FCC Chairman Ajit Pai

I’m honored to be here and grateful to you for your participation on the Advisory Committee of the World Radiocommunication Conference 2019, or WRC-19. This Advisory Committee is a crucial element in the preparation of America’s positions at the WRC. Your efforts will ensure that the FCC represents effectively a broad spectrum of views during international negotiations and in the course of domestic decision-making. I encourage you to continue to work together and find consensus as you develop draft proposals for WRC-19. I know that finding consensus on these issues is challenging, even here at home. But working in good faith, I’m confident that we can find it. And find it we must, for it’s critical that we present a clear, consistent message beyond our shores.

Unfortunately, it has come to my attention that there are serious flaws in Universal Service Administrative Company’s (USAC) administration of the E-Rate program—flaws that relate to the process by which schools and libraries apply for E-Rate funding and that are in fact preventing many schools and libraries from getting that funding.

The specific problem involves USAC’s development and roll-out of the online E-Rate Productivity Center (EPC). EPC implementation issues have created major headaches for applicants requesting E-Rate funding. The current state of affairs is unacceptable. I seek your unqualified commitment that USAC will administer the E-Rate program in a manner that fully complies with Commission direction; works for applicants and participants; and promptly apprises the FCC of all relevant information concerning implementation.

Federal Communications Commission Chairman Ajit Pai issued the following statement on the announcement that Verizon Communications has agreed to purchase at least $1.05 billion in optical fiber from Corning Incorporated.

“The FCC’s top priority is closing the digital divide that has persisted for far too long. And the key to meeting that priority is setting stable, market-friendly rules that will lead to investment in online infrastructure. The FCC has already taken significant actions to promote greater capital expenditure on broadband deployment, from reducing regulatory barriers to wiser spending of federal subsidies for buildout. Later this week, we will vote on several proposals that would unleash major capital expenditures on next-generation networks. Against this backdrop, I’m pleased to see that Verizon and Corning have reached a $1.05 billion agreement under which Corning will manufacture and Verizon will buy up to 12.4 million miles of optical fiber each year. This agreement heralds the construction of ‘densified’ 5G networks that will benefit American consumers. It will create thousands of high-quality jobs building and laying fiber. And it will go a long way toward closing the digital divide. Going forward, the FCC will continue to focus on creating a regulatory climate that favors greater investment and competition. A forward-thinking approach—one that relies on market incentives, rather than the tired ideology of heavy-handed Washington micromanagement—is the best way to deliver digital opportunity to all Americans.”

Today marks a major accomplishment for the Commission: the ‘auction’ portion of the world’s first incentive auction is officially over. The reverse and forward auctions have concluded and the results have been announced. But this process is far from over. Now, we begin the post-auction transition period. This day has been a long time coming. We congratulate all bidders who were successful in the incentive auction, and we applaud all of those past and present Commission staffers who worked so diligently on every aspect of this complex undertaking. We have only reached this point because of their tremendous skill and dedication to this groundbreaking endeavor. Again: While we celebrate reaching the official close of the auction, there is still much work ahead of us. It’s now imperative that we move forward with equal zeal to ensure a successful post-auction transition, including a smooth and efficient repacking process.

On March 28 2017, Federal Communications Commission Chairman Ajit Pai responded to several members of Congress regarding prison payphones and the FCC's decision not to defend at oral argument the intrastate calling rate caps. Chairman Pai wrote that he concluded there was a market failure in regards to the rates being charged for inmate calling services. But, Chairman Pai wrote, "the FCC's well-intentioned efforts have not been fully consistent with the law. In particular, the FCC has attempted to cap rates for intrastate inmate calls in apparent violation of the clear limits Congress placed on the agency's intrastate authority, and it failed to account for all record evidence."

Chairman Pai continues later, "Your letter asks about the FCC's decision not to defend at oral argument the intrastate calling rate caps. As indicated above, agency counsel did defend the Commission's authority to cap interstate rate caps, as well as to cap the ancillary charges that can drive up the cost of prison payphone calls. But given the circumstances in which the Commission found itself in this case- where oral argument was scheduled less than two weeks after I was designated to lead the Commission, the Commissioners who dissented from the order on review constituted a majority at the agency, and the court itself had stayed the effect of the intrastate calling rate caps- we determined that defending the portions of the Order supported by a majority of FCC commissioners was the most appropriate way to proceed."

I’m here to discuss the role of economics at the Federal Communications Commission. The state of the FCC’s economic analysis and data collection is not where it needs to be. There are four key problems: 1) economists are not systemically incorporated into policy work at the FCC; 2) economists work in silos; 3) cost-benefit analysis is largely ignored; 4) the FCC has often used data poorly.

So today, I’m launching a plan to fix it. Specifically, I’m pleased to announce that I am beginning a process to establish an Office of Economics and Data, or OED. This Office will combine economists and other data professionals from around the Commission. I envision it providing economic analysis for rulemakings, transactions, and auctions; managing the Commission’s data resources; and conducting longer-term research on ways to improve the Commission’s policies.

[Commentary] Let’s set the record straight: First, despite hyperventilating headlines, Internet service providers have never planned to sell your individual browsing history to third parties. That’s simply not how online advertising works. And doing so would violate ISPs’ privacy promises. Second, Congress’s decision last week didn’t remove existing privacy protections; it simply cleared the way for us to work together to reinstate a rational and effective system for protecting consumer privacy. We need to put the nation’s most experienced and expert privacy cop back on the beat, and we need to end the uncertainty and confusion that was created in 2015 when the Federal Communications Commission intruded in this space. The Obama Administration fractured our nation’s online privacy law, and it is our job to fix it. We pledge to the American people that we will do just that.

President Donald Trump and Congress have appropriately invalidated one part of the Obama-era plan for regulating the Internet. Those flawed privacy rules, which never went into effect, were designed to benefit one group of favored companies, not online consumers. American consumers’ privacy deserves to be protected regardless of who handles their personal information.

In order to deliver that consistent and comprehensive protection, the Federal Communications Commission will be working with the Federal Trade Commission to restore the FTC’s authority to police Internet service providers’ privacy practices. We need to put America’s most experienced and expert privacy cop back on the beat. And we need to end the uncertainty and confusion that was created in 2015 when the FCC intruded in this space.

Federal Communications Commission Chairman Ajit Pai announced the formation of the Rural Broadband Auctions Task Force to implement the upcoming Universal Service Fund-related auctions. The Task Force will oversee both the Connect America Fund Phase II (CAF-II) and Mobility Fund II (MF-II) auctions. The CAF-II auction will offer almost $2 billion to bidders to connect unserved and underserved locations over the next decade. The MF-II auction will make available more than $4.5 billion in new funding over ten years for expanding 4G LTE mobile coverage across rural America and in Tribal lands. Chairman Pai named Chelsea Fallon as Director of the Task Force, with Michael Janson and Kirk Burgee as Deputy Directors. Thom Parisi will serve as the Chief of Staff of the Task Force.

My top priority is making sure that any American who wants high-speed Internet access is able to get it. Today, we take another step toward achieving that goal.

[In 2016], Charter Communications agreed to build broadband out to two million new customers as part of its merger with Time Warner Cable and Bright House Networks. Unfortunately, the Federal Communications Commission appended an ‘overbuild’ condition to the order, requiring that half of those new locations be already served by another provider. Since these one million overbuilt deployments would be credited against the total, it would substantially reduce buildout to unserved areas. This is like telling two people you will buy them lunch, ordering two entrées, and then sending both to just one of your companions. This condition was not and is not in the public interest, and it runs directly against the goal of promoting greater Internet access for all Americans. Following our decision today, Charter Communications is still obligated to build out to two million new locations. The difference now is that the beneficiaries will be consumers currently on the wrong side of the digital divide. That’s a major difference, and one that will go a long way toward helping deliver online opportunity to all Americans.