Hearing of the Senate committee on Commerce, Science, and Transportation - Opening Statement of Sen. John Thune - Hearing on the Oversight of the Federal Communications Commission

Hearing

"Welcome to today's hearing on oversight of the Federal Communications Commission.

"During our oversight hearing last March, I expressed my amazement that an agency as important as the Federal Communications Commission had not been reauthorized by Congress in 25 years--making it the oldest expired authorization within the Commerce Committee's expansive jurisdiction.

"Reversing a quarter century of legislative inertia takes time, but together we are beginning to make some progress.

"For example, today's hearing marks the first time this century the full FCC has appeared before this Committee twice during a single Congress.

"Another example is our unanimous approval last year of Senator Heller's FCC Consolidated Reporting Act, which would make the Commission's various marketplace examinations less burdensome on the agency, as well as more informative to Congress.

"Reauthorizing the FCC is our responsibility as legislators and representatives of diverse constituencies who are increasingly affected by a regulatory agency with a nearly half billion dollar budget.

"It's time for this Committee to get back to regularly authorizing the Commission as part of its normal course of business. To that end, in the next few days, I will introduce the FCC Reauthorization Act of 2016, and it is my intent to mark up the bill in the coming weeks.

"We have before us today a very familiar face -- Commissioner Jessica Rosenworcel -- who is appearing before the Committee for the fourth time this Congress.

"Commissioner Rosenworcel's ‎re-nomination is currently pending before the full Senate. Commissioner, I support your confirmation, and I was pleased to process your nomination through the Committee last year.

"I appreciate your public service at the FCC and your prior service to this Committee.

"Last year's oversight hearing came shortly after the very successful auction of AWS-3 spectrum, which netted more than $41 billion in winning bids.

"That record-setting auction was the product of the 2012 Spectrum Act, which also authorized the innovative incentive auction of broadcast TV airwaves that is scheduled to begin next month.

"In the incentive auction, the FCC is charged with a balanced mission --one, reallocate the spectrum voluntarily relinquished by TV stations to commercial wireless users and, two, protect both the TV stations that continue to operate following the auction and their viewers.

"Congress provided nearly $2 billion to reimburse stations forced to relocate during the so-called "post-auction re-pack" and the FCC has established a timeline to complete the repacking process.

"Concerns have been raised, however, that the reimbursement funds and time allotted for repacking may be inadequate.

"I am hopeful that will not be the case. Nevertheless, these concerns deserve and will receive the close attention of this Committee.

"I know my colleagues and I all wish to see a successful incentive auction and a successful repacking process.

"While local broadcast TV remains an important and popular medium, the broader video market continues to dramatically change and grow.

"In fact, the video services market is one of the most dynamic segments of the communications space.

"It is driving tremendous innovation in consumer electronics, dynamic experimentation in video distribution business models, and growing broadband data consumption by consumers.

"It is not a coincidence that the parts of the video market seeing the most innovation are also the least regulated.

"Amidst this increasingly competitive video reality, the FCC recently proposed a partisan rulemaking to have the government somehow produce better results than the astonishing and consumer-empowering disruption that is already happening.

"Ranking Member Nelson sent Chairman Wheeler a letter shortly before the FCC's adoption of this new technology regulation proposal.

"I agree with Senator Nelson's sentiment that "advances abound in the competitive video navigation device market," and that "section 629 should always be implemented with an eye towards what is actually happening in the marketplace."

"Further, I want to echo Senator Nelson's warning to the Commission that section 629 does not contemplate imposing regulations "by which third parties gain, for their own commercial advantage, the ability to alter, add to, or interfere with the programming provided by content providers."

"The bottom line is that today's video market is increasingly competitive and traditional pay-TV subscribers are rapidly finding new, more user-friendly, and less expensive ways to receive the TV services they purchase on an increasing array of consumer devices, including some made by the largest companies on Earth.

"Finally, I would like to address the issue of standalone broadband support for small rural carriers.

"Because of flawed Universal Service Fund rules, these providers lose all support for serving households that choose to subscribe to broadband while not simultaneously purchasing landline telephone service.

"Last March, all five of you made commitments to me and this Committee to fix this counterproductive loophole by the end of 2015.

"It is my understanding that an item is currently on circulation at the Commission that would fix the standalone broadband problem, and which reflects a negotiated compromise on some other complex USF reforms that have been linked to this simple objective.

"While the 2015 deadline for standalone broadband has recently passed, I am glad the extra time appears to have given a fair chance for rural providers to assess the impact of those complex reform proposals on their businesses and on the rural broadband customers they serve.

"I look forward to seeing the full plan, assessing its impact on South Dakotans, and continuing to provide oversight of the FCC's implementation of these reforms as Chairman of this Committee.

"In the meantime, I would like to thank all of you for fulfilling your commitment to fix the standalone broadband issue for rural consumers across this nation.

"Now, before I conclude, I would just like to say a word regarding the report issued earlier this week by Chairman Johnson.

"Among other things, the report finds that the FCC "failed to live up to standards of transparency."

"I want to thank Chairman Johnson and his staff for their work on this report, and I hope the Commission--rather than resorting to a defensive posture--will look for ways to demonstrate the kind of transparency expected of our independent agencies.

"Today's hearing provides one opportunity to do just that.

"I look forward to hearing your testimony and appreciate your participation here today."

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