Hearing of the Privacy, Technology and the Law Subcommittee of the Senate Judiciary Committee - Chairman Grassley's Statement on "Examining the Proposed FCC Privacy Rules"

Hearing

I appreciate Chairman Flake holding this important oversight hearing. We have an excellent panel of
witnesses and I thank you all for being here today. I'm looking forward to hearing your testimony on
how the Federal Communication Commission's proposed privacy rules affect consumers and broadband
Internet providers.

It's no secret that the growth and success of the Internet is due in large measure to the flexible, handsoff
approach taken by regulators, which has characterized its early existence. It's this approach that has
led to incredible innovation -- allowing Americans to access information and entertainment, learn, and
do business in radically different ways. At the same time, the rapid growth in technology has also
resulted in new threats to individual privacy in ways that many of us never imagined. As such, the
Federal Trade Commission has been active in seeking to ensure that individual privacy remains
protected in the ever connected Internet world that we live in today and in the future.

Nevertheless, as a result of the Obama Administration's agenda that seeks to expand the executive
branch's power through increased federal regulations, the FCC is now forced to consider new Internet
privacy regulations, which are the subject of today's hearing. If enacted, it's important that these new
regulations don't harm the Internet's vibrancy, but instead ensure that the privacy protections of
consumers around the country will be protected and in a better position at the end of the day.

I'd also like to take this opportunity to highlight some important telecommunications issues affecting my
home state of Iowa. There are many rural areas where the cost of services to consumers remains high
because of challenges to deploying and operating networks and facilities in these areas. I urge the FCC
to keep these realities in mind as it continues to adjust the Universal Service Fund. In addition, rural
Iowans rely on their phone connections to do business and stay connected to many vital
services. Unfortunately, Iowans are still experiencing telephone calls not getting through, or they are
receiving poor quality calls. I know many of my constituents have repeatedly reported issues to the FCC,
but this persistent problem has led to them being unable to file complaints each time. I am pleased that
the FCC has stepped up enforcement, but more needs to be done. Consumers should be able to expect
at least a minimum level of call quality and reliability. The FCC should continue to address the problem
of least cost routers that attempt to minimize their costs by failing to deliver calls to rural areas where
the cost to provide phone service is higher. Rural America deserves better.

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