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Why Net Neutrality Matters: Protecting Consumers and Competition Through Meaningful Open Internet Rules Hearing

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Why Net Neutrality Matters: Protecting Consumers and Competition Through Meaningful Open Internet Rules Hearing S. HRG. 113–845 WHY NET NEUTRALITY MATTERS: PROTECTING CONSUMERS AND COMPETITION THROUGH MEANINGFUL OPEN INTERNET RULES HEARING BEFORE THE COMMITTEE ON THE JUDICIARY UNITED STATES SENATE ONE HUNDRED THIRTEENTH CONGRESS SECOND SESSION SEPTEMBER 17, 2014 Serial No. J–113–73 Printed for the use of the Committee on the Judiciary ( U.S. GOVERNMENT PUBLISHING OFFICE 21–221 PDF WASHINGTON : 2017 For sale by the Superintendent of Documents, U.S. Government Publishing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512–1800; DC area (202) 512–1800 Fax: (202) 512–2104 Mail: Stop IDCC, Washington, DC 20402–0001 COMMITTEE ON THE JUDICIARY PATRICK J. LEAHY, Vermont, Chairman DIANNE FEINSTEIN, California CHUCK GRASSLEY, Iowa, Ranking Member CHUCK SCHUMER, New York ORRIN G. HATCH, Utah DICK DURBIN, Illinois JEFF SESSIONS, Alabama SHELDON WHITEHOUSE, Rhode Island LINDSEY GRAHAM, South Carolina AMY KLOBUCHAR, Minnesota JOHN CORNYN, Texas AL FRANKEN, Minnesota MICHAEL S. LEE, Utah CHRISTOPHER A. COONS, Delaware TED CRUZ, Texas RICHARD BLUMENTHAL, Connecticut JEFF FLAKE, Arizona MAZIE HIRONO, Hawaii KRISTINE LUCIUS, Chief Counsel and Staff Director KOLAN DAVIS, Republican Chief Counsel and Staff Director (II) C O N T E N T S SEPTEMBER 17, 2014, 10:34 A.M. STATEMENTS OF COMMITTEE MEMBERS Page Grassley, Hon. Chuck, a U.S. Senator from the State of Iowa ............................ 2 prepared statement .......................................................................................... 215 Leahy, Hon. Patrick J., a U.S. Senator from the State of Vermont .................... 1 prepared statement .......................................................................................... 213 WITNESSES Witness List ............................................................................................................. 37 Burnham, Bradford, Managing Partner, Union Square Ventures, LLC, New York, New York .................................................................................................... 4 prepared statement .......................................................................................... 38 Eisenach, Jeffrey A., Ph.D., Visiting Scholar, American Enterprise Institute Center for Internet, Communications and Technology Policy, Washington, DC .......................................................................................................................... 11 prepared statement .......................................................................................... 69 attachment I to prepared statement ............................................................... 76 attachment II to prepared statement ............................................................. 108 attachment III to prepared statement ............................................................ 159 attachment IV to prepared statement ............................................................ 181 Livier, Ruth, Writer, Independent Producer, and Actress, Pacific Palisades, California .............................................................................................................. 7 prepared statement .......................................................................................... 42 McDowell, Hon. Robert M., Former Commissioner, Federal Communications Commission, and Partner, Wiley Rein LLP, Washington, DC ......................... 9 prepared statement .......................................................................................... 49 O’Connor, Nuala, President and Chief Executive Officer, Center for Democ- racy and Technology, Washington, DC ............................................................... 13 prepared statement .......................................................................................... 201 QUESTIONS Questions submitted to Bradford Burnham by Senator Leahy ........................... 218 Questions submitted to Jeffrey A. Eisenach, Ph.D., by: Senator Grassley .............................................................................................. 225 Senator Leahy ................................................................................................... 221 Senator Lee ....................................................................................................... 228 Questions submitted to Ruth Livier by Senator Leahy ........................................ 219 Questions submitted to Hon. Robert M. McDowell by: Senator Grassley .............................................................................................. 223 Senator Leahy ................................................................................................... 220 Senator Lee ....................................................................................................... 227 Questions submitted to Nuala O’Connor by: Senator Leahy ................................................................................................... 222 Senator Lee ....................................................................................................... 229 ANSWERS Responses of Bradford Burnham to questions submitted by Senator Leahy ..... 230 Responses of Jeffrey A. Eisenach, Ph.D., to questions submitted by Senators Grassley, Leahy, and Lee .................................................................................... 243 (III) IV Page Responses of Ruth Livier to questions submitted by Senator Leahy .................. 231 Responses of Hon. Robert M. McDowell to questions submitted by Senators Grassley, Leahy, and Lee .................................................................................... 232 Responses of Nuala O’Connor to questions submitted by Senators Leahy and Lee ................................................................................................................. 250 MISCELLANEOUS SUBMISSIONS FOR THE RECORD ACS Solutions et al., letter to Hon. Penny Pritzker, Secretary, U.S. Depart- ment of Commerce, September 9, 2014 .............................................................. 287 ADTRAN et al., letter to Federal Communications Commission (FCC), May 13, 2014 ................................................................................................................. 290 Aeronet Wireless Broadband Corp. et al., letter to Hon. Penny Pritzker, Secretary, U.S. Department of Commerce, July 30, 2014 ................................ 283 Computer and Communications Industry Association (CCIA), statement ......... 273 Electronic Frontier Foundation, Corynne McSherry, Intellectual Property Di- rector, statement .................................................................................................. 255 Future of Music Coalition (FMC), Casey Rae, Vice President, Policy and Education, statement ........................................................................................... 265 Hatch, Hon. Orrin G., a U.S. Senator from the State of Utah, and Hon. Jim DeMint, a U.S. Senator from the State of South Carolina, Wall Street Journal, October 29, 2009, op-ed article ............................................................. 300 McConnell, Hon. Mitch, a U.S. Senator from the State of Kentucky, et al., letter to Hon. Thomas Wheeler, Chairman, Federal Communications Com- mission, May 13, 2014 ......................................................................................... 294 National Association of Realtors (NAR), Steve Brown, 2014 President, Sep- tember 16, 2014, letter ........................................................................................ 253 National Cable and Telecommunications Association (NCTA), Rick Chessen, Senior Vice President, Law and Regulatory Policy, May 14, 2014, letter ....... 278 Szoka, Berin, President, TechFreedom, et al., letter to Hon. Thomas Wheeler, Chairman, Federal Communications Commission, September 15, 2014 ......... 296 ADDITIONAL SUBMISSIONS FOR THE RECORD Submissions for the record not printed due to voluminous nature, previously printed by an agency of the Federal Government, or other criteria determined by the Committee, list ..................................................................... 302 American Enterprise Institute, Jeffrey A. Eisenach, Ph.D., economic study: http://www.aei.org/files/2012/10/17/-broadband-competition-in-the- internet-ecosysteml164734199280.pdf ........................................................ 302 Eisenach, Jeffrey A., and Ilene Knable Gotts, ‘‘In Search of a Competition Doctrine for Information Technology Markets: Recent Antitrust Develop- ments in the Online Sector,’’ paper: http://www.techpolicydaily.com/wp-content/uploads/2014/06/In- Search-of-a-Competition-Doctrine-for-Information-Technology-Markets- Eisenach-Gotts.pdf ........................................................................................ 302 Federal Communications Commission (FCC), Electronic Comment Filing Sys- tem, September 4, 2014, online posting: http://apps.fcc.gov/ecfs/comment/view?id=6018327622 ............................. 302 Federal Communications Law Journal, Jeffrey A. Eisenach and Hal J. Singer, June 2013, article: http://www.fclj.org/wp-content/uploads/2013/09/65-3-Singer.pdf ........... 302 Journal of Law and Economics, The, R.H. Coase, October 1959, article: http://www.jstor.org/stable/724927 .............................................................. 302 Social Science Research Network (SSRN), Jerry Brito et al., April 12, 2010, article: http://papers.ssrn.com/sol3/papers.cfm?abstractlid= 1587058&download=yes ..............................................................................
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