[House Hearing, 112 Congress] [From the U.S. Government Publishing Office] INTERNATIONAL PROPOSALS TO REGULATE THE INTERNET ======================================================================= HEARING BEFORE THE SUBCOMMITTEE ON COMMUNICATIONS AND TECHNOLOGY OF THE COMMITTEE ON ENERGY AND COMMERCE HOUSE OF REPRESENTATIVES ONE HUNDRED TWELFTH CONGRESS SECOND SESSION __________ MAY 31, 2012 __________ Serial No. 112-145 Printed for the use of the Committee on Energy and Commerce energycommerce.house.gov U.S. GOVERNMENT PRINTING OFFICE 79-558 WASHINGTON : 2013 ----------------------------------------------------------------------- For sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512-1800; DC area (202) 512-1800 Fax: (202) 512-2104 Mail: Stop IDCC, Washington, DC 20402-0001 COMMITTEE ON ENERGY AND COMMERCE FRED UPTON, Michigan Chairman JOE BARTON, Texas HENRY A. WAXMAN, California Chairman Emeritus Ranking Member CLIFF STEARNS, Florida JOHN D. DINGELL, Michigan ED WHITFIELD, Kentucky Chairman Emeritus JOHN SHIMKUS, Illinois EDWARD J. MARKEY, Massachusetts JOSEPH R. PITTS, Pennsylvania EDOLPHUS TOWNS, New York MARY BONO MACK, California FRANK PALLONE, Jr., New Jersey GREG WALDEN, Oregon BOBBY L. RUSH, Illinois LEE TERRY, Nebraska ANNA G. ESHOO, California MIKE ROGERS, Michigan ELIOT L. ENGEL, New York SUE WILKINS MYRICK, North Carolina GENE GREEN, Texas Vice Chairman DIANA DeGETTE, Colorado JOHN SULLIVAN, Oklahoma LOIS CAPPS, California TIM MURPHY, Pennsylvania MICHAEL F. DOYLE, Pennsylvania MICHAEL C. BURGESS, Texas JANICE D. SCHAKOWSKY, Illinois MARSHA BLACKBURN, Tennessee CHARLES A. GONZALEZ, Texas BRIAN P. BILBRAY, California TAMMY BALDWIN, Wisconsin CHARLES F. BASS, New Hampshire MIKE ROSS, Arkansas PHIL GINGREY, Georgia JIM MATHESON, Utah STEVE SCALISE, Louisiana G.K. BUTTERFIELD, North Carolina ROBERT E. LATTA, Ohio JOHN BARROW, Georgia CATHY McMORRIS RODGERS, Washington DORIS O. MATSUI, California GREGG HARPER, Mississippi DONNA M. CHRISTENSEN, Virgin LEONARD LANCE, New Jersey Islands BILL CASSIDY, Louisiana KATHY CASTOR, Florida BRETT GUTHRIE, Kentucky JOHN P. SARBANES, Maryland PETE OLSON, Texas DAVID B. McKINLEY, West Virginia CORY GARDNER, Colorado MIKE POMPEO, Kansas ADAM KINZINGER, Illinois H. MORGAN GRIFFITH, Virginia 7_____ Subcommittee on Communications and Technology GREG WALDEN, Oregon Chairman LEE TERRY, Nebraska ANNA G. ESHOO, California Vice Chairman Ranking Member CLIFF STEARNS, Florida EDWARD J. MARKEY, Massachusetts JOHN SHIMKUS, Illinois MICHAEL F. DOYLE, Pennsylvania MARY BONO MACK, California DORIS O. MATSUI, California MIKE ROGERS, Michigan JOHN BARROW, Georgia MARSHA BLACKBURN, Tennessee DONNA M. CHRISTENSEN, Virgin BRIAN P. BILBRAY, California Islands CHARLES F. BASS, New Hampshire EDOLPHUS TOWNS, New York PHIL GINGREY, Georgia FRANK PALLONE, Jr., New Jersey STEVE SCALISE, Louisiana BOBBY L. RUSH, Illinois ROBERT E. LATTA, Ohio DIANA DeGETTE, Colorado BRETT GUTHRIE, Kentucky JOHN D. DINGELL, Michigan (ex ADAM KINZINGER, Illinois officio) JOE BARTON, Texas HENRY A. WAXMAN, California (ex FRED UPTON, Michigan (ex officio) officio) (ii) C O N T E N T S ---------- Page Hon. Greg Walden, a Representative in Congress from the State of Oregon, opening statement...................................... 1 Prepared statement........................................... 4 Hon. Lee Terry, a Representative in Congress from the State of Nebraska, opening statement.................................... 10 Hon. Anna G. Eshoo, a Representative in Congress from the State of California, opening statement............................... 10 Hon. Fred Upton, a Representative in Congress from the State of Michigan, opening statement.................................... 11 Prepared statement........................................... 13 Hon. Mary Bono Mack, a Representative in Congress from the State of California, opening statement............................... 14 Hon. Cliff Stearns, a Representative in Congress from the State of Florida, opening statement.................................. 14 Hon. Marsha Blackburn, a Representative in Congress from the State of Tennessee, opening statement.......................... 15 Hon. Henry A. Waxman, a Representative in Congress from the State of California, opening statement............................... 15 Hon. Doris O. Matsui, a Representative in Congress from the State of California, opening statement............................... 16 Witnesses Philip L. Verveer, Deputy Assistant Secretary of State and U.S. Coordinator for International Communications and Information Policy, Department of State.................................... 17 Prepared statement........................................... 20 Answers to submitted questions............................... 106 Robert M. McDowell, Commissioner, Federal Communications Commission..................................................... 28 Prepared statement........................................... 31 Answers to submitted questions............................... 112 David A. Gross, Former U.S. Coordinator for International Communications and Information Policy, Department of State, on Behalf of the World Conference on International Telecommunications Ad Hoc Working Group........................ 69 Prepared statement........................................... 71 Answers to submitted questions............................... 115 Vinton Cerf, Vice President and Chief Internet Evangelist, Google, Inc.................................................... 77 Prepared statement........................................... 79 Answers to submitted questions............................... 117 Sally Shipman Wentworth, Senior Manager of Public Policy, Internet Society............................................... 85 Prepared statement........................................... 87 Submitted Material House Concurrent Resolution --------, Expressing the sense of Congress regarding actions to preserve and advance the multistakeholder governance model under which the Internet has thrived, submitted by Mr. Walden............................... 7 Article, dated May 24, 2012, ``Keep the Internet Open,'' by Vinton Cerf, New York Times, submitted by Ms. Eshoo............ 63 INTERNATIONAL PROPOSALS TO REGULATE THE INTERNET ---------- THURSDAY, MAY 31, 2012 House of Representatives, Subcommittee on Communications and Technology, Committee on Energy and Commerce, Washington, DC. The subcommittee met, pursuant to call, at 10:21 a.m., in room 2123 of the Rayburn House Office Building, Hon. Greg Walden (chairman of the subcommittee) presiding. Members present: Representatives Walden, Terry, Stearns, Shimkus, Bono Mack, Blackburn, Bilbray, Bass, Gingrey, Scalise, Latta, Guthrie, Kinzinger, Upton (ex officio), Eshoo, Markey, Matsui, Barrow, Christensen, Dingell (ex officio), and Waxman (ex officio). Staff present: Gary Andres, Staff Director; Ray Baum, Senior Policy Advisor/Director of Coalitions; Mike Bloomquist, General Counsel; Sean Bonyun, Deputy Communications Director; Nicholas Degani, FCC Detailee; Andy Duberstein, Deputy Press Secretary; Neil Fried, Chief Counsel, Communications and Technology; Katie Novaria, Legislative Clerk; Andrew Powaleny, Deputy Press Secretary; David Redl, Counsel, Communications and Technology; Charlotte Savercool, Executive Assistant; Lyn Walker, Coordinator, Admin/Human Resources; Shawn Chang, Democratic Senior Counsel; Margaret McCarthy, Democratic Professional Staff; Roger Sherman, Democratic Chief Counsel; David Strickland, Democratic FCC Detailee; and Kara Van Stralen, Democratic Special Assistant. OPENING STATEMENT OF HON. GREG WALDEN, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF OREGON Mr. Walden. Good morning. I want to welcome our witnesses and appreciate their testimony today. This is the Subcommittee on Communications and Technology and our hearing on International Proposals to Regulate the Internet. Nations from across the globe will meet at a United Nations forum in Dubai at the end of this year and, if we are not vigilant, just might break the Internet by subjecting it to an international regulatory regime designed for old-fashioned telephone service. The Internet is the single largest engine of global change since the printing press. From its humble roots as a network to connect computers used for the Department of Defense projects, the Internet grew to include research institutions, commercial services, and the public generally. It was once the government relinquished its grip on the Internet that it began growing exponentially, evolving into the ``network of networks'' that we all participate in today. With this expansion came the recognition that the organizational structure must evolve as well. Functions that had previously been managed by and for the United States Government, like network addressing and domain name administration, were spun off to private-sector entities that could be more responsive to the rapid changes in the Internet. Nongovernmental institutions now manage the Internet's core functions with input from private- and public-sector participants. This structure, called the ``multi-stakeholder model,'' prevents governmental or non-governmental actors from controlling the design of the network or the content it carries. The multi-stakeholder model also provides flexibility, enabling the Internet to evolve quickly. And this evolution continues at a staggering pace. Cisco estimates that by 2016 roughly 45 percent of the world's population will be Internet users; there will be more than 18.9 billion network connections; and the average speed of mobile broadband will be four times faster than it is today. Weakening the multi-stakeholder model threatens the Internet, harming its ability to spread prosperity and freedom. Yet this December at the World Conference on International Telecommunications (WCIT) in Dubai, the 193 member countries of the United Nation's International Telecommunications Union will consider expanding the ITU's jurisdiction to the Internet, replacing the multi-stakeholder model that has served the Internet and the world so well. They will also consider imposing economic regulations on the Internet. The ITU was originally formed in 1865 to govern international regulation of the telegraph. The ITU finally updated its charter in 1988 by adopting the International Telecommunications Regulations but, even then, the communications world was dominated by voice telephony. It was in that world the ITU developed ``settlement rates'' at which service providers compensated each other for exchanging phone traffic across national borders. Now, the end result was high international call rates and a transfer of money to telephone companies run by foreign governments. It would be inappropriate to apply an international regulatory scheme developed for the 1980s telephone networks to the vibrant and technologically diverse Internet. Such a regulatory regime ignores the reality of the architecture of the Internet. Unlike traditional telephony where the routing of circuit switched calls could easily be tracked, the networks that comprise the Internet do not adhere to political boundaries. Given the diversity of the networks that make up the modern Internet, any implementation of an international regulatory regime would quickly become so complex as to be unmanageable. We also live in a far more competitive world, making such economic regulation not only unnecessary, but also counterproductive. The Internet has prospered under the multi-stakeholder model absent the heavy hand of government regulation. That model has enabled an Internet that creates jobs, brings a literal world of information to your fingertips, allows small businesses around the world to have a global reach, drives investment and innovation, and has even started a revolution or two. As the U.S. delegation to the WCIT takes shape, I urge the administration to continue the United States' commitment to the Internet's collaborative governance structure and to reject international efforts to bring the Internet under government control. With that, I yield the remainder of my time to the vice chairman of the subcommittee, Mr. Terry of Nebraska. [The prepared statement of Mr. Walden follows:] [GRAPHIC] [TIFF OMITTED] 79558.001 [GRAPHIC] [TIFF OMITTED] 79558.002 [The House Concurrent Resolution follows:] [GRAPHIC] [TIFF OMITTED] 79558.003 [GRAPHIC] [TIFF OMITTED] 79558.004 [GRAPHIC] [TIFF OMITTED] 79558.005 OPENING STATEMENT OF HON. LEE TERRY, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF NEBRASKA Mr. Terry. Thank you, Mr. Chairman. And I believe that the bottom-up stakeholder approach model has actually allowed economic development and prosperity in all levels of economy around the world. Therefore, when I hear comments from Prime Minister Vladimir Putin saying that international control over the Internet is one of the stated goals, we cannot allow this to happen. This will diminish economic prosperity. This conference is about telephone and should not encroach into any discussions into regulation of the Internet whether it is disguised by phone numbers or IP addresses or cybersecurity. So I want to put those on notice from Russia or from China or other countries that when it comes to regulating the Internet, the answer is nyet. Mr. Walden. Gentlemen's time is expired. I now recognize the distinguished ranking Democrat on the subcommittee, Ms. Eshoo, for 5 minutes. OPENING STATEMENT OF HON. ANNA G. ESHOO, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF CALIFORNIA Ms. Eshoo. Thank you, Mr. Chairman, and good morning to everyone and thank you for having this important hearing. The Internet continues to grow and to flourish thanks to its open structure and its multi-stakeholder approach to governance. This is healthy. We have seen it. We have worked hard to make sure that these are the atmospherics for it. It is one of the great sources of pride to our Nation, the role that the government originally played, how it went out into the private sector, and it is one of the great success stories of American history. And I am very proud that so much of it resides in my district. According to a recent study commissioned by the New Democratic Network and the NPI, the New Policy Institute, every 10 percent increase in the adoption of 3G and 4G wireless technologies has the potential to add more than 231,000 jobs to our national economy. So as the World Conference on International Communications prepares to meet later this year to review proposals that could actually radically alter the Internet's future, it is more than fitting for our subcommittee to convene this hearing to hear from some of our Nation's leading experts--and you are all a source of pride to us--from the public and private sectors. The Internet has advanced rapidly since WCIT last met about a quarter of a century ago. A quarter of a century ago. I guess they don't meet that often. We have gone from dial-up modems-- and maybe that is good--to high-speed Internet powered by fiber optics. With this dramatic boost in speed, consumers today can experience high-definition video, social networking, video conferencing, and much more without regard to where this content is hosted in the world. And I think that is the way it should be. There is no question that there are real threats facing the Internet's continued growth and stability. Our three cybersecurity hearings held earlier this year are evidence of such vulnerabilities. But international proposals to impose new mandated mobile roaming rates or termination charges for data traffic are a fundamental departure from the international telecommunication regulations adopted in 1988. Beyond just imposing new regulation on how Internet traffic is handled, several nations are set on asserting intergovernmental control over the Internet. Now, we have had some real battles here over the issue of net neutrality, and it seems to me that we are calling on the international community for hands off, an international net neutrality, as it were, when it comes to the Internet. Balkanizing the Internet would and could bring about censorship and make that the norm. In the words of Vint Cerf, who is here today, ``the decisions taken in Dubai in December have the potential to put government handcuffs on the net.'' I think that we can all agree that the adoption of these proposals is a very serious threat to the free, transparent, and open Internet as we know it today. This is reflected in the bipartisan resolution that I join my colleagues in introducing yesterday. And today's hearing, along with a bipartisan congressional Internet caucus briefing, which I am cosponsoring next week, are an opportunity to discuss these issues and send a strong message that intergovernmental control over the Internet will uproot the innovation, openness, and transparency enjoyed by nearly 2.3 billion users around the world. And we want to keep it that way. We want that to double; we want it to quadruple; we want it to keep growing. And so it seems to me that what we discuss today is of great, great importance but I also think we need to inoculate other countries with the ideas that will help take them away from where they are now. I don't think this can be America against the rest of the world. I think we need to form coalitions around the ideas that have worked and that they, too, can share in what we know is one of the most exciting inventions and adventures of not only the last century but this one as well. And I think I have 1 second left so I don't have any time to yield to Ms. Matsui, and I apologize. Mr. Walden. The gentlelady's time is expired. I now recognize the chairman of the full committee, the gentleman from Michigan, Mr. Upton, for 5 minutes. OPENING STATEMENT OF HON. FRED UPTON, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF MICHIGAN Mr. Upton. Well, thank you, Mr. Chairman. The international community is going to meet in December to decide whether to regulate the Internet under rules designed for the 1980 era telephone networks. On the table is a proposal to expand the jurisdiction of the U.N.'s International Telecommunications Union to cover the Internet, moving away from the current multi-stakeholder governance model that has fostered the modern Internet. Also at issue is whether to impose rate regulation on the exchange of Internet traffic across national borders. Both of these are terrible ideas. In a time of economic uncertainty and turmoil, the Internet does remain a job creation engine that fosters innovation, brings the folks of the world together in new ways, and drives global discussion of important social matters. The Internet has become this economic and social juggernaut not because government actors willed it to be so but because the government took a step back and let the private sector drive its evolution. The non-regulatory, multi-stakeholder model allows the Internet community to guide its evolution and has provided the flexibility that the Internet needs to flourish as the demands placed on it grow. The ITU and the international ``settlement-of-rates'' regime were designed around old-fashioned telephone networks and services when there was less competition. The Internet is a different technology and this is a different era. International regulatory intrusion into the Internet would have disastrous results not just for the United States, but for folks around the world. So I would strongly urge the administration to continue U.S. support for the multi-stakeholder model in its talks leading up to the Dubai meeting this December. And I yield to the gentlelady from California, Mrs. Bono Mack. [The prepared statement of Mr. Upton follows:] [GRAPHIC] [TIFF OMITTED] 79558.006 OPENING STATEMENT OF HON. MARY BONO MACK, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF CALIFORNIA Mrs. Bono Mack. I thank the chairman. As the U.S. prepares to take part in the World Conference on International Telecommunications in Dubai, we need to provide the delegation with a clear and unmistakable mandate: keep the Internet free of any government control. At the WCIT discussions, a new treaty on Internet governance will be debated. Most worrisome to me are efforts by some countries to provide the U.N. with unprecedented new authority over the management of the Internet. To prevent this from happening, I have introduced House Concurrent Resolution 127. I would like to thank my cosponsors, Chairman Upton, Ranking Member Waxman, Subcommittee Chairman Walden, and Ranking Subcommittee Member Eshoo for their strong support in this effort. In many ways, this is a referendum on the future of the Internet. For nearly a decade, the U.N. has been angling quietly to become the epicenter of Internet governance. A vote for our resolution is a vote to keep the Internet free from government control and to prevent Russia, China, and India, as well as other nations from succeeding in giving the U.N. unprecedented power over web content and infrastructure. If this power grab is successful, I am concerned that the next Arab Spring will instead become a Russia Winter where free speech is chilled, not encouraged, and the Internet becomes a wasteland of unfilled hopes, dreams, and opportunities. We simply cannot let that happen. Thank you, Mr. Chairman. I yield back my time. Mr. Walden. I now would recognize Mr. Stearns. OPENING STATEMENT OF HON. CLIFF STEARNS, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF FLORIDA Mr. Stearns. Thank you, Mr. Chairman. Following up with your comments and Chairman Upton about the monopoly from the 19th century, which we don't want to go back to, is there anybody in this room who thinks the United Nations could competently manage the Internet? Please raise your hands. I don't think there is anybody that does. In fact, I think all the witnesses will testify this morning that we must maintain the current multi-stakeholder decentralized approach. And this ITU, which is the International Telecommunication Union, it is a part of the United Nations and would require other countries to fund and build out the communication networks and give them full jurisdiction. And I again don't believe that we want to punt this to the U.N. These approaches constitute a frontal attack on the dynamic approach that we have presently. So I want to promote the unified, bipartisan message against international regulation of the Internet. That is why we are here today. And I want to emphasize today that such an approach that we see from others is a nonstarter for the United States. And I yield---- Mr. Walden. I now recognize the gentlelady from Tennessee, Mrs. Blackburn. OPENING STATEMENT OF HON. MARSHA BLACKBURN, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF TENNESSEE Mrs. Blackburn. Thank you, Mr. Chairman. And welcome to our witnesses. We are glad that you are here in this room, but I have no doubt that all around the world people are streaming this hearing because they want to see what our posture on this is going to be. And I think as you have heard that there is agreement, both sides of the aisle, that giving authority to an international governing body would put our Nation's sovereignty at risk. We are concerned about that and I think that the Obama administration should be commended for helping thwart this power grab. And I think we also need to realize that this is one of those areas where it raises the concerns we had about this administration's effort to undermine our efforts--Congress' efforts--in this developing fight against international regulatory schemes over the Internet because this administration moved forward with regulations over the management of Internet networks here in the United States. So we are going to continue to work to reign in the regulatory explosion of the FCC. Now is the time to execute a serious game plan that deals with those who would put international politics ahead of an open and prosperous Internet. We may have our differences on domestic telecommunications policy, but having those policies decided at the international level would be the worst thing that could happen for the future of the Internet. Again, welcome to everyone. I appreciate the time. Yield. Mr. Walden. The chair now recognizes the ranking member, Mr. Waxman, for 5 minutes. OPENING STATEMENT OF HON. HENRY A. WAXMAN, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF CALIFORNIA Mr. Waxman. Thank you very much, Mr. Chairman, for holding this hearing. It is an important hearing as we look down the road to an international conference where some of the proposals, if adopted, would fundamentally alter the way the Internet operates today, undermining the decentralized, multi- stakeholder approach to Internet governance that has allowed the Internet to flourish and become such a powerful engine for social and economic progress. As we will hear from our witnesses today--and people can also sense from the opening statements--there is a strong bipartisan consensus throughout the administration and Congress that we must resist efforts by some countries to impose a top- down command-and-control management regime on the Internet. This bipartisan consensus is reflected in H. Con. Res. 127, a resolution introduced yesterday by Chair Bono Mack and cosponsored by Chairman Upton, myself, Chairman Walden, and Ranking Member Eshoo. Simply put, this resolution affirms that Democrats and Republicans both want the administration to continue advancing our national commitment to the multi- stakeholder model of Internet governance and a globally open Internet. We have two distinguished panels of witnesses today who have a long history of working on this issue. I want to welcome Ambassador Phil Verveer, who will be one of the administration's lead negotiator on the treaty known as the International Telecommunications Regulations at the World Conference on International Telecommunications in December. And I believe that Ambassador Verveer's experience in communications and antitrust law will serve the U.S. position well. And we are pleased to have Commissioner Rob McDowell back to our subcommittee. He has been focused on this issue for some time, expressing a strong leadership position and we are pleased to have him with us. Our second panel is also highly experienced. Former ambassador David Gross and Sally Wentworth both served the previous administration with distinction and have significant experience with information and communications technology sectors. And I want to welcome Vint Cerf. As one of the founders of the Internet, Dr. Cerf will be able to provide us with a unique perspective about how some of the proposals before the international meeting threaten the security and stability of the Internet. We all agree that the current and past administrations deserve credit for their efforts to ensure the Internet remains a tool for global dissemination of ideas, information, and commerce. There is no daylight between House Democrats and House Republicans or the administration on this issue. While we are largely focused on the upcoming World Conference, we should not lose sight of the fact that the push for more centralized control over the Internet is occurring through other international venues as well. Mr. Chairman, I want to yield the balance of my time to Ms. Matsui so she could give an opening statement. OPENING STATEMENT OF HON. DORIS O. MATSUI, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF CALIFORNIA Ms. Matsui. Thank you, Ranking Member, for yielding me time. And I also want to welcome Ambassador Verveer and Commissioner McDowell and the rest of the panelists for joining us today. As we know, in today's global economy with well over two billion users, the Internet has become a necessity and not a luxury. And that is why I believe that a free, transparent, and open Internet must continue. The current multi-stakeholder approach has allowed the Internet to flourish here in the U.S. and around the world. Any international authority over the Internet is troublesome, particularly if those efforts are being led by countries where censorship is the norm. I agree with many of our witnesses that it would harm efforts to combat cyber attacks, decrease adoption and innovation of the latest technologies, and interfere with many fundamental principles that allow the Internet to be an ecosystem for innovation and growth. I am also pleased that the administration understands these concerns and believes as such that an international mandated framework would simply not work. We need to continue to promote innovation and openness of the Internet around the globe. I believe that the multi- stakeholder approach must continue to define Internet governance. And with that, I yield back the balance of my time. Mr. Waxman. I yield back my time. Mr. Walden. The gentleman yields back the balance of his time. So now I think we proceed to the witnesses. We are delighted to have you both here. And Ambassador Verveer, Deputy Assistant Secretary of State, and U.S. Coordinator for International Communications and Information Policy, we welcome you. And Commissioner Robert McDowell of the Federal Communications Commission, we welcome you back. Ambassador Verveer, thank you for being with us. We look forward to your testimony. Yes, pull that mike close and we will all be able to hear. You need to push the little button. STATEMENTS OF PHILIP L. VERVEER, DEPUTY ASSISTANT SECRETARY OF STATE AND U.S. COORDINATOR FOR INTERNATIONAL COMMUNICATIONS AND INFORMATION POLICY, DEPARTMENT OF STATE; AND ROBERT M. MCDOWELL, COMMISSIONER, FEDERAL COMMUNICATIONS COMMISSION STATEMENT OF PHILIP L. VERVEER Mr. Verveer. Chairman Walden, Ranking Member Eshoo, and members of the subcommittee, thank you for this opportunity. I am particularly pleased to appear with my friend Commissioner Robert McDowell, and I am very happy that the subcommittee will hear later from my friend and distinguished predecessor Ambassador David Gross, from Sally Wentworth, who played a significant role in Internet governance matters during her service at the State Department, and of course from Vint Cerf without whom we might not have the Internet at all. Over the years, a relatively small number of governments have made proposals to change today's successful approach to Internet governance. Typically, these proposals involve the United Nations in one of its many manifestations, including the General Assembly, the Commission on Science and Technology for Development, and the International Telecommunication Union. The U.S. Government and others have successfully opposed these proposals but it is important to recognize that this will be a continuing debate. From the privatization of the Internet in the mid-1990s, the United States has been committed to a multi-stakeholder approach to its governance. That has been true from one administration to another. It represents a policy with thorough--it is not too strong to say unanimous--bipartisan support. The present Internet governance arrangements rely upon a collection of specialized institutions of which the Internet Society, ICANN, the IETF, and the World Wide Web Consortium are important examples. They are noteworthy for two things. The first is their expertise, inclusivity, and openness; the second is the remarkable success that they have achieved. This is one of the reasons we wish to preserve these institutions as the instruments of Internet governance. They work and they work remarkably well. There are two other reasons underlying our commitment to preventing the Internet from falling subject to intergovernmental controls. First, it inevitably would diminish the dynamism that is one of the Internet's greatest strengths. The existing arrangements permit the Internet to evolve organically in response to changes in technology, business practice, and consumer behavior. For reasons that cannot be overcome, intergovernmental controls would prevent this. Second, intergovernmental controls could be recruited in aid of censorship and repression. The United States is deeply committed to freedom of expression and the free flow of information. We appreciate that some nations, however, do not share these commitments. We particularly wish to preclude any developments that threaten to reduce Internet freedom that would impair freedom of expression, assembly, or association online. As an alternative to intergovernmental controls, the United States encourages governments to adopt multi-stakeholder, transparent, and decentralized approaches. Last year's high- level ministerial meeting at the OECD both exemplified and codified this approach. Now, with respect to the World Conference on International Telecommunications, in December, representatives of 193 nations will gather in Dubai to consider revisions to the international telecommunications regulations. A year and more ago there was concern that the WCIT would be a battle over investing the IT with explicit Internet governance authority and that the conference participants would be confronting wholly new standalone draft text proposing Internet governance provisions. In response, the United States advanced the advantages of using the exiting ITRs as a basis for treaty negotiations. I am pleased to say that the majority of the ITU's members have agreed with us in this regard. The exiting ITRs have been accepted as a framework for negotiations. There are no pending proposals to vest the IT with direct Internet governance authority. Instead, thus far, traditional telecom issues such as roaming and fraud prevention have taken center stage. The State Department's preparations for the WCIT have been in progress for about 18 months. On an ongoing basis, we host the International Telecommunications Advisory Committee, or ITAC, a forum open to all interested parties to review and advise on the regional and national contributions to WCIT as they are submitted. Earlier this month, we established our core delegation consisting of U.S. Government officials. In September, we will complete the delegation with the addition of private sector members. Earlier this week, the President advised the Senate of his selection of Terry Kramer of California as the United States' Head of Delegation and of his intention to confer ambassadorial rank on Mr. Kramer in connection with this assignment. A great deal of preparatory work has been done but a great deal more remains to be done. In our work, the United States has the significant advantage of unanimity of purpose. We benefit from the fact that government officials of both parties, civil society, and the corporate sector all are committed to the preservation of the multi-stakeholder model and the resolution which was introduced this week and which has been mentioned today is a very important contribution to showing that unanimity. We look forward to continuing to work with the Congress as we approach the WCIT and other matters that involve Internet governance. I greatly appreciate the opportunity you are providing with this hearing to affirm the continuing value of our approach to Internet governance not just to U.S. citizens but to everyone in the world. I would be very pleased to respond to any questions you might have. [The prepared statement of Mr. Verveer follows:] [GRAPHIC] [TIFF OMITTED] 79558.007 [GRAPHIC] [TIFF OMITTED] 79558.008 [GRAPHIC] [TIFF OMITTED] 79558.009 [GRAPHIC] [TIFF OMITTED] 79558.010 [GRAPHIC] [TIFF OMITTED] 79558.011 [GRAPHIC] [TIFF OMITTED] 79558.012 [GRAPHIC] [TIFF OMITTED] 79558.013 [GRAPHIC] [TIFF OMITTED] 79558.014 Mr. Walden. Thank you, Mr. Ambassador. We appreciate the work you put into your testimony and the work you are doing for the country. We turn now to Commissioner McDowell. We appreciate you being here and your loud and clear voice on this issue as well. And we welcome your son as well. Do you want to introduce your special assistant there today? STATEMENT OF ROBERT M. MCDOWELL Mr. McDowell. Yes, one of my many supervisors, Mr. Chairman, my oldest son Griffin who is 12. This is his first day of summer vacation but he wanted to see how his tax dollars were being spent. Mr. Walden. Wow, you brought him up here for that? Mr. McDowell. Yes, let us fill out a press conference after the hearing---- Mr. Walden. That is right. Mr. McDowell [continuing]. And he will let us know what his conclusion is. But thank you very much, Mr. Chairman and Ranking Member Eshoo and all members of the subcommittee. It is a pleasure to be here today. It is also an extreme honor to be seated next to my friend and colleague, Ambassador Verveer, as well as right before the next panel good friends as well, Ambassador Gross, Dr. Cerf, and Ms. Wentworth as well. So they are going to be outstanding witnesses. First, please let me allow to dispense quickly and emphatically any doubts internationally about the bipartisan resolve of the United States to resist efforts to expand the ITU's authority over Internet matters. Some ITU officials have dismissed our concerns over this issue as mere election year politics and nothing could be further from the truth, as evidenced by Ambassador Verveer's testimony today, as well as recent statements from the White House, Executive Branch agencies, Democratic and Republican Members of Congress, and my friend and colleague at the FCC, Chairman Julius Genachowski. We are unified on the substantive arguments and always have been. Second, it is important to define the challenge before us. The threats are real and not imagined, although they admittedly sound like works of fictions at some times. For many years now, scores of countries led by China, Russia, Iran, Saudi Arabia, but many, many others have pushed for--as Vladimir Putin said almost a year ago--international control of the Internet through the ITU. Now, I have tried to find a more concise way to express this issue but I can't seem to improve on Mr. Putin's crystallization of the effort that has been afoot for quite some time. More importantly, I think we should take Mr. Putin's designs very seriously. Six months separate us from the renegotiation of the 1988 treaty that led to insulating the Internet from economic and technical regulation. What proponents of Internet freedom do or don't do between now and then will determine the fate of the net and affect global economic growth as well as determine whether political liberty can proliferate. During the treaty negotiations, the most lethal threat to Internet freedom may not come from a full frontal assault but through insidious and seemingly innocuous expansions of intergovernmental powers. This subterranean effort is already underway. While influential ITU-member states have put forth proposals calling for overt legal expansions of United Nations' or ITU authority over the net, ITU officials have publicly declared that the ITU does not intend to regulate Internet governance while also saying that any regulations should be of the light-touch variety. But which is it? It is not possible to insulate the Internet from new rules while also establishing a light-touch regulatory regime. Either a new legal paradigm will emerge in December or it won't. The choice is binary. Additionally, as a threshold matter, it is curious that ITU officials have been opining on the outcome of the treaty negotiation. The ITU's member states determine the fate of any new rules, not ITU leadership or staff. I remain hopeful that the diplomatic process will not be subverted in this regard. As a matter of process and substance, patient and persistent incrementalism is the net's most dangerous enemy and incrementalism is the tactical hallmark of many countries that are pushing the pro-regulation agenda. Specifically, some ITU officials and member states have been discussing an alleged worldwide phone numbering crisis. It seems that the world may be running out of phone numbers of which the ITU does have some jurisdiction. Today, many phone numbers are used for voiceover Internet protocol services such as Skype or Google Voice. To function properly, the software supporting these services translate traditional phone numbers into IP or Internet addresses. The Russian Federation has proposed that the ITU be given jurisdiction over IP addresses to remedy the phone numbers shortage. What is left unsaid, however, is that potential ITU jurisdiction over IP addresses would enable it to regulate Internet services and devices with abandon. IP addresses are a fundamental and essential component to the inner workings of the net. Taking their administration away from the bottom-up, nongovernmental, multi-stakeholder model and placing it into the hands of international bureaucrats would be a grave mistake. Other efforts to expand the ITU's reach into the Internet are seemingly small but are tectonic in scope. Take, for example, the Arab States' submission from February that would change the rules' definition of ``telecommunications'' to include ``processing'' or computer functions. This change would essentially swallow the Internet's functions with only a tiny edit to existing rules. When ITU leadership claims that no member states have proposed absorbing Internet governance into the ITU or other intergovernmental entities, the Arab States' submission alone demonstrates that nothing could be further from the truth. An infinite number of avenues exist to accomplish the same goal and it is camouflaged subterfuge that proponents of Internet freedom should watch for most vigilantly for years to come. Other examples come from China. China would like to see the creation of a system whereby Internet users are registered using their IP addresses. In fact, last year, China teamed up with Russia, Tajikistan, and Uzbekistan to propose to the U.N. General Assembly that it create ``an international code of conduct for information security'' to ``mandate international norms and rules standardizing the behavior of countries concerning information and cyberspace.'' Now, does anyone here today believe that these countries proposals would encourage the continued proliferation of an open and freedom-enhancing Internet or would such constructs make it easier for authoritarian regimes to identify and silence political dissidents? These proposals may not technically be part of the WCIT negotiations, at least not yet, but they give a sense of where some of the ITU's member states would like to go. Still other proposals--very quickly--that have been made personally to me by foreign government officials include the creation of an international universal service fund of sorts whereby foreign--usually state-owned--telecom companies would use international mandates to charge certain web destinations on a per-click basis to fund the build-out of broadband infrastructure across the globe. Estimates of that start at $800 billion. Google, iTunes, Facebook, and Netflix are mentioned most often as prime sources of funding. In short and in conclusion, the U.S. and likeminded proponents of Internet freedom and prosperity across the globe should resist efforts to expand the powers of intergovernmental bodies over the Internet even in the smallest of ways. As my supplemental statement and analysis explains in more detail, such a scenario would be devastating to global economic activity as well as political freedom, but it would hurt the developing world the most. So thank you for the opportunity to appear before you today and I look forward to you questions. [The prepared statement of Mr. McDowell follows:] [GRAPHIC] [TIFF OMITTED] 79558.015 [GRAPHIC] [TIFF OMITTED] 79558.016 [GRAPHIC] [TIFF OMITTED] 79558.017 [GRAPHIC] [TIFF OMITTED] 79558.018 [GRAPHIC] [TIFF OMITTED] 79558.019 [GRAPHIC] [TIFF OMITTED] 79558.020 [GRAPHIC] [TIFF OMITTED] 79558.021 [GRAPHIC] [TIFF OMITTED] 79558.022 [GRAPHIC] [TIFF OMITTED] 79558.023 [GRAPHIC] [TIFF OMITTED] 79558.024 [GRAPHIC] [TIFF OMITTED] 79558.025 Mr. Walden. We appreciate your work in this matter and your testimony today before the subcommittee. Ambassador Verveer, in a blog post you wrote with Assistant Secretary of Commerce Lawrence Strickling and White House Deputy Chief Technology Officer Daniel Weitzner, you said the ``centralized control over the Internet through a top-down government approach would put political dealmakers rather than innovators and experts in charge of the future of the Internet. This would slow the pace of innovation, hamper global economic development, and lead to an era of unprecedented control over what people can say and do online.'' Would you elaborate on that statement for us and then perhaps, Commissioner McDowell, you might make a comment or two as well. Mr. Verveer. That is right. I would be glad to, Mr. Chairman. Basically, the anxiety that we have about top-down arrangements involves both the economic performance of the Internet if you will in terms of its dynamism, in terms of its ability to react to opportunities that technology changes present and business models present, changes in consumer behavior might present. We also are very concerned about whether or not top-down intergovernmental controls would aid in censorship or repression; that is would aid any particular country that is concerned about the content that comes into its country that crosses its borders, whether or not these kinds of changes might permit it to claim that it is entitled to the aid of other countries in terms of preventing unwanted content. So we believe that both for reasons of economics but also for reasons of the broader political, cultural, social value of the Internet, it ought to be kept operating as it is today. Mr. Walden. Mr. McDowell, any comment? Mr. McDowell. I agree. I thought, by the way, the joint blog post by the Department of Commerce, Ambassador Verveer and Danny Weitzner in the White House was excellent. I can't really improve upon his answer, but as I said in my opening remarks, it is a grave threat. Mr. Walden. Commissioner, according to Communications Daily today, Gigi Sohn from Public Knowledge has said that ``we have to be a little careful not to hold up multi-stakeholderism as a coin.'' Ultimately, the U.S. Government has to serve as a backstop to these efforts, and it is government's role to make the decisions and enforce the principles that are developed. Do you agree that it is it government's role to make the decisions about how the Internet operates and to enforce them? Mr. McDowell. I can't speak for Ms. Sohn but to answer your question directly, no, I think we need to reinforce the multi- stakeholder model in the absence of stakeholder action. Mr. Walden. Ambassador Verveer? Mr. Verveer. Yes, I think we agree once again that we want very much to keep the multi-stakeholder model as the front and center basis on which we engage in Internet governance. Mr. Walden. And it seems like, Commissioner McDowell and Ambassador, that aren't many of the proposals before WCIT attempts to regulate the Internet as if it is the old-fashioned telephone service? It certainly feels like that to some of us. Mr. McDowell. Yes, and then some perhaps with the regulation of content and applications as well, which would go well beyond the old phone service regulation of yore. Mr. Verveer. I guess I would add it is important to understand that the contributions that come in are things that have the kinds of implications in many instances that Commissioner McDowell mentioned in his testimony. But a lot of them are probably also motivated or principally motivated by an effort to preserve or reinstate the kinds of arrangements that existed under the days of voice-grade international telephone service. And these are possibly in many instances sincerely presented not intending anything anymore than that. For the reasons the Commissioner mentioned, these are probably also mistaken in terms of efforts to find new approaches to regulation. Mr. Walden. And in fact I thought your testimony was very well done and raises some of these points just how insidious they can be and yet look as if they are not problem-creating. What do you see as the most troubling small changes if you will that have been proposed? Mr. McDowell. Well, certainly, the Arab States' proposal is very troubling. A small definitional change maybe hoping no one would notice that all of a sudden swallows the Internet but expands the ITU's jurisdiction tremendously. Again, it could be something that comes through the phone numbering issue or some other issue. I mean it seems almost every week there is a new issue or a new angle or a new front that has opened up, a new argument that is tested. So it could be any number. Mr. Walden. All right. I have no further questions. With that, I will turn over now to ranking member of the subcommittee, Ms. Eshoo, for 5 minutes. Ms. Eshoo. Thank you, Mr. Chairman. And Ambassador Verveer and Commissioner McDowell, thank you not only for being here but for your very strong, knowledgeable voices and advocates on this issue as well. Ambassador Verveer, you have mentioned in your testimony that many other governments have joined with the United States in pursuing an outcome that would limit the ITU's involvement in Internet governance. Can you tell us what the extent of this collaboration is and how are these other governments working with the U.S. to achieve this goal? Because it seems to me that we have a lot of people, a lot of countries, states, nation- states that are--let me put it in a more positive way--don't share our view of the Internet and how it operates and how it should continue to operate. So how is our coalition doing and can you do a little bit of a dive on telling us where you think we are with other countries, which is so important? And then, I would like Commissioner McDowell, maybe you can give us a WCIT 101. How many are going to vote? Is there a time frame around this? Is it discussion that begins this year and extends for the next 24 years? The last time they met was almost a quarter of a century ago. So maybe some already know; I am not so sure I understand how the ITU actually is going to work when we show up. So if you could handle that one. But let us go to Ambassador Verveer first. Mr. Verveer. Yes, Representative Eshoo, the principle activities to this date in terms of preparation for the conference are being undertaken in regional groupings of which there are six. Our regional grouping of the Americas involves something called CTEL. The Europeans operate under something called CEPT, and in the Asia-Pacific area, there is the Asia- Pacific Telecommunity, among other places. I think it is a fair summary that in those three regions you have a largely consistent set of views about how we should proceed. That is to say that we don't want to see the treaty conference become the occasion for any kind of intergovernmental control of the Internet. Now, we will, in our preparations, with the leadership of our new head of delegation, Terry Kramer, we will engage in a great many bilateral discussions as well. By kind of analogy, in a recently concluded World Radio Conference, our head of delegation and our deputy head of delegation Dick Beaird engaged in about 50 bilateral discussions leading up to the conference itself. So we are very actively engaged in discussions with friends and with those who may have different opinions, and that is going to continue on right up to the conference itself. Ms. Eshoo. Where would you say we are? Is there still a split? Is there a consensus that comes around more our view than other views on this of the regions that you just mentioned? Mr. Verveer. Yes, I think one way to describe the state of the activities at this point would be to think of this conference as potentially having involved two tracks. The first track would have been an effort at direct regulation of the Internet---- Ms. Eshoo. Um-hum. Mr. Verveer [continuing]. Something that was a source of concern a year and more ago but I think is less a source of concern now. The only really direct effort that I am aware of to accomplish that was a proposal by the Russian Federation to create an entirely new framework for the negotiation of entirely new regulations. Ms. Eshoo. Um-hum. Mr. Verveer. That effort has been turned back I think successfully. Ms. Eshoo. That is very good news. I want to get to Commissioner McDowell, thank you. Mr. McDowell. Sure. When it comes to the process, I will actually leave that to the Department of State. The Department of State actually takes the lead as a treaty negotiation. We play a supporting role---- Ms. Eshoo. So how many are on our team? Are they votes? Is it 40, 50 people? Mr. McDowell. Well, there are 193 member states of the ITU. Ms. Eshoo. Um-hum. Mr. McDowell. They each have one vote. There is no veto power so it doesn't matter how many people live in your country; you have the same vote as the tiniest of countries. And the idea of every 24 years---- Ms. Eshoo. Sort of like the Senate. Mr. McDowell. I will stay out of the bicameral---- Ms. Eshoo. I know. I know. Mr. McDowell. But the idea of every 24 years on the one hand is accurate; on the other hand, this is actually almost an annual issue. There is some other conference, you know, that is almost every year if not several conferences per year. So the ITU has many difference conferences, for instance, the World Radio Communications Conference that the Ambassador talked about was this past January and February. But we need to look beyond this December. I want to make sure the committee and everybody listening understands that it is not just about this December. This is just the latest vignette in this drama. We have to remain vigilant for years to come. There will be more meetings, more possibilities for treaty negotiations in 2013, '14, '15, and on out. Ms. Eshoo. Thank you. Mr. Terry [presiding]. Thank you. I recognize myself for questions. Mr. Upton was supposed to be next but since he is not here, I will take his time. Mr., or is it Ambassador---- Mr. Verveer. Either is fine. Mr. Terry [continuing]. Verveer, trying to get more up to speed on this. I am concerned about the Secretary-General Toure and his relationships with Russia and Vladimir Putin and then couple that relationship with Putin's comments where he is very blunt about his desires to regulate the Internet and take control of the Internet. So I ask you is that an unfounded concern or fear that I have? When the Secretary General of the ITU has this relationship, is it unfounded? Is this relationship a concern? What steps are we taking to be able to counterbalance that relationship? Mr. Verveer. Well, my view is that the Secretary General is in fact a very effective and honorable international civil servant elected to this position and then reelected unanimously the last go-around. So he is very well respected. He has been very effective and I don't personally have any serious misgivings about his ability to be fair, to be helpful in terms of helping to see that the conference and the ongoing activities that Commissioner McDowell mentioned take place. He is a man who has a very strong and personal connection with the United States. He lived here for 12 years working for Intelsat. Mr. Terry. He has family here? Mr. Verveer. Two of his children are U.S. citizens and I believe resident here. And so I think he exemplifies, I believe, a very decent international civil servant in what is a very important and frankly very complicated job. He has to attend to the legitimate needs and requirements of the United States but also of the Russian Federation, of China, and every other of the 193 countries in the world. But I don't think we need to have anxieties about his integrity. Mr. Terry. All right. I wasn't questioning his integrity but that maybe his beliefs were close to what Prime Minister Putin has expressed. And so, Mr. McDowell, do you have any concerns or fears about the relationship---- Mr. McDowell. I think what is more---- Mr. Terry [continuing]. And whether that puts us behind the eight ball so to speak? Mr. McDowell. I will take Ambassador Verveer's analysis, of course, at face value. He is much more an expert on that than I am. But what is more important than looking at his background I think is looking at his public statements on these issues, many of which I have cited in my testimony and other things---- Mr. Terry. Good point. Mr. McDowell [continuing]. And I think when you read them, they speak for themselves. Mr. Terry. Yes. And that is concerning. I don't know, Ambassador Verveer, soon-to-be Ambassador Kramer, will you walk through your level of confidence in Mr. Kramer and what preparations he should be taking to make sure that we draw a hard line? Mr. Verveer. Sure. Mr. Kramer is a retired senior executive who had worked very extensively particularly in the wireless business. His career involved very significantly service initially in Pacific Telesis which then spun off its wireless business into a company called AirTouch, which eventually was acquired by Vodafone. Mr. Kramer, during almost all of this time, then, followed the progression of the company and the assets as they were sold. He spent a good many years of his career as a senior executive for Vodafone. He spent about 5 years, as I understand it, in the United Kingdom and in the Netherlands involved in Vodafone's extensive international activities. He has been a member of the Executive Committee of the GSM Association, which is the largest international wireless association, has spent some time since his retirement teaching at Harvard at the Harvard Business School, and he is about to undertake, I believe, teaching assignments at UCLA at the business school there. He is a man of very considerable experience, then, in the international communications arena. I think it will prove to be something that is very, very valuable from our point of view. There will be a learning curve. We are embarking now in terms of helping him with that---- Mr. Terry. My time is expired but I am worried about or concerned about whether the learning curve that we in the few months before December conference--and I will let somebody else ask that question. So at this time I recognize Mr. Markey. Mr. Markey. I thank the gentleman. Back in January, Sir Tim Berners-Lee, the inventor of the World Wide Web, urged us to ``make sure the Web itself is a blank sheet, the blank canvas, something that does not constrain the innovation that is around the corner.'' The wonderful thing about the Internet, Sir Tim also reminded us, is that no one needs to ask permission to innovate, to get their voice heard, to launch a new service or a new business enterprise. That is the magic of the Internet. The Internet is the most level playing field for commercial opportunity ever invented. It is the most successful communication and commercial medium in history. It is the lifeblood of the world economy. Now, last week, Vint Cerf, who is going to testify on the second panel and was hired by Bolt Beranek and Newman along with several others, back in the late 1960s, to develop packets which network that eventually became known as the Internet, he wrote just last Thursday in the New York Times, ``the decisions taken in Dubai in December have the potential to put government handcuffs on the net.'' To prevent that and keep the Internet open and free for the next generation, we need to prevent a fundamental shift in how the Internet is governed. Do you think that can happen in Dubai, Ambassador Verveer? Mr. Verveer. I think it could happen but I think it is very unlikely to happen. And one of the reasons it is very unlikely to happen is many of the countries of the world are very alert to the kinds of concerns that Sir Tim mentioned in the hearing in 2007. The Internet is enormously valuable to everyone in the world and I think it is a fair surmise that almost all of the countries of the world are going to be very anxious not to do anything that might damage it. And, of course, that is a large part of the effort we have been and will continue to make is to point out that there are things that could damage it. Mr. Markey. What is the motivation in your opinion behind what China or Russia might seek to accomplish if they were successful in what they had been proposing? Mr. Verveer. Both of those countries have a concept that they call information security. And their concept of information security is both what we would call cybersecurity-- that is a physical protection of their networks--but it goes beyond that to address content that they regard as unwanted. And I think as much as anything else, at the base, the motivations that Russia and China have involve regime stability and regime preservation which for them involves preventing unwanted content from being made widely available in their country. Mr. Markey. And Commissioner McDowell, how do you view this threat from China and Russia and others that seek to retain regime stability and can only really pursue it through an international control of the Internet? Mr. McDowell. For those countries that are offering such ideas that are authoritarian like the ones you cite, I don't think it is too stark to say their vision of the Internet is to have a tyrannical walled garden. But I think there are a variety of motivations throughout the 193 member states who might find a number of things appealing. It might be purely economic, state-owned, telephone companies charging web destinations on a per-click basis, things of that nature that might be an economic incentive. But for the Chinas and Russias and other authoritarian regimes---- Mr. Markey. Um-hum. Mr. McDowell [continuing]. I think it is to snuff out political dissent. Mr. Markey. We actually had to have a hearing here in 1987 when the Federal Communications Commission was actually considering a proposal that would have per-minute charges up on the corner of the screen on the Internet rather than an all- you-can-eat kind of proposal, which we are glad we beat that back back in 1987 so that we could have this chaotic, uncontrollable system that ultimately developed. So Mr. Ambassador, are you gratified by the response you are receiving from other countries in their alignment with the United States in resisting these proposals coming from totalitarian states? Mr. Verveer. Well, by and large, we are gratified by the responses that we have seen. We find that a significant number of our allies have been prepared to step up to also oppose what we regard as fundamentally bad ideas. And I am very confident that as we have the opportunity over the next 6 months to continue these discussions that we are likely to end up with what we all find to be adequate---- Mr. Markey. Are these countries joining us because of pressure from the United States or because they agree with us that the Internet should retain this chaotic nature? Mr. Verveer. Well, I think in very many instances they do agree with us, that they see the value of the Internet as a mechanism for economic and broader improvements. Mr. Markey. Do you want to list the few countries that agree with us? Mr. Verveer. Surely. We find that we get a good deal of support from Japan in terms of activities in the Asia-Pacific Telecommunity. We find that we are getting a good deal of support from not only Canada and Mexico but other countries in our hemisphere in terms of some proposals that we make. Many of the European countries are very well aligned with us in terms of the issues and values that we think are most important in terms of preserving. So we see, I think, very substantial support for the kind of broad views that we have about the Internet, which is again not to say that this is fully resolved. There is a great deal more work that needs to be done both in connection with this conference and then probably into the indefinite future. Mr. Markey. OK. Congratulations to the Obama administration on their excellent work on this. Mr. Terry. Mr. Stearns, you are recognized for 5 minutes. Mr. Stearns. Thank you, Mr. Chairman. Mr. Ambassador, with these 193 countries meeting in Dubai, Mr. Markey touched upon and the question was how many support us? How many votes are we short on having the majority to support our position exactly? Mr. Verveer. Well, I don't think we have a count. It is very important to understand---- Mr. Stearns. You don't have a count on it? You don't know? Mr. Verveer. We don't have---- Mr. Stearns. We have a whip here that really knows before any votes are taken what is happening. You know, I get a little concerned that you don't even know. I understand that we are about nine votes short but you think that is an accurate representation? Mr. Verveer. No. I don't---- Mr. Stearns. Is it more? Mr. Verveer. If I could explain? Mr. Stearns. Sure. Sure. Mr. Verveer. The conference will follow the ITU traditions which involve avoiding votes. The conference will operate on the basis of a---- Mr. Stearns. So there will never be a vote? If you don't mind, I would like you to answer yes or no if possible just because I don't have a lot of time. Will there be a vote in Dubai on this by these 193 countries? Yes or no? Mr. Verveer. I think it is very unlikely. Mr. Stearns. So there will be no vote. So we don't have to worry about who is for us and who is against us? Mr. Verveer. We do have to worry about that because the---- Mr. Stearns. OK. Mr. Verveer. First, it is important to understand there are going to be many different contributions that are going to be discussed---- Mr. Stearns. I understand. Do they work on the basis of a consensus? In other words, they have this sort of silent consensus and they move forward without a vote? Is that what happens? Mr. Verveer. That is in fact what happens. Mr. Stearns. So there will be a vote but it will be a vote sort of secretly through a consensus, and based upon that, a report will be written and that report will be issued and that will be the hard fall answer to the Dubai conference. Would that be a fair estimation what is going to happen? Mr. Verveer. Yes. What will happen is there will be negotiations over individual proposals in terms of the international telecommunications regulations. Those negotiations will yield presumably some agreement on words and phrases in terms of the regulations---- Mr. Stearns. I understand. Mr. Verveer [continuing]. Or agreement not to change them. Mr. Stearns. OK, just so we as legislators have an understanding, can you give me today how many votes we are short of a consensus? Mr. Verveer. I cannot tell you---- Mr. Stearns. Ten votes short, 100 votes short? I mean can't you just give me a broad brush? Mr. Verveer. I am sorry to say---- Mr. Stearns. OK. Mr. Verveer [continuing]. I think it is impossible to answer that---- Mr. Stearns. Mr. McDowell---- Mr. Verveer [continuing]. Question. Mr. Stearns [continuing]. Any comments you want to say on this? In fact, you might suggest what as a legislator I and my fellow colleagues could do here based upon this evolving consensus where it appears we are nine votes short? Mr. McDowell. Well, actually, I think also going back to the dialogue with Congressman Markey, it is important that this not be an issue of the United States versus---- Mr. Stearns. I agree. Mr. McDowell [continuing]. The rest of the world. Mr. Stearns. I agree. Mr. McDowell. I think we need to cultivate allies in the developing world. They have the most to gain from an unfettered Internet and the most to lose if this goes forward. So that is where I think we need to be whipping up the votes, to use your term. Mr. Stearns. OK. Is there anything that the FCC is doing right now that would impact this ITU? Mr. McDowell. Yes, we have an International Bureau that works on this and works closely with the State Department---- Mr. Stearns. OK. Mr. McDowell [continuing]. And they are busy working with member states throughout the world. Mr. Stearns. Commissioner McDowell, you mentioned in your extended testimony the potential outcome of a balkanized Internet if pro-regulation nations are successful in December. Could you perhaps expand on this? And what would be the consequences for the United States and other countries? Mr. McDowell. I am sure whether it is December or sometime in the future. And I, by the way, would like to suggest to the committee that maybe we do a post-WCIT hearing at some point maybe early next year to see how things went and what is going to happen in the future. But what I mean by a balkanized Internet would be are there going to be countries that would opt out of the current multi- stakeholder model and choose this top-down regulatory regime, in which case, you know, the Internet is a network of networks without borders and it would really create an engineering morass. At a minimum this would create chaos and confusion and economic uncertainty. That always leads to increased costs. Increased costs are always passed on to end-user consumers. So that is at a minimum. So at a maximum we would see a wilting of the proliferation of political freedom and prosperity abroad, and we would also I think see innovation be snuffed out in the cradle and we will never know what innovations might not have come to fruition. The great thing about the Internet is just, you know, access to a computer and an Internet connection in order to create the next great idea, whether that is the next Facebook. But that could come from the developing world. Mr. Stearns. Mr. Ambassador, besides Russia and China, what are the other top three or four countries that want to put this under the U.N. auspices? Mr. Verveer. Well, we see substantial efforts on the part of Iran to do that. Mr. Stearns. OK. Mr. Verveer. There are certain Arab States that---- Mr. Stearns. Can you name the Arab States? Mr. Verveer. Pardon me? Mr. Stearns. Can you name the Arab States? Mr. Verveer. Well---- Mr. Stearns. Egypt? Mr. Verveer. Egypt has certainly taken some---- Mr. Stearns. Position? Mr. Verveer. But not complete steps in that direction. There have been efforts as well---- Mr. Stearns. Tunisia? Mr. Verveer. I don't believe I would put Tunisia in---- Mr. Stearns. Saudi Arabia? Mr. Verveer [continuing]. That category. Saudi Arabia, again, as with Egypt, has from time to time taken steps or taken positions that---- Mr. Stearns. Would it be fair to say that most of the mid- East countries other than Israel is supporting this? Is that a fair statement? Mr. Verveer. We see support after a fashion I suppose from some of the Arab States, yes, but I think the thing that is critically important to understand is that in terms of genuinely hard-line opponents to the arrangements as we see them today, that they tend to be states that we have already mentioned. That otherwise there are subtleties and nuances that are substantial in terms of---- Mr. Stearns. Got you. All right. My time is expired. I thank you, Mr. Chairman. It is just an odd coincidence or ironic that with the Arab Spring that a lot of these countries seem to want to put it into a monopoly type of U.N. operation. Thank you. Mr. Terry. Thank you, Mr. Stearns. The gentlelady from California, Ms. Matsui, is recognized for 5 minutes. Ms. Matsui. Thank you, Mr. Chairman. Ambassador Verveer, I want to talk more about the WCIT. You mentioned that the ITRs have not been revised since 1988, which is about 25 years ago and a lot has happened in 25 years. The comparison is even worse than the Tortoise and the Hare. It is more like we are at warp speed right now. And why did the ITU decide to reexamine the ITRs now? And do you anticipate that they will want to examine them again shortly? I mean is there a schedule to do this? Mr. Verveer. First, I think it is important to understand that there has been pressure to reexamine the ITRs that has existed for many, many years. The United States has taken the view over the years that it wasn't really necessary to do this, but finally, in 2006, an overall decision was made that it would happen this year. The idea behind that I think more than any other is something that has been made plain at this hearing, which is that the world has changed so dramatically that it seemed like it was time to review the ITRs. Now, that said, the ITRs themselves, which are only nine pages long, in fact do have a great many things that continue to be of value that could and should be preserved. There is no schedule beyond this upcoming conference to revisit the ITRs on any regular basis. There have been some contributions or proposals that suggest that that might be valuable, but I think generally--again, this is not something that has achieved a great deal of momentum. Ms. Matsui. Well, once discussion begins as it has and the countries, because of recent history, have become involved in the Internet and seen the positives as well as the negatives as far as some of the countries that really look towards censorship, isn't it possible this will be a continuing process and we should be on alert now that this collaboration must continue because, as we know, technology just keeps rapidly expanding and we are not sure exactly what the next big thing is. So is there an opportunity--and I suppose it is a multi- stakeholder process--to open it up more, this ITU process, to more stakeholders, to nongovernmental stakeholders, which I believe that Dr. Cerf has spoken about? Do you agree on that and how can the U.S. Government advocate for greater transparency in this process since that to me is sort of a stumbling block for some of the other countries? Mr. Verveer. Well, it is certainly true, I think, that there has been criticism--and I think it is legitimate criticism--about the ability of the nonmembers of the ITU to be aware of the deliberations, be aware of what is taking place in terms of preparation for this conference and more broadly. We are prepared through the ITU Council and good efforts of Dick Beaird, who has been our representative on the Council for many, many years, to propose to the Council that its report, which is going to be a very important document in the scheme of things, that its report in preparation for the WCIT be generally available. It would be very useful if we can find more ways--this is a point the United States often makes--to have more of the ITU's documents more widely available to all of the interested stakeholders. Ms. Matsui. I would think--and this is a question for both Ambassador Verveer and Commissioner McDowell--that there should be more opening of the process for increase of knowledge here even in the United States as to the importance of this. We in this country tend to take the Internet for granted and, you know, we see what has happened with the Arab Spring and realize how it has affected other countries. I think that to a great degree we forget that what would happen if, let us say, the worst happened, this scenario, and that things would close down. I am curious what would happen if the worst happened here? What would happen here in this country? Would those resolutions immediately become law? What steps can the U.S. take to limit its participation in the treaty? You know, I kind of want to know what would happen. And either of you can answer that and both of you in fact. Mr. Verveer. This is a very important point that you have raised and I am glad you have. First, it is conventional and assured we will take a very broad reservation from whatever is agreed at the conference. And virtually every other country will do the same thing. So you will have countries agreeing that they will abide by the provisions of the treaty unless for some reason they won't. And as I said, typically, the reasons will be extraordinarily broad. That is one thing. The second thing it is very important to understand is there is no enforcement mechanism associated with this. These are precatory as many, many other aspects of international law are so that it is not reasonable to assume that if something really ruinous for some reason came and was to be adopted as a particular regulation that you would see countries against their interest enforcing that regulation as only the countries would be able to enforce. There is no other way for it to be done. So this conference and all these activities are extraordinarily important in terms of establishing norms, in terms of establishing expectations, in terms of trying to help with respect to both the commercial activities and the free flow of information. But they are very, very different from a law that the Congress, for example, might adopt that would be subject to all the juridical enforcement mechanisms that are available. Ms. Matsui. I am running out of time, but Commissioner McDowell, do you have any comments? Can you add to this? Mr. McDowell. I don't think I could say it any better than he could in the observance of time so---- Ms. Matsui. OK. Thank you very much, both of you. Mr. Terry. The other gentlelady from Southern California, Mary Bono Mack. Mrs. Bono Mack. Thank you. Thank you both for your testimony. You certainly didn't mince words. There is no doubt that you feel strongly. And what I like is that I agree with everything you have said. It is hard to question witnesses when you are just trying to make them agree with you more than they already do, but I will do my best and just try to get out of you a little bit of explanation. I think as Ms. Matsui was just saying, a bigger explanation for the American people what is at stake here, I started talking about this well over a year ago and people have sort of viewed me as having a tinfoil hat on my head and was creating an issue that wasn't very real. But if you could talk a little bit about we clearly understand the Arab Spring and what this means and that the Internet is the biggest tool for freedom around the world that mankind has ever seen. So taking that aside instead can you talk a little bit about the proposal, how it would impact U.S. business and what it means for the bottom line for business should this occur? To both of you. Mr. McDowell. Sure. And thank you, Congresswoman, for your leadership on this issue. In the early days there were a lot of folks who questioned whether or not this was real and I am glad you stuck your neck out and thank you for your leadership. At a minimum, it creates uncertainty and drives up costs and that alone can be damaging. Let us take an example. So Harvard and MIT recently announced they are going to offer courses online for free. The concept of free content or applications on the net could be put at risk if costs are raised. Ultimately, consumers pay for those costs one way or the other. They always pay for increased costs due to regulation. So, you know, at a maximum, then, you would have some sort of bifurcated Internet, cross-border technology such as cloud computing, which is becoming essential to creating efficiencies and bringing more value to consumers and raising living standards ultimately. That could be jeopardized as it becomes harder to figure out how do you engineer these technologies across borders when in the past the Internet didn't have to worry about that as much. So that gives you a flavor. Mrs. Bono Mack. Thank you. Ambassador, do you---- Mr. Verveer. Well, I certainly would agree with the commissioner on that I think it is perfectly fair to observe that the free flow of information, including the free flow of commercial information, is something that has added--as the studies have been cited this morning--indicate has added measurably to the world's wealth. So we are very anxious that there not be anything that would inhibit that. There have, for example, been some suggestions made by some countries that we ought to have a kind of per-click charge if you will that content providers ought to contribute to the cost of transmission companies for concluding traffic. There are a variety of reasons why that seems to us not to be a good idea at all, but you can see what could turn out to be marginal imposition on the Internet would in fact interfere with the commercial value of it and we are very anxious to avoid that. Mrs. Bono Mack. Thank you, Ambassador. And would you speak a little bit--in your testimony you mentioned that there are proposals under consideration at WCIT that would allow governments to restrict content and monitor Internet users. Can you speak a little bit about how the U.S. is working now to prevent countries from already censoring the Internet? Mr. Verveer. Well, we are very anxious, as you might imagine, to overcome any suggestions that there ought to be content-related restrictions. With the suggestions of this kind come, again, as Commissioner McDowell indicated in his testimony, not just or not even especially in the context of WCIT but in other forums as well, and they tend to come from countries that have--I suppose it is easy to say non-democratic traditions. And as a result, on the one hand, we are dealing with what are almost certainly sincere beliefs on the part of the political elites that stability is very important, that there are in fact objectionable--either from a political perspective or other cultural perspectives--there is such a thing as material so objectionable it ought to be excluded. That said, we obviously disagree with that and we particularly disagree with it when we are talking about what we might describe as political speech. But this set of issues arises more extensively in, for example, the kind of suggestion that Russia, China, Uzbekistan, and Tajikistan had made in the context of the United Nations. Mrs. Bono Mack. I thank you. And my time is up. Again, I just want to thank you both very much for your hard work on this issue and for being here today. I yield back. Mr. Terry. Thank you, Mary, and I want to thank you for your good effort on your resolution, that bipartisan---- Mrs. Bono Mack. I look good in a tinfoil hat. Mr. Terry. Well, this time it was legitimate and necessary and I am proud of the work that you have done with Henry Waxman and Ms. Eshoo to make it a bipartisan. We are all in agreement on this one. Mr. Dingell? Mr. Dingell. Thank you, Mr. Chairman. I appreciate your courtesy. First, I would like to welcome my old friend, Ambassador Verveer, who is a friend and resource to this committee. He was bureau chief of the three bureaus at the FCC back in the '70s and served the Department of Justice before that. Mr. Ambassador, welcome, and I look forward to our exchange. And, of course, Commissioner McDowell, we appreciate your service and thank you for being here this morning. Your wise counsel has been helpful to me on many occasions. Now, to both witnesses, this is a yes-or-no answer. Is it true that some members of the ITU may propose revisions in the ITRs that set out prescriptive and international regulations for issues such as Internet privacy and cybersecurity? Yes or no? Mr. Verveer. The answer is yes. Mr. McDowell. Yes. Mr. Dingell. To both witnesses, do you believe that it is wise for the United States to concede to international standards on Internet matters not settled definitively? That is privacy and cybersecurity by the Congress? Yes or no? Mr. Verveer. It is unwise for us to get too far in front of the overall consensus. Mr. Dingell. You find that to be a bit rushing things, is that right? Mr. Verveer. I now can't recall if this should be a yes or a no but it would be a bad idea. Mr. Dingell. I don't like to do that but we have a lot of ground to cover. Commissioner? Mr. McDowell. Unwise. Mr. Dingell. Now, again, to both of our witnesses, I understand that some of the countries like Russia and China believe that ``policy authority for Internet-related public issues is the sovereign rights of States and not multi- stakeholders.'' Is that correct? Yes or no? Mr. Verveer. Yes, that's correct. Mr. Dingell. Commissioner? Mr. McDowell. That is their position? Is that the question? Mr. Dingell. Yes, is that their position? Mr. McDowell. Because I understand their position, yes. Mr. Dingell. Do you agree with that position? Mr. Verveer. No, we don't. Mr. McDowell. No. Mr. Dingell. Now, in your collective opinion is it wise to maintain international multi-stakeholder regulatory process that more closely resembles the Administrative Procedure Act model that we use in the United States as opposed to what China and Russia propose? Yes or no? Mr. Verveer. Yes. Mr. Dingell. Commissioner? Mr. McDowell. If I understand the question correctly, I would not want a legal paradigm put in place of the multi- stakeholder model. So there are some words in there which I am not sure I understand completely so I want to make that point clear. Mr. Dingell. Thank you, gentlemen. It looks like we are in agreement, then, on these matters. Now, since you are both here I would like to ask you about an unrelated matter. I know you are both aware that the President has signed legislation that permits the FCC to conduct an incentive auction in which television broadcasters can elect to return their licenses in return for a portion of the auction revenues. That legislation includes the amendment offered by Mr. Bilbray and I directing the FCC to coordinate with Canadian and Mexican authorities so that consumers and particularly those in border regions won't lose access to television signals when the incentive auction is over. Now, Mr. Ambassador, would you please bring the subcommittee up to speed on where things stand with Canada and Mexico with respect to this very important matter, particularly so to my constituents, particularly as there are no additional frequencies available for displaced stations in my hometown of Detroit if the television ban is repacked? I have to ask you to be brief on this and perhaps maybe you would want to submit some additional comments to the record. Mr. Ambassador? Mr. Verveer. Well, Mr. Dingell, there are treaty obligations that we have with Canada that are designed to protect the broadcasters on both sides of the border. This is a problem not just in the area of Detroit but also in New York State in addition---- Mr. Dingell. Also in Washington, Montana, along the borders of Minnesota and Oregon and other places, too. Mr. Verveer. And likewise on the Mexican border. These are things that have to be worked out and have to be worked out by agreement between the two countries. But in addition, as you mention, there is a legislative mandate that no one be disadvantaged if they choose to continue to broadcast. So this is going to be a complicated engineering matter. It may or may not be something that will permit any particular changes in the status of all the border regions, but both the treaty and the statutory obligations obviously will be observed. Mr. Dingell. Now, Commissioner McDowell, you are working on this at the Commission I know. Can you assure me of the Commission's commitment to full transparency on this matter? Yes or no? Mr. McDowell. Yes, from my office. I can't speak for the chairman or the other commissioner. Mr. Dingell. I am comfortable that you would engage in full transparency. I am a little less comfortable about some of the other folks down at the Commission. I recognize, Commissioner, that you speak for yourself. Are you comfortable that everybody else at the Commission shares your goodwill on this matter? Mr. McDowell. I certainly hope so, sir. Mr. Dingell. I do, too. I am a little bit like the fellow that was walking down the street and ask him, are you an optimist or a pessimist? And he said, I am an optimist. And then he said, well, why are you frowning? He said, because I am not sure my optimism is justified. Thank you, Mr. Chairman. Mr. Terry. Nice one. All right. Thank you, Mr. Dingell. And now we recognize the gentlelady from Tennessee for 5 minutes. Mrs. Blackburn. Thank you, Mr. Chairman. And again, I thank you all for being here. Mr. Ambassador, a couple of questions for you. When was the last time that the State Department published a notice of an official meeting to prepare for the WCIT '12? Mr. Verveer. You know, I am not sure when we did. We understand that we have an obligation to publish notices in connection with what we call our ITAC meetings so that---- Mrs. Blackburn. OK. Mr. Verveer [continuing]. Anyone---- Mrs. Blackburn. Well, let me help you out with that a little bit because the last notice that I could find was January 11. That was the last public notice. But from what I have been able to find out is that the State Department is holding regular meetings of interested stakeholders on a regular basis and you have done this all year long to prepare for the conference. Isn't that correct? Mr. Verveer. That is correct. Mrs. Blackburn. OK. And is your staff holding regular conference calls and managing a LISTSERV for stakeholders to circulate position papers and ideas to inform the U.S. delegation in advance of the WCIT '12 preparatory meetings? Mr. Verveer. Yes, that is also correct. Mrs. Blackburn. That is correct? OK. So first of all, how do you get on the LISTSERV so that you are aware of what is going on? And then secondly, how can my constituents that are not just the largest and the wealthiest companies on the Internet or the intellectual elites participate in the process if there is no way for them to know how to participate in that process or when the meetings are going to take place or how to get involved? How do we advise them on this? Mr. Verveer. Well, first, you are obviously raising a very legitimate, very important question. The notices that were made--and my recollection of the advice we got from the lawyers at the State Department was that we could provide a kind of general notice as a legal matter for these regular meetings. It is very easy to get on the LISTSERV but you have to know who to contact. And if that is something that is obscure from the standpoint of the public record, we will correct that. But anyone who wishes to be on the LISTSERV certainly can---- Mrs. Blackburn. Well, I would like to make certain that we take care of this because this was going to be the most transparent administration in history and here we get to an issue that is very important to a lot of my constituents and they feel blocked out of this process. Commissioner McDowell, I appreciate that you have been an outspoken critic of WCIT '12 and appreciate your efforts. Let me ask you this: you have been to Nashville, we have done a town hall there in Nashville, you know that I have got a lot of constituents that want to participate in this process, and you know that they are very concerned about what international control of the Internet would do to them and do to their livelihoods. So, you know, how do we go about this if the FCC doesn't have an open docket for comments? Don't you think that that would be a good idea to have an open docket that these individuals, these small business operators would be invited into for comment? And, you know, I know that at one point there was one but there doesn't seem to be now. So I think early 2010 there was an open docket. So tell me how we go about fixing this? Mr. McDowell. The best vehicle for that would be something called a Notice of Inquiry that the FCC could open up on---- Mrs. Blackburn. OK. Mr. McDowell [continuing]. What the FCC should be doing in support of the State Department's taking the lead on WCIT '12. Mrs. Blackburn. OK. That sounds good. And let me ask you this: you know, one of the things as I looked at this issue with the docket, one of the things that concerns me is if the FCC still does have an open proceeding to reclassify the Internet services of Title II, telecom service. And so tell me this: how is that open proceeding different from the proposals in front of the ITU? And shouldn't we close that docket immediately? Mr. McDowell. Yes, we should. I have been very public about that for many years, as well as the original net neutrality proceeding, I think it sends the wrong signal internationally and I think it should be closed as soon as possible. Mrs. Blackburn. OK. Thank you for that. Mr. McDowell. Thank you. Mrs. Blackburn. My time is expired and I thank you for the time and the questions. Mr. Terry. Thank you. Gentlelady from the Virgin Islands. Mrs. Christensen. Thank you, Mr. Chairman. And I, too, want to welcome both the commissioner and the ambassador and thank you for your testimonies. And it is really great to have such bipartisan support on this important issue. So I want to thank the chairman and ranking member for having this hearing as we approach the WCIT. I am not sure that all the questions that needed to be asked have not been asked, but as my colleague usually says, not everyone has asked them. But some have suggested that there is need for greater transparency and accountability in the IT process. Do you agree? And if you do think that there is a need for greater transparency, can it be accomplished without regulation that hampers the free and open access to the Internet? Mr. Verveer. Well, if I understood your question correctly about the desirability of greater transparency, generally in the ITU process, the answer I think from our point of view is, yes, that would be desirable. And we have recommended various measures along those lines over the years and have seen some of them come to fruition, some not. There are steps that we can and we do take here in the U.S. to try to aid non-ITU members to understand what is going on there in terms of making materials available that are available to us as a member of the ITU. And as I mentioned earlier, we are proposing in the specific instance of WCIT that the Council report, which will be the critical document or one of the most critical documents going forward, should be made public once it is in fact issued following council working group session in the next several weeks. Mrs. Christensen. Commissioner, do you have anything to add or---- Mr. McDowell. I have nothing further to add other than to say I have heard time and time again from civil society, think tanks, efficacy groups, and such that they are very concerned about the opaque nature of the ITU. The ITU generates revenue from having civil society groups, non-member voting states join the ITU for I think about $35,000 or the equivalent thereof and that is a way of generating money for the ITU and then you can get certain documents. I have found it difficult actually even for my office to get some ITU documents. You kind of have to know somebody and I am part of the U.S. Government the last time I checked. So I do think this is something the ITU needs to work on and I have every faith in Ambassador Verveer and the incoming ambassador for the WCIT to address that issue. Mrs. Christensen. I guess as a follow-up to what you just said, there are also some recommendations that are brought up I think in some of the testimony from the second panel that the ITU should have some nongovernmental voting members. Is that something that you would agree should happen? And if not, there must be a way for them to have some significant way of participating in the discussion. Mr. Verveer. Well, the ITU follows the general U.N. model of having nation-states as the voting members. This is essentially the architecture that the Greatest Generation worked out for us. And there are opportunities to try to find greater roles for non-nation-state participants. There are other forms of membership in the ITU that are nonvoting that permit a good deal of participation. But in fact I think a legitimate objective to find better ways to make the ITU's work--and this is also true of many of the other U.N. organizations--more available, more accessible, and more participatory in terms of non-nation states who may be involved may be interested. Mrs. Christensen. And, Commissioner, you talk about the light touch, a proposal, but it is possible to have any kind of a light touch regulatory regime without threatening into that freedom? I mean that is not possible. Mr. McDowell. No. Mrs. Christensen. That is just another way of getting into a slippery slope, isn't it? Mr. McDowell. It is a sales pitch for a much bigger problem. There is no way to have both. Mrs. Christensen. Thank you. I yield back the balance. Mr. Walden. The gentlelady yields back the balance of her time. The chair now recognizes the gentleman from California, Mr. Bilbray, for 5. Mr. Bilbray. Gentlemen, just a general question. I am sure somebody else has already asked it but, you know, as we say that everything has been said, just not everybody said it. What can Congress do to help with the negotiations with other countries to ensure a strong position that the Internet remain free and open without the harmful international regulations stifling it? What can we do in Congress to help with the effort? And what must we do? Mr. Verveer. I think the resolution that was adopted or was promulgated in the last day or two is one very important possibility and it is one that where the more adherence it has here, the better, the clearer it becomes that the United States is completely unified on this particular set of issues. Secondly, I think this hearing itself is something that is very valuable because it provides a very plain demonstration that we in the United States are unified across our political lines. And that I think is an important message for the world, and I can assure you, the world does pay very close attention to what we do in these areas. We will hope to have an opportunity toward the end of this month to introduce our new head of delegation to members and staff who are interested in speaking with him. We will at that time I think be able to also provide sort of a sense of some of what we think are the needs that we have in terms of going forward, preparing for the conference and participating in the conference. Mr. McDowell. I would agree with everything the ambassador said. I think Congress could help by helping us clarify our position that not even the smallest change should be allowed but also following up on the WCIT and having another sort of checkup hearing maybe after the 1st of the year because there will be many more similar circumstances coming forward in the years to come. Mr. Bilbray. You know, I personally spent a lot of time in Latin America working on certain problems they have down there and one of the great opportunities we see not just in Latin America but around the world and Third World countries is being able to use the Internet to help bridge the gap between those in the rural area can't go to secondary school, get the education. A lot of the things we take for granted rural people don't have access to. And it is absolutely essential that the Internet is available and that broadband is available to bridge that education gap in Third World countries. A question is some of these countries are looking at the International Telecommunication Union as part of the solution on that. How should we respond to their legitimate concerns and how do we coordinate to make sure that that moves forward? Because this probably does more to help Third World countries in long-term economic and social progress than a lot of other stuff that we have spent trillions of dollars on. Mr. Verveer. The ITU has a development sector. We participate in it quite extensively and we think it is very valuable in terms of collecting and disseminating best practices in terms of capacity building, things of that nature. It also has RegionalConnect, a particular region and the Connect America's Regional Conference will occur in Panama in the middle of July. It is one that the U.S. will certainly participate in and it is again designed to try to address the kinds of issues that you have described. So it is a very valuable instrument in terms of accumulating and then disseminating important information about the kinds of broad social issues that you have just addressed. Mr. McDowell. I think the best hope actually is the growth of wireless. Wireless Internet access has been explosive. The growth there has been tremendous and that is primarily because governments have stayed out of the way, as in this country as well. So I think we need to let the market work and encourage other countries to try to get out of the way as much as possible because the mobile Internet is really the future for improving the human condition overall. Mr. Bilbray. Well, and I think as much as they can learn from maybe our approaches at distance learning, Mr. Chairman, maybe we ought to be looking at the great successes that are being developed in places like Panama and Latin America where the private sector is building actually the infrastructure in a telecommunication way that actually surpasses even activity of countries like Costa Rica that has had hard-line technology for so long and the great opportunities that is providing for the education of people in Third World countries. So I yield back, Mr. Chairman. I appreciate the time. Mr. Walden. The gentleman yields back his time. The chair now recognizes the gentleman from New Hampshire, Mr. Bass. Mr. Bass. Thank you very much, Mr. Chairman. And again a lot of the issues and questions that I have have already been addressed by other members of the committee and I would say that this has been very helpful and informative. Both Ambassador Verveer and Commissioner McDowell have enlightened us as to exactly how this process works and what the consequences are should there be an implementation of at least a partial top-down regulatory structure for the Internet if you will. And your comments, Commissioner McDowell, about an engineering morass and economic uncertainty and I guess a sort of dark and dismal specter for economic freedom over the Internet is very apt. And hopefully the many other nations, as others have said, especially Third World nations, understand the consequences of this given the fact that the structure of this deliberate body is relatively democratic and these Third World nations have quite a bit of power. Commissioner McDowell, you published an op-ed recently in the Wall Street Journal in which you mentioned the Internet has helped farmers find buyers for crops. I can give you many examples of small industries in my neck of the woods in New Hampshire that have created whole new economies that didn't exist before by using the Internet. And I am wondering if you can speak a little bit about how the multi-stakeholder model helps small businesses and how the international regulations, if they went into effect, would hinder them. Mr. McDowell. Well, as many people have said already, it allows innovation without permission, so when you combine the liberty that comes with mobility, when you combine the invention of mobility for Marty Cooper, with the invention from Vint Cerf and Bob Kahn of packet switching and the power of the Internet, you really fundamentally change the human condition I think more so than any other invention that I can think of, maybe since fire. And I am trying not to be hyperbolic. So you are not just contacting a place or a thing; you are able to communicate with a person and that does more to empower the sovereignty of the individual than any other technology that I can think of. So you do have farmers who can find buyers for their crops without having to take on the risks of traveling to the village, to the market where they could lose their crops or they could be stolen or the buyer might not show up so they can take care of that transaction. Worried parents can find medicine for their sick children. They can locate potable water--which is actually a huge global concern right now--much more easily through the power of the mobile Internet. Mr. Bass. And for both of you, isn't the multi-stakeholder design governance model if you will really unique in that it prevents government entities and nongovernmental entities for that matter from controlling the design of the network and thereby the content that rides over it. Do you agree with that or do you have any comment or elaboration on that? Mr. Verveer. Well, I think generally we think that this has in fact been enormously instrumental in creating the Internet that we have today. And we are very anxious that the free flow of information, the freedom of expression remains as a centerpiece in terms of one of the many capabilities of the Internet. And the multi-stakeholder model tends to help protect that because it does bring all voices to the table. It is a kind of ethic in which no one set of voices is especially privileged and we think that probably does help in terms of this what you might think of is a broader political/social/ cultural aspects of the Internet. Mr. Bass. Thank you. I just conclude on a personal note, Commissioner McDowell. My father had the honor of serving in this body when I was about the age of your son, who is sitting behind you, and I remember well going to a Science--it was called the Space Committee in those days. He was a member of the Science and Technology--it was the greatest committee you could be on in the Congress because it was in the middle of the Space Race--being so excited that here I was in this great place and they went through this hearing and I didn't understand a single word of what was said. But when I got out I told all my friends that I knew all kinds of things now about where we were going in space. So Griffin, I expect you to brief your dad on this hearing, make sure he is set straight and knows where we are headed. Thank you, Mr. Chairman. Mr. Walden. Thank you, Mr. Bass. We appreciate that. I am going to recognize the gentlewoman from the Virgin Islands. Mrs. Christensen. Thank you, Mr. Chairman. I ask unanimous consent on behalf of Ranking Member Eshoo to insert the New York Times editorial by Vinton Cerf into the record. Mr. Walden. Without objection, so ordered. [The information follows:] [GRAPHIC] [TIFF OMITTED] 79558.026 [GRAPHIC] [TIFF OMITTED] 79558.027 [GRAPHIC] [TIFF OMITTED] 79558.028 Mr. Walden. The chair now recognizes the gentleman from Ohio, Mr. Latta, for 5 minutes. Mr. Latta. Well, thank you very much, Mr. Chairman. And Mr. Ambassador and Mr. Commissioner, thanks very much for your testimony today. It is very enlightening. And now everyone not only in this body but I think across the Nation truly believes that we want to make sure that keep our Internet free and away from more regulations. And it is best to have been developed the way it has from the ground up, from private industry and without government regulation. If I could, Mr. Commissioner, I would just like to ask a couple questions briefly because I think I would like to go back. I know there has been a lot of question as to businesses and business regulation, what could happen out there. But the chairman has conducted hearings on cybersecurity that have been, you know, very insightful for everyone here, but, you know, in your testimony on page three when you are talking about the Russian Federation, you know, asking for jurisdiction over IP addresses because ``there is a remedy to phone number shortages'' or that the Chinese would like to see the creation of a system whereby Internet users are registered using their IP addresses. And I think, you know, you end up that in a lot of totalitarian type regimes, that would give those authoritarian regimes the ability to identify and silence political dissidents. But how would you look at those two areas that might give those countries or other countries some kind of an advantage on, you know, attacking the United States or gaining more intellectual property that is being stolen over the net today? Because, again, the more that is out there that these companies have to submit of themselves to other countries, you know, it is hard enough right now to protect what we got. So if you could just answer that, I would appreciate it. Mr. McDowell. I think the general theme with that and also just looking at history at other analogies, it would be a scenario where they might want the rest of the world to live under a set of rules that they then break. In other words, they would break the rules and everyone else would abide by them, and that would be to their advantage. Mr. Latta. Mr. Ambassador, do you have a follow-up on that? Mr. Verveer. Well, the general issue that I think that you have raised about the question of protection of intellectual property, for example, is one that is a very, very serious one. It is one that we at the State Department work at very hard. It is one that the administration works at very hard through the office of Victoria Espinel in the White House. These are issues that obviously are complex in terms of figuring out appropriate enforcement modes and so forth, but there is certainly no debate about the importance of intellectual property protection in the broader context of the Internet. It is something that is very important. Mr. Latta. Thank you. And Mr. Commissioner, it hasn't really been brought up very much today that you brought up in your testimony about that some foreign government officials have intimated to you about maybe having international universal service fund whereby foreign usually state-owned telecom companies would have an international mandate to charge certain web destinations on a per-click basis so they could build out on broadband. You know, with so many companies here in the United States having spent hundreds of millions of dollars to do that, would that then put U.S. companies at a disadvantage, especially since you would be looking at a lot of the companies in this country having to really finance that? Mr. McDowell. Well, I think you have to look at which web destinations attract the most traffic so it might be a YouTube or an iTunes or Netflix is expanding internationally as well, especially the video applications use a lot of bandwidth. And the point here is that there might be international sanction or international mandate for some sort of regulatory regime to impose these charges and that is a concern. If companies want to enter into contracts in a competitive market, I am all for that but we don't need an international regulatory body distorting the marketplace to anyone's disadvantage. Mr. Latta. Thank you very much, Mr. Chairman. And I yield back my time. Mr. Walden. The chair now recognizes the gentleman from Illinois, Mr. Shimkus, who I think is our last one to ask questions of this panel. Mr. Shimkus. Thank you, Mr. Chairman. And I apologize for obviously keeping this longer, but it is a very important subject and it is very important if you have ever been involved as I have been fortunate to be involved with democracy and freedom movements, at least in the former captive nations, Eastern European countries. I pulled up with great technology the cyber attack on Estonia in 2007. Just returned from the NATO Parliamentary Assembly meetings in Estonia just over the break, I have watched the crackdown on dissidents in Belarus. And, Commissioner McDowell, you are highlighting the prime minister of Russia's exact quote. International control of the Internet through the ITU should give everyone cause for concern. Those of us who follow these movements are rightly concerned about--as was stated in maybe question-and-answer or opening statement--the movement to do this is for regime stability and regime preservation. I mean it is clear. Look at the actors--Russia, China, Iran, I imagine North Korea would probably be on there if they really had any concern of anyone having computers to begin with other than the handful that they allow for downloading movies. I am not going to go there. And briefly talk about will they be using--I will go first to the Ambassador and then Commissioner McDowell--the whole cybersecurity date, is this linked into this somehow and they are using cybersecurity as an excuse to get further control? And of that we should be concerned with, especially from state actors who have used technology to cyber attack other countries. They would be the last defenders of the system. Ambassador, do you want to comment on that? Mr. Verveer. Yes. Well, in the specific context of WCIT there have been contributions suggesting there ought to be some sort of a cybersecurity regulation. Now, the discussions have tended to be at a very high level. For example, something like all countries should be responsible for protecting their networks, things of that nature. The United States generally opposes any significant effort to bring cybersecurity regulation into the ITU or similar bodies. There are, as you know, enormously significant issues surrounding cybersecurity. There is a great deal of engagement that we in the United States have with other countries about how to improve the cybersecurity environment but we don't think that apart from potentially very high level kind of statement about the desirability of cybersecurity that it has any place at all in terms of these ITRs. Mr. Shimkus. Great. Commissioner McDowell, any comment on that? Mr. McDowell. Yes, my concern overall is that such international mandates could be used as a sword and a shield by authoritarian regimes at the same time. Keep in mind, though, that cybersecurity is discussed in many diplomatic for a not just WCIT or ITU but other places as well. But as a general matter, we should be very concerned that before entering into any international agreements on this that we aren't put at a disadvantage. Mr. Shimkus. And I don't know if Congresswoman Bono Mack mentioned this. We were talking before I had to leave the room. But the process would be consensus agreement. Would those then have to go back to the national governments for like a treaty ratification as we see in other treaties like Kyoto--not to pick on it--but some countries picked it up; some countries like the United States never voted on it. I think that is the issue of balkanization, then, that you are referring to. But wouldn't that disenfranchise those countries that think they are trying to use it for their own regime stability and regime preservation but it would really hurt them in the global economy and developmental process? So they are cutting off their nose to spite their face if they do this. Ambassador, would you agree with that? Mr. Verveer. Yes, I would. You are exactly right with that. Mr. McDowell. I would agree with it as well. Mr. Shimkus. Great. Thank you, Mr. Chairman. I yield back my time. Mr. Walden. Thank you, Mr. Shimkus. We appreciate your questions and we appreciate the answers and the testimony from our two very distinguished panelists. Thank you. You have been most helpful in us understanding better what we face as a country and the challenge that is ahead for both of you and for our delegation going to Dubai. So thank you. We appreciate it. And we will call up our next panel of witnesses. On our second panel, Ambassador David A. Gross, former U.S. Coordinator for International Communications and Information Policy, U.S. Department of State on behalf of the World Conference on International Telecommunications Ad Hoc Working Group; Ms. Sally Shipman Wentworth, she is the senior manager, public policy for Internet Society; and Mr. Vinton Cerf, Vice President and Chief Internet Evangelist for Google. We all admire that title and your work, Mr. Cerf, certainly the power it is to have Internet protocols and addresses and all those things you have created or help create. And we love the title, Internet evangelist. So again we thank our prior panel and their testimony and we will start right in with Ambassador Gross will be our leadoff witness on the second panel. And again, just pull those microphones close, make sure the lights are lit and you should be good to go. Thank you, Ambassador, for your work on this issue in the past and we look forward to your comments today. STATEMENTS OF DAVID A. GROSS, FORMER U.S. COORDINATOR FOR INTERNATIONAL COMMUNICATIONS AND INFORMATION POLICY, DEPARTMENT OF STATE, ON BEHALF OF THE WORLD CONFERENCE ON INTERNATIONAL TELECOMMUNICATIONS AD HOC WORKING GROUP; VINTON CERF, VICE PRESIDENT AND CHIEF INTERNET EVANGELIST, GOOGLE, INC.; AND SALLY SHIPMAN WENTWORTH, SENIOR MANAGER OF PUBLIC POLICY, INTERNET SOCIETY STATEMENT OF DAVID A. GROSS Mr. Gross. Well, thank you very much, Mr. Chairman, Ranking Member. It is a great privilege and honor to be back here with you all again. I appreciate it very much. And I probably should start with an apology to the audience that I did not bring lunch with us. So I will try to be brief. I want to underscore a couple of points that were made both by the questions and the answers presented by the first panel. First of all, I think it is extraordinarily important for the American people to know that I think the preparations for the upcoming WCIT conference are in excellent hands. I think we have seen this demonstrated by the statements and actions by Ambassador Verveer, who you saw this morning, by Assistant Secretary Larry Strickling, by the White House, including Danny Weitzner, who has played an important role, and as was announced earlier today by Ambassador Verveer, the incoming Head of Delegation Terry Kramer. I will confess I have known Terry for many years. We worked together at AirTouch. We have been good friends for many years and I could not be more pleased and confident of a successful outcome because of what I am sure will be his excellent leadership. I would say that his leadership is particularly important and helpful in addressing some of the questions that were raised to the first panel about the ability to create and form successful coalitions to be able to identify the issues. He has great experience not only in the telephone industry but also having worked and been very active internationally. He knows what it takes to bring people together and to be able to find that consensus that will be very important. I would also want to recognize, of course, as you all have already done this morning, the extraordinary work that has been done by FCC Commissioner Robert McDowell. He has been tireless and passionate and very focused on this issue in ways that have greatly served all of us. And I personally and professionally am so pleased by his leadership to date. Having had the great honor of working on these issues for many years at the U.S. State Department and elsewhere, I think there are a few core principles that make this particularly important, one that was stressed earlier today about the importance of bipartisanship. And I would like to commend both sides of the aisle and this committee particularly and its members for the great work that you have done with regard to the new Resolution 127. I think that is really quite extraordinary. When I had the honor of co-leading the U.S. delegation to the World Summit on the Information Society, the U.N. heads of state summit, a similar joint resolution was enacted and I found that to be extraordinarily useful and important for us as we went forward because the world recognizes the importance in the role that Congress plays on these issues domestically and internationally and it is an important signal. The bipartisanship is a particularly important signal there that these are issues for which we are all together. I would also say that I have the great honor currently of chairing an ad hoc committee that has been put together to address the WCIT issues and the like, and I think there is much to be learned from the diverse membership of that group. That group often takes different views on domestic issues and that is to be expected, but they come together and are unified, as the American people I believe are unified, on the issue that brings us together about the Internet, the importance of the Internet, and the role of intergovernmental organizations and others with regard to that going forward. There are two things that I think are particularly important to focus on about WCIT. One is it is important to remember this is not just another conference but this is a treaty-writing conference. The output of this will not be just language that is used but in fact international law, and therefore, it is very, very important that the details be dealt with very carefully. It is also very important because this affects not just the American people but people globally and the U.S. is always looked to by the people around the world for that leadership, and I am confident that that leadership will be maintained. It is the great changes that have happened, the great growth in the Internet that has benefitted the people in the developing world and elsewhere perhaps most dramatically. And I think that is first and foremost something that we always need to keep in mind. It is also important to recognize, as many of the comments this morning, that this is not about the ITU as an institution. The ITU is an important institution to the United States. Hamadoun Toure, the Secretary-General, has been very important as a leader and very helpful to the United States and otherwise. Having said that, this is about other member states that has been outlined by a number of the answers earlier today, and those are the issues and the coalitions we need to build, the issues we need to address, and the facts we need to gather. And with that, I believe my time is about to expire and I don't to delay this any further. Thank you very much. [The prepared statement of Mr. Gross follows:] [GRAPHIC] [TIFF OMITTED] 79558.029 [GRAPHIC] [TIFF OMITTED] 79558.030 [GRAPHIC] [TIFF OMITTED] 79558.031 [GRAPHIC] [TIFF OMITTED] 79558.032 [GRAPHIC] [TIFF OMITTED] 79558.033 [GRAPHIC] [TIFF OMITTED] 79558.034 Mr. Walden. Ambassador Gross, thank you not only for your leadership on this issue but your testimony today and your encouragement on our bipartisan resolution, which we hope to be able to move rather rapidly to the House Floor. Mr. Cerf, we are delighted and honored to have you here today, sir. We look forward to your verbal presentation of your testimony and your insights on this matter. STATEMENT OF VINTON CERF Mr. Cerf. Thank you very much, Chairman Walden. And I see that Ranking Member Eshoo had to depart but I certainly appreciate her participation today. And members of the subcommittee, it is an honor to address you. My name is Vint Cerf. I currently serve as Vice President and Chief Internet Evangelist at Google. As one of the fathers of the Internet and as a computer scientist, I care deeply about the future of the Internet and I am here today because the open Internet has never been at higher risk than it is now. A new international battle is brewing, a battle that will determine the future of the Internet. And if all of us from Capitol Hill to corporate headquarters to Internet cafes in far-off villages don't pay attention to what is going on, users worldwide will be at risk of losing the open and free Internet that has brought so much to so many and can bring so much more. If we follow one path, a path of inclusion, openness, and commonsense, I am convinced that the Internet of the future will be an even more powerful economic engine and communications tool than it is today. The other path is a road of top-down control dictated by governments. This would be a very different system, a system that promotes exclusion, hidden deals, potential for indiscriminate surveillance, and tight centralized management, any one of which could significantly hinder Internet innovation and growth. At the crossroads stands the International Telecommunication Union, an agency of the United Nations that came into being to regulate international telegraph services just 4 years after the Pony Express closed its doors. This agency plans to meet in 6 months to consider proposed changes to the international agreements governing telecommunications. Until this year the ITU--which, through the U.N., includes 193 member countries, each with only a single vote--has focused its attention on telecommunications networks and policies such as setting international standards for telephone systems, coordinating the allocation of radio frequencies and encouraging the development of telecommunications infrastructure in developing nations. On the whole, this status quo has been benign and even helpful to the spread of the Internet. But the organization recently passed a resolution in Guadalajara calling to ``increase the role of the ITU in Internet governance.'' This should cause significant concern. In addition, some powerful member states see an opportunity to assert control over the Internet through a meeting in Dubai this coming December. Several proposals from member states of the ITU would threaten free expression on the web. Others have called for unprecedented mandates and economic regulations that would, for example, impose international Internet fees in order to generate revenue for state-owned telecommunications companies. The international attack on the open Internet has many fronts. Take, for example, the Shanghai Cooperation Organization, which counts China, Russia, Tajikistan, and Uzbekistan among its members. This organization submitted a proposal to the U.N. General Assembly last September for a so-called international code of conduct for information security. The organization's stated goal was to establish government-led international norms and rules standardizing the behavior of countries concerning information and cyberspace. Should one or more of these proposals pass, the implications are potentially disastrous. First, new international control over the Internet could trigger a race to the bottom where serious limits on the free flow of information could become the norm rather than the exception. Already, more than 20 countries have substantial or pervasive online filtering according to the Open Net Initiative. And the decentralized bottom-up architecture that enabled the Internet's meteoric rise would be flipped on its head. The new structure would have the unintended consequence of choking innovation and hurting American business abroad. As you can see, the decisions made this December in the ITU could potentially put regulatory handcuffs on the net with a remote U.N. agency holding the keys. And because the ITU answers only to its member states rather than to citizens, civil society, academia, the technical industry, and the broad private sector, there is a great need to insert transparency and accountability into this process. So what can you do? I encourage this committee to take action now by urging the U.S. Government in partnership with likeminded countries and their citizens to engage in this process and protect the current bottom-up, pluralistic system of Internet governance and to insist that the debate at the ITU and all other international fora be open to all stakeholders. It is critically important for you to engage and help ensure that the world understands that the economic, social, and technical advances driven by the Internet are endangered by these efforts. Thank you for the opportunity to testify on this very serious matter. I look forward to answering your questions. [The prepared statement of Mr. Cerf follows:] [GRAPHIC] [TIFF OMITTED] 79558.035 [GRAPHIC] [TIFF OMITTED] 79558.036 [GRAPHIC] [TIFF OMITTED] 79558.037 [GRAPHIC] [TIFF OMITTED] 79558.038 [GRAPHIC] [TIFF OMITTED] 79558.039 [GRAPHIC] [TIFF OMITTED] 79558.040 Mr. Walden. Mr. Cerf, thank you. We appreciate your leadership and comments. Now, we go to Sally Shipman Wentworth, Senior Manager, Public Policy, Internet Society. Ms. Shipman, thank you for being here. We look forward to your testimony as well. STATEMENT OF SALLY SHIPMAN WENTWORTH Ms. Wentworth. Thank you, Mr. Chairman. My name is Sally Shipman Wentworth, and I am senior manager of public policy for the Internet Society, a nonprofit organization dedicated to ensuring the open development, evolution, and use of the Internet for the benefit of all people throughout the world. On behalf of the Internet Society and our more than 55,000 members worldwide, many of whom are joining us in the audience and are watching the webcast around the world, I would like to sincerely thank Chairman Walden, Ranking Member Eshoo, and all the members of the subcommittee for the opportunity to testify on this important issue. The Internet Society was founded in 1992 by many of the same pioneers who built the Internet, one who is sitting next to me. Since that time, the organization has served as a global resource for technically vetted, ideologically unbiased information about the Internet as an educator for technologists and policymakers worldwide, and as an organizer and driver of community-based Internet initiatives around the world. The Internet Society also serves as the organizational home for the Internet Engineering Taskforce whose mission it is to make the Internet work better. We produce high-quality relevant technical documents that influence the way people design, use, and manage the Internet. These technical documents include the standards, guidelines, and best practices that created and continue to shape the Internet today. The International Telecommunication Union's upcoming World Conference on International Telecommunications has rightfully drawn heightened attention from the global community as some ITU member states have proposed amendments to a key treaty, the ITRs, that could have far-reaching implications for the Internet. While the Internet Society has no voting role in the ITU process, we do participate as what is called a sector member. In that capacity, we have raised significant concerns that rather than enhancing global interoperability, the outcome of the WCIT meeting could undermine the security, stability, and innovative potential of networks worldwide. The Internet Society understands why some of the ITU member states are focusing on the Internet and its infrastructure. The Internet has fundamentally changed the nature of communications globally and many nations view those changes as falling under the auspices of the ITU. Some proposals to the WCIT stem from the very real economic pressure that developing nations face as they seek to update their national policy frameworks to allow them to engage fully in the global information economy. But we are not convinced that the international treaty-making process represents the most effective means to manage cross-border Internet communications or to achieve greater connectivity worldwide. We are concerned that some of the proposals being floated in advance of the December meeting are not consistent with the proven and successful multi-stakeholder model. And finally, we are concerned that the WCIT process itself, which severely limits meaningful nongovernmental participation, could create negative outcomes for the Internet. The Internet model is characterized by several essential properties that make it what it is today--a global, unified network of networks that is constantly evolving that has provided enormous benefits but enables extraordinary innovation and whose robustness is based on a tradition of open standards, community collaboration, and bottom-up consensus. As the Internet has flourished, Internet policy development at the global, regional, and national levels has continued to evolve to work harmoniously with the Internet to assure its ongoing development. This process has provided the capacity to cope with the necessary and fast-paced technological evolution that has characterized the Internet to date. In contrast to this approach, some WCIT submissions seek to apply old-line legacy telecommunication regulations to Internet traffic in a manner that could lead to a more fragmented, less interoperable global Internet for all. For example, proposals related to traffic routing, numbering, and peering would have significant impacts on the future growth of the Internet. But while we find strong cause for concern about the agenda of the WCIT meeting, there is no reason why it cannot produce thoughtful worthwhile policy developments that advance the mission of the ITU and the ongoing expansion of global communications without imposing dangerous and unnecessary burdens on the Internet. Many ITU member states, including the U.S., have shown that they understand the value of the Internet and its unique multi- stakeholder model. Those delegates are in a critical position to advance an agenda at WCIT that respects the Internet and its global contributions while continuing to support the pro- competitive policies that have been so successful since the ITRs were first negotiated in 1988. Working with allies from around the globe, the United States Government has an opportunity to help chart a productive course forward at WCIT and to ensure that the value of the multi-stakeholder model and a light-touch regulatory approach are highlighted. The Internet Society stands ready to play its part in this process and to assist the subcommittee in any way it can. Thank you very much for this opportunity. [The prepared statement of Ms. Wentworth follows:] [GRAPHIC] [TIFF OMITTED] 79558.041 [GRAPHIC] [TIFF OMITTED] 79558.042 [GRAPHIC] [TIFF OMITTED] 79558.043 [GRAPHIC] [TIFF OMITTED] 79558.044 [GRAPHIC] [TIFF OMITTED] 79558.045 [GRAPHIC] [TIFF OMITTED] 79558.046 [GRAPHIC] [TIFF OMITTED] 79558.047 [GRAPHIC] [TIFF OMITTED] 79558.048 [GRAPHIC] [TIFF OMITTED] 79558.049 [GRAPHIC] [TIFF OMITTED] 79558.050 Mr. Walden. Ms. Wentworth, thank you for your testimony. And we will go into questions now. And I want to go straight to you. You mentioned in your testimony there are other parts of the United Nations that have activities concerning Internet governance. If the ITU meeting is not the only place where this is being discussed, what other things are going on that we should be aware of? Ms. Wentworth. Yes, thank you for that question. I do think it is important that we put the WCIT in context. The WCIT is an extremely important event in 2012. It is a treaty-making conference but the discussion of Internet governance will not stop there. There are ongoing discussions within the United Nations framework in the Commission for Science and Technology for Development within the International Telecommunications Union and within the U.N. General Assembly that seek to take on these issues of Internet governance with a great deal of specificity. All of these discussions are things that we at the Internet Society are following carefully and we think that multi-stakeholder engagement and discussion of these issues over the next several years is going to be extremely important. Mr. Walden. Mr. Cerf, you seem to be weighing in there with a nodding head. Mr. Cerf. I am certainly in agreement with Ms. Wentworth. First of all, the ITU is not the only element in the United Nations that is interested in Internet matters. The point about the Committee on Science and Technology is one example; ECOSOC is another. There is a long list of players who see the Internet as a very fundamental part of the environment now and they would like very much to have some influence over it. I worry about even such activities as the Internet Governance Forum, which emerged out of the world summit on the Information Society. The reason it has been successful, at least up until now, is that it started as a multi-stakeholder activity but as responsibility for the subject matter under discussion in the IGF shifted from one body to another, the question about who controls the agenda now becomes a big issue. The process of involvement in the United Nations has one unfortunate property that it politicizes everything. All the considerations that are made, whether it is in the ITU or elsewhere, are taken and colored by national interests. As a longstanding participant in the Internet Architecture Board and the Internet Engineering Taskforce where we check our guns at the door and we have technical discussions about how best to improve the operation of the Internet, to color that with other national disputes which are not relevant to the technology is a very dangerous precedent. And that is one of the reasons I worry so much about the ITU's intervention in this space. Mr. Walden. There are some press reports out of this hearing already that would tend to say that Ambassador Verveer's comments mean there really isn't a grave threat to the Internet and that there aren't these serious threats on the table. Would you agree with that characterization or do you feel this is a very serious matter? Mr. Cerf. I am still very nervous, Mr. Chairman, about this process. I will make one observation that it is not just a matter of the voting question and the one nation, one vote. The substance of the changes or additions to the treaty are critical. And here we have somewhat more leverage I think. Those are not necessary just a matter of voting. I think Ambassador Gross will probably amplify on this, but the negotiations for the actual language probably gives more leverage to us than the actual voting process does. But I have to say, Mr. Chairman, that there is a notion in what is called chaos theory called the butterfly effect. The butterfly waves its wings in Indonesia and we have a tsunami somewhere else. I do worry that small changes can be used and interpreted---- Mr. Walden. Right. Mr. Cerf [continuing]. In ways that could be quite deleterious to the utility of the Internet. Mr. Walden. And Ambassador Gross, what strategies did you employ when you had the honor and opportunity to fend off international regulation of the Internet that the U.S. Government should follow now? Mr. Gross. Well, thank you very much. And if I may, before addressing that, I just want to echo exactly what Vint Cerf just said. And I think one of the keys here as we think about this is this is not about a discussion at WCIT about broad policies. That happens at conferences on a regular basis and are very important. And something that this chamber can particularly appreciate, the negotiations over our treaty text, language, language is important. Language has impact. And so what will be a real test for our negotiators and for all of us is to be careful as to the language so the language doesn't come forward and mean something today and mean something very different than the way in which, for example, Commissioner McDowell talked about where it morphs into something very difficult and something very dangerous. This is not an issue of the ITU secretariat. This is an issue for member states to negotiate and to be very, very cognizant about. With regard to strategies, I think the strategies have been--already some of them have been adopted by the current group. That is it is very important to be clear. One of the problems and one of the opportunities you always have in international negotiations is to find fuzzy language to cover up. One of the keys here because of the importance of the issue and because of the implications of the issue for the over two billion users of the Internet worldwide is to be very clear as to what it is the U.S. is interested and willing to discuss and to negotiate of which there are many things and those areas which are redlines, things for which we will not agree. And it is not a question of finding the precise language. It is yes; it is no. It is very, very binary in that sense. And I think that will be very clear. And the building of the coalitions as was discussed in the first panel I think is obvious and important and I am very confident we will be able to do that. Mr. Walden. I appreciate your answers to my questions, all the panelists. We will now go to the gentleman from Massachusetts, Mr. Markey, for 5 minutes. Mr. Markey. Thank you, Mr. Chairman, very much. So, Mr. Cerf, which countries are you most concerned about in terms of their agenda? Mr. Cerf. Well, as we heard earlier, the ones that are most visible right now in my view are Russia and China who have their names on a number of proposals. But others have come forward, surprising ones. Brazil, for example, and India have surprised me with their interest in intervening and obtaining further control. The others are the ones that you would normally expect. We hear from Syria, we hear from other repressive regimes, even those in Saudi Arabia, for example. Those who are threatened by openness and freedom of expression are the ones that are most interested in gaining control through this means. Mr. Markey. Um-hum. Mr. Cerf. There are other motivations, however, that also drive this whole process. The developing world has historically generated substantial revenue from telecommunication services, as I am sure you are well aware. The Internet has become the alternative to much of what had been the telecommunications environment and I see them looking for ways, adapting the earlier telecommunications settlement arrangements, interconnection arrangements and the like as a way of recovering revenue that they didn't have. So there are multiple---- Mr. Markey. Ambassador Gross mentioned this--give us one redline subject that we should never entertain? Mr. Cerf. I think two things in particular. I would never want to see any of the ITU-T standards being mandatory. They should stay in voluntary form. And second, I think we should run away from any kind of settlement arrangements or enforced interconnection rules that would interfere with the open and very private sector aspect of Internet connectivity. Today, it is a voluntary system. It grows biologically and it has benefitted from that. Mr. Markey. Is there an analogy here to the satellite system that allowed governments to just extract windfall profits in countries all around the world that ran totally contrary to what should be the policy, to ensure that every citizen has real access to a phone network? Mr. Cerf. This is an economic question of an engineer and I have this feeling you might deserve the answer that you got. To be honest, I think that we see a great desire to take advantage of the Internet in ways that damage the freedom and openness and the permission-less innovation which has allowed it to grow. To allow any rules that sequester this innovation and inhibit others would damage the future of the Internet dramatically. When you see new applications coming along, they come from virtually anywhere in the world. They don't all come from the United States, and it is important that we preserve that capability. Mr. Markey. Thank you. No, but I appreciate kind of the global nature that you bring to it, the butterfly effect in Indonesia here creating a tsunami in another place. Here in the United States we just say it is Mrs. O'Leary's cow that ultimately burns down the whole city, but that would be too American. You know, you want to give us the global view of where innovation can occur, where a disaster can emanate from in terms of the impact that it has upon the global Internet system. But that is who you are. You know, that is what this panel is really all about. Ambassador Gross, give us your one redline. Do you agree with Mr. Cerf or do you have another issue as well? Mr. Gross. I always agree with Vint but I think actually there are a number of redlines. Mr. Markey. Give me one and then I am going to go to Ms. Wentworth. Mr. Gross. Well, I think the number one redline is that there should be no top-down control of the Internet directly or indirectly associated with any international governmental institution, including the ITU. Mr. Markey. OK. And Ms. Wentworth, do you have one? Ms. Wentworth. We would certainly agree with the comments of Mr. Cerf with respect to making voluntary standards mandatory. That would have considerable impact on the engineering architecture that goes into the Internet. And we are also very focused on the definitions in the treaty. As we know, definitions will give you the scope and a number of the proposals to change the definitions would in fact clearly implicate the Internet in the treaty. Mr. Markey. Mr. Cerf, give us your 30 seconds. What do you want this committee to remember as we go forward over the next 6 months and over the next 6 years in terms of what we should be apprehensive about? Mr. Cerf. So you have already started. This hearing is a wonderful beginning. The proposed legislation speaking to this problem in a bipartisan--I am sitting here thinking bilateral-- bipartisan way---- Mr. Markey. It is so rarely used that, you know, I know why it is hard to come up with---- Mr. Cerf. Voicing your concerns to the Executive Branch also extremely important and making this visible around the world is also very important. So I think you have started that process and I am deeply grateful for it. Mr. Markey. Great, thank you. My time is expired. I apologize. Mr. Shimkus [presiding]. The gentleman's time is expired. I would like to recognize myself for 5 minutes. I mean, I really enjoy this discussion because it is when free nations give up their decision-making process to a world organization that is not totally defined to be free, then there should be credible concerns. And I think we are raising those today. We debate this issue about the U.N. We get asked by our constituents all the time about the role of the U.N. Should we be involved in the U.N.? Should we fund the U.N.? And I have tried to keep a balanced view where I haven't voted to leave the U.N. but I have been skeptical about the role it plays. So it is keep current funding, get reforms. Here are some of the things that the U.N. has done. Cuba was vice president of the United Nations' Human Rights Council and China, Russia, and Saudi Arabia also serve on that council. North Korea and Cuba serve as head of the Conference on Disarmament. Mugabe was just named a U.N. leader for tourism by the U.N. World Trade Organization. Iran sits on the U.N. Commission on the Status of Women and formerly chaired the Joint Board of the U.N. Development Program and the U.N. Population Fund. Saudi Arabia is a member of the Executive Board of U.N. Women. I am not making this up and you can't. But I mean that is a concern. And there has also been some international debate and discourse about having a world organization based upon shared values--democracy, freedom, rule of law--things that would make this process a little bit easier than trying to negotiate with totalitarian regimes who will not have the best interest of free discourse and exchange of views and ideas and values. So I appreciate you coming. I appreciate the raising of this concern and making sure that we are all in and prepared to keep this great architecture. I took a picture of you all when we started and I Tweet like a lot of people and, you know, kind of did the headline of the hearing, and I said if it is not broken, don't fix it. That system has worked. Obviously, there is some tinkering that some of you agree that must be done or is there not? Should we not touch it? Or if there is tinkering to be done, what should be done? Mr. Gross? Mr. Gross. Well, thank you very much. The answer is there are always opportunities to improve anything, except for my wife who is sitting behind me, of course. But instead, I think the key here is who does the tinkering and what the mechanism is? I think the genius of the Internet has been not only its decentralized nature but its multi-stakeholder processes for making decisions, bringing those with the best and the brightest ideas from wherever they are no matter what their positions are to be able to have a say and to make those decisions in a voluntary, bottom-up approach. That approach is the key. And I think the rub here, as you have heard this morning and early this afternoon has been concern about a top-down governmental set of ways of dealing with what are undoubtedly real issues for real people around the world, whether it is security, whether it is fraud. It is a variety of things. We know that there are many issues that need to be addressed. Who does the addressing? What those mechanisms turn out to be I believe are really the key to success in the way to deal with these issues. Mr. Shimkus. And I was going to ask all three but I want to get a different question to Mr. Cerf. Any tinkering, no matter how well intentioned, could it be flexible enough to keep the process moving forward or will tinkering itself really mess up the stakeholder involvement in the system we have today? Mr. Cerf. So I think several observations might be relevant here. The first one is that we can't run away from the United Nations because it is too important a body for us to ignore. So we have to participate in its processes. But we have another opportunity which I think we should emphasize and that is to encourage more international involvement among the various nation-states in the multi-stakeholder processes that are open and available to them. That includes the Internet Governance Forum, the Internet Engineering Taskforce, ICANN itself and all of its multi-stakeholder processes. I think if we make those increasingly attractive and effective that this could be a counterbalance and alternative to the focus of attention which is leading in the direction of U.N.-based activity. This would also reinforce what we have discovered over the last 15 years, which is that multi-stakeholder processes actually work. They do bring many different points of view to the table and they result in better policy. Mr. Shimkus. Thank you. And I appreciate it. I don't have time to ask my follow-up question to you but I apologize. Thank you for your testimony. And now, I would like to recognize the ranking member of the full committee, Mr. Waxman, for 5 minutes. Mr. Waxman. Thank you very much, Mr. Chairman. Mr. Cerf, earlier today, Ambassador Verveer stated that the U.S. is advocating for the WCIT conference report to be made available to the public. In addition to this proposal for increased transparency, what other specific measures can be taken to shine more light into the ITU's processes? Mr. Cerf. Well, the obvious possibility would be to open this process up to other stakeholders, which is not a typical conclusion one reaches in international agreements. But it strikes me--again, reflecting back on our written successes with multi-stakeholder processes--that transparency and openness produces much better results. Now, whether anyone in the current governmental world could be persuaded of that, I don't know. But I am a great advocate of trying to include civil society, the technical world, the private sector in matters that will have a very direct impact on them. So once again, publication of proposals and involvement of other stakeholders would be very attractive. Mr. Waxman. Well, I would think it is critical for the U.S. and other countries that have seen the positive impact of the Internet on their economies to highlight to the ITU participants and other stakeholders of potential negative consequences of the regulation of the Internet on the world's economy. But what would be the role for the private sector in this process? How would they participate? Mr. Cerf. So the private sector actually operates most of the Internet. I don't know what the numbers are but it probably exceeds 90 percent. So in some sense, no matter what we do, no matter what anyone says, it is the private sector that operates this entity and its actions in a sense determine what kind of Internet we all have. So my belief is that we have an opportunity here to empower the private sector to engage in policy-making which does not have an avenue to do today, at least not very effectively. For example, you will hear the ITU say, well, you could be a sector member. I think Ms. Wentworth might agree with me that even as a sector member having paid your dues, you don't always either get to participate or even have, you know, current information about what is under debate. So once again, I think openness is going to be our friend here but we have to advocate strongly and loudly for it. Mr. Waxman. Ms. Wentworth or Mr. Gross, do you have any additional comments or suggestions to increase the transparency of the ITU process? Ms. Wentworth. Well, the Internet Society has certainly been an advocate of opening up this process for the WCIT in general, the Internet policy-related discussions that are happening within the United Nations more broadly, we think that the discussions can only benefit from more transparency. We come from the technical community and we look at some of these proposals and think that there is a lot of that could be said about the technical implications of what is being proposed. How do networks actually work? And would these proposals even be consistent with the architecture that we are trying to keep in place? And the answer is no in many cases. But that voice is not heard in the current process. We speak up when we can but we have, even as a sector member, very limited opportunities to engage. Mr. Waxman. Mr. Gross? Mr. Gross. I think there are two sort of direct things. One is we should continue to advocate for other member governments to open up their domestic processes to allow for greater participation. The U.S. has greatly benefitted in terms of our negotiation but also our decision-making by the openness that we have always traditionally had and we want to continue to encourage that of others. I think also at its core the problem here is that the ITU is by definition and intergovernmental organization. Only governments have votes. And so, ultimately, part of the question really is this issue is not a big issue when you deal with certain sets of issues, but when you deal with Internet issues, for example, that at their core are about over two billion people and their access to information, those are the ones that sort of call for the question not only of transparency but also where the lines are about what the ITU should be focusing on and what it should not be focusing on. I think that is where a lot of the issues can be resolved. Mr. Waxman. Well, thank you very much. I yield back my time. Mr. Shimkus. The gentleman yields back his time. The chair now recognizes Ms. Christensen for 5 minutes. Mrs. Christensen. Thank you, Mr. Chairman. And thank you for your testimony and for your answers. Mr. Gross, in Ambassador Verveer's testimony he stated--and all of you voiced the same concern--that allowing governments to monitor and restrict content or impose economic costs on international data traffic are of particular concern to the United States. We have talked a lot about the monitoring and restricting of content but could you share with us your coalition's views on the proposals regarding imposing the economic clause on international data traffic? Mr. Gross. Sure. I think it will come as no surprise to anyone that those are critically important issues. There are a number of different pieces of that. It is not just about the fact that it may change from a system in which there is voluntary market-driven contractual decisions made to exchange traffic into one for which there are some proposals to have some top-down regulatory regime akin, as Vint Cerf said, to the old settlements and accounting rate systems of the old telephone system. That is certainly a substantial concern and should be a substantial concern to everyone. But also it extends to the issue of economic regulation and control about the issue of innovation generally throughout the Internet ecosystem, the ability--as Vint talked about--of innovations and changes and new technologies and new applications coming from anywhere, from anyone and the ability for all of us to benefit from that. And ultimately, all of that often boils down to one of I think the great core issues for all of us, which is the seamless flow of information, the ability of information whether it is commercial, political, economic, social to be able to flow seamlessly across the networks in ways that benefit the global community. Mrs. Christensen. Thank you. Go ahead. Mr. Cerf. I wonder if I could---- Mrs. Christensen. Sure. Mr. Cerf [continuing]. Amplify on this just if you would permit. There is this notion of nontariff trade barrier. I am sure you are very familiar with that. What I worry about is that the insidious effect of putting in detailed rules that amplify former telephone practices and projecting those into the Internet has the potential to destroy this sort of permission- less innovation but it also has the possibility of destroying potential markets. This is not just an American issue. Mrs. Christensen. Right. Mr. Cerf. We care about it because at Google we are a global operation and we want to reach everybody with our products and services. But the inverse is true. Anyone in the world should be able to reach anyone else in the world with a new product and a new service. Countries that choose to go away from that kind of openness are actually harming themselves and their own opportunities to exploit the Internet for improved GDP growth. And I worry greatly about that. Mrs. Christensen. Thank you. Well, just to continue with you a minute, Mr. Cerf, many countries do struggle with the problem of bringing broadband access to their citizens and look to the International Telecommunications Union for solutions to that problem. And you talk about this briefly earlier. How should we respond to their legitimate concerns? What can the U.S. Government do and what can private parties do? Mr. Cerf. So this is a wonderful question. Thank you so much for asking it. Two observations. First of all, the ITU, through its D, the Development Organization, has actually contributed to the growth of the net. I am a member of the Broadband Commission that seeks to find ways to expanding broadband access to the Internet all around the world. In that sense, a tip of the hat to ITU-D for that work. At Google, we found many opportunities in the private sector to help expand access around the world. We take our equipment which we don't need anymore, we donate it to organizations like the Network Startup Resource Center at the University of Oregon. They repurpose that equipment. They deliver it to people especially in the Southern Hemisphere. Then, they train them. Then, they get books and documentation from Tim O'Reilly's publications and they set them up to actually build and operate pieces of the Internet which now get connected together to the rest of the global system. There are endless opportunities here for the private sector to engage. Anything that you and the committee can do to help make that easier to do would be most helpful. Legislation that makes it easier for us to repurpose equipment and to do training overseas would be very, very helpful. Just to advocate for that would be a good thing. Mrs. Christensen. Well, thank you. I am out of time. Mr. Shimkus. The gentlelady's time is expired. We want to thank you for appearing. I would just end by saying totalitarian regimes may not care if they have systems that work, and so as you have totalitarian regimes involved in international negotiations, they may want a system that doesn't work across international lines and stuff, just a cautionary note on my part. Also, I need to say that the record will remain open for 10 days. You may get additional questions submitted to you by members of the committee. If you could reply to those if they come, we would appreciate that. Again, we appreciate your time being here. And this hearing is now adjourned. 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