflix and Amazon. And for those content creators and the entrepreneurs who want to distribute that work, the only viable market is direct to consumers in the streaming world. But as long as the streaming world is locked out from the mainstream, many audiences will never find them and they will not succeed. Set-top box innovation would open that system."); The Townsend Group Comments, MB Docket Nos. 16-42, 16-41, 97-90, at 2 (Apr. 22, 2016) ("Unless we eliminate the gatekeeper system, we will forever be just talking about how to improve markets for independent and diverse programmers. The proposed Unlock the Box regulations significantly lower barriers to market entry for diverse and independent programmers. In addition, the proposal represents a positive evolution in our vide-programming ecosystem bringing us closer to the non-gatekeeper system we deserve. I urge the FCC to move deliberately implementing this proposal and finally establishing a cable marketplace that lives up to its potential."); UNIFY me. TV Comments, MB Docket Nos. 16-42, 16-41, 97-80, at 2 (Apr. 22, 2016) ("Unlock the Box gives audiences easy access to diverse programming from streaming services like UNIFY and other content providers who have been shutout from cable outlets. Cable and satellite stations have been gatekeepers who have invariably dismissed so much rich content and deprived audiences from experiences of old and/or new content."). Page 3 - The Honorable David Scott You have been thoughtful in identifying the issues that are important to you in this proceeding. I owe you the same courtesy insofar as responding to some of the issues that have been surrounding this topic: • Debra Lee, CEO of BET, recently stated that our proposal would give away "BET programming for free." I can assure you nothing in the proposal would require anyone to give away their content for free. If there is specific language you or Ms. Lee would like to suggest to make that clear, we are interested in seeing this language. • Alfred Liggins, CEO of TV One, commented: "The programming market today is working for content providers seeking to reach consumers, including minority content providers." Comments in the record take the opposite view. For instance, GFNTV submitted comments that "minority programmers will not be able to grow and thrive with the current system."86 Ultimately, the record being developed will answer this question. • There have also been continuing allegations about copyright protections. If copyright can be protected on Smart TVs, iPads and iPhones, there is little reason to expect it cannot similarly be protected on a third party set-top-box or app. We actually incorporated the industry's CableCARD license protections into the proposal since that has been so successful in protecting content for the last 20 years. Again, if there is other language necessary to ensure copyright protections, we are interested in seeing such language. Developing a robust record addressing these issues will ultimately benefit consumers. Ninety-nine percent of today' s pay TV subscribers lease their set top box. This lack of competition has meant few choices and high prices for consumers-on average, $231 in rental fees annually for the American household. Even worse for consumers, these rental fees continue to increase. One recent analysis found that the cost of cable set-top boxes has risen 185 percent since 1994 while the cost of computers, televisions and mobile phones has dropped by 90 percent during that same time period. The record we are developing will help us address the outstanding issues you raise while delivering American consumers meaningful choice, and opening new opportunities for minority programmers. 86 GFNTV Comments, MB Docket Nos. 16-42, 16-41,97-80, at 2 (Apr. 22, 2016) Page 4 - The Honorable David Scott Thank you for your engagement on this important issue. The wisdom inherent in a notice-and-comment proceeding is that there is time for continuing an ongoing dialog. I look forward to such a dialog with you. Tom Wheeler FEDERAL COMMUNICATIONS COMMISSION WASHINGTON OFFICE OF THE CHAIRMAN The Honorable Terri A. Sewell U.S. House ofRepresentatives 1133 Longworth House Office Building Washington, D.C. 20515 Dear Congresswoman Sewell: May 23,2016 Thank you for your letter regarding the Commission's proposal for better fostering competition in the set-top box and navigation app marketplace. One of the central issues in this proceeding is how competition can support and promote diverse and independent voices in our media landscape. Your engagement and leadership in our proceeding is invaluable and helps further the public discourse on this important issue. This February the Commission put out for public comment a proposal that would fulfill the statutory requirement of competitive choice for consumers. This action opened a fact-finding dialog to build a record upon which to base any final decision. The notice-and-comment process, as well as subsequent ex parte communications, will constitute the most complete and thorough examination of this issue ever undertaken or contemplated. Already, the record contains over 104,000 comments representing a broad range of viewpoints and data. This includes both theoretical economic studies, as well as real-life expenences. In order to provide guidance to commenters, we specifically requested information from all sides on the issues you raise in your letter - the impact on all parties in the video marketplace, the impact on content diversity and intellectual property, and the impact on consumer privacy­ as well as many other topics. As you know, the first round of comments on this proposal were filed last month. Responses are due today. However, as with all of our proceedings, we will continue accepting comments, studies and observations for the record well after our formal comment period closes. And, of course, every single one of these pages of comments will be available online for public scrutiny and comment. The ultimate record will no doubt reach multiple of hundreds of thousands of pages of information, which is why I am confident it will be the most extensive examination of the subject ever undertaken. As always, your participation in the record is appreciated. As the video ecosystem evolves it should be creating more opportunities for independent and minority-owned programming. By using the set top box as a way to limit program carriage, Page 2 - The Honorable Terri A. Sewell however, MVPDs constrict opportunities. While the most popular MVPD packages contain 200 to 500 channels, there are currently only two Hispanic-owned and four African-American owned networks. Not only is there limited carriage, but there is also limited financial support. While a channel like ESPN is paid over $7.00 per month per subscriber by MVPDs, minority channels receive pennies. What's more, minority networks are often placed on premium tiers requiring an additional payment from the consumer which also limits potential advertising revenues by limiting potential audience reach. Thus far, our record is replete with comments from minority programmers who have been locked out from carriage on traditional cable networks.87 For the sake of these entrepreneurs and the audiences they hope to reach, we must move forward. Our proposal would provide minority and independent programmers with an equal opportunity to reach their audiences. The proposal would facilitate competition in interfaces, search functions, and integration of programming sources, all of which would provide programmers with a greater ability to find audiences and consumers with a greater ability to access independent and minority programming. For those few independent and minority-owned programmers who already have carriage on the traditional pay-TV system, nothing in the Commission's proposal disrupts existing contractual relationships between programmers and MVPDs. 87 See, e.g., New England Broadband Comments, MB Docket Nos. 16-42, 97-80, at 2 (Apr. 22, 2016) ("On behalf of the dream that was the Black Education Network and on behalf of all of the other generations of quality programming strangled to demise by a merciless cable system, I enthusiastically applaud the FCC's efforts to unlock the box!"); GFNTV Comments, MB Docket Nos. 16-42, 16-41, 97-80, at 2 (Apr. 22, 2016) ("Fortunately, the FCC has the ability to create this opportunity for independent and minority programmers -- but it must act soon before cable operators can set the only gatekeepers to this online video market. We need a path to greater distribution of this content and the way to do this is to have a competitive set top box or no set top box system. Online video minority programmers will not be able to grow and thrive with the cunent system."); BLQBOX Comments, MB Docket Nos. 16-42, 16-41,97-80, at 1-2 (Apr. 22, 2016) ("So why should minorities -or anyone else- care about this fight? Because as a battle wages on #OscarsSo White, there are hundreds of thousands of hours of quality programming -documentaries, shorts, lifestyle, indie movies, global movies -that don't fit well within the traditional ad-based TV model and will never make it onto broadcast, cable or even Netflix and Amazon. And for those content creators and the entrepreneurs who want to distribute that work, the only viable market is direct to consumers in the streaming world. But as long as the streaming world is locked out from the mainstream, many audiences will never find them and they will not succeed. Set-top box itmovation would open that system."); The Townsend Group Comments, MB Docket Nos. 16-42, 16-41,97-90, at 2 (Apr. 22, 2016) ("Unless we eliminate the gatekeeper system, we will forever be just talking about how to improve markets for independent and diverse programmers. The proposed Unlock the Box regulations significantly lower barriers to market entry for diverse and independent programmers. In addition, the proposal represents a positive evolution in our vide-programming ecosystem bringing us closer to the non-gatekeeper system we deserve. I urge the FCC to move deliberately implementing this proposal and finally establishing a cable marketplace that lives up to its potential."); UNIFYme.TV Comments, MB Docket Nos. 16-42, 16-41,97-80, at 2 (Apr. 22, 2016) ("Unlock the Box gives audiences easy access to diverse programming from streaming services like UNIFY and other content providers who have been shutout from cable outlets. Cable and satellite stations have been gatekeepers who have invariably dismissed so much rich content and deprived audiences from experiences of old and/or new content."). Page 3 -The Honorable Terri A. Sewell You have been thoughtful in identifying the issues that are important to you in this proceeding. I owe you the same courtesy insofar as responding to some of the issues that have been surrounding this topic: • Debra Lee, CEO of BET, recently stated that our proposal would give away "BET programming for free." I can assure you nothing in the proposal would require anyone to give away their content for free. If there is specific language you or Ms. Lee would like to suggest to make that clear, we are interested in seeing this language. • Alfi:ed Liggins, CEO of TV One, commented: "The programming market today is working for content providers seeking to reach consumers, including minority content providers." Comments in the record take the opposite view. For instance, GFNTV submitted comments that "minority programmers will not be able to grow and thrive with the current system."88 Ultimately, the record being developed will answer this question. • There have also been continuing allegations about copyright protections. If copyright can be protected on Smart TVs, iPads and iPhones, there is little reason to expect it cannot similarly be protected on a third party set-top-box or app. We actually incorporated the industry's CableCARD license protections into the proposal since that has been so successful in protecting content for the last 20 years. Again, if there is other language necessary to ensure copyright protections, we are interested in seeing such language. Developing a robust record addressing these issues will ultimately benefit consumers. Ninety-nine percent oftoday's pay TV subscribers lease their set top box. This lack of competition has meant few choices and high prices for consumers-on average, $231 in rental fees annually for the American household. Even worse for consumers, these rental fees continue to increase. One recent analysis found that the cost of cable set-top boxes has risen 185 percent since 1994 while the cost of computers, televisions and mobile phones has dropped by 90 percent during that same time period. The record we are developing will help us address the outstanding issues you raise while delivering American consumers meaningful choice, and opening new opportunities for minority programmers. 88 GFNTV Comments, MB Docket Nos. 16-42, 16-41, 97-80, at 2 (Apr. 22, 2016) Page 4 - The Honorable Terri A. Sewell Thank you for your engagement on this important issue. The wisdom inherent in a notice-and-comment proceeding is that there is time for continuing an ongoing dialog. I look forward to such a dialog with you. Tom Wheeler FEDERAL COMMUNICATIONS COMMISSION WASHINGTON OFFICE OF THE CHAIRMAN The Honorable Kyrsten Sinema U.S. House of Representatives 1530 Longworth House Office Building Washington, D.C. 20515 Dear Congresswoman Sinema: May 23,2016 Thank you for your letter regarding the Commission's proposal for better fostering competition in the set-top box and navigation app marketplace. One of the central issues in this proceeding is how competition can support and promote diverse and independent voices in our media landscape. Your engagement and leadership in our proceeding is invaluable and helps further the public discourse on this important issue. This February the Commission put out for public comment a proposal that would fulfill the statutory requirement of competitive choice for consumers. This action opened a fact-finding dialog to build a record upon which to base any final decision. The notice-and-comment process, as well as subsequent ex parte communications, will constitute the most complete and thorough examination of this issue ever undertaken or contemplated. Already, the record contains over 104,000 comments representing a broad range of viewpoints and data. This includes both theoretical economic studies, as well as real-life expenences. In order to provide guidance to commenters, we specifically requested information from all sides on the issues you raise in your letter - the impact on all parties in the video marketplace, the impact on content diversity and intellectual property, and the impact on consumer privacy­ as well as many other topics. As you know, the first round of comments on this proposal were filed last month. Responses are due today. However, as with all of our proceedings, we will continue accepting comments, studies and observations for the record well after our formal comment period closes. And, of course, every single one of these pages of comments will be available online for public scrutiny and comment. The ultimate record will no doubt reach multiple of hundreds of thousands of pages of information, which is why I am confident it will be the most extensive examination of the subject ever undertaken. As always, your participation in the record is appreciated. As the video ecosystem evolves it should be creating more opportunities for independent and minority-owned programming. By using the set top box as a way to limit program carriage, Page 2 - The Honorable Kyrsten Sinema however, MVPDs constrict opportunities. While the most popular MVPD packages contain 200 to 500 channels, there are currently only two Hispanic-owned and four African-American owned networks. Not only is there limited carriage, but there is also limited financial support. While a channel like ESPN is paid over $7.00 per month per subscriber by MVPDs, minority channels receive pennies. What's more, minority networks are often placed on premium tiers requiring an additional payment from the consumer which also limits potential advertising revenues by limiting potential audience reach. Thus far, our record is replete with comments from minority programmers who have been locked out from carriage on traditional cable networks.89 For the sake of these entrepreneurs and the audiences they hope to reach, we must move forward. Our proposal would provide minority and independent programmers with an equal opportunity to reach their audiences. The proposal would facilitate competition in interfaces, search functions, and integration of programming sources, all of which would provide programmers with a greater ability to find audiences and consumers with a greater ability to access independent and minority programming. For those few independent and minority-owned programmers who already have carriage on the traditional pay-TV system, nothing in the Commission's proposal disrupts existing contractual relationships between programmers and MVPDs. 89 See, e.g., New England Broadband Comments, MB Docket Nos. 16-42, 97-80, at 2 (Apr. 22, 20 16) ("On behalf of the dream that was the Black Education Network and on behalf of all of the other generations of quality programming strangled to demise by a merciless cable system, I enthusiastically applaud the FCC's efforts to unlock the box!"); GFNTV Comments, MB Docket Nos. 16-42, 16-41,97-80, at 2 (Apr. 22, 2016) ("Fortunately, the FCC has the ability to create this opportunity for independent and minority programmers -- but it must act soon before cable operators can set the only gatekeepers to this online video market. We need a path to greater distribution of this content and the way to do this is to have a competitive set top box or no set top box system. Online video minority programmers will not be able to grow and thrive with the current system."); BLQBOX Comments, MB Docket Nos. 16-42, 16-41, 97-80, at 1-2 (Apr. 22, 2016) ("So why should minorities -or anyone else- care about this fight? Because as a battle wages on #OscarsSo White, there are hundreds of thousands of hours of quality programming -documentaries, shorts, lifestyle, indie movies, global movies -that don't fit well within the traditional ad-based TV model and will never make it onto broadcast, cable or even Netflix and Amazon. And for those content creators and the entrepreneurs who want to distribute that work, the only viable market is direct to consumers in the streaming world. But as long as the streaming world is locked out from the mainstream, many audiences will never find them and they will not succeed. Set-top box innovation would open that system."); The Townsend Group Comments, MB Docket Nos. 16-42, 16-41, 97-90, at 2 (Apr. 22, 2016) ("Unless we eliminate the gatekeeper system, we will forever be just talking about how to improve markets for independent and diverse programmers. The proposed Unlock the Box regulations significantly lower barriers to market entry for diverse and independent programmers. In addition, the proposal represents a positive evolution in our vide-programming ecosystem bringing us closer to the non-gatekeeper system we deserve. I urge the FCC to move deliberately implementing this proposal and finally establishing a cable marketplace that lives up to its potential."); UNIFY me. TV Comments, MB Docket Nos. 16-42, 16-41, 97-80, at 2 (Apr. 22, 2016) ("Unlock the Box gives audiences easy access to diverse programming from streaming services like UNIFY and other content providers who have been shutout from cable outlets. Cable and satellite stations have been gatekeepers who have invariably dismissed so much rich content and deprived audiences from experiences of old and/or new content."). Page 3 - The Honorable Kyrsten Sinema You have been thoughtful in identifying the issues that are important to you in this proceeding. I owe you the same courtesy insofar as responding to some of the issues that have been surrounding this topic: • Debra Lee, CEO of BET, recently stated that our proposal would give away "BET programming for free." I can assure you nothing in the proposal would require anyone to give away their content for free. If there is specific language you or Ms. Lee would like to suggest to make that clear, we are interested in seeing this language. • Alfred Liggins, CEO of TV One, commented: "The programming market today is working for content providers seeking to reach consumers, including minority content providers." Comments in the record take the opposite view. For instance, GFNTV submitted comments that "minority programmers will not be able to grow and thrive with the current system."90 Ultimately, the record being developed will answer this question. • There have also been continuing allegations about copyright protections. If copyright can be protected on Smart TVs, iPads and iPhones, there is little reason to expect it cannot similarly be protected on a third party set-top-box or app. We actually incorporated the industry's CableCARD license protections into the proposal since that has been so successful in protecting content for the last 20 years. Again, if there is other language necessary to ensure copyright protections, we are interested in seeing such language. Developing a robust record addressing these issues will ultimately benefit consumers. Ninety-nine percent oftoday's pay TV subscribers lease their set top box. This lack of competition has meant few choices and high prices for consumers-on average, $231 in rental fees annually for the American household. Even worse for consumers, these rental fees continue to increase. One recent analysis found that the cost of cable set-top boxes has risen 185 percent since 1994 while the cost of computers, televisions and mobile phones has dropped by 90 percent during that same time period. The record we are developing will help us address the outstanding issues you raise while delivering American consumers meaningful choice, and opening new opportunities for minority programmers. 90 GFNTV Comments, MB Docket Nos. 16-42, 16-41, 97-80, at 2 (Apr. 22, 2016) Page 4- The Honorable Kyrsten Sinema Thank you for your engagement on this important issue. The wisdom inherent in a notice-and-comment proceeding is that there is time for continuing an ongoing dialog. I look forward to such a dialog with you. Tom Wheeler FEDERAL COMMUNICATIONS COMMISSION WASHINGTON OFF ICE OF THE C HA I RMAN The Honorable Albio Sires U.S. House ofRepresentatives 2342 Rayburn House Office Building Washington, D.C. 20515 Dear Congressman Sires: May 23,2016 Thank you for your letter regarding the Commission's proposal for better fostering competition in the set-top box and navigation app marketplace. One of the central issues in this proceeding is how competition can support and promote diverse and independent voices in our media landscape. Your engagement and leadership in our proceeding is invaluable and helps further the public discourse on this important issue. This February the Commission put out for public comment a proposal that would fulfill the statutory requirement of competitive choice for consumers. This action opened a fact-finding dialog to build a record upon which to base any final decision. The notice-and-comment process, as well as subsequent ex parte communications, will constitute the most complete and thorough examination of this issue ever undertaken or contemplated. Already, the record contains over 104,000 comments representing a broad range ofviewpoints and data. This includes both theoretical economic studies, as well as real-life expenences. In order to provide guidance to commenters, we specifically requested information from all sides on the issues you raise in your letter - the imp·act on all parties in the video marketplace, the impact on content diversity and intellectual property, and the impact on consumer privacy­ as well as many other topics. As you know, the first round of comments on this proposal were filed last month. Responses are due today. However, as with all of our proceedings, we will continue accepting comments, studies and observations for the record well after our formal comment period closes. And, of course, every single one of these pages of comments will be available online for public scrutiny and comment. The ultimate record will no doubt reach multiple of hundreds of thousands of pages of information, which is why I am confident it will be the most extensive examination of the subject ever undertaken. As always, your participation in the record is appreciated. As the video ecosystem evolves it should be creating more opportunities for independent and minority-owned programming. By using the set top box as a way to limit program carriage, Page 2- The Honorable Albio Sires however, MVPDs constrict opportunities. While the most popular MVPD packages contain 200 to 500 channels, there are currently only two Hispanic-owned and four African-American owned networks. Not only is there limited carriage, but there is also limited financial support. While a chatmellike ESPN is paid over $7.00 per month per subscriber by MVPDs, minority channels receive pennies. What's more, minority networks are often placed on premium tiers requiring an additional payment from the consumer which also limits potential advertising revenues by limiting potential audience reach. Thus far, our record is replete with comments from minority programmers who have been locked out from carriage on traditional cable networks.91 For the sake of these entrepreneurs and the audiences they hope to reach, we must move forward. Our proposal would provide minority and independent programmers with an equal opportunity to reach their audiences. The proposal would facilitate competition in interfaces, search functions, and integration of programming sources, all of which would provide programmers with a greater ability to find audiences and consumers with a greater ability to access independent and minority programming. For those few independent and minority-owned programmers who already have carriage on the traditional pay-TV system, nothing in the Commission's proposal disrupts existing contractual relationships between programmers and MVPDs. 91 See, e.g., New England Broadband Comments, MB Docket Nos. 16-42, 97-80, at 2 (Apr. 22, 2016) ("On behalf of the dream that was the Black Education Network and on behalf of all of the other generations of quality programming strangled to demise by a merciless cable system, I enthusiastically applaud the FCC's efforts to unlock the box!"); GFNTV Comments, MB Docket Nos. 16-42, 16-41, 97-80, at 2 (Apr. 22, 2016) ("Fortunately, the FCC has the ability to create this opportunity for independent and minority programmers -- but it must act soon before cable operators can set the only gatekeepers to this online video market. We need a path to greater distribution of this content and the way to do this is to have a competitive set top box or no set top box system. Online video minority programmers will not be able to grow and thrive with the current system."); BLQBOX Comments, MB Docket Nos. 16-42, 16-41, 97-80, at 1-2 (Apr. 22, 20 16) ("So why should minorities -or anyone else- care about this fight? Because as a battle wages on #OscarsSo White, there are hundreds of thousands of hours of quality programming -documentaries, shorts, lifestyle, indie movies, global movies -that don't fit well within the traditional ad-based TV model and will never make it onto broadcast, cable or even Netflix and Amazon. And for those content creators and the entrepreneurs who want to distribute that work, the only viable market is direct to consumers in the streaming world. But as long as the streaming world is locked out from the mainstream, many audiences will never find them and they will not succeed. Set-top box innovation would open that system."); The Townsend Group Comments, MB Docket Nos. 16-42, 16-41,97-90, at 2 (Apr. 22, 2016) ("Unless we eliminate the gatekeeper system, we will forever be just talking about how to improve markets for independent and diverse programmers. The proposed Unlock the Box regulations significantly lower barriers to market entry for diverse and independent programmers. In addition, the proposal represents a positive evolution in our vide-programming ecosystem bringing us closer to the non-gatekeeper system we deserve. I urge the FCC to move deliberately implementing this proposal and finally establishing a cable marketplace that lives up to its potential."); UNIFYme.TV Comments, MB Docket Nos. 16-42, 16-41,97-80, at 2 (Apr. 22, 2016) ("Unlock the Box gives audiences easy access to diverse programming from streaming services like UNIFY and other content providers who have been shutout from cable outlets. Cable and satellite stations have been gatekeepers who have invariably dismissed so much rich content and deprived audiences from experiences of old and/or new content."). Page 3 -The Honorable Albio Sires You have been thoughtful in identifying the issues that are important to you in this proceeding. I owe you the same courtesy insofar as responding to some of the issues that have been surrounding this topic: • Debra Lee, CEO of BET, recently stated that our proposal would give away "BET programming for free." I can assure you nothing in the proposal would require anyone to give away their content for free. If there is specific language you or Ms. Lee would like to suggest to make that clear, we are interested in seeing this language. • Alfred Liggins, CEO of TV One, commented: "The programming market today is working for content providers seeking to reach consumers, including minority content providers." Comments in the record take the opposite view. For instance, GFNTV submitted comments that "minority programmers will not be able to grow and thrive with the current system."92 Ultimately, the record being developed will answer this question. • There have also been continuing allegations about copyright protections. If copyright can be protected on Smart TVs, iPads and iPhones, there is little reason to expect it cannot similarly be protected on a third party set-top-box or app. We actually incorporated the industry's CableCARD license protections into the proposal since that has been so successful in protecting content for the last 20 years. Again, if there is other language necessary to ensure copyright protections, we are interested in seeing such language. Developing a robust record addressing these issues will ultimately benefit consumers. Ninety-nine percent oftoday's pay TV subscribers lease their set top box. This lack of competition has meant few choices and high prices for consumers-on average, $231 in rental fees annually for the American household. Even worse for consumers, these rental fees continue to increase. One recent analysis found that the cost of cable set-top boxes has risen 185 percent since 1994 while the cost of computers, televisions and mobile phones has dropped by 90 percent during that same time period. The record we are developing will help us address the outstanding issues you raise while delivering American consumers meaningful choice, and opening new opportunities for minority programmers. 92 GFNTV Comments, MB Docket Nos. 16-42, 16-41,97-80, at 2 (Apr. 22, 2016) Page 4- The Honorable Albio Sires Thank you for your engagement on this important issue. The wisdom inherent in a notice-and-comment proceeding is that there is time for continuing an ongoing dialog. I look forward to such a dialog with you. Tom Wheeler FEDERAL COMMUNICATIONS COMMISSION WASHINGTON OFFICE OF TH E CHA I RMAN The Honorable Mark Takai U.S. House ofRepresentatives 422 Cannon House Office Building Washington, D.C. 20515 Dear Congressman Takai: May 23,2016 Thank you for your letter regarding the Commission's proposal for better fostering competition in the set-top box and navigation app marketplace. One of the central issues in this proceeding is how competition can support and promote diverse and independent voices in our media landscape. Your engagement and leadership in our proceeding is invaluable and helps further the public discourse on this important issue. This February the Commission put out for public comment a proposal that would fulfill the statutory requirement of competitive choice for consumers. This action opened a fact-finding dialog to build a record upon which to base any final decision. The notice-and-comment process, as well as subsequent ex parte communications, will constitute the most complete and thorough examination of this issue ever undertaken or contemplated. Already, the record contains over 104,000 comments representing a broad range of viewpoints and data. This includes both theoretical economic studies, as well as real-life expenences. In order to provide guidance to commenters, we specifically requested information from all sides on the issues you raise in your letter - the impact on all parties in the video marketplace, the impact on content diversity and intellectual property, and the impact on consumer privacy­ as well as many other topics. As you know, the first round of comments on this proposal were filed last month. Responses are due today. However, as with all of our proceedings, we will continue accepting comments, studies and observations for the record well after our formal comment period closes. And, of course, every single one of these pages of comments will be available online for public scrutiny and comment. The ultimate record will no doubt reach multiple of hundreds of thousands of pages of information, which is why I am confident it will be the most extensive examination of the subject ever undertaken. As always, your participation in the record is appreciated. As the video ecosystem evolves it should be creating more opportunities for independent and minority-owned programming. By using the set top box as a way to limit program carriage, Page 2 -The Honorable Mark Takai however, MVPDs constrict opportunities. While the most popular MVPD packages contain 200 to 500 channels, there are currently only two Hispanic-owned and four African-American owned networks. Not only is there limited carriage, but there is also limited financial support. While a channel like ESPN is paid over $7.00 per month per subscriber by MVPDs, minority channels receive pennies. What's more, minority networks are often placed on premium tiers requiring an additional payment from the consumer which also limits potential advertising revenues by limiting potential audience reach. Thus far, our record is replete with comments from minority programmers who have been locked out from carriage on traditional cable networks.93 For the sake of these entrepreneurs and the audiences they hope to reach, we must move forward. Our proposal would provide minority and independent programmers with an equal opportunity to reach their audiences. The proposal would facilitate competition in interfaces, search functions, and integration of programming sources, all of which would provide programmers with a greater ability to find audiences and consumers with a greater ability to access independent and minority progrmmning. For those few independent and minority-owned programmers who already have carriage on the traditional pay-TV system, nothing in the Commission's proposal disrupts existing contractual relationships between programmers and MVPDs. 93 See, e.g., New England Broadband Comments, MB Docket Nos. 16-42, 97-80, at 2 (Apr. 22, 2016) ("On behalf of the dream that was the Black Education Network and on behalf of all of the other generations of quality programming strangled to demise by a merciless cable system, I enthusiastically applaud the FCC's efforts to unlock the box!"); GFNTV Comments, MB Docket Nos. 16-42, 16-41,97-80, at 2 (Apr. 22, 2016) ("Fortunately, the FCC has the ability to create this opportunity for independent and minority programmers -- but it must act soon before cable operators can set the only gatekeepers to this online video market. We need a path to greater distribution of this content and the way to do this is to have a competitive set top box or no set top box system. Online video minority programmers will not be able to grow and thrive with the cunent system."); BLQBOX Comments, MB Docket Nos. 16-42, 16-41,97-80, at 1-2 (Apr. 22, 2016) ("So why should minorities -or anyone else- care about this fight? Because as a battle wages on #OscarsSoWhite, there are hundreds of thousands of hours of quality programming -documentaries, shorts, lifestyle, indie movies, global movies -that don't fit well within the traditional ad-based TV model and will never make it onto broadcast, cable or even Netflix and Amazon. And for those content creators and the entrepreneurs who want to distribute that work, the only viable market is direct to consumers in the streaming world. But as long as the streaming world is locked out from the mainstream, many audiences will never find them and they will not succeed. Set-top box innovation would open that system."); The Townsend Group Comments, MB Docket Nos. 16-42, 16-41,97-90, at 2 (Apr. 22, 2016) ("Unless we eliminate the gatekeeper system, we will forever be just talking about how to improve markets for independent and diverse programmers. The proposed Unlock the Box regulations significantly lower baniers to market entry for diverse and independent programmers. In addition, the proposal represents a positive evolution in our vide-programming ecosystem bringing us closer to the non-gatekeeper system we deserve. I urge the FCC to move deliberately implementing this proposal and finally establishing a cable marketplace that lives up to its potential."); UNIFY me. TV Comments, MB Docket Nos. 16-42, 16-41,97-80, at 2 (Apr. 22, 2016) ("Unlock the Box gives audiences easy access to diverse programming from streaming services like UNIFY and other content providers who have been shutout from cable outlets. Cable and satellite stations have been gatekeepers who have invariably dismissed so much rich content and deprived audiences from experiences of old and/or new content."). Page 3 -The Honorable Mark Takai You have been thoughtful in identifying the issues that are important to you in this proceeding. I owe you the same courtesy insofar as responding to some of the issues that have been surrounding this topic: • Debra Lee, CEO of BET, recently stated that our proposal would give away "BET programming for free." I can assure you nothing in the proposal would require anyone to give away their content for free. If there is specific language you or Ms. Lee would like to suggest to make that clear, we are interested in seeing this language. • Alfred Liggins, CEO of TV One, commented: "The programming market today is working for content providers seeking to reach consumers, including minority content providers." Comments in the record take the opposite view. For instance, GFNTV submitted comments that "minority programmers will not be able to grow and thrive with the current system."94 Ultimately, the record being developed will answer this question. • There have also been continuing allegations about copyright protections. If copyright can be protected on Smart TVs, iPads and iPhones, there is little reason to expect it cannot similarly be protected on a third party set-top-box or app. We actually incorporated the industry's CableCARD license protections into the proposal since that has been so successful in protecting content for the last 20 years. Again, if there is other language necessary to ensure copyright protections, we are interested in seeing such language. Developing a robust record addressing these issues will ultimately benefit consumers. Ninety-nine percent oftoday's pay TV subscribers lease their set top box. This lack of competition has meant few choices and high prices for consumers-on average, $231 in rental fees annually for the American household. Even worse for consumers, these rental fees continue to increase. One recent analysis found that the cost of cable set-top boxes has risen 185 percent since 1994 while the cost of computers, televisions and mobile phones has dropped by 90 percent during that same time period. The record we are developing will help us address the outstanding issues you raise while delivering American consumers meaningful choice, and opening new opportunities for minority programmers. 94 GFNTV Comments, MB Docket Nos. 16-42, 16-41, 97-80, at 2 (Apr. 22, 2016) Page 4- The Honorable Mark Takai Thank you for your engagement on this important issue. The wisdom inherent in a notice-and-comment proceeding is that there is time for continuing an ongoing dialog. I look forward to such a dialog with you. Tom Wheeler FEDERAL COMMUNICATIONS COMMISSION WASHINGTON OFF I CE OF THE CHAIRMAN The Honorable Bennie Thompson U.S. House of Representatives 2466 Rayburn House Office Building Washington, D.C. 20515 Dear Congressman Thompson: May 23,2016 Thank you for your letter regarding the Commission's proposal for better fostering competition in the set-top box and navigation app marketplace. One of the central issues in this proceeding is how competition can support and promote diverse and independent voices in our media landscape. Your engagement and leadership in our proceeding is invaluable and helps further the public discourse on this important issue. This February the Commission put out for public comment a proposal that would fulfill the statutory requirement of competitive choice for consumers. This action opened a fact-finding dialog to build a record upon which to base any final decision. The notice-and-comment process, as well as subsequent ex parte communications, will constitute the most complete and thorough examination of this issue ever undertaken or contemplated. Already, the record contains over 104,000 comments representing a broad range of viewpoints and data. This includes both theoretical economic studies, as well as real-life expenences. In order to provide guidance to commenters, we specifically requested information from all sides on the issues you raise in your letter - the impact on all parties in the video marketplace, the impact on content diversity and intellectual property, and the impact on consumer privacy­ as well as many other topics. As you know, the first round of comments on this proposal were filed last month. Responses are due today. However, as with all of our proceedings, we will continue accepting comments, studies and observations for the record well after our formal comment period closes. And, of course, every single one of these pages of comments will be available online for public scrutiny and comment. The ultimate record will no doubt reach multiple of hundreds of thousands of pages of information, which is why I am confident it will be the most extensive examination of the subject ever undertaken. As always, your participation in the record is appreciated. As the video ecosystem evolves it should be creating more opportunities for independent and minority-owned programming. By using the set top box as a way to limit program carriage, Page 2 -The Honorable Bennie Thompson however, MVPDs constrict opportunities. While the most popular MVPD packages contain 200 to 500 channels, there are currently only two Hispanic-owned and four African-American owned networks. Not only is there limited carriage, but there is also limited financial support. While a channel like ESPN is paid over $7.00 per month per subscriber by MVPDs, minority channels receive pennies. What's more, minority networks are often placed on premium tiers requiring an additional payment from the consumer which also limits potential advertising revenues by limiting potential audience reach. Thus far, our record is replete with comments from minority programmers who have been locked out from carriage on traditional cable networks. 95 For the sake of these entrepreneurs and the audiences they hope to reach, we must move fmward. Our proposal would provide minority and independent programmers with an equal opportunity to reach their audiences. The proposal would facilitate competition in interfaces, search functions, and integration of programming sources, all ofwhich would provide programmers with a greater ability to find audiences and consumers with a greater ability to access independent and minority programming. For those few independent and minority-owned programmers who already have carriage on the traditional pay-TV system, nothing in the Commission's proposal disrupts existing contractual relationships between programmers and MVPDs. 95 See, e.g., New England Broadband Comments, MB Docket Nos. 16-42, 97-80, at 2 (Apr. 22, 20 16) ("On behalf of the dream that was the Black Education Network and on behalf of all of the other generations of quality progranm1ing strangled to demise by a merciless cable system, I enthusiastically applaud the FCC's efforts to unlock the box!"); GFNTV Comments, MB Docket Nos. 16-42, 16-41, 97-80, at 2 (Apr. 22, 2016) ("Fotiunately, the FCC has the ability to create this opportunity for independent and minority programmers -- but it must act soon before cable operators can set the only gatekeepers to this online video market. We need a path to greater distribution of this content and the way to do this is to have a competitive set top box or no set top box system. Online video minority programmers will not be able to grow and thrive with the current system."); BLQBOX Comments, MB Docket Nos. 16-42, 16-41,97-80, at 1-2 (Apr. 22, 2016) ("So why should minorities -or anyone else- care about this fight? Because as a battle wages on #OscarsSo White, there are hundreds of thousands of hours of quality programming -documentaries, shorts, lifestyle, indie movies, global movies -that don't fit well within the traditional ad-based TV model and will never make it onto broadcast, cable or even Netflix and Amazon. And for those content creators and the entrepreneurs who want to distribute that work, the only viable market is direct to consumers in the streaming world. But as long as the streaming world is locked out from the mainstream, many audiences will never find them and they will not succeed. Set-top box innovation would open that system."); The Townsend Group Comments, MB Docket Nos. 16-42, 16-41, 97-90, at 2 (Apr. 22, 2016) ("Unless we eliminate the gatekeeper system, we will forever be just talking about how to improve markets for independent and diverse programmers. The proposed Unlock the Box regulations significantly lower barriers to market entry for diverse and independent programmers. In addition, the proposal represents a positive evolution in our vide-programming ecosystem bringing us closer to the non-gatekeeper system we deserve. I urge the FCC to move deliberately implementing this proposal and fmally establishing a cable marketplace that lives up to its potential."); UNIFYme.TV Comments, MB Docket Nos. 16-42, 16-41,97-80, at 2 (Apr. 22, 2016) ("Unlock the Box gives audiences easy access to diverse programming from streaming services like UNIFY and other content providers who have been shutout from cable outlets. Cable and satellite stations have been gatekeepers who have invariably dismissed so much rich content and deprived audiences from experiences of old and/or new content."). Page 3 - The Honorable Bennie Thompson You have been thoughtful in identifYing the issues that are important to you in this proceeding. I owe you the same courtesy insofar as responding to some of the issues that have been surrounding this topic: • Debra Lee, CEO of BET, recently stated that our proposal would give away "BET programming for free." I can assure you nothing in the proposal would require anyone to give away their content for free. If there is specific language you or Ms. Lee would like to suggest to make that clear, we are interested in seeing this language. • Alfred Liggins, CEO of TV One, commented: "The programming market today is working for content providers seeking to reach consumers, including minority content providers." Comments in the record take the opposite view. For instance, GFNTV submitted comments that "minority programmers will not be able to grow and thrive with the current system."96 Ultimately, the record being developed will answer this question. • There have also been continuing allegations about copyright protections. If copyright can be protected on Smart TVs, iPads and iPhones, there is little reason to expect it cannot similarly be protected on a third party set-top-box or app. We actually incorporated the industry's CableCARD license protections into the proposal since that has been so successful in protecting content for the last 20 years. Again, if there is other language necessary to ensure copyright protections, we are interested in seeing such language. Developing a robust record addressing these issues will ultimately benefit consumers. Ninety-nine percent of today' s pay TV subscribers lease their set top box. This lack of competition has meant few choices and high prices for consumers-on average, $231 in rental fees annually for the American household. Even worse for consumers, these rental fees continue to increase. One recent analysis found that the cost of cable set-top boxes has risen 185 percent since 1994 while the cost of computers, televisions and mobile phones has dropped by 90 percent during that same time period. The record we are developing will help us address the outstanding issues you raise while delivering American consumers meaningful choice, and opening new opportunities for minority programmers. 96 GFNTV Comments, MB Docket Nos. 16-42, 16-41,97-80, at 2 (Apr. 22, 2016) Page 4 - The Honorable Bennie Thompson Thank you for your engagement on this important issue. The wisdom inherent in a notice-and-comment proceeding is that there is time for continuing an ongoing dialog. I look forward to such a dialog with you. Tom Wheeler FEDERAL COMMUNICATIONS COMMISSION WASHINGTON OFFICE OF THE CHAIRMAN The Honorable Dina Titus U.S. House ofRepresentatives 401 Cannon House Office Building Washington, D.C. 20515 Dear Congresswoman Titus: May 23,2016 Thank you for your letter regarding the Commission' s proposal for better fostering competition in the set-top box and navigation app marketplace. One of the central issues in this proceeding is how competition can support and promote diverse and independent voices in our media landscape. Your engagement and leadership in our proceeding is invaluable and helps further the public discourse on this important issue. This February the Commission put out for public comment a proposal that would fulfill the statutory requirement of competitive choice for consumers. This action opened a fact-finding dialog to build a record upon which to base any final decision. The notice-and-comment process, as well as subsequent ex parte communications, will constitute the most complete and thorough examination of this issue ever undertaken or contemplated. Already, the record contains over 104,000 comments representing a broad range of viewpoints and data. This includes both theoretical economic studies, as well as real-life expenences. In order to provide guidance to commenters, we specifically requested information from all sides on the issues you raise in your letter - the impact on all parties in the video marketplace, the impact on content diversity and intellectual property, and the impact on consumer privacy­ as well as many other topics. As you know, the first round of comments on this proposal were filed last month. Responses are due today. However, as with all of our proceedings, we will continue accepting comments, studies and observations for the record well after our formal comment period closes. And, of course, every single one of these pages of comments will be available online for , public scrutiny and comment. The ultimate record will no doubt reach multiple of hundreds of thousands of pages of information, which is why I am confident it will be the most extensive examination of the subject ever undertaken. As always, your participation in the record is appreciated. As the video ecosystem evolves it should be creating more opportunities for independent and minority-owned programming. By using the set top box as a way to limit program carriage, Page 2 -The Honorable Dina Titus however, MVPDs constrict opportunities. While the most popular MVPD packages contain 200 to 500 channels, there are currently only two Hispanic-owned and four African-American owned networks. Not only is there limited carriage, but there is also limited financial support. While a channel like ESPN is paid over $7.00 per month per subscriber by MVPDs, minority channels receive pennies. What's more, minority networks are often placed on premium tiers requiring an additional payment from the consumer which also limits potential advertising revenues by limiting potential audience reach. Thus far, our record is replete with comments from minority programmers who have been locked out from carriage on traditional cable networks. 97 For the sake of these entrepreneurs and the audiences they hope to reach, we must move forward. Our proposal would provide minority and independent programmers with an equal opportunity to reach their audiences. The proposal would facilitate competition in interfaces, search functions, and integration of programming sources, all of which would provide programmers with a greater ability to find audiences and consumers with a greater ability to access independent and minority programming. For those few independent and minority-owned programmers who already have carriage on the traditional pay-TV system, nothing in the Commission's proposal dismpts existing contractual relationships between programmers and MVPDs. 97 See, e.g., New England Broadband Comments, MB Docket Nos. 16-42, 97-80, at 2 (Apr. 22, 20 16) ("On behalf of the dream that was the Black Education Network and on behalf of all of the other generations of quality programming strangled to demise by a merciless cable system, I enthusiastically applaud the FCC's efforts to unlock the box!"); GFNTV Comments, MB Docket Nos. 16-42, 16-41, 97-80, at 2 (Apr. 22, 2016) ("Fortunately, the FCC has the ability to create this opportunity for independent and minority programmers -- but it must act soon before cable operators can set the only gatekeepers to this online video market. We need a path to greater distribution of this content and the way to do this is to have a competitive set top box or no set top box system. Online video minority programmers will not be able to grow and thrive with the current system."); BLQBOX Comments, MB Docket Nos. 16-42, 16-41,97-80, at 1-2 (Apr. 22, 2016) ("So why should minorities -or anyone else- care about this fight? Because as a battle wages on #OscarsSo White, there are hundreds of thousands of hours of quality programming -documentaries, shorts, lifestyle, indie movies, global movies -that don't fit well within the traditional ad-based TV model and will never make it onto broadcast, cable or even Netflix and Amazon. And for those content creators and the entrepreneurs who want to distribute that work, the only viable market is direct to consumers in the streaming world. But as long as the streaming world is locked out from the mainstream, many audiences will never find them and they will not succeed. Set-top box innovation would open that system."); The Townsend Group Comments, MB Docket Nos. 16-42, 16-41,97-90, at 2 (Apr. 22, 2016) ("Unless we eliminate the gatekeeper system, we will forever be just talking about how to improve markets for independent and diverse programmers. The proposed Unlock the Box regulations significantly lower barriers to market entry for diverse and independent programmers. In addition, the proposal represents a positive evolution in our vide-programming ecosystem bringing us closer to the non-gatekeeper system we deserve. I urge the FCC to move deliberately implementing this proposal and finally establishing a cable marketplace that lives up to its potential."); UNIFY me. TV Comments, MB Docket Nos. 16-42, 16-41,97-80, at 2 (Apr. 22, 2016) ("Unlock the Box gives audiences easy access to diverse programming from streaming services like UNIFY and other content providers who have been shutout from cable outlets. Cable and satellite stations have been gatekeepers who have invariably dismissed so much rich content and deprived audiences from experiences of old and/or new content."). Page 3 - The Honorable Dina Titus You have been thoughtful in identifying the issues that are important to you in this proceeding. I owe you the same courtesy insofar as responding to some of the issues that have been surrounding this topic: • Debra Lee, CEO of BET, recently stated that our proposal would give away "BET programming for free." I can assure you nothing in the proposal would require anyone to give away their content for free. If there is specific language you or Ms. Lee would like to suggest to make that clear, we are interested in seeing this language. • Alfred Liggins, CEO of TV One, commented: "The programming market today is working for content providers seeking to reach consumers, including minority content providers." Comments in the record take the opposite view. For instance, GFNTV submitted comments that "minority programmers will not be able to grow and thrive with the current system."98 Ultimately, the record being developed will answer this question. • There have also been continuing allegations about copyright protections. If copyright can be protected on Smart TVs, iPads and iPhones, there is little reason to expect it cannot similarly be protected on a third party set-top-box or app. We actually incorporated the industry's CableCARD license protections into the proposal since that has been so successful in protecting content for the last 20 years. Again, if there is other language necessary to ensure copyright protections, we are interested in seeing such language. Developing a robust record addressing these issues will ultimately benefit consumers. Ninety-nine percent of today' s pay TV subscribers lease their set top box. This lack of competition has meant few choices and high prices for consumers-on average, $231 in rental fees annually for the American household. Even worse for consumers, these rental fees continue to increase. One recent analysis found that the cost of cable set-top boxes has risen 185 percent since 1994 while the cost of computers, televisions and mobile phones has dropped by 90 percent during that same time period. The record we are developing will help us address the outstanding issues you raise while delivering American consumers meaningful choice, and opening new opportunities for minority programmers. 98 GFNTV Comments, MB Docket Nos. 16-42, 16-41,97-80, at 2 (Apr. 22, 2016) Page 4- The Honorable Dina Titus Thank you for your engagement on this important issue. The wisdom inherent in a notice-and-comment proceeding is that there is time for continuing an ongoing dialog. I look forward to such a dialog with you. Tom Wheeler FEDERAL COMMUNICATIONS COMMISSION WASHINGTON OFFICE OF THE CHA I RMAN The Honorable Paul Tonko U.S. House ofRepresentatives 2463 Rayburn House Office Building Washington, D.C. 20515 Dear Congressman Tonko: May 23,2016 Thank you for your letter regarding the Commission's proposal for better fostering competition in the set-top box and navigation app marketplace. One of the central issues in this proceeding is how competition can support and promote diverse and independent voices in our media landscape. Your engagement and leadership in our proceeding is invaluable and helps further the public discourse on this important issue. This February the Commission put out for public comment a proposal that would fulfill the statutory requirement of competitive choice for consumers. This action opened a fact-finding dialog to build a record upon which to base any final decision. The notice-and-comment process, as well as subsequent ex parte communications, will constitute the most complete and thorough examination of this issue ever undertaken or contemplated. Already, the record contains over 104,000 comments representing a broad range of viewpoints and data. This includes both theoretical economic studies, as well as real-life experiences. In order to provide guidance to commenters, we specifically requested information from all sides on the issues you raise in your letter - the impact on all parties in the video marketplace, the impact on content diversity and intellectual property, and the impact on consumer privacy­ as well as many other topics. As you know, the first round of comments on this proposal were filed last month. Responses are due today. However, as with all of our proceedings, we will continue accepting comments, studies and observations for the record well after our formal comment period closes. And, of course, every single one of these pages of comments will be available online for public scrutiny and comment. The ultimate record will no doubt reach multiple of hundreds of thousands of pages of information, which is why I am confident it will be the most extensive examination of the subject ever undertaken. As always, your participation in the record is appreciated. As the video ecosystem evolves it should be creating more opportunities for independent and minority-owned programming. By using the set top box as a way to limit program carriage, Page 2 -The Honorable Paul Tonko however, MVPDs constrict opportunities. While the most popular MVPD packages contain 200 to 500 channels, there are currently only two Hispanic-owned and four African-American owned networks. Not only is there limited carriage, but there is also limited financial support. While a channel like ESPN is paid over $7.00 per month per subscriber by MVPDs, minority channels receive pennies. What's more, minority networks are often placed on premium tiers requiring an additional payment from the consumer which also limits potential advertising revenues by limiting potential audience reach. Thus far, our record is replete with comments from minority programmers who have been locked out from carriage on traditional cable networks. 99 For the sake of these entrepreneurs and the audiences they hope to reach, we must move forward. Our proposal would provide minority and independent programmers with an equal opportunity to reach their audiences. The proposal would facilitate competition in interfaces, search functions, and integration of programming sources, all of which would provide programmers with a greater ability to find audiences and consumers with a greater ability to access independent and minority programming. For those few independent and minority-owned programmers who already have carriage on the traditional pay-TV system, nothing in the Commission's proposal disrupts existing contractual relationships between programmers and MVPDs. 99 See, e.g., New England Broadband Comments, MB Docket Nos. 16-42, 97-80, at 2 (Apr. 22, 20 16) ("On behalf of the dream that was the Black Education Network and on behalf of all of the other generations of quality programming strangled to demise by a merciless cable system, I enthusiastically applaud the FCC's efforts to unlock the box!"); GFNTV Comments, MB Docket Nos. 16-42, 16-41, 97-80, at 2 (Apr. 22, 2016) ("Fortunately, the FCC has the ability to create this opportunity for independent and minority programmers -- but it must act soon before cable operators can set the only gatekeepers to this online video market. We need a path to greater distribution of this content and the way to do this is to have a competitive set top box or no set top box system. Online video minority programmers will not be able to grow and thrive with the current system."); BLQBOX Comments, MB Docket Nos. 16-42, 16-41,97-80, at 1-2 (Apr. 22, 2016) ("So why should minorities -or anyone else- care about this fight? Because as a battle wages on #OscarsSo White, there are hundreds of thousands of hours of quality programming -documentaries, shorts, lifestyle, indie movies, global movies -that don't fit well within the traditional ad-based TV model and will never make it onto broadcast, cable or even Netflix and Amazon. And for those content creators and the entrepreneurs who want to distribute that work, the only viable market is direct to consumers in the streaming world. But as long as the streaming world is locked out from the mainstream, many audiences will never find them and they will not succeed. Set-top box innovation would open that system."); The Townsend Group Comments, MB Docket Nos. 16-42, 16-41,97-90, at 2 (Apr. 22, 2016) ("Unless we eliminate the gatekeeper system, we will forever be just talking about how to improve markets for independent and diverse programmers. The proposed Unlock the Box regulations significantly lower barriers to market entry for diverse and independent programmers. In addition, the proposal represents a positive evolution in our vide-programming ecosystem bringing us closer to the non-gatekeeper system we deserve. I urge the FCC to move deliberately implementing this proposal and finally establishing a cable marketplace that lives up to its potential."); UNIFY me. TV Comments, MB Docket Nos. 16-42, 16-41,97-80, at 2 (Apr. 22, 2016) ("Unlock the Box gives audiences easy access to diverse programming from streaming services like UNIFY and other content providers who have been shutout from cable outlets. Cable and satellite stations have been gatekeepers who have invariably dismissed so much rich content and deprived audiences from experiences of old and/or new content."). Page 3- The Honorable Paul Tonko You have been thoughtful in identifying the issues that are important to you in this proceeding. I owe you the same courtesy insofar as responding to some of the issues that have been surrounding this topic: • Debra Lee, CEO of BET, recently stated that our proposal would give away "BET programming for free." I can assure you nothing in the proposal would require anyone to give away their content for free. If there is specific language you or Ms. Lee would like to suggest to make that clear, we are interested in seeing this language. • Alfred Liggins, CEO of TV One, commented: "The programming market today is working for content providers seeking to reach consumers, including minority content providers." Comments in the record take the opposite view. For instance, GFNTV submitted comments that "minority programmers will not be able to grow and thrive with the current system."100 Ultimately, the record being developed will answer this question. • There have also been continuing allegations about copyright protections. If copyright can be protected on Smart TVs, iPads and iPhones, there is little reason to expect it cannot similarly be protected on a third party set-top-box or app. We actually incorporated the industry's CableCARD license protections into the proposal since that has been so successful in protecting content for the last 20 years. Again, if there is other language necessary to ensure copyright protections, we are interested in seeing such language. Developing a robust record addressing these issues will ultimately benefit consumers. Ninety-nine percent of today' s pay TV subscribers lease their set top box. This lack of competition has meant few choices and high prices for consumers-on average, $231 in rental fees annually for the American household. Even worse for consumers, these rental fees continue to increase. One recent analysis found that the cost of cable set-top boxes has risen 185 percent since 1994 while the cost of computers, televisions and mobile phones has dropped by 90 percent during that same time period. The record we are developing will help us address the outstanding issues you raise while delivering American consumers meaningful choice, and opening new opportunities for minority programmers. 100 GFNTV Comments, MB Docket Nos. 16-42, 16-41, 97-80, at 2 (Apr. 22, 2016) Page 4 - The Honorable Paul Tonko Thank you for your engagement on this important issue. The wisdom inherent in a notice-and-comment proceeding is that there is time for continuing an ongoing dialog. I look forward to such a dialog with you. Sincere~~~~ };;#S~fi-- Tom Wheeler FEDERAL COMMUNICATIONS COMMISSION WASHINGTON OFFICE OF THE C H A I RMAN The Honorable Norma J. Torres U.S. House ofRepresentatives 516 Cannon House Office Building Washington, D.C. 20515 Dear Congresswoman Torres: May 23,2016 Thank you for your letter regarding the Commission's proposal for better fostering competition in the set-top box and navigation app marketplace. One of the central issues in this proceeding is how competition can support and promote diverse and independent voices in our media landscape. Your engagement and leadership in our proceeding is invaluable and helps further the public discourse on this important issue. This February the Commission put out for public comment a proposal that would fulfill the statutory requirement of competitive choice for consumers. This action opened a fact-finding dialog to build a record upon which to base any final decision. The notice-and-comment process, as well as subsequent ex parte communications, will constitute the most complete and thorough examination of this issue ever undertaken or contemplated. Already, the record contains over 104,000 comments representing a broad range of viewpoints and data. This includes both theoretical economic studies, as well as real-life experiences. In order to provide guidance to commenters, we specifically requested information from all sides on the issues you raise in your letter - the impact on all parties in the video marketplace, the impact on content diversity and intellectual property, and the impact on consumer privacy­ as well as many other topics. As you know, the first round of comments on this proposal were filed last month. Responses are due today. However, as with all of our proceedings, we will continue accepting comments, studies and observations for the record well after our formal comment period closes. And, of course, every single one of these pages of comments will be available online for public scrutiny and comment. The ultimate record will no doubt reach multiple of hundreds of thousands of pages of information, which is why I am confident it will be the most extensive examination of the subject ever undertaken. As always, your participation in the record is appreciated. As the video ecosystem evolves it should be creating more opportunities for independent and minority-owned programming. By using the set top box as a way to limit program carriage, Page 2- The Honorable Nonna J. Torres however, MVPDs constrict oppmiunities. While the most popular MVPD packages contain 200 to 500 channels, there are currently only two Hispanic-owned and four African-American owned networks. Not only is there limited carriage, but there is also limited financial support. While a channel like ESPN is paid over $7.00 per month per subscriber by MVPDs, minority channels receive pennies. What's more, minority networks are often placed on premium tiers requiring an additional payment from the consumer which also limits potential advertising revenues by limiting potential audience reach. Thus far, our record is replete with comments from minority programmers who have been locked out from carriage on traditional cable networks. 101 For the sake of these entrepreneurs and the audiences they hope to reach, we must move forward. Our proposal would provide minority and independent programmers with an equal opportunity to reach their audiences. The proposal would facilitate competition in interfaces, search functions, and integration of programming sources, all ofwhich would provide programmers with a greater ability to find audiences and consumers with a greater ability to access independent and minority programming. For those few independent and minority-owned programmers who already have carriage on the traditional pay-TV system, nothing in the Commission's proposal disrupts existing contractual relationships between programmers and MVPDs. 101 See, e.g., New England Broadband Comments, MB Docket Nos. 16-42, 97-80, at 2 (Apr. 22, 2016) ("On behalf of the dream that was the Black Education Network and on behalf of all of the other generations of quality programming strangled to demise by a merciless cable system, I enthusiastically applaud the FCC's efforts to unlock the box!"); GFNTV Comments, MB Docket Nos. 16-42, 16-41, 97-80, at 2 (Apr. 22, 2016) ("Fortunately, the FCC has the ability to create this opportunity for independent and minority programmers -- but it must act soon before cable operators can set the only gatekeepers to this online video market. We need a path to greater distribution of this content and the way to do this is to have a competitive set top box or no set top box system. Online video minority programmers will not be able to grow and thrive with the current system."); BLQBOX Comments, MB Docket Nos. 16-42, 16-41, 97-80, at 1-2 (Apr. 22, 2016) ("So why should minorities -or anyone else- care about this fight? Because as a battle wages on #OscarsSo White, there are hundreds of thousands of hours of quality programming -documentaries, shorts, lifestyle, indie movies, global movies -that don't fit well within the traditional ad-based TV model and will never make it onto broadcast, cable or even Netflix and Amazon. And for those content creators and the entrepreneurs who want to distribute that work, the only viable market is direct to consumers in the streaming world. But as long as the streaming world is locked out from the mainstream, many audiences will never find them and they will not succeed. Set-top box innovation would open that system."); The Townsend Group Comments, MB Docket Nos. 16-42, 16-41, 97-90, at 2 (Apr. 22, 2016) ("Unless we eliminate the gatekeeper system, we will forever be just talking about how to improve markets for independent and diverse programmers. The proposed Unlock the Box regulations significantly lower barriers to market entry for diverse and independent programmers. In addition, the proposal represents a positive evolution in our vide-programming ecosystem bringing us closer to the non-gatekeeper system we deserve. I urge the FCC to move deliberately implementing this proposal and finally establishing a cable marketplace that lives up to its potential."); UNIFYme.TV Comments, MB Docket Nos. 16-42, 16-41,97-80, at 2 (Apr. 22, 2016) ("Unlock the Box gives audiences easy access to diverse programming from streaming services like UNIFY and other content providers who have been shutout from cable outlets. Cable and satellite stations have been gatekeepers who have invariably dismissed so much rich content and deprived audiences from experiences of old and/or new content."). Page 3- The Honorable Nonna J. Torres You have been thoughtful in identifying the issues that are important to you in this proceeding. I owe you the same courtesy insofar as responding to some of the issues that have been surrounding this topic: • Debra Lee, CEO of BET, recently stated that our proposal would give away "BET programming for free." I can assure you nothing in the proposal would require anyone to give away their content for free. If there is specific language you or Ms. Lee would like to suggest to make that clear, we are interested in seeing this language. • Alfred Liggins, CEO of TV One, commented: "The programming market today is working for content providers seeking to reach consumers, including minority content providers." Comments in the record take the opposite view. For instance, GFNTV submitted comments that "minority programmers will not be able to grow and thrive with the current system." 102 Ultimately, the record being developed will answer this question. • There have also been continuing allegations about copyright protections. If copyright can be protected on Smart TVs, iPads and iPhones, there is little reason to expect it cannot similarly be protected on a third party set-top-box or app. We actually incorporated the industry's CableCARD license protections into the proposal since that has been so successful in protecting content for the last 20 years. Again, if there is other language necessary to ensure copyright protections, we are interested in seeing such language. Developing a robust record addressing these issues will ultimately benefit consumers. Ninety-nine percent of today' s pay TV subscribers lease their set top box. This lack of competition has meant few choices and high prices for consumers-on average, $231 in rental fees annually for the American household. Even worse for consumers, these rental fees continue to increase. One recent analysis found that the cost of cable set-top boxes has risen 185 percent since 1994 while the cost of computers, televisions and mobile phones has dropped by 90 percent during that same time period. The record we are developing will help us address the outstanding issues you raise while delivering American consumers meaningful choice, and opening new opportunities for minority programmers. 102 GFNTV Comments, MB Docket Nos. 16-42, 16-41,97-80, at 2 (Apr. 22, 2016) Page 4- The Honorable Norma J. Torres Thank you for your engagement on this important issue. The wisdom inherent in a notice-and-comment proceeding is that there is time for continuing an ongoing dialog. I look forward to such a dialog with you. Sincere!~~~~ kN7f/{- Tom Wheeler FEDERAL COMMUNICATIONS COMMISSION WASH INGTON OFF ICE OF THE CHA I RMAN The Honorable Marc Veasey U.S. House of Representatives 414 Cannon House Office Building Washington, D.C. 20515 Dear Congressman Veasey: May 23,2016 Thank you for your letter regarding the Commission's proposal for better fostering competition in the set-top box and navigation app marketplace. One of the central issues in this proceeding is how competition can support and promote diverse and independent voices in our media landscape. Your engagement and leadership in our proceeding is invaluable and helps further the public discourse on this important issue. This February the Commission put out for public comment a proposal that would fulfill the statutory requirement of competitive choice for consumers. This action opened a fact-finding dialog to build a record upon which to base any final decision. The notice-and-comment process, as well as subsequent ex parte communications, will constitute the most complete and thorough examination of this issue ever undertaken or contemplated. Already, the record contains over 104,000 comments representing a broad range of viewpoints and data. This includes both theoretical economic studies, as well as real-life expenences. In order to provide guidance to commenters, we specifically requested information from all sides on the issues you raise in your letter- the impact on all parties in the video marketplace, the impact on content diversity and intellectual property, and the impact on consumer privacy­ as well as many other topics. As you know, the first round of comments on this proposal were filed last month. Responses are due today. However, as with all of our proceedings, we will continue accepting comments, studies and observations for the record well after our formal comment period closes. And, of course, every single one of these pages of comments will be available online for public scrutiny and comment. The ultimate record will no doubt reach multiple ofhundreds of thousands of pages of information, which is why I am confident it will be the most extensive examination of the subject ever undertaken. As always, your participation in the record is appreciated. As the video ecosystem evolves it should be creating more opportunities for independent and minority-owned programming. By using the set top box as a way to limit program carriage, Page 2 - The Honorable Marc Veasey however, MVPDs constrict opportunities. While the most popular MVPD packages contain 200 to 500 channels, there are currently only two Hispanic-owned and four African-American owned networks. Not only is there limited carriage, but there is also limited financial support. While a channel like ESPN is paid over $7.00 per month per subscriber by MVPDs, minority chmmels receive pennies. What's more, minority networks are often placed on premium tiers requiring an additional payment from the consumer which also limits potential advertising revenues by limiting potential audience reach. Thus far, our record is replete with comments from minority programmers who have been locked out from carriage on traditional cable networks. 103 For the sake ofthese entrepreneurs and the audiences they hope to reach, we must move forward. Our proposal would provide minority and independent programmers with an equal opportunity to reach their audiences. The proposal would facilitate competition in interfaces, search functions, and integration of programming sources, all of which would provide programmers with a greater ability to find audiences and consumers with a greater ability to access independent and minority programming. For those few independent and minority-owned programmers who already have carriage on the traditional pay-TV system, nothing in the Commission's proposal disrupts existing contractual relationships between programmers and MVPDs. 103 See, e.g., New England Broadband Comments, MB Docket Nos. 16-42, 97-80, at 2 (Apr. 22, 2016) ("On behalf of the dream that was the Black Education Network and on behalf of all of the other generations of quality programming strangled to demise by a merciless cable system, I enthusiastically applaud the FCC's efforts to unlock the box!"); GFNTV Comments, MB Docket Nos. 16-42, 16-41, 97-80, at 2 (Apr. 22, 2016) ("Fortunately, the FCC has the ability to create this opportunity for independent and minority programmers -- but it must act soon before cable operators can set the only gatekeepers to this online video market. We need a path to greater distribution of this content and the way to do this is to have a competitive set top box or no set top box system. Online video minority programmers will not be able to grow and thrive with the current system."); BLQBOX Comments, MB Docket Nos. 16-42, 16-41, 97-80, at 1-2 (Apr. 22, 2016) ("So why should minorities -or anyone else- care about this fight? Because as a battle wages on #OscarsSoWhite, there are hundreds of thousands of hours of quality programming -documentaries, shorts, lifestyle, indie movies, global movies -that don't fit well within the traditional ad-based TV model and will never make it onto broadcast, cable or even Netflix and Amazon. And for those content creators and the entrepreneurs who want to distribute that work, the only viable market is direct to consumers in the streaming world. But as long as the streaming world is locked out from the mainstream, many audiences will never find them and they will not succeed. Set-top box innovation would open that system."); The Townsend Group Comments, MB Docket Nos. 16-42, 16-41,97-90, at 2 (Apr. 22, 2016) ("Unless we eliminate the gatekeeper system, we will forever be just talking about how to improve markets for independent and diverse programmers. The proposed Unlock the Box regulations significantly lower barriers to market entry for diverse and independent programmers. In addition, the proposal represents a positive evolution in our vide-programming ecosystem bringing us closer to the non-gatekeeper system we deserve. I urge the FCC to move deliberately implementing this proposal and fmally establishing a cable marketplace that lives up to its potential."); UNIFYme.TV Comments, MB Docket Nos. 16-42, 16-41,97-80, at 2 (Apr. 22, 2016) ("Unlock the Box gives audiences easy access to diverse programming from streaming services like UNIFY and other content providers who have been shutout from cable outlets. Cable and satellite stations have been gatekeepers who have invariably dismissed so much rich content and deprived audiences from experiences of old and/or new content."). Page 3 - The Honorable Marc Veasey You have been thoughtful in identifying the issues that are important to you in this proceeding. I owe you the same courtesy insofar as responding to some of the issues that have been surrounding this topic: • Debra Lee, CEO of BET, recently stated that our proposal would give away "BET programming for free." I can assure you nothing in the proposal would require anyone to give away their content for free. If there is specific language you or Ms. Lee would like to suggest to make that clear, we are interested in seeing this language. • Alfred Liggins, CEO of TV One, commented: "The programming market today is working for content providers seeking to reach consumers, including minority content providers." Comments in the record take the opposite view. For instance, GFNTV submitted comments that "minority programmers will not be able to grow and thrive with the current system." 104 Ultimately, the record being developed will answer this question. • There have also been continuing allegations about copyright protections. If copyright can be protected on Smart TVs, iPads and iPhones, there is little reason to expect it cannot similarly be protected on a third party set-top-box or app. We actually incorporated the industry's CableCARD license protections into the proposal since that has been so successful in protecting content for the last 20 years. Again, if there is other language necessary to ensure copyright protections, we are interested in seeing such language. Developing a robust record addressing these issues will ultimately benefit consumers. Ninety-nine percent of today' s pay TV subscribers lease their set top box. This lack of competition has meant few choices and high prices for consumers-on average, $231 in rental fees annually for the American household. Even worse for consumers, these rental fees continue to increase. One recent analysis found that the cost of cable set-top boxes has risen 185 percent since 1994 while the cost of computers, televisions and mobile phones has dropped by 90 percent during that same time period. The record we are developing will help us address the outstanding issues you raise while delivering American consumers meaningful choice, and opening new opportunities for minority programmers. 104 GFNTV Comments, MB Docket Nos. 16-42, 16-41, 97-80, at 2 (Apr. 22, 2016) Page 4- The Honorable Marc Veasey Thank you for your engagement on this important issue. The wisdom inherent in a notice-and-comment proceeding is that there is time for continuing an ongoing dialog. I look forward to such a dialog with you. Tom Wheeler FEDERAL COMMUNICATIONS COMMISSION WASHINGTON OFFICE OF THE CHAIRMAN The Honorable Filemon Vela U.S. House ofRepresentatives 437 Cannon House Office Building Washington, D.C. 20515 Dear Congressman Vela: May 23,2016 Thank you for your letter regarding the Commission's proposal for better fostering competition in the set-top box and navigation app marketplace. One of the central issues in this proceeding is how competition can support and promote diverse and independent voices in our media landscape. Your engagement and leadership in our proceeding is invaluable and helps further the public discourse on this important issue. This February the Commission put out for public comment a proposal that would fulfill the statutory requirement of competitive choice for consumers. This action opened a fact-finding dialog to build a record upon which to base any final decision. The notice-and-comment process, as well as subsequent ex parte communications, will constitute the most complete and thorough examination of this issue ever undertaken or contemplated. Already, the record contains over 104,000 comments representing a broad range ofviewpoints and data. This includes both theoretical economic studies, as well as real-life experiences. In order to provide guidance to commenters, we specificaily requested information from all sides on the issues you raise in your letter - the impact on all parties in the video marketplace, the impact on content diversity and intellectual property, and the impact on consumer privacy­ as well as many other topics. As you know, the first round of comments on this propos1:tl were filed last month. Responses are due today. However, as with all of our proceedings, we will continue accepting comments, studies and observations for the record well after our formal comment period closes. And, of course, every single one of these pages of comments will be available online for public scrutiny and comment. The ultimate record will no doubt reach multiple of hundreds of thousands of pages of information, which is why I am confident it will be the most extensive examination of the subject ever undertaken. As always, your participation in the record is appreciated. As the video ecosystem evolves it should be creating more opportunities for independent and minority-owned programming. By using the set top box as a way to limit program carriage, Page 2 - The Honorable Filemon Vela however, MVPDs constrict opportunities. While the most popular MVPD packages contain 200 to 500 channels, there are currently only two Hispanic-owned and four African-American owned networks. Not only is there limited carriage, but there is also limited financial support. While a channel like ESPN is paid over $7.00 per month per subscriber by MVPDs, minority channels receive pennies. What's more, minority networks are often placed on premium tiers requiring an additional payment from the consumer which also limits potential advertising revenues by limiting potential audience reach. Thus far, our record is replete with comments from minority programmers who have been locked out from carriage on traditional cable networks. 105 For the sake of these entrepreneurs and the audiences they hope to reach, we must move forward. Our proposal would provide minority and independent programmers with an equal opportunity to reach their audiences. The proposal would facilitate competition in interfaces, search functions, and integration of programming sources, all of which would provide programmers with a greater ability to find audiences and consumers with a greater ability to access independent and minority programming. For those few independent and minority-owned programmers who already have carriage on the traditional pay-TV system, nothing in the Commission's proposal disrupts existing contractual relationships between programmers and MVPDs. 105 See, e.g., New England Broadband Comments, MB Docket Nos. 16-42, 97-80, at 2 (Apr. 22, 2016) ("On behalf of the dream that was the Black Education Network and on behalf of all of the other generations of quality programming strangled to demise by a merciless cable system, I enthusiastically applaud the FCC's efforts to unlock the box!"); GFNTV Comments, MB Docket Nos. 16-42, 16-41, 97-80, at 2 (Apr. 22, 2016) ("Fortunately, the FCC has the ability to create this opportunity for independent and minority programmers -- but it must act soon before cable operators can set the only gatekeepers to this online video market. We need a path to greater distribution of this content and the way to do this is to have a competitive set top box or no set top box system. Online video minority programmers will not be able to grow and thrive with the current system."); BLQBOX Comments, MB Docket Nos. 16-42, 16-41, 97-80, at 1-2 (Apr. 22, 20 16) ("So why should minorities -or anyone else- care about this fight? Because as a battle wages on #OscarsSoWhite, there are hundreds of thousands of hours of quality programming -documentaries, shorts, lifestyle, indie movies, global movies -that don't fit well within the traditional ad-based TV model and will never make it onto broadcast, cable or even Netflix and Amazon. And for those content creators and the entrepreneurs who want to distribute that work, the only viable market is direct to consumers in the streaming world. But as long as the streaming world is locked out from the mainstream, many audiences will never find them and they will not succeed. Set-top box ilmovation would open that system."); The Townsend Group Comments, MB Docket Nos. 16-42, 16-41,97-90, at 2 (Apr. 22, 2016) ("Unless we eliminate the gatekeeper system, we will forever be just talking about how to improve markets for independent and diverse programmers. The proposed Unlock the Box regulations significantly lower barriers to market entry for diverse and independent programmers. In addition, the proposal represents a positive evolution in our vide-programming ecosystem bringing us closer to the non-gatekeeper system we deserve. I urge the FCC to move deliberately implementil1g this proposal and finally establishing a cable marketplace that lives up to its potential."); UNIFY me. TV Comments, MB Docket Nos. 16-42, 16-41, 97-80, at 2 (Apr. 22, 2016) ("Unlock the Box gives audiences easy access to diverse programming from streaming services like UNIFY and other content providers who have been shutout from cable outlets. Cable and satellite stations have been gatekeepers who have invariably dismissed so much rich content and deprived audiences from experiences of old and/or new content."). Page 3 - The Honorable Filemon Vela You have been thoughtful in identifying the issues that are important to you in this proceeding. I owe you the same courtesy insofar as responding to some of the issues that have been surrounding this topic: • Debra Lee, CEO of BET, recently stated that our proposal would give away "BET programming for free." I can assure you nothing in the proposal would require anyone to give away their content for free. If there is specific language you or Ms. Lee would like to suggest to make that clear, we are interested in seeing this language. • Alfred Liggins, CEO of TV One, commented: "The programming market today is working for content providers seeking to reach consumers, including minority content providers." Comments in the record take the opposite view. For instance, GFNTV submitted comments that "minority programmers will not be able to grow and thrive with the current system." 106 Ultimately, the record being developed will answer this question. • There have also been continuing allegations about copyright protections. If copyright can be protected on Smart TV s, iPads and iPhones, there is little reason to expect it cannot similarly be protected on a third party set-top-box or app. We actually incorporated the industry's CableCARD license protections into the proposal since that has been so successful in protecting content for the last 20 years. Again, if there is other language necessary to ensure copyright protections, we are interested in seeing such language. Developing a robust record addressing these issues will ultimately benefit consumers. Ninety-nine percent oftoday's pay TV subscribers lease their set top box. This lack of competition has meant few choices and high prices for consumers-on average, $231 in rental fees annually for the American household. Even worse for consumers, these rental fees continue to increase. One recent analysis found that the cost of cable set-top boxes has risen 185 percent since 1994 while the cost of computers, televisions and mobile phones has dropped by 90 percent during that same time period. The record we are developing will help us address the outstanding issues you raise while delivering American consumers meaningful choice, and opening new opportunities for minority programmers. 106 GFNTV Comments, MB Docket Nos. 16-42, 16-41,97-80, at 2 (Apr. 22, 2016) Page 4- The Honorable Filemon Vela Thank you for your engagement on this important issue. The wisdom inherent in a notice-and-comment proceeding is that there is time for continuing an ongoing dialog. I look forward to such a dialog with you. Tom Wheeler FEDERAL COMMUNICATIONS COMMISSION WASHINGTON OFFIC E O F T HE CHA I RMAN The Honorable Tim Walz U.S. House of Representatives 1034 Longworth House Office Building Washington, D.C. 20515 Dear Congressman Walz: May 23,2016 Thank you for your letter regarding the Commission's proposal for better fostering competition in the set-top box and navigation app marketplace. One ofthe central issues in this proceeding is how competition can support and promote diverse and independent voices in our media landscape. Your engagement and leadership in our proceeding is invaluable and helps further the public discourse on this important issue. This February the Commission put out for public comment a proposal that would fulfill the statutory requirement of competitive choice for consumers. This action opened a fact-finding dialog to build a record upon which to base any final decision. The notice-and-comment process, as well as subsequent ex parte communications, will constitute the most complete and thorough examination of this issue ever undertaken or contemplated. Already, the record contains over 104,000 comments representing a broad range ofviewpoints and data. This includes both theoretical economic studies, as well as real-life expenences. In order to provide guidance to commenters, we specifically requested information from all sides on the issues you raise in your letter -the impact on all parties in the video marketplace, the impact on content diversity and intellectual property, and the impact on consumer privacy­ as well as many other topics. As you know, the first round of comments on this proposal were filed last month. Responses are due today. However, as with all of our proceedings, we will continue accepting comments, studies and observations for the record well after our formal comment period closes. And, of course, every single one of these pages of comments will be available online for public scrutiny and comment. The ultimate record will no doubt reach multiple of hundreds of thousands of pages of information, which is why I am confident it will be the most extensive examination of the subject ever undertaken. As always, your participation in the record is appreciated. As the video ecosystem evolves it should be creating more opportunities for independent and minority-owned programming. By using the set top box as a way to limit program carriage, Page 2 - The Honorable Tim Walz however, MVPDs constrict opportunities. While the most popular MVPD packages contain 200 to 500 channels, there are currently only two Hispanic-owned and four African-American owned networks. Not only is there limited carriage, but there is also limited financial support. While a channel like ESPN is paid over $7.00 per month per subscriber by MVPDs, minority channels receive pennies. What's more, minority networks are often placed on premium tiers requiring an additional payment from the consumer which also limits potential advertising revenues by limiting potential audience reach. Thus far, our record is replete with comments from minority programmers who have been locked out from carriage on traditional cable networks. 107 For the sake of these entrepreneurs and the audiences they hope to reach, we must move forward. Our proposal would provide minority and independent programmers with an equal opportunity to reach their audiences. The proposal would facilitate competition in interfaces, search functions, and integration of programming sources, all of which would provide programmers with a greater ability to find audiences and consumers with a greater ability to access independent and minority programming. For those few independent and minority-owned programmers who already have carriage on the traditional pay-TV system, nothing in the Commission's proposal disrupts existing contractual relationships between programmers and MVPDs. 107 See, e.g., New England Broadband Comments, MB Docket Nos. 16-42, 97-80, at 2 (Apr. 22, 2016) ("On behalf of the dream that was the Black Education Network and on behalf of all of the other generations of quality programming strangled to demise by a merciless cable system, I enthusiastically applaud the FCC's efforts to unlock the box!"); GFNTV Comments, MB Docket Nos. 16-42, 16-41, 97-80, at 2 (Apr. 22, 2016) ("Fortunately, the FCC has the ability to create this opportunity for independent and minority programmers -- but it must act soon before cable operators can set the only gatekeepers to this online video market. We need a path to greater distribution of this content and the way to do this is to have a competitive set top box or no set top box system. Online video minority programmers will not be able to grow and thrive with the current system."); BLQBOX Comments, MB Docket Nos. 16-42, 16-41, 97-80, at 1-2 (Apr. 22, 2016) ("So why should minorities -or anyone else- care about this fight? Because as a battle wages on #OscarsSo White, there are hundreds of thousands of hours of quality programming -documentaries, shorts, lifestyle, indie movies, global movies -that don't fit well within the traditional ad-based TV model and will never make it onto broadcast, cable or even Netflix and Amazon. And for those content creators and the entrepreneurs who want to distribute that work, the only viable market is direct to consumers in the streaming world. But as long as the streaming world is locked out from the mainstream, many audiences will never find them and they will not succeed. Set-top box innovation would open that system."); The Townsend Group Comments, MB Docket Nos. 16-42, 16-41, 97-90, at 2 (Apr. 22, 2016) ("Unless we eliminate the gatekeeper system, we will forever be just talking about how to improve markets for independent and diverse programmers. The proposed Unlock the Box regulations significantly lower barriers to market entry for diverse and independent programmers. In addition, the proposal represents a positive evolution in our vide-programming ecosystem bringing us closer to the non-gatekeeper system we deserve. I urge the FCC to move deliberately implementing this proposal and finally establishing a cable marketplace that lives up to its potential."); UNIFYme.TV Comments, MB Docket Nos. 16-42, 16-41, 97-80, at 2 (Apr. 22, 2016) ("Unlock the Box gives audiences easy access to diverse programming from streaming services like UNIFY and other content providers who have been shutout from cable outlets. Cable and satellite stations have been gatekeepers who have invariably dismissed so much rich content and deprived audiences from experiences of old and/or new content."). Page 3 - The Honorable Tim Walz You have been thoughtful in identifying the issues that are important to you in this proceeding. I owe you the same courtesy insofar as responding to some of the issues that have been surrounding this topic: • Debra Lee, CEO of BET, recently stated that our proposal would give away "BET programming for free." I can assure you nothing in the proposal would require anyone to give away their content for free. If there is specific language you or Ms. Lee would like to suggest to make that clear, we are interested in seeing this language. • Alfred Liggins, CEO of TV One, commented: "The programming market today is working for content providers seeking to reach consumers, including minority content providers." Comments in the record take the opposite view. For instance, GFNTV submitted comments that "minority programmers will not be able to grow and thrive with the current system." 108 Ultimately, the record being developed will answer this question. • There have also been continuing allegations about copyright protections. If copyright can be protected on Smart TVs, iPads and iPhones, there is little reason to expect it cam1ot similarly be protected on a third party set-top-box or app. We actually incorporated the industry's CableCARD license protections into the proposal since that has been so successful in protecting content for the last 20 years. Again, if there is other language necessary to ensure copyright protections, we are interested in seeing such language. Developing a robust record addressing these issues will ultimately benefit consumers. Ninety-nine percent of today' s pay TV subscribers lease their set top box. This lack of competition has meant few choices and high prices for consumers-on average, $231 in rental fees allllually for the American household. Even worse for consumers, these rental fees continue to increase. One recent analysis found that the cost of cable set-top boxes has risen 185 percent since 1994 while the cost of computers, televisions and mobile phones has dropped by 90 percent during that same time period. The record we are developing will help us address the outstanding issues you raise while delivering American consumers meaningful choice, and opening new opportunities for minmity programmers. 108 GFNTV Comments, MB Docket Nos. 16-42, 16-41, 97-80, at 2 (Apr. 22, 2016) Page 4- The Honorable Tim Walz Thank you for your engagement on this important issue. The wisdom inherent in a notice-and-comment proceeding is that there is time for continuing an ongoing dialog. I look forward to such a dialog with you. Tom Wheeler FEDERAL CoMMUNICATIONS CoMMISSION WASHINGTON OFFICE OF THE CH A IRM A N The Honorable Frederica S. Wilson U.S. House of Representatives 208 Cannon House Office Building Washington, D.C. 20515 Dear Congresswoman Wilson: May 23,2016 Thank you for your letter regarding the Commission's proposal for better fostering competition in the set-top box and navigation app marketplace. One of the central issues in this proceeding is how competition can support and promote diverse and independent voices in our media landscape. Your engagement and leadership in our proceeding is invaluable and helps further the public discourse on this important issue. This February the Commission put out for public comment a proposal that would fulfill the statutory requirement of competitive choice for consumers. This action opened a fact-finding dialog to build a record upon which to base any final decision. The notice-and-comment process, as well as subsequent ex parte communications, will constitute the most complete and thorough examination of this issue ever undertaken or contemplated. Already, the record contains over 104,000 comments representing a broad range of viewpoints and data. This includes both theoretical economic studies, as well as real-life experiences. In order to provide guidance to commenters, we specifically requested information from all sides on the issues you raise in your letter - the impact on all parties in the video marketplace, the impact on content diversity and intellectual property, and the impact on consumer privacy­ as well as many other topics. As you know, the first round of comments on this proposal were filed last month. Responses are due today. However, as with all of our proceedings, we will continue accepting comments, studies and observations for the record well after our formal comment period closes. And, of course, every single one of these pages of comments will be available online for public scrutiny and comment. The ultimate record will no doubt reach multiple of hundreds of thousands of pages of information, which is why I am confident it will be the most extensive examination of the subject ever undertaken. As always, your participation in the record is appreciated. As the video ecosystem evolves it should be creating more opportunities for independent and minority-owned programming. By using the set top box as a way to limit program carriage, Page 2- The Honorable Frederica S. Wilson however, MVPDs constrict opportunities. While the most popular MVPD packages contain 200 to 500 channels, there are currently only two Hispanic-owned and four African-American owned networks. Not only is there limited carriage, but there is also limited financial support. While a channel like ESPN is paid over $7.00 per month per subscriber by MVPDs, minority channels receive pennies. What's more, minority networks are often placed on premium tiers requiring an additional payment from the consumer which also limits potential advertising revenues by limiting potential audience reach. Thus far, our record is replete with comments from minority programmers who have been locked out from carriage on traditional cable networks. 109 For the sake of these entrepreneurs and the audiences they hope to reach, we must move forward. Our proposal would provide minority and independent programmers with an equal opportunity to reach their audiences. The proposal would facilitate competition in interfaces, search functions, and integration of programming sources, all ofwhich would provide programmers with a greater ability to find audiences and consumers with a greater ability to access independent and minority programming. For those few independent and minority-owned programmers who already have carriage on the traditional pay-TV system, nothing in the Commission's proposal disrupts existing contractual relationships between programmers and MVPDs. 109 See, e.g., New England Broadband Comments, MB Docket Nos. 16-42, 97-80, at 2 (Apr. 22, 2016) ("On behalf of the dream that was the Black Education Network and on behalf of all of the other generations of quality programming strangled to demise by a merciless cable system, I enthusiastically applaud the FCC's efforts to unlock the box!"); GFNTV Comments, MB Docket Nos. 16-42, 16-41, 97-80, at 2 (Apr. 22, 2016) ("Fortunately, the FCC has the ability to create this opportunity for independent and minority programmers -- but it must act soon before cable operators can set the only gatekeepers to this online video market. We need a path to greater distribution of this content and the way to do this is to have a competitive set top box or no set top box system. Online video minority programmers will not be able to grow and thrive with the cun-ent system."); BLQBOX Comments, MB Docket Nos. 16-42, 16-41, 97-80, at 1-2 (Apr. 22, 2016) ("So why should minorities -or anyone else- care about this fight? Because as a battle wages on #OscarsSo White, there are hundreds of thousands of hours of quality programming -documentaries, shorts, lifestyle, indie movies, global movies -that don't fit well within the traditional ad-based TV model and will never make it onto broadcast, cable or even Netflix and Amazon. And for those content creators and the entrepreneurs who want to distribute that work, the only viable market is direct to consumers in the streaming world. But as long as the streaming world is locked out from the mainstream, many audiences will never find them and they will not succeed. Set-top box innovation would open that system."); The Townsend Group Comments, MB Docket Nos. 16-42, 16-41, 97-90, at 2 (Apr. 22, 2016) ("Unless we eliminate the gatekeeper system, we will forever be just talking about how to improve markets for independent and diverse programmers. The proposed Unlock the Box regulations significantly lower ban-iers to market entry for diverse and independent programmers. In addition, the proposal represents a positive evolution in our vide-programming ecosystem bringing us closer to the non-gatekeeper system we deserve. I urge the FCC to move deliberately implementing this proposal and finally establishing a cable marketplace that lives up to its potential."); UNIFYme.TV Comments, MB Docket Nos. 16-42, 16-41, 97-80, at 2 (Apr. 22, 2016) ("Unlock the Box gives audiences easy access to diverse programming from streaming services like UNIFY and other content providers who have been shutout from cable outlets. Cable and satellite stations have been gatekeepers who have invariably dismissed so much rich content and deprived audiences from experiences of old and/or new content."). Page 3 - The Honorable Frederica S. Wilson You have been thoughtful in identifying the issues that are important to you in this proceeding. I owe you the same courtesy insofar as responding to some of the issues that have been surrounding this topic: • Debra Lee, CEO of BET, recently stated that our proposal would give away "BET programming for free." I can assure you nothing in the proposal would require anyone to give away their content for free. If there is specific language you or Ms. Lee would like to suggest to make that clear, we are interested in seeing this language. • Alfred Liggins, CEO of TV One, commented: "The programming market today is working for content providers seeking to reach consumers, including minority content providers." Comments in the record take the opposite view. For instance, GFNTV submitted comments that "minority programmers will not be able to grow and thrive with the current system." 110 Ultimately, the record being developed will answer this question. • There have also been continuing allegations about copyright protections. If copyright can be protected on Smart TVs, iPads and iPhones, there is little reason to expect it cannot similarly be protected on a third party set-top-box or app. We actually incorporated the industry's CableCARD license protections into the proposal since that has been so successful in protecting content for the last 20 years. Again, if there is other language necessary to ensure copyright protections, we are interested in seeing such language. Developing a robust record addressing these issues will ultimately benefit consumers. Ninety-nine percent oftoday's pay TV subscribers lease their set top box. This lack of competition has meant few choices and high prices for consumers-on average, $231 in rental fees annually for the American household. Even worse for consumers, these rental fees continue to increase. One recent analysis found that the cost of cable set-top boxes has risen 185 percent since 1994 while the cost of computers, televisions and mobile phones has dropped by 90 percent during that same time period. The record we are developing will help us address the outstanding issues you raise while delivering American consumers meaningful choice, and opening new opportunities for minority programmers. 110 GFNTV Comments, MB Docket Nos. 16-42, 16-41,97-80, at 2 (Apr. 22, 2016) Page 4- The Honorable Frederica S. Wilson Thank you for your engagement on this important issue. The wisdom inherent in a notice-and-comment proceeding is that there is time for continuing an ongoing dialog. I look forward to such a dialog with you. Tom Wheeler