**STATEMENT OF COMMISSIONER DEBORAH TAYLOR TATE**

**AT PRACTICING LAW INSTITUTE ON TELECOM POLICY AND REGULATION**

**DECEMBER 5, 2008**

Good morning. Thank you for inviting me to be here for the 26^th^ Annual
Telecom Policy and Regulation Institute. As I was preparing to speak
today, I began to consider what the FCC Commissioners may have said to
this group at its first conference 26 years ago. What issues were at the
top of the agenda for Chairman Fowler and his colleagues? And, likewise,
what will be at the top of the FCC's agenda-- and the industry's
agenda\-- 26 years from now? Or will there even [be]{.underline} an FCC
26 years from now?

In the midst of the present economic downturn gripping our nation and
the world, there is one bright spot on the horizon -- American
technology and the American entrepreneurial spirit, especially in the
communications and technology sector, which hold the promise of future
innovation, investment, jobs and economic growth.

As I reflect on my time at the Commission, I would like to highlight a
few of the historic accomplishments that have taken place at the FCC
over the last three years. First, as you know, we completed numerous
successful spectrum auctions, two of the largest at \$13 and \$19
billion, which will enable not only more wireless innovations, but also
the promise of wireless broadband deployment. Convergence is now in the
past. Our cell phones are movie theaters; the cable company is providing
telephony; and everyone is in the broadband business. I am proud to have
been part of the creation of the first-ever Public Safety and Homeland
Security Bureau within the Commission. We also implemented numerous
recommendations from both the 9/11 Commission and the Katrina Commission
to enhance the safety and security of all Americans. We set stringent
rules regarding E911 services with more granular location requirements
and required more closed captioning to assist persons with disabilities.
And I would be remiss if I did not mention the FCC's Rural Healthcare
Pilot Program which will deliver \$216 million over the next three years
to telehealth projects all across rural America.

I am very proud of the adoption of what have been called the most
historic steps in 30 years to encourage more women and minority
ownership in media interests. In fact, we did more than adopt an Order,
we actually hosted an all day "Access to Capital Conference" in New
York, hosted by Erin Burnett of CNBC, with major financial institutions
and Wall Street financiers to connect them with potential female and
minority buyers. I hope that the FCC will make this an annual event.

But with all of these critical initiatives, perhaps none has been more
important than our mission to deploy broadband to every corner of
America---connecting citizens in rural towns with major metropolitan
cities, and giving children in every corner of America access to the
endless educational opportunities the internet affords. I was pleased to
serve as Federal Co-Chair of the 706 Joint Conference on Advanced
Services. I strongly believe in the mission of the 706 Joint Board -- to
ensure that advanced services are deployed as rapidly as possible to all
Americans, and to serve as a forum for an ongoing dialogue among the
Commission, state regulators, and local and regional entities, regarding
the deployment of advanced telecommunications capabilities.

However, it is the market\-- not government\-- that continues to drive
the expansion of broadband. We have seen business case scenarios through
innovative public-private partnerships, such as Connected Nation and
Connected Tennessee. Government has an important role to play as well,
from the E-rate program that has connected schools across America, to
Chairman Martin's proposal to expand lifeline and linkup services for
low-income Americans to include broadband services---the primary
communications tool of the day.

I want to call on the FCC, Congress, and industry to continue the
mission of deploying broadband to every corner of America\-- and to
share my perspective on a few of the other key issues the Commission has
tackled over the past year.

**I. Importance of Broadband**

The importance of broadband to our national and international
communications and commerce cannot be overstated. More than ever
broadband is crucial, not only for the ICT sector and continued
investment, but crucial to e-commerce, e-health, e-education and even
"e-green" energy efficient initiatives. We are all in a position to help
ensure that all our citizens have access to these advanced services
today as well as in the future.

While the U.S. leads the world in broadband connections -- 100 million
at the beginning of 2008. I want to assure you that whether the issue is
the recent and very successful \$19 billion spectrum auction, or support
for a rural healthcare initiative, or numerous other issues across all
platforms -- all of these underscore the Commission's efforts to promote
broadband to all Americans, regardless of their race, gender, income, or
zip code. I try to keep this goal at the forefront of my decision-making
at all times. Whether considering rules for phone service, cable
service, terrestrial wireless service, or satellite service, the
overarching and critical communications goals of the Commission include
the promotion of broadband deployment.

Why is broadband access so important? Even if we looked only at the
economic effects, the gains from further broadband deployment would be
enough to get our attention. A recent study by Connected Nation
estimated that increased availability of broadband across the U.S. would
have a positive economic impact of \$134 billion. But of course, this is
about more than just dollars. A broadband connection to the World Wide
Web literally is a connection to our very wide world. Adults can attend
class at a university across the country while holding a job across
town. They can also participate in local civic affairs or even get
involved in politics at the national level.

The internet has launched entirely new business models. In fact, in just
one presidential cycle, Internet advertising has gone from essentially
zero to estimates of \$100 million in 2008. In addition, workers can
positively impact their productivity and even obtain virtual employment
opportunities. Families, no matter where they live, may access
healthcare information and healthcare services, such as teledentistry,
telepsychiatry and even telesurgery. Such telecommuting for doctors
makes the physical distance between provider and patient immaterial, and
this ability to shrink distances that isolate our most remote
communities makes broadband particularly critical in rural areas. Early
in my tenure, I had the opportunity to see first-hand incredible
telehealth projects in Alaska demonstrating how broadband communications
empower those who are most physically isolated and also provide savings
for individuals, hospitals, and our overall healthcare system. In short,
broadband revolutionizes how we communicate, how, where and when we
work, how we educate our children, the delivery of healthcare and public
safety, as well as how we entertain ourselves.

**II. State of Broadband Investment**

In the wake of global rankings which paint a rather negative picture of
broadband deployment in the U.S., let me say a few positive words about
how far we have come. Internet service providers should be applauded for
their investment and regulatory policy should continue to encourage and
incent continued investment in broadband deployment. The
Telecommunications Industry Association estimates that broadband
spending was \$15 billion in 2007 and that this figure will rise
dramatically over the next couple of years, to \$23 billion by 2010.
More than 99 percent of the US population lives in zip codes where a
provider serves at least one customer. Broadband via DSL is available to
82 percent of the households that receive service by a local exchange
carrier, while broadband via cable modem is available to 96 percent of
households that receive cable television. Virtually all of our schools
have high-speed Internet connections, and have had them for a number of
years. Workplace broadband connections are more and more common.

This investment is part of the revolution occurring in the broadband
marketplace as true convergence has become a reality, with the Internet
breaking down the barriers that previously separated networks.
Telecommunications companies are deploying next generation fiber
networks. Cable operators continue to upgrade their networks to enable
them to offer digital video, broadband and voice service. Wireless
carriers are upgrading their networks and acquiring spectrum to offer
advanced mobile services and even video in the palm of your hand.

Personally, I hope the Commission will continue to pursue deregulation
aggressively. Although the government can play a constructive role in
helping to facilitate competition, I prefer to let the market determine
its own course. Just last year, we benefited from over \$70 billion in
broadband investment, robust industry competition and cooperation, and
unprecedented consumer options in this dynamic marketplace.

For these reasons I do not believe the Federal Communications
Commission, or any other policymaking body, should place its thumb on
the scale to influence or dictate the next technology adopted. Not long
ago people claimed that 56k modems would far exceed the speed
requirements of any user. Today, Comcast and Verizon, both major
providers in the U.S., offer one thousand times that speed to
residential customers, and the exponential growth in speed is not likely
to stop anytime soon. We can thank the market, not government, for this
result.

In 2007 alone \$225 billion was invested in networks, and \$3.5 trillion
in revenue was generated. 3G and 4G wireless networks continue to
expand, with 251.5 connections today, and a projected 1 billion
connections and \$1.3 trillion in wireless revenue by 2011. Wireline
broadband networks continue to explode in growth, pushing speeds up and
fiber to the end-user. For example, last year we saw a 24.4% increase in
internet access revenue, even with dial-up revenue declining. We have
real results that we can look to as evidence that deregulation has had a
tremendous effect.

**III. Video Franchising**

In an effort to see broadband services expand to every corner of
America, the Commission continues to adopt orders to facilitate greater
cross-platform competition among providers. In March of last year, the
FCC adopted an order that requires Local Franchising Authorities (LFAs)
to render a decision on a new entrant's application within 90 days. This
provides new entrants, primarily telecos like AT&T and Verizon, a
greater degree of certainty as they expand into new areas of the
country. By paving the way for new entrants, we encourage competition
between telecos and incumbent cable operators which in turn spurs
competition for greater service offerings, bundles of services -- now
even triple and quadruple play -- that result in lower prices for
consumers.

**IV. Internet Safety**

Of course, I cannot discuss the explosion and dazzling benefits of
broadband deployment without also highlighting some of the very real
risks the internet poses---most importantly, risks to the physical and
emotional safety and well-being of our children. While we have all used
the phrase "digital divide," now we need to recognize that there is a
new digital divide, one that is generational rather than economic. Like
many parents, I never really thought past the benefits the Internet
offers -- from research for homework, to the wonders of telemedicine, to
distance learning opportunities, to creating and producing your own
content online. However, we must also realize that this technological
explosion of access also presents challenges and very real dangers.

I often remind parents that the internet is no longer just an
infrequently-accessed research tool, but a ubiquitous aspect of our
children's daily lives. They live in a digital world. An entirely new
language has developed out of this explosion of technology---we "IM,"
"blog," "friend" people on Facebook, and use "twitter" to stay in touch
with acquaintances. Children participate in "chatrooms," post and read
messages in social networking sites. However, even seemingly innocuous
activities such as joining an online community or participating in
online gaming can provide predators access to build relationships with
our unsuspecting children.

A 2007 Pew study showed that 28% of online teens have created their own
blog. Twenty-seven percent (27%) maintain their own webpage. Thirty-nine
percent (39%) share their own artwork, photos, stories or videos online.
Forty-one percent (41%) of teens who use MySpace, Facebook, or other
social networking sites send messages to their friends everyday through
these sites --- double their e-mails. Today's U.S. college students grew
up with the internet\-- 20% began using the internet between the ages of
5 and 8. Seventy-three percent (73%) of students say they use the
Internet more than the library.

With the explosion of educational resources available online, one might
think parents would be 100% pleased with the internet's role in their
children's lives. But surveys show just the opposite: a late 2006 survey
that showed 59% of parents think the internet has been a totally
positive influence in their children's lives\-- down from 67% in 2004.
You might find it alarming that one of the top reasons for college
drop-outs in the U.S. is online gaming addiction---such as *World of
Warcraft*---which is played by [11 million]{.underline} individuals
worldwide.

Even more concerning, the threat is no longer contained to the family
computer. It is in the palm of your child's hand. Given the fact that
approximately 60% of American teens have a cell phone, and that cell
phones are being marketed to children as young as 6, I have, and will
continue to, challenge telecom carriers to adopt initiatives to provide
curriculum and education regarding safe use of their
products---including internet safety, and the prevention of access to
inappropriate websites by children.

In fact, I have taken this message to my international colleagues from
APEL TEL in the pacific region to the West Africa Roadmap to
Opportunities Conference. Just three weeks ago, I was honored to have
been invited by Secretary General Hamadoun Touré to participate in the
global launch of the Child Online Protection Initiative at the
International Telecommunications Union (ITU). (www.itu.int/cop)
Ministers and delegates from every nation are considering best practices
for protecting children from predators, cyberbullying, pornography,
child trafficking, and many other threats.

Earlier this week I was so pleased to see the 57 entities sign a call to
action laying out a framework for a comprehensive national broadband
strategy. While child internet safety was not included in their list, I
continue to be hopeful that this will become a priority for the new
Administration. I hope that the new administration will continue to
emphasize the importance of providing children with all of the
opportunities the Internet offers, in an environment that protects their
physical, emotional, and mental well-being.

[Other Critical Issues Considered by the FCC in 2008:]{.underline}

**V. DTV**

Of course, one of the most pressing issues facing the FCC at this time
is the February 17 DTV Transition---just 74 days, 8 hours away. I, along
with my colleagues, have been touring the country visiting cities with
the highest percentage of over-the-air households. I have traveled to
major cities like Chicago, where I spoke to over a thousand seniors at
Mayor Daly's Annual Seniors Conference, and to small towns like Auburn,
Alabama, where I urged college students to help their parents,
grandparents, friends and neighbors to help order and install converter
boxes. In keeping with my mission of urging preparation from every group
I speak to, please go to www.dtv.gov for more information!

**VI. 700 MHz**

In March of this year, the FCC completed an auction of the 700

MHz spectrum and raised more money for the U.S. Treasury than any
auction in the Commission's history, about \$19 billion. That's more
than the very successful AWS auction we held in 2006, and not counting
the sale of those AWS licenses, more than all previous auctions
combined. We've also made a significant portion of this very valuable
spectrum -- 42 megahertz in all -- available across small and
medium-sized geographic service areas, helping small and rural
providers. In fact, 75 parties won licenses to serve 305 rural markets
in this latest auction, and a party other than the nationwide incumbents
won a license in every market in this auction.

**VII. USF Reform**

During my time at the Commission, I have had the privilege of serving as
Federal Chair of the Joint Board on Universal Service. From holding
national hearings to participating in forums at the state and local
level, to testifying before Congress, I have tried to outline and
champion meaningful reform of the Universal Service system. A month ago,
we issued a Further Notice of Proposed Rulemaking on the Chairman's USF
and Intercarrier Compensation reform proposals, as numerous Members of
Congress, industry, and state and local officials felt it was prudent to
seek comment on his proposal. I applaud the Chairman for putting forward
a wide-ranging, comprehensive plan, and am also pleased that we put that
plan out for comment. While reform is critical, we did not want to make
a decision in a vacuum.  I felt confident that we would be able to start
down a path toward meaningful reform this month. I continue to believe
there is a great deal of bi-partisan consensus, both among industry as
well as my colleagues at the FCC. I would like to publicly express my
appreciation for the efforts of all stakeholders, who continue to
develop long-term solutions to these difficult issues.  While I would
still like to have the opportunity to vote on a plan by the end of this
year, it is my sincere hope that the next FCC builds on the efforts of
Commissioners at both the state and federal level have made, and the
consensus that has been built, keeping in mind that the overarching goal
of reform should be deploying broadband access across America,
especially to the rural, low-income, and underserved areas that can
benefit from broadband the most. 

**VIII. White Spaces**

One of the more promising areas of innovation cannot even be seen -- the
"white spaces" that represent the unused portions of spectrum in the
bands presently allocated to TV broadcast operations. The item adopted
last month advances us on a path to facilitate use of the white spaces
for new wireless services, including broadband services, for all
Americans.

This was a first step only, one that hopefully will move us toward
modernization and more effective use of the unused portions of this
spectrum. Indeed, these are revolutionary times in an evolutionary
industry, with the promise of even yet unseen innovative devices on the
horizon. Many visions exist for how unlicensed use of the white spaces
will evolve, but evolve they certainly will. Hopefully, the item we
recently adopted will help facilitate the deployment of unlicensed
devices and services that enable consumers to enjoy more television
programming and video than ever before, and that will allow families to
transfer and network information, photos, and much more across multiple
devices, technologies and platforms in their homes. Similarly,
communities of users may find they are able to communicate seamlessly
through mesh networks rather than traditional phone lines. Finally, as
someone who has championed rural America, I hope that the Commission's
recent action will facilitate services, including broadband, to rural
areas and thus help reduce the digital divide that is far too prevalent
in rural communities across our nation.

While the use of white spaces by unlicensed devices holds great promise
and I am excited about their potential, I also have several significant
concerns that I believe we should have addressed and encourage a future
Commission to re-address including a complaint process to rectify
interference issues, provide opportunities for higher power fixed
operations for rural backhaul, and even licensing a portion of this
valuable national asset, especially in rural areas.

**IX. My Issues**

Many of you know that I have been a voice for children and families
throughout my professional career. One of the things I am most proud of
is the being referred to as the "Children's Commissioner"---following in
the footsteps of my dear friend, former FCC Chairman Dick Wiley. I
believe that many of the issues I have fought to highlight--- from
childhood obesity to online safety to increasing family-friendly
programming---will continue to receive national focus, and I will
continue to speak out. I am pleased to have provided leadership on the
Joint Task Force on Childhood Obesity, which, along with the Council of
Better Business Bureau's (CBBB) Children's Food and Beverage Advertising
Initiative saw 15 of the nation's largest food and beverage companies
pledge that at least 50% of their ads directed at children will be for
better-for-you foods. Media companies including Sesame Street, Disney,
Discovery Kids, Nickelodeon, and The Cartoon Network, have agreed to ban
the use of all of their loveable characters in ads for unhealthy foods.
I also want to commend Ion Media and Veggie Tales, produced in my
hometown of Nashville, Tennessee, for pledging to totally ban all ads
for unhealthy foods on their network. In October, Vanderbilt hosted a
national summit in which I was pleased to join with national experts, as
well as many media companies and other stakeholders to continue to focus
on this national health epidemic. Two weeks ago I was the keynote
speaker at the 30^th^ Annual Promotion Marketing Association Law
Conference. And just yesterday, I was thrilled to see Nestle, the
world's largest chocolate manufacturer, announce its pledge to advertise
only "better-for-you" foods to children under 12. Again, I encourage the
FCC and the new Administration to continue to focus on the fight against
childhood obesity. I also advise relevant industry representatives to
continue to take voluntary, self-regulatory steps regarding responsible
advertising and reformulation of products, so that heavy-handed
government regulation is not necessary. As I say to CEOs, it is not just
good for our children; it is also good for the bottom line.

**X. Conclusion**

I know that later today you will hear from several distinguished
panelists on topics such as whether additional consumer protections are
necessary in competitive markets (an issue the FCC has certainly
struggled with during my tenure!) and the overall future of
telecommunications.

I hope I have brought a dose of common sense and of the real world
impact our actions have. I have always tried to take into consideration
that decisions I make not only affect the particular parties or overall
industry, but also small business, universities, and in the end all
consumers\-- who end up footing the bill for any regulatory costs we
impose on private companies. This is at the heart of my philosophy of
regulatory humility.

Additionally, I have tried to be a voice for children and families,
millions of real moms and dads, grandparents, and caregivers trying to
raise children in this age of media pervasiveness and on-screen
overload. Just as new languages have developed so have new risks, from
the epidemic of child obesity, to cyberbullying, to the tragic practice
of child trafficking and predatory behaviors online. From small town
America to the International Telecommunication Union in Geneva,
Switzerland, I have tried to create an open dialogue cross-platform, so
that we are all part of these solutions, from research-based decisions,
to tools for parents, to curriculum for digital literacy.

As you know, most of my professional career has been at the state level
and thus I have also tried to remind my colleagues and Congress that our
government is indeed still one based on federalism and that the
Telecommunications Act clearly envisioned states having an important
role in implementation. Prior to the creation of the FCC, states were
primarily responsible for consumer protection, rights of way, negotiated
with providers, and of course it is states that still truly know how
competition and services are being provided. Thus whether local public
safety or the state e911 directors, mayors or governors, I have tried to
bring a unique perspective that I truly hope will continue to be heard
and considered by the new Commission. Broadband is a perfect example of
creative public-private partnerships and even providers working closely
at the local level, and thereby is achieving real results, rather than
enforcing a top-down approach.

Most every major policy decision of the FCC involves weighing competing
interests. In shaping public policy, we more often than not share
laudable goals, but frequently differ on how to achieve those goals. In
making many of the tough decisions I have faced over past three years, I
have attempted to come to principled decisions after listening to all
sides. I have tried to set a standard of openness and surrounded myself
with staff who exhibited those same qualities.

In my opinion, wires and radiowaves are not and should not be political,
so I have tried to review each issue, order or item beginning with my
now tattered copy of all the applicable statutes, asking if this is
indeed within our legal authority, and if so, is this an appropriate
time for government action. Often I have encouraged parties to negotiate
a marketplace solution themselves, or held large mediation-type sessions
or even begged you for industry resolution or voluntary action. I
applaud those of you who responded and often were met with at least some
success. I have tried to applaud those actions regularly through
official statements, speeches, and of course on the FCC website.

I thank you all for your ardent, and sometimes even aggressive,
representation of your clients. I would have expected no less. We are
all officers of the court, an honorable profession, and I hope you will
remember that I tried my best; I held myself and you to the highest
standard of professional responsibility that the industry and the
American citizens demand. It has been an honor and a privilege to work
with you all. Thank you.