Speech

A point often lost when we talk about the digital divide is what happens when we actually bridge the divide. Too often, we declare mission accomplished when we’ve connected a home that has been forever without, but I challenge you to take a more nuanced view. We should only claim victory when a consumer is meaningfully using their connectivity to take advantage of the economic, educational, and health care opportunities it affords....

One of our primary goals at the Federal Communications Commission is to be good stewards of ratepayer dollars. That means moving away from the past practice of using our high-cost program to fund multiple networks in the same geographic area. We should not support a company that is serving an area where another provider is providing quality service without a subsidy. That is fundamentally inconsistent with protecting consumers and it does not enable the market to work as intended.

It is a pleasure to be here with my fellow regulators to discuss the amazing benefits and challenges presented by the new digital age. My goal today is to provide a picture of how this complex subject is being considered within the United States and what that may mean for my international counterparts.
Please forgive me for having the task of reminding everyone that I do not speak for the Trump Administration or the Federal Communications Commission as a whole. My views are just my own.

The FCC’s regulatory speed – and I am sure this isn’t a US specific issue – quite candidly cannot keep up with technological change or the demands of consumers. Simply put, our rather drawn-out pace is not well suited for the dynamic digital age. For this reason, I maintain that we must be very hesitant to regulate new, disruptive technologies. Instead, the presence of these innovative technologies should lead to reduced regulation of our traditional, more heavily regulated sectors.

Global Harmonization & US Leadership in Wireless Technologies. While some in this country may eschew global harmonization, and I understand that our market position means we have the option of going it alone or in coordination with a handful of other countries, offering commercial services on the same frequencies around the world has many benefits for US consumers and providers. On the consumer side, there is the ability to use your devices and have the same wireless experience at home and abroad. At the same time, the economies of scale created by marketing products internationally enables research, development, and manufacturing costs to be widely dispersed, promoting investment and innovation while reducing the cost of devices and services for Americans.

Allow me to quickly reiterate my call for five policies I believe can help move the needle when it comes to digital inclusion. We have seen how the phenomenal success of low-power FM (LPFM) is playing out in local communities across this country. The first call I wish to make, is for us to find ways, in which to replicate and enhance this success story for more underrepresented groups – that are largely minority and women – who are seeking to be a part of the broadcast landscape. Second, in recent years, I have called for the establishment of a pilot incubator program, aimed at increasing the number of women and minority owners in the broadcast space. Third, when divestitures are required during merger transactions, we should urge parties to strongly consider offers from women and minority business owners. Fourth, the time to act on the Commission’s independent programming NPRM is now. With a robust record of more than 36,000 filings, I believe we have enough data to move to a final order, targeting two of the worst offending practices facing many independent video programmers: “unconditional” most favored nation clauses, and unreasonable alternative distribution method provisions. And lastly, with the help of Congress, we can and should reinstate a tax certificate program, focused on promoting opportunities for new entrants.

We recruited you to put you to work. As members of the Committee, your mission is to offer guidance so that the agency can take important steps toward increasing diversity throughout the communications industry and bringing digital opportunity to all Americans.

One of your tasks will be to identify issues that might not already be on the Federal Communications Commission’s radar. Another will be to advise us about issues that we’ve already identified. Another task we’ll assign you is to examine is how we can make sure that disadvantaged communities have access to next-generation networks. Broadband can be a great equalizer when it comes to jobs, health care, education, and civic engagement. But if we don’t bridge the digital divide, communities on the wrong side of that divide will fall further behind in each of these areas. Our goal should be ubiquitous, high-speed networks that bring together all Americans—and I do mean all Americans. Last but not least, we’ll ask you to take a hard look at diversity in Silicon Valley. I look forward to working with you to increase diversity throughout the communications industry and to bring digital opportunity to all Americans.

There’s no question that high-speed Internet is a game-changer for rural Americans. It’s improving standards of living more than any new technology since the rural electrification effort in the early 20th century. That is—so long as you have access. And that’s the big challenge.

Rural Americans too often find themselves on the wrong side of the digital divide. In rural America, 28% of households lack access to high-speed, fixed service. In urban areas, only 2% go without. Rural Americans are missing out on opportunities for jobs, health care, education, and more, and there’s a significant cost to those lost opportunities. But I worry that we’re losing something even greater if rural communities remain stuck in the analog age. That’s the slow fade of rural communities themselves. To be clear, I’m not saying that the digital divide is the reason why rural communities are shrinking. This trend started before the commercial Internet even existed. What I am saying is that how we deal with the digital divide will affect the destiny of towns like Parsons and Ulysses and Beloit and Hiawatha. It’ll help determine if this population loss gets faster, slows down, or is potentially reversed. Broadband-enabled opportunities for jobs, education, health care, and agriculture can be a great equalizer for rural America. But so long as some rural communities don’t have broadband, they’ll fall further and further behind.

To spur network deployment in sparsely populated areas where the economic incentives for private investment don’t exist, the FCC is providing direct funding that leverages—not displaces—private capital expenditures. But we also want to modernize our regulations to give companies a stronger business case to build and expand high-speed networks. The plain truth is that bureaucratic red tape at all levels of government can slow the pace and increase the cost of network deployment.

We’re here to celebrate former Federal Communications Commission Chairman Tom Wheeler’s public service, and discuss protecting the Open Internet, the most critical communications issue of our time. We’re here today to recognize Tom’s many efforts on behalf of the American people: to uphold the public interest; use the power of communications to strengthen communities; and to modernize and reform programs that bring open, affordable, high-capacity broadband to all Americans. Tom, your work as Chairman of the Federal Communications Commission created opportunities for all Americans to connect to jobs, education, healthcare, and family. And in the years to come, you and your team’s many accomplishments will not be measured by the initiatives you proposed, the dockets you opened, or the votes you won. The day-to-day impacts of your work will be seen in the community that was once left behind, that is now able to get ahead with new broadband options; in the child who can now reach a hand across a keyboard to access a whole new universe of knowledge thanks to gigabit connections to the school and Wi-Fi in the classroom; in the young mother who can now coordinate work and her child’s medical care thanks to her Lifeline connection; and in the small business owner who can now compete on a level playing field with its bigger business competitors thanks to a free and open Internet. In your first major address as Chairman, you stressed that the FCC is the public’s representative in the ongoing network revolution, and you promised to use the Commission’s full authority to protect competition, accessibility, interconnection, public safety, and security. Thank you for delivering on that promise. You are truly .

We gather today at a critical moment in the history of an Open Internet; in the fight for Net Neutrality. So, right here at the outset, let’s make clear something that will bear repeating throughout these remarks: An Open Internet is the law of the land and any change to that policy would take away from consumers, innovators and the competitive marketplace something they have today. The proof point that opponents to an Open Internet must hurdle is the factual basis for why it is necessary to remove existing protections? Those protections can be boiled down to one simple principle: Consumers must be in charge of how they use their broadband connections, free from manipulation by their broadband providers. Unfortunately, those of us who believe the internet should be fast, fair and open are in for a fight. The majority of the Trump Federal Communications Commission (FCC), the Republicans in Congress, and the big broadband providers are ganging up on consumers. They mouth the words, “We support an open internet,” yet oppose meaningful protections of that openness. So let me say it again, the current effort is to take away protections that now exist. This is principally about four economically and politically powerful broadband providers – companies that control the connections to 70 percent of American homes – seeking to take something away from tens of millions of consumers and tens of thousands of entrepreneurial innovators. The Trump FCC’s ongoing proceeding to accomplish this is a sham, starting with its name. In the Orwellian world of alternative facts in which we now live, the FCC calls gutting the Open Internet: “Restoring Internet Freedom.” The only thing this effort frees are the broadband providers that escape from their obligations to consumers. The effort to repeal or revise the Open Internet rules is contrary to statute, and contrary to the facts demonstrating how broadband providers can, have, and will abuse their role as gatekeeper to the network that will define the 21st century. And the best its proponents can come up with to support their position are claims of reduced investment that add up to nothing more than special pleading by the biggest cable and telecommunications companies.
[Tom Wheeler is the Walter Shorenstein Fellow for Media and Democracy, Harvard Kennedy School; Visiting Fellow, Brookings Institution; and Klinsky Visiting Professor, Harvard Law School. He served at Chairman of the Federal Communications Commission November 2013 - January 2017.]

Today, when we talk about universal service, we have in mind bringing high-speed Internet access, or “broadband,” to any American who wants it. Broadband is important for many reasons: it can help you get a job, start a company, get health care, educate your kids, and the like. But it’s also vital for free speech and political engagement. Fewer today seem to be willing to defend to the death others’ right to say things with which they might disagree. The situation on many college campuses is especially distressing.

A strong platform that allows the people to share their ideas and inform themselves about current affairs forestalls that fate. And in a remarkably short time, the Internet has become one such platform. The FCC’s charge and our cultural traditions remind us that we need to extend that online megaphone to all Americans. I look forward to working with you to do that—and to fulfilling this timeless vision for the digital age.

Today, we find ourselves nearing another possible hinge moment. We’ve seen remarkable progress, but it feels like we’re still waiting for another huge breakthrough. Well, 5G could well be what we’re waiting for.

Going from 2G to 3G was the mobile equivalent of switching from dial-up to broadband. Similarly, the transition from 4G to 5G promises to be more than just incremental change— we could see dramatic improvements in network speed, capacity, and responsiveness that will make the impossible possible. One analysis by CTIA suggests that 5G could create three million jobs and over $500 billion in additional GDP growth over seven years in the United States.