STATEMENT OF CHAIRMAN JULIUS GENACHOWSKI Re: Sections 2.925 and 2.926 of the Rules Regarding Grantee Codes for Certified Radiofrequency Equipment Everyone in this room probably has at least one mobile device on them right now that you can’t imagine living without. Of course, we rely on these devices to do our jobs, stay informed, stay in touch with friends and family, and much, much more. Many of you probably have a second device, maybe a tablet. And if you were to turn any of those devices over, you’d probably see the FCC logo. You’d see the FCC logo because Congress has given the agency the responsibility to ensure that devices that use spectrum comply with all requirements. The Commission’s equipment authorization program is an important element in getting devices to market. Equally, it’s a key part of the supply chain of innovation. And so handled correctly – as we are committed to doing – it’s part of how we can encourage innovation and investment in new technologies and products. It’s part of how we drive U.S. global competiveness. Handling this correctly means ensuring that our processes and procedures are efficient, cognizant on the needs of innovators, while meeting our important responsibilities. With this item, the Commission takes another step forward in ensuring an equipment authorization program that works, and that meets those goals, and that drives innovation. Thanks to Julie Knapp, Rashmi Doshi, Geri Matise and their terrific team, we’re not dealing with fixing a program that’s broken. We’re focusing on taking a program that works and making it better. You don’t have to take my word for it that OET is doing a great job. Last year, I received a letter from a senior executive at Apple, which said – quote – “OET has consistently worked hard to ensure careful authorization of equipment while striving to administer a process that allows innovation.” The letter pointed out something else, of which we’re well aware: the massive increase in the number of devices coming onto the market, and the increasing complexity of those devices, creates new challenges. And as Julie Knapp and his team reported in its presentation, OET is focused on meeting each of the challenges. As you heard during the bureau’s presentation, in 1999 we issued approximately 450 grantee codes. In 2011 we issued nearly 1,300 codes, three times as many. The growth of this particular metric reflects an increased number of companies participating in our equipment authorization process, including many non-traditional companies such as Gibson Guitars, Adidas, and Ford Motor Company. Five or ten years ago, who would have imagined Amazon would sell spectrum-based devices? OET recognizes that it needs to change to keep up with this demand. And already, OET has been taking steps to further review and improve our existing equipment authorization program to enable deployment of products to the market as part of our continued hard look at regulatory reform. Today’s item will greatly increase the number of grantee identifier codes available for new parties applying for equipment authorizations. As we review our equipment authorization process, this is an important first and necessary step to ensure that there is an adequate number of available codes. Today, we also are announcing plans for two future rulemaking proceedings to further review and improve our equipment authorization program. The first will examines third party Telecommunications Certification Body (TCB) obligations. The second will focus on streamlining and clarifying our administrative procedures. Both of these rulemakings are additional steps forward in ensuring that our equipment authorization process is current, efficient, and pro-innovation, while ensuring that all FCC-certified products meet all requirements. In addition, OET will continue to conduct outreach with all stakeholders, so that no good idea goes undiscovered. I look forward to providing more information about these two rulemakings over the coming months. Thank you to Rashmi Doshi, Geri Matise, and OET’s Laboratory Division for your work on this item, and, more important, for your work on the equipment authorization process.