U.S. Federal Communications Commission

111 U.S. FEDERAL COMMUNICATIONS COMMISSION 2 3 + + + + + 4 5 ADVISORY COMMITTEE ON 6 DIVERSITY FOR COMMUNICATIONS 7 IN THE DIGITAL AGE 8 9 + + + + + 10 11 Thursday 12 December 3, 2009 13 14 + + + + + 15 16 The Meeting convened in the Commission 17 Meeting Room, at the Federal Communications 18 Commission, 445 12th Street, SW, Washington, 19 D.C., at 2:00 p.m., Henry Rivera, Chairman, 20 presiding. 21 22 FCC STAFF PRESENT: 23 24 MICHAEL COPPS, COMMISSIONER 25 THOMAS REED, OCBO SENIOR DEPUTY DIRECTOR 26 JOSHUA CINELLI, MEDIA ADVISOR 27 BRUCE GOTTLIEB, CHIEF COUNSEL 28 BARBARA KREISMAN, DESIGNATED FEDERAL OFFICIAL 29 SHERRESE SMITH, LEGAL ADVISOR 30 JAMILA BESS-JOHNSON, DEPUTY FEDERAL OFFICER 31 CAROLYN FLEMING-WILLIAMS, DEPUTY FEDERAL 32 OFFICER 33 JULIE SALOVAARA, MEDIA BUREAU 34 35 36 37 38 39 40 41 42 43 442 3 NEAL R. GROSS 4 COURT REPORTERS AND TRANSCRIBERS 5 1323 RHODE ISLAND AVE., N.W. 6 (202) 234-4433 WASHINGTON, D.C. 20005-3701 www.nealrgross.com 121 2 COMMITTEE MEMBERS PRESENT: 3 4 HENRY RIVERA, CHAIRMAN 5 ALONZO BARBER 6 TONI BUSH 7 ALAN B. DAVIDSON 8 SUSAN FOX 9 ANITA GRAHAM 10 DAVID HONIG 11 ANNE LUCEY 12 JANE MAGO 13 JOAN MARSH 14 ROBERT MENDEZ 15 MELISSA NEWMAN 16 KAREN K. NARASAKI 17 LORETTA POLK 18 ANDREW SCHWARTZMAN 19 SYLVIA STROBEL 20 DIANE SUTTER 21 YING LI 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 442 3 NEAL R. GROSS 4 COURT REPORTERS AND TRANSCRIBERS 5 1323 RHODE ISLAND AVE., N.W. 6 (202) 234-4433 WASHINGTON, D.C. 20005-3701 www.nealrgross.com 131 2 3 TABLE OF CONTENTS 4 5 Opening...... 4 6 7 Introduction and agenda review...... 5 8 9 Remarks by Commissioner Copps...... 6 10 11 Chairman's office, Sherrese Smith...... 13 12 13 Constitutional Issues...... 22 14 15 Media Issues...... 27 16 17 Telecom and Broadband Issues...... 64 18 19 OCBO, Thomas Reed...... 74 20 21 Adjourn 22 23 24 25 26 27 28 29 30 312 3 NEAL R. GROSS 4 COURT REPORTERS AND TRANSCRIBERS 5 1323 RHODE ISLAND AVE., N.W. 6 (202) 234-4433 WASHINGTON, D.C. 20005-3701 www.nealrgross.com 141 P-R-O-C-E-E-D-I-N-G-S2 (2:01 p.m.)3 MS. KREISMAN: Good morning4 everyone, Commissioner Copps, Chairman Rivera,5 members, FCC officials, chairman's office,6 Commissioner Copps' office. Welcome to our7 pre-holiday meeting of the Advisory Committee8 for Diversity in the Digital Age. Thank you9 for coming today. I know you all are very10 busy, and I'm hopeful that this time period11 works better for everybody than the morning12 time period. If it doesn't, let me know, and13 we'll go back to 10 o'clock. 14 You have a packet of information15 before you that has all of the resolutions16 that are going to be considered today.17 Everything has been previously emailed to you.18 The committees have been very, very hard at19 work. My hat's off, especially this time20 around, to Diane, who -- I got my last email21 from her last night at like 9:30, and she22 called me from the airport this morning. And2 3 NEAL R. GROSS 4 COURT REPORTERS AND TRANSCRIBERS 5 1323 RHODE ISLAND AVE., N.W. 6 (202) 234-4433 WASHINGTON, D.C. 20005-3701 www.nealrgross.com 151 also all of the task forces that are working2 under Diane. 3 You all have all done a great job,4 and the work product reflects that today. We5 have five very substantive and thoughtful6 proposals from funding to broadband deployment7 for your consideration. With that, I turn the8 proceedings over to Chairman River.9 CHAIRMAN RIVERA: Thank you,10 Barbara. And let me add my welcome in case11 you all split before I get an opportunity at12 the end of the meeting to wish you all a very13 happy holiday, and a very prosperous and happy14 2010. I want to echo what Barbara said about15 the work that's been put in. This time it's16 been -- well, last time too. You guys are17 working very hard, and I certainly appreciate18 it. 19 I know you all have day jobs. And20 this has been a pretty challenging quarter for21 us. As you can see, Commissioner Copps is22 with us, and we also have representatives from2 3 NEAL R. GROSS 4 COURT REPORTERS AND TRANSCRIBERS 5 1323 RHODE ISLAND AVE., N.W. 6 (202) 234-4433 WASHINGTON, D.C. 20005-3701 www.nealrgross.com 161 the chairman's office who would like to2 address the group, and so without further ado,3 I'm going to turn the mic over to Commissioner4 Copps.5 COMMISSIONER COPPS: Well, thank6 you, and good afternoon, all. I'm delighted7 to see you here. And welcome, all of you, to8 the FCC. I think you know most of the FCC9 folks around here. There's one person I want10 to introduce, Joshua Cinelli, who's joined my11 office. And I hope you will to get know him12 and he gets to know you. 13 First of all, let me thank Henry14 and all the members of the committee, and15 Barbara and the staff who support it. This is16 a great committee, and you are doing work17 probably more important than just about any18 other committee that I can think of. And I19 know it's time-consuming and that you do have20 day jobs, but it's just kind of inspiring to21 see folks sit around the table and do22 something to serve the public interest and2 3 NEAL R. GROSS 4 COURT REPORTERS AND TRANSCRIBERS 5 1323 RHODE ISLAND AVE., N.W. 6 (202) 234-4433 WASHINGTON, D.C. 20005-3701 www.nealrgross.com 171 advance the causes that so many of you have2 been working on for so many years.3 And that we now have, really, an4 opportunity to do something about, if we're5 smart enough to take advantage of the moment6 that we have before us, and expeditious enough7 to do it. If we're not expeditious enough, it8 won't be your fault. You folks responded9 really quickly to the charge when I was acting10 chairman, to convene and give us some11 recommendations, and we particularly talked12 about the need to get some further input on13 the full-file review and on doing the Adarand14 Studies. 15 And I am so pleased that those16 recommendations came forward so promptly and17 went out to the offices. And unlike some18 previous iterations, they're not gathering19 dust in anybody's desk. I think the20 chairman's office has taken them very21 seriously. He and I talked about them just22 yesterday, and he of course would have been2 3 NEAL R. GROSS 4 COURT REPORTERS AND TRANSCRIBERS 5 1323 RHODE ISLAND AVE., N.W. 6 (202) 234-4433 WASHINGTON, D.C. 20005-3701 www.nealrgross.com 181 here today, but he got summoned at the last2 moment to the job summit over at the White3 House. So I don't think that was invitation4 he probably was not at liberty to say no to. 5 So that's where he is. But he is6 pleased and I am pleased, and I think all my7 colleagues are, at the attention you gave to8 getting those recommendations in. And I think9 we're already seeing some of those10 recommendations being acted on. Whether it's11 broadband, where I think you can see we're12 following your recommendations that we focus13 on adoption and adoption in minority14 communities, and looking at the barriers to15 adoption in multi-lingual and rural and low-16 income communities.17 So that's up and running. I think18 we'll hear some talk about maybe another19 initiative or two today. I think these20 recommendations will be taken very seriously,21 and I can assure you that they are being22 looked at and actively considered. I, as you2 3 NEAL R. GROSS 4 COURT REPORTERS AND TRANSCRIBERS 5 1323 RHODE ISLAND AVE., N.W. 6 (202) 234-4433 WASHINGTON, D.C. 20005-3701 www.nealrgross.com 191 know, am always possessed of the urgency of2 the moment and the need to do something now3 while we have a window of opportunity to us.4 I would hate to be gathered around this table5 a year from now and we kind of sit here and6 say, "Golly, why didn't we get that done a7 year ago when we had the chance?" 8 So that's what I continue to push9 for on action here. We need to follow up on10 the full-file review. It is a complicated11 subject. It's not just something we can wave12 a wand at. But let's remember, this is an13 interim kind of solution. We're not talking14 about the permanent policy to redress the15 wrongs that have been visited upon minority16 ownership for generation on generation. This17 is an interim measure, so we ought to get a18 rule-making going to tee that interim measure19 up and figure out how quickly we can deploy it20 and put it to work.21 The same goes, I think, for the22 Adarand Studies. I think Tom Reed will talk2 3 NEAL R. GROSS 4 COURT REPORTERS AND TRANSCRIBERS 5 1323 RHODE ISLAND AVE., N.W. 6 (202) 234-4433 WASHINGTON, D.C. 20005-3701 www.nealrgross.com 1101 to you, or maybe Sherrese will talk to you2 about that today. I'm glad that the chairman3 has got folks working so actively on figuring4 out what the parameters need to be for the5 Adarand Studies. But again, you know, this6 isn't the long term solution. This is just7 laying a foundation and providing the pillars8 for really taking substantive action somewhere9 down the line. 10 So that's what I'm urging, and I11 think we'll be able to move these things along12 fairly expeditiously. I note with interest13 today that some of the issues of broadcast14 financing made the newspapers. And some15 people may not particularly like the exact16 venue in which that appeared, but17 nevertheless, it's visibility for the issue of18 financing and getting people to understand19 that a lot of companies are being pushed and20 pushed very hard by not just generations21 lacking incentives for minorities to own these22 stations, but also by the malaise that's2 3 NEAL R. GROSS 4 COURT REPORTERS AND TRANSCRIBERS 5 1323 RHODE ISLAND AVE., N.W. 6 (202) 234-4433 WASHINGTON, D.C. 20005-3701 www.nealrgross.com 1111 currently impacting our economy and2 emphasizing the need to get a lifeline out3 before we have further -- more companies going4 out of business.5 Lastly, just a quick second on the6 quadrennial review. This is going to be a7 highly important proceeding here at the8 Commission. I encourage your helping us right9 now to frame the parameters of that review.10 What are the questions, not only the enduring11 questions that we need to ask, but what are12 the new questions, the new media questions,13 the new economy questions. Anything we need14 to be asking that haven't asked for before,15 this is the time, as the Commission frames16 what that quadrennial review is going to look17 like, to get all of that settled. 18 But let's remember the quadrennial19 review is a quadrennial review. It's a20 process that takes some time. It will not be21 done until sometime in 2010. These other22 things that we've talked about are independent2 3 NEAL R. GROSS 4 COURT REPORTERS AND TRANSCRIBERS 5 1323 RHODE ISLAND AVE., N.W. 6 (202) 234-4433 WASHINGTON, D.C. 20005-3701 www.nealrgross.com 1121 of the quadrennial review. The actions that2 this committee can take, has already3 recommended, and other actions it will be4 recommending are, by and large, I think,5 independent of the quadrennial review. 6 We don't need to have a new record7 for many of these things. So I want us always8 to keep in mind that yes, the quadrennial9 review is important. It's going to help us10 define how we go ahead long term on structural11 rules -- that's vitally important. But also12 we have these other things where we can take13 action now and maybe achieve some progress14 while we still have the opportunity to do it.15 So again, I thank you all for your service,16 and I wish you a happy holiday, too. But I17 hope you'll devote some attention to this even18 over the holidays as we move ahead. Thank19 you.20 CHAIRMAN RIVERA: Thank you, Mr.21 Commissioner. We certainly know that we have22 a friend in your office, and we're very2 3 NEAL R. GROSS 4 COURT REPORTERS AND TRANSCRIBERS 5 1323 RHODE ISLAND AVE., N.W. 6 (202) 234-4433 WASHINGTON, D.C. 20005-3701 www.nealrgross.com 1131 grateful for your interest in our work. And2 we certainly have seized the -- taken your3 message to heart to seize the day. We're4 working very hard, and we certainly believe in5 the things that you say about that particular6 subject. Moving on, we have two7 representatives of the chairman's office,8 Bruce Gottlieb and Sherrese Smith, with us9 today. 10 And we're very happy that you could11 make it. And you have the floor. 12 MS. SMITH: Good afternoon, Mr.13 Chairman, Commissioner Copps, and members of14 the Diversity Committee. Commissioner Copps15 is correct. You have us working. And that's16 a good thing. We are extremely excited to be17 here. You have been very invigorating, and18 the ideas have been extremely valuable, and we19 are definitely taking a look at this. And20 like I said, we are pleased to be here today.21 I'd like to first take an opportunity to just22 say thank you from the chairman.2 3 NEAL R. GROSS 4 COURT REPORTERS AND TRANSCRIBERS 5 1323 RHODE ISLAND AVE., N.W. 6 (202) 234-4433 WASHINGTON, D.C. 20005-3701 www.nealrgross.com 1141 As Commissioner Copps said, he2 really wanted to be here today. But you're3 correct, the White House invitation is one4 that you really can't decline. And he's doing5 extremely important work over at the jobs6 summit today. But he also wanted to make sure7 that you all understood how important this8 work was as well. 9 Which is why you do have two10 members of the chairman's office here to11 listen both to your prior recommendations as12 well as the recommendations today. And he13 wanted us also to pass along his sincere14 thanks for all of the hard work you're doing.15 This is extra, this is above everything that16 you're doing in your regular jobs. But it is17 important to us, and again, he wanted to say18 thank you. 19 So we know in the letter that20 Chairman River sent to Chairman Genachowski,21 there were a lot of recommendations. And so22 we wanted to at least highlight a couple of2 3 NEAL R. GROSS 4 COURT REPORTERS AND TRANSCRIBERS 5 1323 RHODE ISLAND AVE., N.W. 6 (202) 234-4433 WASHINGTON, D.C. 20005-3701 www.nealrgross.com 1151 things that we've done in the short term,2 recognizing that this is just the first step,3 and that there are lots of things to do. 4 This committee has given us a5 number of recommendations regarding broadband6 adoption and deployment. And what we wanted7 to do initially was to kind of start off with8 workshops to get more ideas about what we need9 to do, how we need to handle that. And on10 August 18th of 2009, Tom Reed's group, OCBO,11 hosted a workshop on broadband opportunities12 for small and disadvantaged businesses. The13 workshop explored how broadband access and14 availability impact small and disadvantaged15 businesses. 16 And I think Tom's going to talk17 about some of these more in-depth later on.18 On October 2nd, we had the chief diversity19 officer, Mark Lloyd, present a workshop on20 diversity and civil rights issues and21 broadband deployment and adoption. And here22 the Commission invited a panel of experts to2 3 NEAL R. GROSS 4 COURT REPORTERS AND TRANSCRIBERS 5 1323 RHODE ISLAND AVE., N.W. 6 (202) 234-4433 WASHINGTON, D.C. 20005-3701 www.nealrgross.com 1161 really begin the process of identifying the2 best strategies for resolving civil rights and3 diversity issues that may accompany the4 implementation of the national broadband plan.5 And I can tell you that a lot of6 those recommendations are being strongly7 considered and will ultimately be implemented8 in the national broadband plan. So we're very9 excited about that. We also would like to10 note that NCTA has been a very strong partner11 and has recently announced their Adoptions12 Plus program. And the proposal, basically,13 offered to the FCC and NTIA, asked for a14 hundred million dollars in federal government15 funding to support digital media literacy16 training programs offered by local schools.17 Again, we are really considering18 some of this stuff, because we understand how19 important it is to the national broadband plan20 and broadband adoption as a whole. So again,21 we're starting work on some of those22 recommendations. This committee has also2 3 NEAL R. GROSS 4 COURT REPORTERS AND TRANSCRIBERS 5 1323 RHODE ISLAND AVE., N.W. 6 (202) 234-4433 WASHINGTON, D.C. 20005-3701 www.nealrgross.com 1171 recommended that we do more for tribal2 entities. And we have been working on ways to3 provide incentives for those parties who want4 to participate and do more in connection with5 tribal lands. 6 And in the rural radio context --7 and I know that most of you know that that's8 been pending for awhile -- we are currently9 working on an order that will grant a10 preference to applicants who will serve tribal11 communities, and we expect to issue that very,12 very shortly. And we're very excited about13 that, because we know that that's been an14 important issue for this committee for a long15 time. And the commissioners have been very16 supportive of that, and this committee has17 been very supportive of that.18 Finally, we know that funding is an19 issue. You're going to address it today, and20 it has been coming up in a lot of the21 workshops and in prior committee22 recommendations. And on November 12th, OCBO2 3 NEAL R. GROSS 4 COURT REPORTERS AND TRANSCRIBERS 5 1323 RHODE ISLAND AVE., N.W. 6 (202) 234-4433 WASHINGTON, D.C. 20005-3701 www.nealrgross.com 1181 had hosted a capitalization strategies2 workshop, and I know that Janelle Trigg was3 involved in that, and thank you very much. 4 And the panelists consisted of5 experts in private and public funding options.6 And the workshop basically provided7 entrepreneurs with a nuts and bolts8 understanding of the steps necessary to obtain9 public or private sector financing. And it10 also focused on ways that these businesses11 could better design their marketing efforts12 for perspective lenders. Again, we know13 without the money, it's hard to accomplish a14 lot of these things.15 So those are just a couple of16 things that we wanted to highlight. And we17 recognize that this is just a start. There18 are a lot of recommendations, including the19 Adarand Studies, and some of the full-file20 review issues that are complex and are21 complicated. But I can assure you that we are22 in the process of reviewing those carefully so2 3 NEAL R. GROSS 4 COURT REPORTERS AND TRANSCRIBERS 5 1323 RHODE ISLAND AVE., N.W. 6 (202) 234-4433 WASHINGTON, D.C. 20005-3701 www.nealrgross.com 1191 that we can have a very thoughtful process in2 evaluating how we can make those things best3 work for the committees and the ultimate4 communities that we serve.5 And to that end, I would like to6 take an opportunity to thank Tom Reed.7 Because he has agreed to take on a lot of the8 labor on the evaluations of the various9 recommendations that this committee is coming10 up with. As you know, Tom is chief of the11 office of communications business12 opportunities, and he has a full time job.13 But he is taking on another full time job, and14 he's been doing it with such grace and has15 really just kind of dug in and started looking16 at these issues. 17 And we can't thank him enough.18 He's also going to talk about OCBO's kind of19 revitalized role with this committee. And he20 has some recommendations for making sure that21 we have a better sense of what you need and22 how we can do it in an efficient and fast2 3 NEAL R. GROSS 4 COURT REPORTERS AND TRANSCRIBERS 5 1323 RHODE ISLAND AVE., N.W. 6 (202) 234-4433 WASHINGTON, D.C. 20005-3701 www.nealrgross.com 1201 basis. So I'm going to turn it over to Tom so2 that he can address a few of those things.3 But again, thank you for having us here today.4 We're excited, we're willing to help you, and5 we're looking forward to the next few great6 years. 7 CHAIRMAN RIVERA: Well Sherrese, we8 really appreciate your and Bruce being here,9 and we very much appreciate the feedback,10 particularly in terms of what you all are11 doing in terms of moving our recommendations12 forward. That's music to our ears. We really13 appreciate it. Thomas, I'm wondering if I14 could ask you to hold off on your remarks15 until we consider our recommendations. Is16 that okay with you?17 MR. REED: Yes.18 CHAIRMAN RIVERA: All right. But19 we're very pleased that you're stepping up.20 That too is music to our ears. That's really21 great. And we look forward to hearing from22 you. Do we need to take a roll? 2 3 NEAL R. GROSS 4 COURT REPORTERS AND TRANSCRIBERS 5 1323 RHODE ISLAND AVE., N.W. 6 (202) 234-4433 WASHINGTON, D.C. 20005-3701 www.nealrgross.com 1211 MS. KREISMAN: We need to find out2 who's on the phone so we can make sure we have3 a quorum. So could you start identifying4 yourself?5 MS. GRAHAM: Anita Graham.6 MS. KREISMAN: Thank you, Anita.7 MR. FLORES: Frank Flores, SBS.8 MS. KREISMAN: Thank you, Frank.9 MR. FLORES: You're welcome.10 MS. BROWN: Kathy Brown, Verizon.11 MS. KREISMAN: Thanks Kathy.12 MR. BLACKWELL: Geoffrey Blackwell,13 Chickasaw Nation Industries.14 MS. KREISMAN: Thanks Geoff.15 MR. HOOD: Rodney Hood, NCUA.16 MS. KREISMAN: Thanks Rodney.17 Anyone else?18 MS. SALOVAARA: Julie Salovaara from19 the media bureau.20 MS. KREISMAN: Thanks Julie.21 MR. HILLARD: Steve Hillard with22 Council Tree.2 3 NEAL R. GROSS 4 COURT REPORTERS AND TRANSCRIBERS 5 1323 RHODE ISLAND AVE., N.W. 6 (202) 234-4433 WASHINGTON, D.C. 20005-3701 www.nealrgross.com 1221 MS. KREISMAN: Okay, anyone else?2 That's it. Thank you very much.3 CHAIRMAN RIVERA: Thank you.4 Welcome to all of you on the phone. I'm going5 to change the agenda slightly, because David6 has got to go and catch and airplane. So7 we're going to put him and his recommendations8 up first. So David, the floor is yours. 9 MR. HONIG: Thank you, Mr. Chairman.10 We have one recommendation that the11 constitutional issues subcommittee developed12 for consideration today. And I want to13 especially acknowledge Joycelyn James, who is14 in the audience -- please wave your hand --15 who took the laboring oar on this and put it16 through many drafts. 17 The charge that we had was to18 consider the persistence of the digital divide19 with which we're all familiar. And to think20 about what basis there might be for the21 Commission to regard itself institutionally,22 regardless of which Commission it is --2 3 NEAL R. GROSS 4 COURT REPORTERS AND TRANSCRIBERS 5 1323 RHODE ISLAND AVE., N.W. 6 (202) 234-4433 WASHINGTON, D.C. 20005-3701 www.nealrgross.com 1231 Commissions change membership often, of course2 -- to regard itself institutionally as not3 only having the voluntary obligation to look4 at this, the discretionary obligation to do5 so, but whether it is essentially compelled6 because of the nature of what the digital7 divide is and what it stands for in a society8 which has become an information society.9 We looked at whether such a10 conclusion could be drawn based on the notion11 that closing the digital divide or providing12 ubiquitous access to broadband, two phrases13 that we use somewhat interchangeably in this14 recommendation, is a compelling government15 interest. And we concluded that it may or may16 not be, but an interest by being regarded as17 compelling does not necessarily work as a18 sword. It is a defense to other allegations19 regarding race consciousness. It does not20 have special obligatory quality on an agency.21 We also looked at the question of22 whether, as some have suggested in the2 3 NEAL R. GROSS 4 COURT REPORTERS AND TRANSCRIBERS 5 1323 RHODE ISLAND AVE., N.W. 6 (202) 234-4433 WASHINGTON, D.C. 20005-3701 www.nealrgross.com 1241 academic space, access to broadband in this2 day and age is a fundamental right or has3 become a fundamental right or might. And we4 concluded that we're not quite prepared, at5 this point, based on the record that we6 reviewed, to say that it is, although it7 certainly could become one in much the same8 way as other rights, such as the right to9 procreate or the right to marry have, over10 time, evolved to become regarded by the courts11 as fundamental. 12 That could happen in maybe ten13 years, for example, when it becomes virtually14 impossible to secure employment or to vote15 other than by having broadband. But we're not16 there yet, so we've tabled that theory. What17 we present instead is a recommendation reading18 section 706 of the Communications Act and19 section seven of the Act as well. The20 language of which is set out on pages two and21 three of the narrative preceding the22 recommendation as obligating the Commission to2 3 NEAL R. GROSS 4 COURT REPORTERS AND TRANSCRIBERS 5 1323 RHODE ISLAND AVE., N.W. 6 (202) 234-4433 WASHINGTON, D.C. 20005-3701 www.nealrgross.com 1251 undertake to close the digital divide, to2 monitor the deployment of broadband, and take3 steps to promote it if it's not being deployed4 at all on a timely basis. 5 In fact, section 706 says that if6 that determination is made, the Commission7 "shall take immediate action to accelerate8 deployment of such capability by removing9 barriers to infrastructure investment and by10 promoting competition in the11 telecommunications market." So the12 recommendation before us today, which is found13 on pages six and seven of the narrative that14 you have, is essentially this. 15 That the advisory committee would16 recommend that the agency closely analyze how17 its broadband policy or rule-making proposals18 will impact the digital divide. That it do so19 before it acts in major proceedings, unlike,20 as Commissioner Copps has analogized, another21 proceedings, taking a ready, fire, aim22 approach. And specifically, concluding, that2 3 NEAL R. GROSS 4 COURT REPORTERS AND TRANSCRIBERS 5 1323 RHODE ISLAND AVE., N.W. 6 (202) 234-4433 WASHINGTON, D.C. 20005-3701 www.nealrgross.com 1261 in the major proceedings before the Commission2 now, the major rule-making proceedings, the3 Commission should analyze in detail the4 anticipated effects of rule or policy changes5 in the digital divide, and craft any new rules6 or policies in a manner that ensures, to the7 extent possible, that these rules and policies8 will be instrumental in closing the digital9 divide. 10 With that, I move the11 recommendation for approval. 12 CHAIRMAN RIVERA: Is there a second?13 MS. KREISMAN: Second.14 CHAIRMAN RIVERA: Is there any15 discussion? So basically this is a16 recommendation to the Commission to analyze17 the impact of its actions on closing the18 digital divide, as well as to please close --19 a request to close the digital divide. Any20 questions or comments? Are you ready to vote?21 All in favor of the recommendations, please22 say "aye."2 3 NEAL R. GROSS 4 COURT REPORTERS AND TRANSCRIBERS 5 1323 RHODE ISLAND AVE., N.W. 6 (202) 234-4433 WASHINGTON, D.C. 20005-3701 www.nealrgross.com 1271 (Chorus of ayes)2 CHAIRMAN RIVERA: Any opposed? The3 motion carries. Thank you, David. All right,4 Diane. You're up.5 MS. SUTTER: Thank you, Mr.6 Chairman. As we reported at the last full7 committee meeting, the media issues8 subcommittee has divided into three task9 forces to work on issues related to three10 separate areas. The first being the EEO task11 force. The second being the funding for12 acquisitions. And the third being the PPM.13 And I would like to acknowledge and thank the14 work of the chairs of these task forces, as15 that's where the real work has been done in16 the subcommittee itself. 17 And the equal employment18 opportunity task force has been headed by Jane19 Mago, and we thank and appreciate all the work20 that that group has been doing and continues21 to do. The funding for acquisitions task22 force is being headed by Susan Patrick, who2 3 NEAL R. GROSS 4 COURT REPORTERS AND TRANSCRIBERS 5 1323 RHODE ISLAND AVE., N.W. 6 (202) 234-4433 WASHINGTON, D.C. 20005-3701 www.nealrgross.com 1281 was not able to be with us today. She's in a2 deposition. And the PPM task force, Jenny3 Alonzo, who has worked very hard with her4 committee to deal with the issues and to come5 up with ideas and recommendations to present6 to this full committee. 7 My thanks also to Jocelyn Cleary,8 who serves to keep all of our minutes9 accurate, and we appreciate that very much.10 So thank you. I'd like to begin with the EEO11 task force. And you have in front of you the12 recommendation that we're going to make, but I13 think it's important to recognize that this14 body, in 2004, had a pretty significant piece15 of work that came from the career advancement16 subcommittee, which made a number of17 recommendations and talked about best18 practices and how to determine that. 19 And also made some references to20 something that we sought to discuss and bring21 before this group today, and that has to do22 with the promotion and retention of women and2 3 NEAL R. GROSS 4 COURT REPORTERS AND TRANSCRIBERS 5 1323 RHODE ISLAND AVE., N.W. 6 (202) 234-4433 WASHINGTON, D.C. 20005-3701 www.nealrgross.com 1291 minorities inside the existing broadcast2 entities that are out there. And we felt that3 this was something we wanted to identify.4 Again, what has changed in those intervening5 years between 2004 and now 2009, almost 2010?6 And what has changed from what the7 recommendations before -- what are the best8 practices out there now, and how might we do a9 better job, perhaps, of identifying them and10 using them as the standard by which others can11 learn and have resources that they may not12 have thought of before. 13 And have some of our success14 stories be ways to guide this -- not only this15 group, but the broadcasters themselves as they16 move forward in trying to achieve this inside17 their own organizations. The data that was18 compiled in this body of work, which was19 pretty significant, we would fear could still20 be accurate today, which is a worry issue I21 think for all of us in this room. If22 anything, I'm not sure that things have2 3 NEAL R. GROSS 4 COURT REPORTERS AND TRANSCRIBERS 5 1323 RHODE ISLAND AVE., N.W. 6 (202) 234-4433 WASHINGTON, D.C. 20005-3701 www.nealrgross.com 1301 improved, but given the economic standing that2 we face in the media today, may not have3 improved. It may have gotten worse. 4 So we feel it's important to be5 able to go back and put back on the docket, if6 you will, and for consideration, the7 resolution that you have in front of you. And8 I will read it so that you have the background9 that comes with this. 10 "Whereas, the Commission's equal11 employment opportunity compliance requirements12 are focused primarily on hiring and13 recruitment practices, not retention and14 promotion practices within the broadcasting15 and multichannel video programming16 distribution industries, whereas retention and17 promotion of diverse candidates to positions18 of authority within media organizations is19 equally important for achieving greater20 diversity and broadcasting and the MVPD21 industries, whereas several media companies22 and non-profit organizations engage in2 3 NEAL R. GROSS 4 COURT REPORTERS AND TRANSCRIBERS 5 1323 RHODE ISLAND AVE., N.W. 6 (202) 234-4433 WASHINGTON, D.C. 20005-3701 www.nealrgross.com 1311 practices and offer programs designed to2 promote retention and promotion of diverse3 candidates to senior level positions within4 the media industry, and whereas there is no5 central clearinghouse for sharing of6 information on such practices and programs and7 no central vehicle to facilitate the8 replication or adaption of successful9 practices and programs by other broadcasters10 and MVPDS.11 Therefore, be it resolved that the12 media issues subcommittee of the FCC Advisory13 Committee on Diversity for Communications in14 the Digital Age strongly urges the Commission15 1), convene a forum where communications16 companies and non-profit organizations can17 share information about successful practices18 and programs for the retention and promotion19 of diverse candidates, and 2), to consider20 whether additional compliance options should21 be added to the Commission's EEO rules, so22 that more activities focused on retention and2 3 NEAL R. GROSS 4 COURT REPORTERS AND TRANSCRIBERS 5 1323 RHODE ISLAND AVE., N.W. 6 (202) 234-4433 WASHINGTON, D.C. 20005-3701 www.nealrgross.com 1321 promotion of diverse candidates would count2 toward the EEO compliance. 3 We submit this for the full4 Commission's consideration. 5 CHAIRMAN RIVERA: The Chair will6 take that as a motion. Is there a second?7 PARTICIPANT: Second.8 CHAIRMAN RIVERA: Is there any9 discussion? David?10 MR. HONIG: Two things, Mr.11 Chairman. First, I wonder if I could offer a12 minor, friendly amendment. Which is -- and13 the chairman would be given editorial14 privileges to do this, so we don't have to do15 it right now -- which is just to make16 reference here to the best practices report in17 the 2004 recommendation to much the same18 effect as is reflected here with regard to19 retention and mentoring. 20 To specifically cite it so those21 not familiar with it will see that in fact -- 22 MS. MAGO: We can certainly add2 3 NEAL R. GROSS 4 COURT REPORTERS AND TRANSCRIBERS 5 1323 RHODE ISLAND AVE., N.W. 6 (202) 234-4433 WASHINGTON, D.C. 20005-3701 www.nealrgross.com 1331 that, yes.2 CHAIRMAN RIVERA: So you'll take3 that as a friendly amendment?4 MS. SUTTER: Yes. The chairman of5 the task force agrees, and I would be woefully6 mistaken to go against that. 7 MR. HONIG: The other thing, there8 is some context here -- there really are two9 big problems with EEO enforcement at the10 Commission. And a lesser but important one --11 the lesser but important one is in fact12 addressed by this recommendation -- that is13 that the industries are in some cases14 shrinking. And consequently, it's important15 to focus on retention and mentoring, not just16 recruitment, as the benchmark for compliance.17 But the bigger problems are really two.18 First is that we haven't had any19 meaningful EEO enforcement in eight years.20 None. If you look at the statistics on the21 cases brought and the decisions reached, and22 most important, the forfeitures issues,2 3 NEAL R. GROSS 4 COURT REPORTERS AND TRANSCRIBERS 5 1323 RHODE ISLAND AVE., N.W. 6 (202) 234-4433 WASHINGTON, D.C. 20005-3701 www.nealrgross.com 1341 they're at about four or five percent of2 comparable levels ten years before. And it's3 not because suddenly over night discrimination4 stopped taking place. 5 If you look at the audits that have6 occurred, there haven't been, I think, more7 than two or three instances in eight years8 when anyone flunked an audit. That means the9 audit hasn't been calibrated in a meaningful10 level. Especially when other independent11 studies show that as many as a third of12 broadcasters were failing what should have13 been the rules as they facially state.14 We've seen radio journalism15 minority employment drop to levels of about16 where they were in the 1950s. It's actually17 been that bad. There's just been a purge.18 RTNDA's statistics had to demonstrate that.19 Why, because the Commission doesn't keep track20 anymore, because of this contentious issue of21 whether to even record how many minorities and22 women are employed at a given time and let the2 3 NEAL R. GROSS 4 COURT REPORTERS AND TRANSCRIBERS 5 1323 RHODE ISLAND AVE., N.W. 6 (202) 234-4433 WASHINGTON, D.C. 20005-3701 www.nealrgross.com 1351 public know and trust the public not to misuse2 that information. 3 That question is critical. The4 reason it's critical is that the Commission5 has found time and again that the most6 significant and important way that especially7 in broadcasting, a relatively small industry,8 that discrimination occurs, is by word of9 mouth recruitment being done almost10 exclusively, and when it is done by a11 homogeneous workplace. That can only be12 discerned by looking at this form 395 data.13 So I want to recommend, if I could,14 that the subcommittee in its next couple15 months, take on really two critical questions.16 What should be the type of enforcement that's17 done, including the type of data reporting18 that ought to be done. And second, once we19 make recommendations on that subject, should20 we have platform neutrality? Should rules21 that apply to one industry also apply to22 others? Just as there's virtually no2 3 NEAL R. GROSS 4 COURT REPORTERS AND TRANSCRIBERS 5 1323 RHODE ISLAND AVE., N.W. 6 (202) 234-4433 WASHINGTON, D.C. 20005-3701 www.nealrgross.com 1361 enforcement for broadcasting in cable, there's2 none at all for wireless, wireline, and other3 new technologies.4 CHAIRMAN RIVERA: So that's simply a5 request to the subcommittee chair to take on6 those additional tasks. So Diane, do you take7 that under advisement?8 MS. SUTTER: Duly noted.9 CHAIRMAN RIVERA: Thank you. Karen?10 MS. NARASAKI: Yes, Mr. Chair. I11 just have a more technical question on the12 resolution. I'm wondering whether it should13 now be resolved not just -- not focused on the14 media issues subcommittee but the whole15 advisory committee -- is that really the16 resolution that we're sending to the17 Commission?18 CHAIRMAN RIVERA: Okay, I'm not19 following you. I'm sorry.20 MS. NARASAKI: It says resolve that21 the media issues subcommittee of the FCC, as22 opposed to the FCC advisory committee.2 3 NEAL R. GROSS 4 COURT REPORTERS AND TRANSCRIBERS 5 1323 RHODE ISLAND AVE., N.W. 6 (202) 234-4433 WASHINGTON, D.C. 20005-3701 www.nealrgross.com 1371 CHAIRMAN RIVERA: Oh yes. We'll2 take care of that in the editorials. That's a3 very good catch. Thanks very much, Karen.4 Any other comments or questions? Yes?5 COMMISSIONER COPPS: Can I ask a6 quick question here on number two, where we7 consider whether additional appliance options8 should be added? Is that in there because9 there are compliance options out there now10 that are being used and should be recognized?11 Or is this a request for companies to develop12 new compliance options?13 MS. SUTTER: It's actually a request14 for the Commission to look at adding to those15 things, those sixteen various categories that16 exist now. Which all deal with actual17 recruitment, that they would consider an add18 criteria that would resolve the issues of19 retention and promotion within the20 broadcasting industry and other communications21 media.22 COMMISSIONER COPPS: So you're not2 3 NEAL R. GROSS 4 COURT REPORTERS AND TRANSCRIBERS 5 1323 RHODE ISLAND AVE., N.W. 6 (202) 234-4433 WASHINGTON, D.C. 20005-3701 www.nealrgross.com 1381 saying there are things that are being done2 out there that the Commission does not3 recognize but should recognize? It's not4 going there?5 MS. SUTTER: What we are saying is6 that the criteria now, that the standards the7 broadcasters are being held to and other media8 that are under this regulation do not provide9 any consideration or any credit, if you will,10 under the system that exists for retention,11 mentoring, within an industry, organization,12 or stations.13 COMMISSIONER COPPS: Right.14 MS. MAGO: If I may add to that, I15 think that the other concept here is having it16 be something that's on the checklist that the17 Commission has in terms of the options would18 give additional incentives for focus by the19 companies on that. And that was the purpose20 of what we were trying to get to here. 21 COMMISSIONER COPPS: And then I22 would applaud the spirit of David's remarks2 3 NEAL R. GROSS 4 COURT REPORTERS AND TRANSCRIBERS 5 1323 RHODE ISLAND AVE., N.W. 6 (202) 234-4433 WASHINGTON, D.C. 20005-3701 www.nealrgross.com 1391 for us to think expansively about this,2 because we have lived through eight years of3 little or no enforcement activities here, and4 kind of a timidity in going anywhere near what5 the courts might look at suspiciously. So I6 hope we will really get that record and get it7 before the other commissioners. I know we8 used to spend -- I don't know how many9 staffers we had at one time -- it was like10 nine staffers around here who were focused on11 doing EEO reviews. 12 And I think every station probably13 got every three years or something like -- was14 audited. And now it's maybe, what, a couple15 or three or four percent that maybe get -- so16 that's not in line with the spirit of equal17 opportunity. So I think this is an18 opportunity to educate everybody at the19 Commission about this, familiarize them with20 the history of the timidity that has reigned21 around here and come up with some positive22 suggestions to really put some teeth into what2 3 NEAL R. GROSS 4 COURT REPORTERS AND TRANSCRIBERS 5 1323 RHODE ISLAND AVE., N.W. 6 (202) 234-4433 WASHINGTON, D.C. 20005-3701 www.nealrgross.com 1401 we're doing. 2 CHAIRMAN RIVERA: All right, thank3 you, commissioner. 4 MS. MAGO: May I?5 CHAIRMAN RIVERA: Yes indeed.6 MS. MAGO: The one other thing that7 I do want to say that I think is very8 important, when we focus on the enforcement,9 in no way do we denigrate the actions of the10 folks that are trying to do the EEO11 enforcement within the Commission. They have12 been working very hard. They've been trying,13 under all of the circumstances that are14 presented to them, and I wouldn't want in any15 way to have the commentary here be something16 that would be a negative against them.17 COMMISSIONER COPPS: No, I agree18 with that. This is a leadership function.19 That's what I'm talking about here. And the20 charges that come from the Commission itself21 to the staff, and I understand the effort and22 commitment that goes in that. And like you, I2 3 NEAL R. GROSS 4 COURT REPORTERS AND TRANSCRIBERS 5 1323 RHODE ISLAND AVE., N.W. 6 (202) 234-4433 WASHINGTON, D.C. 20005-3701 www.nealrgross.com 1411 salute that too. 2 CHAIRMAN RIVERA: That's a great3 point, Jane. Thanks for mentioning that. I4 would also note that in the 20045 recommendation with regard to the EEO6 language, there is some language in there7 about retention. In case anyone wants to look8 at that. 9 MS. MAGO: Yes, they do address10 retention, mentoring, all of those things were11 addressed in the 2004 document. 12 CHAIRMAN RIVERA: Any other comments13 or questions? Are you ready to vote? All in14 favor, say "aye."15 (Chorus of ayes)16 CHAIRMAN RIVERA: Opposed? The ayes17 have it. Thank you very much, Diane. Your18 next recommendation? 19 MS. SUTTER: Thank you. The next20 recommendation comes from the funding21 acquisitions task force. This has been a22 major issue that we've been hearing about both2 3 NEAL R. GROSS 4 COURT REPORTERS AND TRANSCRIBERS 5 1323 RHODE ISLAND AVE., N.W. 6 (202) 234-4433 WASHINGTON, D.C. 20005-3701 www.nealrgross.com 1421 in the trade press, and we all know from the2 economic challenges that the entire country is3 facing that the world of banking, the world of4 investment, has changed dramatically. And the5 impact that that has had when it relates to6 the acquisition opportunities for women and7 minorities to acquire and operate broadcast8 properties has been affected perhaps9 disproportionately, because of the nature of10 what's gone on.11 This is not new. The economic12 downturn has simply become dire. But the13 challenge for acquisition -- funding for14 acquisitions -- has existed for quite a long15 time. And over the course of time, the16 uniqueness of our industry, the uniqueness of17 broadcast lending and investment means that it18 is something that takes experience to19 understand. The inability to secure an20 interest in an FCC license, how do you deal21 with a heavily regulated industry in terms of22 what does that mean for equity participation2 3 NEAL R. GROSS 4 COURT REPORTERS AND TRANSCRIBERS 5 1323 RHODE ISLAND AVE., N.W. 6 (202) 234-4433 WASHINGTON, D.C. 20005-3701 www.nealrgross.com 1431 and ownership.2 All of those questions have made it3 a unique lending situation, and many banks and4 lending institutions have not entered into5 this, especially smaller ones, because of the6 unique things that affect our industry. But7 this has generally happened, that the lending8 has come and has been done for larger lending9 and for larger deals. And that has virtually10 disappeared at this point. The stations in11 some of the smaller markets have opportunities12 because they are much more local, if you will,13 and that their lending institutions, the14 smaller regional banks have a high interest in15 lending to community-related businesses. 16 And yet they're the least familiar17 with the challenges of broadcast lending.18 They're the least experienced in understanding19 what are the particulars and what are the20 unique things that have to do in this21 business. And so the smaller outlets are the22 ones that we believe have opportunity. If2 3 NEAL R. GROSS 4 COURT REPORTERS AND TRANSCRIBERS 5 1323 RHODE ISLAND AVE., N.W. 6 (202) 234-4433 WASHINGTON, D.C. 20005-3701 www.nealrgross.com 1441 they could understand the business better, if2 they knew how it functioned and how are those3 banks and institutions that have leant, how4 did they do that? How is it structured, and5 what does it look like?6 Most local and regional banks are7 asset-lenders. Meaning that they like to have8 things they can repossess. So if it's an9 industry and they can go in and take your10 equipment, or if you have -- you're housed in11 a building -- well, as we all know, in lending12 to media, the equipment and the building is13 probably the smallest portion of the value of14 the station. 15 And in fact, the value of the16 station is largely in its license, for which17 they cannot take a secured interest. However,18 there are many ways to be able to work within19 the requirements of the Commission to be able20 to have a successful relationship with banks,21 and that has been done. But the smaller22 banks, the regional banks, have shied away2 3 NEAL R. GROSS 4 COURT REPORTERS AND TRANSCRIBERS 5 1323 RHODE ISLAND AVE., N.W. 6 (202) 234-4433 WASHINGTON, D.C. 20005-3701 www.nealrgross.com 1451 from it, because it's just a little too scary2 for them. 3 Well, we believe that there are4 ways that we can address that. And in fact,5 this very body has acknowledged that and has6 talked about that in the past. In 2002, the7 Small Business Financing Seminar was held at8 the FCC, which had presentations from numerous9 private sector investment professionals and10 government representatives. A senior lending11 panel meeting was held at the FCC in January12 of 2004 that addressed many of these13 challenges that minorities and women face14 today.15 And a previous committee on16 diversity had a number of resolutions that17 urged the FCC to lift or relax the ban on the18 security interest on the FCC license. The FCC19 also held an en banc hearing for access to20 capital in July of 2008 in New York City. So21 clearly this has been a recurring issue. It22 has been one that this body has faced in the2 3 NEAL R. GROSS 4 COURT REPORTERS AND TRANSCRIBERS 5 1323 RHODE ISLAND AVE., N.W. 6 (202) 234-4433 WASHINGTON, D.C. 20005-3701 www.nealrgross.com 1461 past. And now we hope to provide perhaps some2 specifics on how we might be able to address3 it today to provide opportunities for women4 and minorities to be able to work with smaller5 and regional banks. 6 And just so that you know that in7 the creation of these recommendations, the8 task force has held numerous meetings and9 convened a meeting of subject matter experts.10 Many of whom have written articles or have11 created papers which address all of these12 issues. And we have begun as a committee to13 get all of those put together. We are14 addressing by getting those issues together,15 those papers, and we have a number of members16 of the legal community from the FCC bar who17 are working with us. 18 Others in the banking industry who19 have offered to work with us to be able to20 create a data bank of information that can21 provide the kind of information that would22 allow an understanding of how to lend, what it2 3 NEAL R. GROSS 4 COURT REPORTERS AND TRANSCRIBERS 5 1323 RHODE ISLAND AVE., N.W. 6 (202) 234-4433 WASHINGTON, D.C. 20005-3701 www.nealrgross.com 1471 looks like, and how to get a successful2 broadcast deal done. And so the first3 recommendation that the media issues4 subcommittee would like to propose is an5 expansion of the FCC's Website to include a6 dedicated section of the site for educational7 materials for regional and local lenders,8 investors, and minority and women seeking9 funding for broadcast acquisitions.10 In addition, the subcommittee11 recommends that the Office of Communications12 Business Opportunities -- Tom, I knew you'd be13 pleased to hear that -- be tasked with14 implementing this recommendation on a day-to-15 day basis. And we would hope that they would16 be provided the budget to carry forward this17 recommendation to take oversight18 responsibility for making this happen.19 The materials themselves will be20 provided by knowledgeable third parties on21 those topics. And we have actually provided22 an outline which you will see that addresses2 3 NEAL R. GROSS 4 COURT REPORTERS AND TRANSCRIBERS 5 1323 RHODE ISLAND AVE., N.W. 6 (202) 234-4433 WASHINGTON, D.C. 20005-3701 www.nealrgross.com 1481 the specific areas that we believe are a2 beginning, not the end, of what they would3 look like. As you can see, it talks about the4 industry, the broadcasting industry overall,5 and goes to how to evaluate broadcast6 properties themselves. Issues and nuances of7 broadcasting that lenders face, investors, the8 things that are particular to investing in9 this industry. 10 Continues on for educational11 materials for women and minorities that are12 seeking the funds themselves. And13 miscellaneous educational materials. The14 subcommittee would continue to work with the15 Commission to identify those, to identify the16 people that would indeed be required to do17 that, and would serve as a resource to18 providing that. 19 And as I've said, we have already20 begun to do that and have a number of articles21 and information put together. 22 CHAIRMAN RIVERA: So let's vote on2 3 NEAL R. GROSS 4 COURT REPORTERS AND TRANSCRIBERS 5 1323 RHODE ISLAND AVE., N.W. 6 (202) 234-4433 WASHINGTON, D.C. 20005-3701 www.nealrgross.com 1491 that recommendation. Chair will take that as2 a motion. Is there a second?3 MS. BUSH: Second.4 CHAIRMAN RIVERA: Is there any5 comment or question on this recommendation?6 Yes, Jenny?7 MS. ALONZO: This is just for8 broadcast, so what about if somebody wanted to9 buy a small cable network, or start like an10 online broadband channel?11 CHAIRMAN RIVERA: Good question.12 MS. SUTTER: Many of the things that13 are in here are specific to the nuances of14 broadcast lending. However, there are other15 things that are in here, as you can see from16 the outline, that would apply across the17 board. So I think it would be some of each.18 CHAIRMAN RIVERA: Any other19 questions? All those in favor, say "aye."20 (Chorus of ayes)21 CHAIRMAN RIVERA: Opposed? Motion22 carries. Thank you. 2 3 NEAL R. GROSS 4 COURT REPORTERS AND TRANSCRIBERS 5 1323 RHODE ISLAND AVE., N.W. 6 (202) 234-4433 WASHINGTON, D.C. 20005-3701 www.nealrgross.com 1501 MS. SUTTER: Thank you.2 CHAIRMAN RIVERA: Recommendation3 two?4 MS. SUTTER: Yes. The second5 recommendation has to do with implementing an6 outreach program that proactively seeks to7 increase awareness of the benefits of lending8 to and investing in minorities and women in9 the broadcasting industry. The outreach that10 the committee envisioned would be two-fold.11 It would include other government agencies, as12 well as the private sector, in order to13 facilitate lending to minorities and women.14 Many of us have been reading over15 the past several months that there are a16 number of government agencies which are --17 when we met the last time, that day there were18 panels and meetings going on within other19 government organizations that are dealing with20 this issue. And the feeling is that there21 needs to be some continuity, some22 communication between them so that the2 3 NEAL R. GROSS 4 COURT REPORTERS AND TRANSCRIBERS 5 1323 RHODE ISLAND AVE., N.W. 6 (202) 234-4433 WASHINGTON, D.C. 20005-3701 www.nealrgross.com 1511 resources can be pulled and the information2 can be more widely distributed between all of3 the various agencies and government entities4 that have an interest in this. 5 So that is the government public6 sector outreach that has been suggested. And7 you see in item B, there's a list of all of8 the ones that are potentially considered.9 While it is not a complete list, or an10 exhaustive list, it is simply the beginning of11 where we think the coordination might come.12 And then the other being within the private13 sector. 14 And we think that this private15 sector outreach would be creating seminars,16 workshops, and panels. Not unlike the en banc17 hearing that was held in New York, but to be18 more specific in terms of providing answers19 and solutions, as that was more of an20 informational meeting that could be done21 regionally, that could go around the country22 to be able to invite regional lenders and2 3 NEAL R. GROSS 4 COURT REPORTERS AND TRANSCRIBERS 5 1323 RHODE ISLAND AVE., N.W. 6 (202) 234-4433 WASHINGTON, D.C. 20005-3701 www.nealrgross.com 1521 local lenders to come to that. 2 We would assume that on that panel3 would be not only members of the Commission to4 be able to answer questions, but it would be5 those private equity investors, banks, that6 could then talk about the experience they've7 had, how they've done lending, and serve as a8 resource to people in the regions that we9 might be able to go to, to be able to make10 that happen. 11 We think that this also can be12 accomplished by providing these resources and13 these seminars at existing industry events and14 activities, whether it's the NAB, the Annual15 Radio Show, that there are ways now that we16 could use that gathering to further this17 recommendation. So we have suggested both of18 those as part of this recommendation number19 two that we would submit for the full20 committee's consideration. 21 CHAIRMAN RIVERA: Is there a second?22 Any discussion? Yes?2 3 NEAL R. GROSS 4 COURT REPORTERS AND TRANSCRIBERS 5 1323 RHODE ISLAND AVE., N.W. 6 (202) 234-4433 WASHINGTON, D.C. 20005-3701 www.nealrgross.com 1531 MR. JOHNSON: Diane, I guess that we2 can assume that private investors are embedded3 in your list of eight somewhere?4 MS. SUTTER: Yes.5 CHAIRMAN RIVERA: Howie?6 MR. HODGES: My thought was on this7 list that's on B. I know Rodney Hood from the8 Credit Union Association is on the call. I'm9 not certain that the credit unions should be10 included, because we're not only thinking11 about just acquisition capital, but also lines12 of credit as ongoing operations. And I'd like13 to suggest that his group be included.14 MR. HOOD: That's a good point,15 Howie, thank you. And you're right, some of16 the larger credit unions definitely could play17 an active role. 18 MS. SUTTER: Well, thank you. We19 are looking to be inclusive, not exclusive. 20 CHAIRMAN RIVERA: Any other21 comments?22 MS. SUTTER: And can I just ask that2 3 NEAL R. GROSS 4 COURT REPORTERS AND TRANSCRIBERS 5 1323 RHODE ISLAND AVE., N.W. 6 (202) 234-4433 WASHINGTON, D.C. 20005-3701 www.nealrgross.com 1541 if there are -- we present this as a thought-2 starter, if you will, and just as the comment3 that you just made, Howie, thank you, we would4 ask if there are others entities, other5 organizations, or other things you would like6 to have us include, we welcome that. And in7 fact, present this hoping that it will be a8 thought-starter. 9 CHAIRMAN RIVERA: All in favor of10 the motion, say "aye." 11 (Chorus of ayes)12 CHAIRMAN RIVERA: Opposed? Ayes13 have it. Thank you. 14 MS. SUTTER: Thank you. And the15 third recommendation that we would like to16 submit is that the FCC designate one FCC17 commissioner to oversee the implementation of18 the access to capital and funding acquisition19 recommendations. And we list the things that20 ideally the commissioner would oversee. And21 as you see, it is many of the things we have22 just talked about, but also is expanded to2 3 NEAL R. GROSS 4 COURT REPORTERS AND TRANSCRIBERS 5 1323 RHODE ISLAND AVE., N.W. 6 (202) 234-4433 WASHINGTON, D.C. 20005-3701 www.nealrgross.com 1551 include things that could be. 2 The reinstatement of the tax3 certificate, and divestiture of broadcast4 stations to minority or women-owned5 businesses, that there would be a designated6 commissioner who could then oversee this7 within the FCC itself with whom the committee8 could work to have this be -- all of the9 recommendations be implemented.10 CHAIRMAN RIVERA: And they would11 work the OCBO as well?12 MS. SUTTER: Absolutely.13 CHAIRMAN RIVERA: Is there a second?14 PARTICIPANT: Second. 15 CHAIRMAN RIVERA: Any questions or16 comments about this recommendation? David?17 MR. HONIG: Just wanted to note,18 this is a very important recommendation. In19 the Carter administration and throughout most20 of the 1960s, the agency had the practice of21 designating specific commissioners to write22 orders, to chair task forces, and to undertake2 3 NEAL R. GROSS 4 COURT REPORTERS AND TRANSCRIBERS 5 1323 RHODE ISLAND AVE., N.W. 6 (202) 234-4433 WASHINGTON, D.C. 20005-3701 www.nealrgross.com 1561 tasks like this. It was a good idea then. It2 was abandoned in the early 1980s. 3 This is certainly important enough4 to start that practice again. And the5 reference to 257 is particularly vital,6 because that's the portion of the act that7 addresses market entry barriers. We haven't8 had a useful 257 report since 2000. The next9 one is due, actually, this month, that report10 to Congress. So this couldn't be more timely,11 and I think it's one of the most important12 things that this body will have done if we13 vote this out. 14 CHAIRMAN RIVERA: Thank you. Any15 other comments or questions? All in favor of16 the recommendation say "aye."17 (Chorus of ayes)18 CHAIRMAN RIVERA: Opposed? Motion19 carries. Thank you, Diane.20 MS. SUTTER: Thank you. And now we21 move to the personal people meter task force.22 This task force has been working very hard, I2 3 NEAL R. GROSS 4 COURT REPORTERS AND TRANSCRIBERS 5 1323 RHODE ISLAND AVE., N.W. 6 (202) 234-4433 WASHINGTON, D.C. 20005-3701 www.nealrgross.com 1571 should say, in terms of what they've been2 trying to accomplish, because there are so3 many pieces to the question. And being able4 to have lots of discussion around what the5 recommendations would be and to arrive at6 something that they could bring before you7 today. 8 I will tell you that in the9 deliberations that the task force has had,10 they will also be looking for other11 recommendations beyond just this. So I should12 say to the Commission that this is the first13 of what will be other recommendations that14 they hope to proffer, and that this15 recommendation does not suggest that they16 think this is the only solution that they17 would like to put forth, but rather one that18 they're prepared to make today with the19 expectation that there will be others that20 will be coming when they can reach unanimity21 on what that would look like.22 So I just mention that in the2 3 NEAL R. GROSS 4 COURT REPORTERS AND TRANSCRIBERS 5 1323 RHODE ISLAND AVE., N.W. 6 (202) 234-4433 WASHINGTON, D.C. 20005-3701 www.nealrgross.com 1581 context of what we're recommending today, that2 this is the one they're bringing to the full3 committee today, but it's not the only one.4 And it also refers to the fact that the PPM5 methodology that has been a great point of6 discussion -- that at the current time there7 are 33 markets in which the -- well, there are8 25 now and eight planned by the end of 2009,9 for a total of 33 markets. Of which only two10 have actually received the Media Ratings11 Council approval and accreditation. 12 And trying to understand how the13 thinking has come for people meters, but also14 to what else is out there. Meaning Nielsen15 and are there other rating results that are16 being looked at and considered. So this is17 not just about Arbitron's PPM, but rather the18 whole issue of ratings and what impact does19 that have. 20 And is it a disproportionate impact21 on certain stations with certain formats. So22 the task force actually has had conversations2 3 NEAL R. GROSS 4 COURT REPORTERS AND TRANSCRIBERS 5 1323 RHODE ISLAND AVE., N.W. 6 (202) 234-4433 WASHINGTON, D.C. 20005-3701 www.nealrgross.com 1591 and conference calls with the Media Ratings2 Council itself, and they have also been in3 contact with both Arbitron and Nielsen to try4 to understand how and why the process works,5 and what is the criteria by which decisions6 are made and implemented, and how should we7 understand what they're doing and have a8 better understanding of what this needs to9 look like.10 Now, as you know, this is something11 that has been before this group before, and in12 fact there is an NOI that currently exists on13 the subject now, pending, at the Commission.14 The recommendation that is being made is15 really one that is based on the conversations16 that have been going on over the past several17 months with the task force itself, and with18 the pending NOI and has led to this19 recommendation.20 The PPM task force recommends that21 the FCC use its authority pursuant to 403 of22 the Communications Act of 1934 to institute a2 3 NEAL R. GROSS 4 COURT REPORTERS AND TRANSCRIBERS 5 1323 RHODE ISLAND AVE., N.W. 6 (202) 234-4433 WASHINGTON, D.C. 20005-3701 www.nealrgross.com 1601 403 investigation to determine whether the2 ratings practice that is currently being3 employed in certain markets in the radio4 industry are having an inordinately negative5 effect on certain formats. Also, does this6 have impact on diversity of ownership in7 radio? 8 And then specifically, they go9 through and outline where there has been some10 question and what they think are the other11 questions that need to be answered, which they12 will be considering as they move forward in13 continuing their work in the task force. So14 the media issues subcommittee submits this for15 the Commission's consideration.16 CHAIRMAN RIVERA: Is there a second?17 PARTICIPANT: Second.18 CHAIRMAN RIVERA: Now, as you noted,19 this committee has already recommended to the20 Commission that it institute a 40321 investigation. It did that in June of 2008.22 Your subcommittee is making this2 3 NEAL R. GROSS 4 COURT REPORTERS AND TRANSCRIBERS 5 1323 RHODE ISLAND AVE., N.W. 6 (202) 234-4433 WASHINGTON, D.C. 20005-3701 www.nealrgross.com 1611 recommendation again because the NOI didn't2 exist --3 MS. SUTTER: When the last one was4 brought before, that is correct.5 CHAIRMAN RIVERA: Thanks. 6 MS. SUTTER: That has changed since7 the time that the original one was made. And8 it's in response to that NOI, which is still9 pending.10 CHAIRMAN RIVERA: Any comments or11 questions? Karen?12 MS. NARASAKI: I think that this is13 a very important recommendation. In the14 interest of full disclosure, I actually sit on15 an advisory council to Nielsen, which came16 about when they started to roll out their17 people meter program and similar issues were18 raised. And we've worked very successfully19 with them to address the issues to try to make20 sure that their methodology was really fully21 capturing minority communities. 22 And the advisory council still2 3 NEAL R. GROSS 4 COURT REPORTERS AND TRANSCRIBERS 5 1323 RHODE ISLAND AVE., N.W. 6 (202) 234-4433 WASHINGTON, D.C. 20005-3701 www.nealrgross.com 1621 exists today. There's a Latino and African2 American and Asian American one. So I'd be3 very interested in helping provide any input4 you would like as your committee moves forward5 on the other related recommendations. 6 I wanted to add that we had not7 seen similar interest by Arbitron,8 unfortunately, in response to the issues that9 were being raised about their methodology. So10 I'm very happy to see this recommendation11 moving forward. 12 MS. ALONZO: And Karen, we would13 love to have you on the team. Because I think14 that's actually a call-out to the entire15 committee. We need more people, and I would16 love to have someone representing Spanish17 radio, which does not exist on the18 subcommittee. So that we have a better19 understanding of those needs. We've had great20 conversations with SBS and Univision, and a21 host of others and trade groups, but it really22 is a very complicated subject. 2 3 NEAL R. GROSS 4 COURT REPORTERS AND TRANSCRIBERS 5 1323 RHODE ISLAND AVE., N.W. 6 (202) 234-4433 WASHINGTON, D.C. 20005-3701 www.nealrgross.com 1631 And we sit -- I sit on the Latino2 advisory council, and Karen -- so we've had3 the opportunity to see some of the best4 practices that have been put out there, and we5 would like to bring that to the table, so the6 more conversation we can have going forward,7 the better. 8 CHAIRMAN RIVERA: Thank you.9 MS. SUTTER: And again, I just want10 to reiterate that this is not the only11 alternative that the committee hopes to be12 able to provide, but it's the one that they're13 prepared to do at this time.14 CHAIRMAN RIVERA: Understand. Any15 other comments or questions? All in favor of16 the recommendation say "aye."17 (Chorus of ayes)18 CHAIRMAN RIVERA: Opposed? 19 MS. LUCEY: Opposed.20 CHAIRMAN RIVERA: One opposed, duly21 noted. The ayes have it. Thank you. I22 believe that concludes your report?2 3 NEAL R. GROSS 4 COURT REPORTERS AND TRANSCRIBERS 5 1323 RHODE ISLAND AVE., N.W. 6 (202) 234-4433 WASHINGTON, D.C. 20005-3701 www.nealrgross.com 1641 MS. SUTTER: It does, thank you.2 CHAIRMAN RIVERA: Yes, thank you3 very much. Wonderful work. A lot of good4 work that has gone into here, and we look5 forward to hearing more from the subcommittee.6 Toni, your turn.7 MS. BUSH: Thank you, Henry. And I8 want to thank, once again, my committee for9 all of their work. I also want to recognize,10 before I put forth our recommendation, that11 this is one recommendation that we have in12 connection with broadband service to the13 Native American community, but that there was14 a very large submission by a number of Native15 American organizations with many16 recommendations in them, and there are other17 recommendations that the committee will be18 considering.19 Karen Narasaki and Ray Ramsey,20 through Howie, have made some specific21 suggestions of things that we should consider,22 and we are going to take those up starting in2 3 NEAL R. GROSS 4 COURT REPORTERS AND TRANSCRIBERS 5 1323 RHODE ISLAND AVE., N.W. 6 (202) 234-4433 WASHINGTON, D.C. 20005-3701 www.nealrgross.com 1651 the new year. So that there will be other2 recommendations, but I did want -- we did feel3 it was important to move forward on this issue4 and it was unanimous in our committee that we5 recommend that the Commission undertake the6 creation of a joint Native Nations/FCC task7 force. 8 And it is one of the9 recommendations that was part of a submission10 by a number of Native American organizations.11 And the feeling really is that there are a lot12 of unique challenges facing the Native13 American community that don't face any other14 community in the United States. The issues15 related to sovereign status, the large number16 of tribes -- 564 -- and also there are17 physical challenges, locational challenges,18 and we felt that it's an issue that needs some19 continuity of attention that could be provided20 by a task force that specifically focuses on21 this so that you're not sort of trying to re-22 educate a group of people every time a new2 3 NEAL R. GROSS 4 COURT REPORTERS AND TRANSCRIBERS 5 1323 RHODE ISLAND AVE., N.W. 6 (202) 234-4433 WASHINGTON, D.C. 20005-3701 www.nealrgross.com 1661 issue comes up or in a new area.2 And Geoff, I think you're on the3 phone. Did you want to add anything?4 MR. BLACKWELL: Thank you, Toni.5 And I'm sorry that I can't be there in person.6 I'm actually in a part of Indian country right7 now, out on the West Coast. But I wanted to8 support what Toni was saying in terms of this9 being one of the -- this is really a10 recommendation that comes of Native American11 involvement at the FCC over the past several12 years. Most recently, it has occurred in13 several dockets at the Commission over the14 last decade, and most recently in the tribal15 broadband.16 It was submitted by the National17 Congress of American Indians and Native Public18 Media, two organizations that I'm involved in.19 And it has virtual unanimous support across20 Indian country that the Commission find a21 mechanism, create a mechanism to work on a22 government to government basis to dig into the2 3 NEAL R. GROSS 4 COURT REPORTERS AND TRANSCRIBERS 5 1323 RHODE ISLAND AVE., N.W. 6 (202) 234-4433 WASHINGTON, D.C. 20005-3701 www.nealrgross.com 1671 media issues based in tribal nations. 2 But to do so in a way that engages3 elected and appointed tribal leaders, but also4 engages other members of this committee and5 other advisory committees, members of both6 minority and majority industry and other7 stakeholders so that a good -- so that8 recommendations and tasks, genuine tasks, can9 be arrived at through a full picture of what10 is going on on tribal lands. 11 So from the National Congress of12 American Indians and Native Public Media, we13 thank the consideration of the subcommittee14 and recommend this recommendation to the full15 committee. Thank you, Toni.16 MS. BUSH: You're welcome. So our17 recommendation is that the Commission should18 consider formally creating a joint Native19 Nations/FCC broadband task force charged with20 developing a comprehensive approach for21 resolving the significant barriers to22 broadband deployment and adoption on tribal2 3 NEAL R. GROSS 4 COURT REPORTERS AND TRANSCRIBERS 5 1323 RHODE ISLAND AVE., N.W. 6 (202) 234-4433 WASHINGTON, D.C. 20005-3701 www.nealrgross.com 1681 lands. 2 The joint task force must take3 careful steps to also address the continued4 need for basic telephone service throughout5 tribal lands as a necessary lifeline. The6 joint task force makeup should involve both7 senior-level FCC personnel and key elected and8 appointed tribal community leaders with9 expertise in the cultures of native nations10 and the complexities of federal Indian law and11 policy, tribal government environments and the12 economic development, as well as an13 understanding of the obstacles and challenges14 to broadband deployment in tribal lands. 15 That would be about a hundred16 people, I think, that we would need. The17 joint task force should strive to meet the18 Commission's commitment to create meaningful19 consultation with native nations and, by20 utilizing the exception to the federal21 advisory committee act for intergovernmental22 purposes, should act as a tribal sounding2 3 NEAL R. GROSS 4 COURT REPORTERS AND TRANSCRIBERS 5 1323 RHODE ISLAND AVE., N.W. 6 (202) 234-4433 WASHINGTON, D.C. 20005-3701 www.nealrgross.com 1691 board for issues for consultation with the2 native nations throughout the country. 3 The joint task force should draw4 upon the input from other Commission advisory5 bodies, communications industry experts, local6 and national minority and majority7 communications companies, officials, and other8 relevant government agencies, tribal community9 leaders, and visionaries from current10 successful tribal broadband projects, and11 tribal governments themselves as it analyzes12 and develops tasks aimed at finally closing13 the infamous digital divide on tribal lands.14 CHAIRMAN RIVERA: Is there a second?15 PARTICIPANT: Second.16 CHAIRMAN RIVERA: All right. Is17 there any discussion? Yes, Jenny?18 MS. ALONZO: So how many successful19 tribal broadband projects are there?20 MS. BUSH: Geoff?21 MR. BLACKWELL: There are really22 less than two handfuls. There are some2 3 NEAL R. GROSS 4 COURT REPORTERS AND TRANSCRIBERS 5 1323 RHODE ISLAND AVE., N.W. 6 (202) 234-4433 WASHINGTON, D.C. 20005-3701 www.nealrgross.com 1701 hybridized -- next week I'll be meeting with2 the Southern California Tribal Chairman's3 Association. Their tribal digital village,4 which is one of the shining examples in5 wireless unregulated spectrums that's6 connected several tribes here. There's also7 the wonderful example of the Couer d'Alene8 tribe in wireless. 9 In a model that is more telco10 oriented, there are eight tribally owned and11 operated telephone companies that, to one12 level or another, have been able to deploy13 DSL, and even in certain locations, triple14 play. But that is a vast, vast minority of15 the 564 federally recognized Indian tribes.16 We estimate the broadband penetration rate in17 Indian country -- it's an anecdotal estimate18 -- at somewhere around five percent. 19 So in an environment where you're20 looking to aggregate demand with anchor21 institutions that most of the country is22 simply not familiar with, a step like this is2 3 NEAL R. GROSS 4 COURT REPORTERS AND TRANSCRIBERS 5 1323 RHODE ISLAND AVE., N.W. 6 (202) 234-4433 WASHINGTON, D.C. 20005-3701 www.nealrgross.com 1711 critical. Thank you. 2 CHAIRMAN RIVERA: Any other3 questions or comments? All in favor of the4 recommendation say "aye."5 (Chorus of ayes)6 CHAIRMAN RIVERA: Opposed? The7 motion carries. Yes indeed.8 COMMISSIONER COPPS: I'd like to9 just say a word. Now that you've voted, far10 be it for me to ever try to influence the vote11 of this August assemblage. But I wanted to12 thank Toni and the subcommittee for their13 great work here. This is an issue that is14 just crying out for more visibility. I'm15 delighted that the subcommittee and this16 committee are paying attention to it. I'm17 delighted that the chairman's office is paying18 attention to it and acting on it. 19 Eddie Lazarus, the chief of staff,20 and I had a good trip out to Pine Ridge a21 couple of months ago. I read with great22 interest the submission that Geoff Blackwell2 3 NEAL R. GROSS 4 COURT REPORTERS AND TRANSCRIBERS 5 1323 RHODE ISLAND AVE., N.W. 6 (202) 234-4433 WASHINGTON, D.C. 20005-3701 www.nealrgross.com 1721 was just talking about. I highly recommend2 folks taking a look at it just to get an3 understanding of the breadth of the problem4 and the creativity of some of the solutions5 that have been suggested. And it's got some6 of the success stories in there in California7 and Minnesota and Idaho and elsewhere.8 I'm going to be talking a lot about9 this between now and February 17th, and I10 think one of the tests that you can apply to11 the success and the credibility of the12 broadband plan is how it treats this13 particular subject matter. So we welcome your14 attention to this, and I thank you for it. 15 CHAIRMAN RIVERA: Thank you,16 commissioner. Well, I just want to say before17 we give the floor to Thomas that this is a18 very impressive body of work. You guys have19 really gone above and beyond here. I want to20 tell you how very proud I am to be associated21 with all of you. This is really first class22 work. And you should be very proud of2 3 NEAL R. GROSS 4 COURT REPORTERS AND TRANSCRIBERS 5 1323 RHODE ISLAND AVE., N.W. 6 (202) 234-4433 WASHINGTON, D.C. 20005-3701 www.nealrgross.com 1731 yourselves. So thank you. 2 MS. LUCEY: Henry, I'm just3 wondering if I could explain my opposition,4 since I realize not everybody's been on the5 last three diversity committee iterations.6 CHAIRMAN RIVERA: Sure.7 MS. LUCEY: Okay. It's just --8 we're opposed to what we see as the expansion9 of the FCC's authority over an entity which we10 see as it having no jurisdiction over. And11 that there are other ways that we think are12 better to address the problem, as Diane13 alluded to. So just wanted to -- this is14 similar to what we had several years ago, when15 it came up. 16 MS. BUSH: But let's just make it17 clear that Anne's talking about PPM, not the18 Native American resolution, okay?19 CHAIRMAN RIVERA: Thank you for20 clarifying that. And Anne, you're consistent.21 You're right, you voted against it in June of22 2008. So we understood. But thank you for2 3 NEAL R. GROSS 4 COURT REPORTERS AND TRANSCRIBERS 5 1323 RHODE ISLAND AVE., N.W. 6 (202) 234-4433 WASHINGTON, D.C. 20005-3701 www.nealrgross.com 1741 your clarification. So Thomas, you have the2 floor, sir. And thank you for being here.3 We're delighted to see you. 4 MR. REED: Thank you very much.5 Good afternoon, everybody. I guess it's very6 clear that we'll be seeing a lot of each7 other. But first I'd like to echo the thanks8 that Commissioner Copps delivered and Chairman9 Genachowski. The yeoman's work that this10 committee does -- I've just started here at11 the FCC, and I'm excited to be here and12 excited to be here today. Just started at the13 FCC in August, and have seen a lot of the work14 that this committee has done and have admired15 it. 16 And I'm looking forward to working17 with you all very closely. I've met many of18 you already. And I'm looking forward to19 getting to know all of you. And for those of20 you who don't know, my office, OCBO, the21 Office of Communications Business22 Opportunities, really is the principal contact2 3 NEAL R. GROSS 4 COURT REPORTERS AND TRANSCRIBERS 5 1323 RHODE ISLAND AVE., N.W. 6 (202) 234-4433 WASHINGTON, D.C. 20005-3701 www.nealrgross.com 1751 within the Commission for small and diverse2 businesses. 3 And I consider our purpose as4 twofold. One, to promote programs and5 policies that encourage small and diverse6 businesses to become increasingly more engaged7 in the decision-making process here at the8 FCC. That's the first prong. The second9 prong really is the business development10 prong. And that is to, again, promote11 programs and policies that will encourage new12 entry. Small businesses, women and minority13 owned businesses, to provide them with the14 information on FCC guidelines and policies on15 licensing and spectrum, and other information,16 access to capital. 17 That will enable them to compete18 more vigorously in the marketplace. And so19 clearly, the mission that we have is aligned20 with yours. And so as the chairman and I have21 spoken about already, we'd like to sort of22 reintroduce our office to this organization in2 3 NEAL R. GROSS 4 COURT REPORTERS AND TRANSCRIBERS 5 1323 RHODE ISLAND AVE., N.W. 6 (202) 234-4433 WASHINGTON, D.C. 20005-3701 www.nealrgross.com 1761 a way that really bolsters the work that's2 already being done by Barbara and Jamila and3 Carolyn.4 You should consider me at your5 disposal, and my staff at your disposal. And6 I know that with many of the proposals, that7 will be not a difficult thing. So you know8 where I am. I can't hide. I'm one of the9 taller guys here, so I'm easy to find. But I10 would also like to say that I inherited a11 staff of very, very dedicated and talented12 lawyers and outreach specialists who are13 excited to do this work, are anxious to do14 this work. 15 So it's only appropriate that the16 recommendations that you make and that we17 approve, that we be a conduit for that effort.18 So in a more direct way, I think going19 forward, the way I would like to20 operationalize our increased relationship,21 I've already assigned three attorneys to22 support the work that Carolyn and Jamila and2 3 NEAL R. GROSS 4 COURT REPORTERS AND TRANSCRIBERS 5 1323 RHODE ISLAND AVE., N.W. 6 (202) 234-4433 WASHINGTON, D.C. 20005-3701 www.nealrgross.com 1771 Barbara are doing. 2 So that they can fill in as needed,3 can liaise with this committee as needed. I4 certainly welcome, in addition to the5 recommendations that are made here formally,6 ideas that you have that are informal about7 the work that we do. Sherrese mentioned --8 and thank you again Sheresse for those kind9 words earlier -- a couple of the workshops10 that we have already done along these lines.11 The workshop that we hosted in August on12 broadband and small business entry and using13 broadband applications to expand their14 competitive abilities. 15 That workshop was a very16 interesting workshop where we brought policy17 experts in talking about -- really about18 adoption issues. Some deployment issues19 within broadband, but mostly about adoption.20 There were telcos that were small and minority21 and women owned telcos that also spoke and22 talked about some of the barriers that they2 3 NEAL R. GROSS 4 COURT REPORTERS AND TRANSCRIBERS 5 1323 RHODE ISLAND AVE., N.W. 6 (202) 234-4433 WASHINGTON, D.C. 20005-3701 www.nealrgross.com 1781 face. And some that were trying to be a part2 of the deployment effort talked about the3 resource issues, the access to capital issues4 that they faced and participating that effort.5 But we also brought in ancillary6 businesses, traditional businesses that were7 on the adoption side discovering how broadband8 could expand their competitive position. One9 of those businesses was Cakelove. We actually10 pushed them to bring samples, but he forgot.11 That was kind of a failing. But we'll have12 him back anyway. But that's one business that13 does all of his accounting and payroll14 virtually. And there were other businesses15 that talked about how they were able to enter16 the marketplace without staff, without17 physical infrastructure, without inventory and18 could establish a business totally on the19 Internet. 20 So we were excited to be a part of21 that process. And more recently, the access22 to capital workshop that we held a couple2 3 NEAL R. GROSS 4 COURT REPORTERS AND TRANSCRIBERS 5 1323 RHODE ISLAND AVE., N.W. 6 (202) 234-4433 WASHINGTON, D.C. 20005-3701 www.nealrgross.com 1791 weeks ago that Sherrese mentioned, we were2 very excited to be a part of that process.3 Janelle brought her expertise and talked about4 TDF. We had representatives from private5 investors talking about the challenges to6 receiving capital for them, but also talking7 about strategy, which was more important to8 us. 9 Very straightforward, how do you10 get money from private investors. And then we11 had public sector experts, NTIA, RUS, SBA,12 also talking about those very things, which we13 think was very useful. And a lot of our14 constituents came back to us and found the15 information useful. One of the things that we16 also did that was different for us and17 different for the FCC was we coordinated one18 on one sessions between entrepreneurs that19 were participating in that workshop and our20 private investor panelists, so that they could21 sit down with individuals that had the money22 and learn more about how they could make their2 3 NEAL R. GROSS 4 COURT REPORTERS AND TRANSCRIBERS 5 1323 RHODE ISLAND AVE., N.W. 6 (202) 234-4433 WASHINGTON, D.C. 20005-3701 www.nealrgross.com 1801 presentations more palatable to those2 individuals, how they could make them more3 effective. 4 So they received critical analysis5 of their presentations and their business6 plans. And so that was our first go-around.7 It wasn't a new idea. That's one of the great8 things about this- you guys come up with great9 ideas, we just steal them. So we're excited.10 There are a number of other programs that are11 in their nascent stages that we are pushing12 forward. And we look forward to working with13 all of you. We look forward to doing more14 access to capital workshops.15 I think that's something that we16 want to do on a regular basis. It's only the17 beginning of the conversation when you have a18 one-day session on that issue. We hope to do19 it at least annually. So with that, I cede20 the floor. I see that I'm between everybody21 and adjournment of this meeting, so I think22 I'm going to be quiet. But again, thank you2 3 NEAL R. GROSS 4 COURT REPORTERS AND TRANSCRIBERS 5 1323 RHODE ISLAND AVE., N.W. 6 (202) 234-4433 WASHINGTON, D.C. 20005-3701 www.nealrgross.com 1811 for inviting me. And I look forward to2 working with all of you. 3 MS. SUTTER: Can I just respond?4 CHAIRMAN RIVERA: Sure.5 MS. SUTTER: Tom, the media issues6 subcommittee with its task force would welcome7 the opportunity to work with you on that8 funding for acquisitions and access to9 capital. We have a lot of resources that we10 could help identify, I think, for you, and to11 be able to provide some context for some of12 these conversations with both the broadcasters13 themselves, with existing lenders, that sort14 of thing. So we'd be very happy to help with15 that.16 CHAIRMAN RIVERA: And thank you17 again for being here, Thomas. We really look18 forward to working with you, and we're19 delighted that OCBO is going to be a resource20 to this committee. We can use the help. I21 want to mention to you that our next meeting22 will be sometime in March. Probably late2 3 NEAL R. GROSS 4 COURT REPORTERS AND TRANSCRIBERS 5 1323 RHODE ISLAND AVE., N.W. 6 (202) 234-4433 WASHINGTON, D.C. 20005-3701 www.nealrgross.com 1821 March. And I need to work with Barbara to2 find a date that we can use this room. And so3 committee chairs, we'll be looking for some4 more of your great ideas at that meeting.5 And we're also considering having a6 meeting in January, late January, just before7 the broadband plan is finalized. I thought it8 might be a good idea for us to get a report,9 basically, of what's going on with the10 broadband plan in terms of the things that we11 care about. To see that the interests that12 this committee is interested in are being13 carried forward. 14 We're not ready to announce that15 yet. We've still got a little homework and16 background work to do on that. But stay17 tuned. And you won't need to do anything on18 that, I don't think, other than just come and19 listen and then give your input. But we'll20 get back to you on that. We haven't quite21 finalized that. And I thank Jamila for calling22 it to my attention. It's really a good idea.2 3 NEAL R. GROSS 4 COURT REPORTERS AND TRANSCRIBERS 5 1323 RHODE ISLAND AVE., N.W. 6 (202) 234-4433 WASHINGTON, D.C. 20005-3701 www.nealrgross.com 1831 So we'll be letting you know about that. 2 Does anybody have anything else to3 bring before this August group?4 MS. LUCEY: I just have a question.5 CHAIRMAN RIVERA: Sure.6 MS. LUCEY: These recommendations7 now, are they just self-effectuating, go8 forward as they are, or is there some9 procedure?10 CHAIRMAN RIVERA: As we did last11 time, I will draft a letter to the chairman's12 office and will send those to the chairman's13 office. There are a few editorials we've got14 to fix. And then Barbara posts them to the15 Website.16 MS. KREISMAN: I'll send you all a17 revised version just to make sure everyone's18 okay with the editorial changes. And as19 you'll see today, even if you get on our20 Website today, the FACA Website, you'll see21 the proposals that were considered today. So22 we try to keep it up to date.2 3 NEAL R. GROSS 4 COURT REPORTERS AND TRANSCRIBERS 5 1323 RHODE ISLAND AVE., N.W. 6 (202) 234-4433 WASHINGTON, D.C. 20005-3701 www.nealrgross.com 1841 CHAIRMAN RIVERA: Anything else?2 MS. BROWN: Henry? 3 CHAIRMAN RIVERA: Yes?4 MS. BROWN: Kathy Brown.5 CHAIRMAN RIVERA: Hi Kathy.6 MS. BROWN: Do we have a feedback7 loop on the recommendations we make and how8 they're received, or some reaction? Or do9 more or do less or this is good or here's what10 we're going to do?11 CHAIRMAN RIVERA: That's a very good12 question. And heretofore, we have not. But13 today you did hear a report from the14 chairman's office, from Sherrese, who did give15 us some feedback on some of the16 recommendations that we made. Would you like17 to respond, Bruce?18 MR. GOTTLIEB: Sure. I think that19 going forward, that is something we'd like to20 develop. We should talk about what's the best21 way to do it. It could be a reply to the22 letter that could also be posted on the2 3 NEAL R. GROSS 4 COURT REPORTERS AND TRANSCRIBERS 5 1323 RHODE ISLAND AVE., N.W. 6 (202) 234-4433 WASHINGTON, D.C. 20005-3701 www.nealrgross.com 1851 Website as well as the work that Tom will be2 doing. And I think, depending on which3 recommendation we're talking about, those two4 are the right ways to respond.5 But certainly you have our6 commitment that the important work you're7 doing is something that we'll respond to and8 take account of.9 CHAIRMAN RIVERA: Thank you, Bruce.10 COMMISSIONER COPPS: And more is11 better than less.12 CHAIRMAN RIVERA: Excellent13 question, Kathy. Thank you so much. Anything14 else? All right, we'll stand adjourned. And15 again, happy holidays to all of you. 16 (Whereupon, the above-entitled17 matter was concluded at 3:21 p.m.)2 3 NEAL R. GROSS 4 COURT REPORTERS AND TRANSCRIBERS 5 1323 RHODE ISLAND AVE., N.W. 6 (202) 234-4433 WASHINGTON, D.C. 20005-3701 www.nealrgross.com

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