[House Hearing, 113 Congress]
[From the U.S. Government Publishing Office]

BUILDING ON THE WIRELESS REVOLUTION: OPPORTUNITIES AND BARRIERS FOR
SMALL FIRMS

=======================================================================

HEARING

before the

COMMITTEE ON SMALL BUSINESS
UNITED STATES
HOUSE OF REPRESENTATIVES

ONE HUNDRED THIRTEENTH CONGRESS

SECOND SESSION

__________

HEARING HELD
FEBRUARY 11, 2014

__________

[GRAPHIC] [TIFF OMITTED] TONGRESS.#13

Small Business Committee Document Number 113-055
Available via the GPO Website: www.fdsys.gov

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HOUSE COMMITTEE ON SMALL BUSINESS

SAM GRAVES, Missouri, Chairman
STEVE CHABOT, Ohio
STEVE KING, Iowa
MIKE COFFMAN, Colorado
BLAINE LUETKEMEYER, Missouri
MICK MULVANEY, South Carolina
SCOTT TIPTON, Colorado
JAIME HERRERA BEUTLER, Washington
RICHARD HANNA, New York
TIM HUELSKAMP, Kansas
DAVID SCHWEIKERT, Arizona
KERRY BENTIVOLIO, Michigan
CHRIS COLLINS, New York
TOM RICE, South Carolina
NYDIA VELAZQUEZ, New York, Ranking Member
KURT SCHRADER, Oregon
YVETTE CLARKE, New York
JUDY CHU, California
JANICE HAHN, California
DONALD PAYNE, JR., New Jersey
GRACE MENG, New York
BRAD SCHNEIDER, Illinois
RON BARBER, Arizona
ANN McLANE KUSTER, New Hampshire
PATRICK MURPHY, Florida

Lori Salley, Staff Director
Paul Sass, Deputy Staff Director
Barry Pineles, Chief Counsel
Michael Day, Minority Staff Director

C O N T E N T S

OPENING STATEMENTS

Page
Hon. Sam Graves.................................................. 1
Hon. Nydia Velazquez............................................. 2

WITNESSES

Mr. Michael Feldman, Vice President of Engineering, BigBelly
Solar, Newton, MA.............................................. 3
Mr. Brian Marshall, Owner, Marshall Farms, Maysville, MO,
testifying on behalf of Missouri Farm Bureau Federation and the
American Farm Bureau Federation................................ 5
Mr. Leo A. McCloskey, Senior Vice President, Technical Programs,
Intelligent Transportation Society of America (ITS America),
Washington, DC................................................. 7
Mr. Darrell West, Vice President, Governance Studies, Director
Center for Tech Innovation, Brookings Institution, Washington,
DC............................................................. 9

APPENDIX

Prepared Statements:
Mr. Michael Feldman, Vice President of Engineering, BigBelly
Solar, Newton, MA.......................................... 24
Mr. Brian Marshall, Owner, Marshall Farms, Maysville, MO,
testifying on behalf of Missouri Farm Bureau Federation and
the American Farm Bureau Federation........................ 30
Mr. Leo A. McCloskey, Senior Vice President, Technical
Programs, Intelligent Transportation Society of America
(ITS America), Washington, DC.............................. 39
Mr. Darrell West, Vice President, Governance Studies,
Director Center for Tech Innovation, Brookings Institution,
Washington, DC............................................. 43
Question for the Record:
Question to Mr. Michael Feldman from Hon. Richard Hanna...... 52
Answer for the Record:
Answer from Mr. Michael Feldman to Hon. Richard Hanna........ 52
Additional Material for the Record:
CCIA - Computer & Communications Industry Association........ 53

BUILDING ON THE WIRELESS REVOLUTION: OPPORTUNITIES AND BARRIERS FOR
SMALL FIRMS

----------

WEDNESDAY, FEBRUARY 11, 2014

House of Representatives,
Committee on Small Business,
Washington, DC.
The Committee met, pursuant to call, at 1:00 p.m., in Room
2360, Rayburn House Office Building. Hon. Sam Graves [chairman
of the Committee] presiding.
Present: Representatives Graves, Chabot, Luetkemeyer,
Herrera Beutler, Collins, Velazquez, Chu, Payne, and Meng.
Chairman GRAVES. Good afternoon, everyone. We will call
this hearing to order.
I want to thank our panel of witnesses for taking the time
out of their full-time jobs to make the trip to Washington for
this very important hearing.
In today's hearing we are going to examine one of the most
dynamic and innovative industries in the United States--
wireless technology. The wireless industry continues to grow at
an exponential pace, largely due to the constant state of
innovation in the sector. Now, home appliances can be operated
by smartphone, farmers can monitor soil conditions from afar,
and vehicles can nearly drive themselves. These are just a few
examples of the innovations being developed and used by small
firms with wireless technology.
The increase in connectivity of devices to each other,
commonly referred to as the Internet of things, has the
potential to be a game-changer. According to a McKenzie study,
over one trillion things could be connected through technology
by 2025, resulting in a potential economic impact of $36
trillion. This means thousands of new jobs created by small,
innovative firms, as well as a variety of industries, and new
tools for small businesses to improve their operations.
While it is easy to understand the benefits of this
emerging industry, these technologies depend on sufficient
access to spectrum and reliable wireless network to operate
effectively. As the demand in wireless services continues to
grow, the Federal government must work to reallocate unused
spectrum to make it more available to wireless broadband and
innovative devices like these. It is also important to note
that these opportunities would not be available it not for the
investment in broadband infrastructure by private sector
carriers.
To bring these products to the market, small businesses
must navigate an assortment of challenges, including financing,
marketing, and regulations. We are interested to learn more
about these innovations, as well as the barriers to developing
and using these technologies that small firms and farmers are
experiencing.
Again, I want to thank all of our witnesses for being here
today. I now recognize Ranking Member Velazquez.
Ms. VELAZQUEZ. Thank you, Mr. Chairman.
Wireless connectivity is transforming our daily lives by
revolutionizing health care, education, public safety, and
nearly every other economic sector. With almost two-thirds of
cell phone users now utilizing their phones to shop, conduct
business, or surf the web, it comes as no surprise that the
wireless industry is expected to soon be valued at $25 billion.
Such rapid industry growth will account for an estimated
500,000 jobs. It should also come as no surprise that
entrepreneurs are among the most technology-savvy consumers.
Small firms increasingly find innovative ways to access and tap
markets through low cost voice and videoconferencing. Many
small businesses are utilizing social media to interact with
consumers and market their products and services. Not only is
this technology helping small firms reach new customers, but
the very nature of office efficiency has been changed. Novel
innovations empower business owners to track productivity
gains, reduce paperwork, and better meet customer needs. In
fact, wireless technology has become so central to business
operations that 65 percent of small firms say they will
struggle to survive without it.
The most successful businesses are not just the ones
adopting new products and software, but they are also those
developing new technologies. In just a few short years,
developers have created millions of apps, and this number
continues growing exponentially. The vast majority of these
designers and developers are small firms. One study found that
78 percent of developers are small businesses with many having
fewer than 10 employees.
Despite recent gains, the wireless sector faces several
challenges to continued growth, such as regulatory uncertainty,
cybersecurity, privacy issues, and capital infusion. The most
contentious and immediate obstacle to wireless innovation
appears to be access to sufficient spectrum. Spectrum capacity
is necessary to deliver high speed, high quality communications
to consumers and businesses of all types but this ever-
increasing demand for mobile broadband is causing a spectrum
crunch.
As technology improvements alone cannot solve this problem,
changes to spectrum policy will likely need to be addressed.
One such issue is ensuring the FCC conducts spectrum auctions
in a manner that is fair for small firms. Balancing the needs
of all parties is important for guaranteeing industry
competition. For this reason, I applaud Chairman Wheeler's
announcement to postpone the auctions until they can develop an
adequate process that meets objectives like this.
At today's hearing, we will also touch on the use of
unlicensed spectrum and its role in sparking innovation. Unlike
licensed spectrum, unlicensed spectrum is available to a wide
audience at relatively lower costs. This valuable
communications resource is estimated to generate $15 billion a
year for the U.S. economy. As it is a critical platform for
entrepreneurs to use in developing their products, I welcome
making more of this spectrum available to foster yet more
entrepreneurship and innovation. Just as today's hearing will
focus on small business innovation in the mobile technology
industry, it will also give us a chance to hear the challenges
these businesses raise and their thoughts on the spectrum
crunch. The insights gathered today will help ensure the needs
of small firms are taken into account in future FCC spectrum
auctions. I do not think it is an overstatement to suggest our
country's continued competitiveness in the technology sector
depends on this process functioning fairly and smoothly.
In that regard, I thank the witnesses for contributing to
this valuable discussion, and I yield back the balance of my
time.
Chairman GRAVES. Thank you.
Our first witness is Michael Feldman. He is a vice
president of Engineering with BigBelly Solar Company. BigBelly
develops and manufactured solar-powered trash cans with sensor
technology for efficient waste management. They were recipients
of Verizon's Powerful Answers award at the 2014 Consumer
Electronic Show for their work in sustainability.
Thanks for being here, Mr. Feldman.

STATEMENTS OF MICHAEL FELDMAN, VICE PRESIDENT OF ENGINEERING,
BIGBELLY SOLAR; BRIAN MARSHALL, OWNER, MARSHALL FARMS; LEO
MCCLOSKEY, SENIOR VICE PRESIDENT, TECHNICAL PROGRAMS,
INTELLIGENT TRANSPORTATION SOCIETY OF AMERICA; DARRELL WEST,
VICE PRESIDENT, GOVERNANCE STUDIES, DIRECTOR OF TECH
INNOVATION, BROOKINGS INSTITUTION

STATEMENT OF MICHAEL FELDMAN

Mr. FELDMAN. Thank you, Chairman Graves
Chairman Graves, Ranking Member Velazquez, and Committee
Members. My name is Michael Feldman, and I am vice president of
Engineering at BigBelly Solar.
BigBelly Solar was founded in Newton, Massachusetts, with
the mission of reducing CO2 emissions from gas-hungry garbage
collection vehicles by eliminating unnecessary miles driven. A
standard garbage truck gets three miles per gallon and in the
United States alone, with an estimated 180,000 garbage trucks
traveling the roads, they collectively consume over one billion
gallons of fuel while contributing 18 million tons of CO2 into
the atmosphere each year. That is the equivalent usage of an
Exxon Valdez oil spill every four days, and this does not
include the congestion and nuisance they cause amongst our city
streets and roadways. By reducing, or even eliminating,
unnecessary driving miles, we can significantly cut this usage
pattern. As we like to remind people, the cheapest and cleanest
mile is the one never driven.
Manufactured in Lexington Kentucky, the BigBelly Waste and
Recycling System provides a unique combination of information
technology software, solar power, and on-site compaction at
public space locations. By compacting the waste, which
increases storage capacity, we are left with a trash can that
does not require emptying as often. In fact, a BigBelly is
capable of holding five times more waste and is more
intelligent than traditional trash cans. This reduces
collections on average from twice a day to approximately once
every other day. Furthermore, utilizing solar energy to power
the compaction mechanics allows a BigBelly to be placed
virtually anywhere without the need to connect to the electric
grid.
BigBelly has been an early champion and recognized leader
in the growing machine-to-machine (M2M) marketplace. A
significant part of the BigBelly solution incorporates wireless
technology to transmit data from the trash receptacles to a
central database for processing. Users of the system access
this data from a simple and easy to use web application that
provides important information, including which cans need to be
emptied, historical reports and analytical reports. There is
even a mobile application for smartphones and tablet devices.
This technology used is very similar to that found in
modern cell phones today, only instead of calling another
person, the BigBelly calls another machine. Here is how it
works. Each BigBelly trash compactor is equipped with a series
of electronic sensors, solar panel, a battery, and an internal
computer. The solar panel is used to keep the battery charged
which drives the compaction mechanisms. A compaction is
triggered when the trash level inside the bin crosses a sensor
beam. As more waste is deposited, this process continues until
the internal computer determines the bin is full. The computer
will then use the wireless network to transmit the fullness
data to a central computer system, where users can see that the
bin needs to be emptied. Trash cans have never been smarter.
Today, you can find a BigBelly in every state in the United
States and exported to over 40 countries around the world. Our
product can be seen in cities and towns, both large and small,
colleges and universities, military bases, national parks, and
government agencies.
Like all small businesses, we are not without our share of
challenges. We are a small company of 40 employees. For any
business wishing to connect wireless devices, telecommunication
industry certification costs upwards of $30,000 before they
will allow new devices to connect to their network. While we
certainly are in full agreement and have no issue with the
intent and protection the carriers require, in many instances
we found these tests were aimed at cell phone-style devices,
not M2M devices, such as BigBelly. After all, you cannot hold a
BigBelly up to your ear.
Likewise, federal assistance for energy efficiency
community block (EECB) grants has run out. This is most
unfortunate as it enabled municipalities to participate in new
green technologies, such as BigBelly, that have proven
dividends not only to the town's balance sheets and budgets,
but to the environment as well. Your sponsorship, endorsement,
and legislation assisting environmental and wireless technology
products like BigBelly and creating new or similar programs
such as the EECB will benefit all Americans. Furthermore, cash
strapped cities and towns are unable to apply for and receive
solar energy credits for the deployment of a BigBelly solar
system.
As explained earlier, our use of solar and wireless
technology allows the BigBelly product to operate out of the
reach of the electric grid. However, solar energy grants only
apply to products that connect to this grid. Given this
positive dollar savings, environmental, and economic impact
this class of product has, we ask the Committee to research and
investigate how these solar credits are dispersed and to
implement changes that could incorporate new solar and wireless
technologies like BigBelly that would enable your cities and
towns to receive these credits.
In closing, I would like to thank the members of the Small
Business Committee for allowing me the opportunity to present
the BigBelly story and provide insight into how we are using
wireless technology to save real budget dollars and make a
tangible impact on the environment one trash can at a time.
Chairman GRAVES. Thank you, Mr. Feldman.
Our next witness is Brian Marshall. Brian is a full-time
family farmer from DeKalb County, Missouri. Together with his
family he grows corn, soybeans, and wheat. Brian uses a variety
of wireless technologies to increase the efficiency and
productivity of his operation, and he is chairman of the Young
Farmers Committee with the Missouri Farm Bureau. He is
testifying on behalf of the Missouri Farm Bureau Federation and
the American Farm Bureau Federation (AFBF).
Thanks for being here, Mr. Marshall.

STATEMENT OF BRIAN MARSHALL

Mr. MARSHALL. Chairman Graves and Ranking Member Velazquez,
Members of the Committee, thank you for the opportunity to
testify on behalf of the American Farm Bureau Federation and
the Missouri Farm Bureau Federation.
I am here today to discuss how the advancement of
technology is affecting modern agriculture. My farm is about an
hour north of Kansas City in Maysville, Missouri. Both of my
grandfathers farmed in the Maysville area, as does my father
today.
I am going to share with you about some of the technologies
we are using on our farm, and I hope to offer some perspective
from my fellow Farm Bureau members as well.
When I came back to our family farm, I did not envision
being the new tech guy. That role has become a large part of my
responsibilities as our farm and the use of technology has
grown. On our farm, we use GPS on three tractors, two combines,
and the application rig we use to apply crop protection
products. This rig I mentioned is also equipped with auto
steer. Allowing a computer to guide the machine increases
accuracy and allows me to more closely monitor its performance.
Our rig is also equipped with a new method of application that
uses a computer to manage the droplet size based on the product
being applied. This keeps a consistent pattern at any speed and
the chances of offsite application are greatly reduced.
The most important piece of equipment on our farm is the
planter because it is very difficult to fix a poorly planted
crop. We have added aftermarket parts, such as a precision
monitor, to track everything from seed placement to the amount
of force that is used to put the seed in the ground. I also
have an iPad that is synced to my planter monitor, running
software that allows me to do real-time mapping and data
analysis right there in the field.
When any farmer plants an irregular-shaped field, the
potential for overplanting goes up. As planters have increased
in size, so, too, has the chance for using too much seed in
these fields. To reduce this problem on my farm, we have
equipped our planter with row point clutches. The clutches use
a GPS signal to shut off when crossing into any part of the
field that has already been planted. Not only does this save
seed cost, but it helps eliminate yield loss from plant
overcrowding in double-planted areas.
I mentioned to you earlier that three of our tractors are
equipped with auto steer. At $10,000 per machine for an economy
system, it is not cheap to put auto steer on a tractor. All of
the technology we have discussed did require a sizable
investment. However, we feel that through the savings in input
costs and operator fatigue, we have more than paid for these
investments.
Recently, Dad and I met with an agronomist to address what
is known as ``prescriptions'' for our farm. Many farms across
the Midwest have soil types and yield potential that vary
widely. Our land is no different. With the technology available
today, we can merge several years' worth of data to get a more
complete picture of what is going on and then make more
accurate decisions for every farm and every acre on that farm.
Not that long ago, it took careful planning and a support
team to do tedious tests just to generate a fraction of the
data that we are able to get access to right now from the
field, even in a combine. The new technology will undoubtedly
help make farmers more efficient and allow the use of fewer
inputs while increasing their overall level of output. The
amount of real-time information gained at a micro level is a
big change that has taken place within the last two years and
is of concern to our organization. We refer to this issue as
``big data.'' From Farm Bureau's perspective, one of the most
important issues related to big data goes directly to property
rights and who owns and controls this data. In addition, since
the farmer's information is valuable to these companies,
farmers should have a say in and be compensated when their data
is sold.
There is a real need for farmers to protect their data and
make sure they bargain wisely as they share their data with
suppliers and companies who desire to access their information.
AFBF is working to convene formal discussions with all
interested parties with a goal of security cooperation on this
emerging issue among farmers, companies, and other production
chain stakeholders.
The future looks very impressive in terms of technological
advancement in agriculture, but we should not overlook the gaps
that exist, particularly in rural areas. I find it ironic that
I can upload yield data in real-time from my combine to the
cloud as I am shelling corn, yet it can be difficult to watch
local programs on television or have a cell phone conversation
in my area.
I encourage the Committee to share these concerns and the
policies adopted by my fellow Farm Bureau members with the
Federal Communications Commission since they affect farmers and
other small business owners in rural areas as well.
As I have learned by attending meetings and conferences,
what works on my farm may not necessarily be practical for my
neighbor. America's farms and ranches vary in size and scope,
and farmers need a variety of tools in the toolbox. I do not
expect you to share my level of enthusiasm for real-time data
collection, but I hope you are excited about farmers' use of
technology to increase efficiencies, better manage their
inputs, and ultimately, to help us better serve consumers from
my hometown all the way to New York.
Thank you.
Chairman GRAVES. Thanks, Brian.
Our next witness is Leo McCloskey, senior vice president at
the Intelligent Transportation Society of America. Leo recently
joined ITS America from a small firm, Airbiquity, an industry
leader in connected vehicle technology. He has nearly 20 years
of experience in this industry, including leadership positions
in multiple small technology firms.
Thanks for being here.

STATEMENT OF LEO MCCLOSKEY

Mr. McCLOSKEY. Thank you. Chairman Graves, Ranking Member
Velazquez, and Members of the Committee, thank you for the
opportunity to testify about the merging of transportation and
wireless network connectivity, how it benefits the overall
economy and provides opportunities for small business.
I am honored to share my views on behalf of the Intelligent
Transportation Society of America, which brings together public
agencies, private industry, and academic experts to advance
technology solutions to the nation's transportation challenges.
More than half of our nearly 500 members are private sector
companies, including major automakers, high tech, telecomm,
tolling, and infrastructure firms, as well as entrepreneurial
small companies who are propelling innovation forward in
transportation.
I would like to speak with you about the wireless
technologies in two distinct areas. The first area is the
importance of transportation technologies for businesses of all
sizes and why building smart technology into the nation's
transportation system is a smart investment. The second area
pertains to technology innovations in transportation services,
which are being driven by entrepreneurs and small businesses.
The performance of our nation's transportation system is
critical to the overall health and competitiveness of our
economy. The objective of a transportation system, especially
our national one, is to make the journey from origin to
destination as efficient as possible, whether it be for a
product or a person. Predictability in transparency in the
transportation journey and across the supply chain is essential
for businesses to adequately plan their operations. Unexpected
delays in shipping and receiving costs money and jobs. As we
have all experienced, our national transportation system is
pretty darn congested. According to the Texas A&M
Transportation Institute, the annual financial cost of
congestion is over $120 billion a year, wasting more than 5.5
billion hours and $3 billion in fuel costs, while pushing an
additional $56 billion pounds of emissions into the atmosphere.
While much of the investment required to restore our system
will go towards roadways, bridges, and public transit, nearly
every new transportation project should also contain a
significant technology component. Research has shown that
investments in technology from adaptive signals that control
traffic to electronic toll collection have a greater return on
investment than traditional infrastructure projects, while
providing a safer, more efficient transportation network for
businesses and the traveling public. For example, a small
business like Lifespan Technologies, which is in Georgia, has
developed wireless sensors that provide a detailed indication
of bridge infrastructure health and can direct engineering
activity to where it is most needed. Such technology pinpoints
problems while removing the guesswork that comes with only
visual inspections.
Another small business driving the transportation
technology industry forward is Savari Networks in California,
which supplies the wireless technologies enabling cars to
communicate with other cars, as well as the surrounding
transportation infrastructure which is intended to prevent
crashes. They are now expanding into Detroit and expect to
double in employee size this year.
Small businesses like Streetline, Park Mobile, and
Parkopedia, are busy at work hiring staff to help rid the world
of wasted time trying to locate parking. Using wireless
technologies, each brings innovation to a very common problem
that creates an average of 30 percent of city traffic
congestion.
And finally, I would be remiss without noting that many
entrepreneurs are now expanding the shared ride market.
Companies like Uber, Car2Go, Lyft, and RideScout are making it
simpler and cheaper to go from one place to another. There are
jobs in software development and service operations in all of
these companies, and there are real supply problems they are
solving--the efficient movement of people from origin to
destination.
But there are also many drivers--hard-working, licensed
drivers--who can now operate as independent businesses, as
small business owners and operators. If we consider our
nation's demographics over the coming decades, providing
sensible transportation to a growing segment of the population,
one which would still benefit from mobility services, as well
as from much-reduced risk to themselves and others while in
mobility, it would seem an industry worth encouraging. The key
challenge though is collecting accurate, real-time data about
the operations of the transportation system in a manner that
maintains anonymity and advances the deployment of
transportation technology.
As you can imagine, the data from a communicative
transportation infrastructure is valuable to many parties. For
example, states and cities need better data to manage traffic
and target investments to where the needs are greatest. Fleet
operators and shipping managers could use the data to
dynamically adjust routes and better maintain on-time
performance, and first responders could use the data to avoid
route congestion or gain traffic signal priority.
In short, data creates opportunity and the likelihood of
more jobs, making investments in intelligent transportation
systems a very smart investment for all parties.
Thank you again for the opportunity to testify, and I look
forward to answering your questions.
Mr. LUETKEMEYER. [Presiding] Thank you, Mr. McCloskey.
And we will have the ranking member introduce our next
guest.
Ms. VELAZQUEZ. Thank you, Mr. Chairman.
It is my pleasure to introduce Mr. Darrell West, vice
president and director of Governance Studies and founding
director of the Center for Technology Innovation at The
Brookings Institution. He also holds the Douglas Dillon Chair
of the Institution. His current research focuses on technology,
mass media, and public sector innovation.
Prior to Brookings, Mr. West was the John Hazen White
professor of Political Science and Public Policy and director
of the Taubman Center for Public Policy at Brown University.
Welcome, and thank you for being here.

STATEMENT OF DARRELL WEST

Mr. WEST. Thank you very much, Chairman Graves, Ranking
Member Velazquez, and other Members of the Committee. Thank you
for the opportunity to testify here today.
So as you have heard from my fellow witnesses, wireless
communications are growing dramatically and are vital for
economic development, health care, energy, agriculture,
transportation, and a number of other areas. I have already
learned something new here today. I did not realize that we had
smart trash cans. I could use a few of those in my D.C.
neighborhood, so I think that is a good idea.
There are tremendous opportunities for small businesses in
a number of different areas if we can overcome the obstacles
that currently exist. Small firms face a number of different
problems in the areas of regulation, spectrum availability,
infrastructure, and access. But there are several steps that we
can undertake that would make a big difference for small
businesses. Perhaps the most important issue to address is the
question of spectrum availability. According to the FCC, we
need a minimum of 300 megahertz for mobile technology over the
next five years, and 500 megahertz overall, including both
mobile and other uses of spectrum, in order to accommodate the
growing use of smartphones, tablets, and mobile broadband.
We need a balanced spectrum policy that includes both
licensed and unlicensed spectrum. Currently, there is a
mismatch between spectrum supply and demand. We need market-
based auctions for reallocating scarce resources in spectrum
auctions. There are a number of organizations, both public and
private, that are sitting on unused spectrum, and so we need to
develop mechanisms to reallocate them to higher priorities.
We know that the FCC currently is working on specifications
for the upcoming auction. We recommend that legislators should
make sure that small businesses have a fair shot at competing
for unused spectrum, and also that entrepreneurs from diverse
walks of live have an opportunity to bid on the spectrum. We
think that unlicensed spectrum should be an important part of
what we need to emphasize here. There currently are a number of
innovative small business services that make use of unlicensed
Wi-Fi. Consumers can access a wide range of digital services at
coffee shops, in airports, and through business establishments
around the country.
According to a SYSCO study, 55 percent of all Internet
protocol traffic is expected to run over Wi-Fi networks by
2017. A number of Internet service providers are moving their
service delivery to Wi-Fi hotspots, and so therefore, improving
availability to unlicensed spectrum through the 5 gigahertz bin
will alleviate some of the current spectrum.
There also is underutilized bin in the 3.5 gigahertz band.
It is possible to turn some of this low power segment into a
citizen's broadband service. Right now it is deployed for naval
radar utilization, but it could be used for civilian purposes
in geographic areas where the Navy does not operate. And so
this is an example of spectrum repurposing that would allow
people to take much more effective use of those networks.
We need to make more efficient use of existing spectrum. We
need to determine ways to take advantage of the spectrum that
we have. There have been advances in cognitive radio
applications that are designed to make more efficient use of
current resources. Scientists are working on ways that allow
multiple, noninterfering uses of various bandwidths.
We need infrastructure improvements. There are new
applications in a variety of areas that require high speed
mobile broadband. We need to improve our data sharing networks
and promote wireless connections that take advantage of these
new developments. We also need to encourage local communities
to streamline the approval process for building new cell towers
and laying fiber optic lines because right now communities have
a wide range of different rules depending on the area.
The last point I will make is we need to encourage higher
broadband adoption among underserved populations. About 30
percent of Americans lack home broadband access, and for these
underserved populations there are a variety of things that we
should do to improve adoption. We could adopt digital literacy
programs, improve market competition to drive down consumer
costs, and develop outreach programs designed to help bridge
this digital divide. So with these actions, I think both
consumers and small businesses would have better opportunities
to gain the benefits of the mobile economy.
Thank you very much.
Mr. LUETKEMEYER. Thank you very much.
With that, we will begin the questions with Mr. Collins. He
has five minutes.
Mr. COLLINS. Thank you, Mr. Chairman.
Mr. Feldman, I am really--by the way, thank you all for
coming today. I am kind of intrigued by your product. How long
have you been making it?
Mr. FELDMAN. BigBelly actually started in 2003, and first
started really getting traction in the City of Philadelphia, I
believe, was the first major deployment, and that was around
2008.
Mr. COLLINS. So is it one size or do you have multiple
sizes?
Mr. FELDMAN. What there is, we call it a station. There is
a mailbox-sized trash compactor. The compactor does the
compaction, obviously. And on the recycler side there is
actually sonar inside that can sense the height of the trash.
Either of those can trigger a fullness notification.
Mr. COLLINS. But is it a one-size trash can?
Mr. FELDMAN. Yes. It is a 30-gallon trash bin and it holds
150 gallons of waste.
Mr. COLLINS. Now, sometimes you have garbage trucks that
have the arms that pick it up and dump it. Could you do that or
does it have to be manually?
Mr. FELDMAN. Today it is manual. They unlock, open up a
door. It is an enclosed system. And they open up a door. The
collector takes it out, picks up a bag, puts it in the truck
like you would normally see.
Mr. COLLINS. Is that sometimes an issue with some cities
that do the automatic?
Mr. FELDMAN. We have requests for lift arm capabilities and
that is something that we are currently in development working
on.
Mr. COLLINS. So without giving away trade secrets, what is
the ballpark price on one of your units?
Mr. FELDMAN. $2,995. $2,995 for the compactor.
Mr. COLLINS. Did you see a fall off--if there were the
credits as you talked about that have now expired, what would
be a typical credit and how much of an incentive was that for
the municipalities?
Mr. FELDMAN. Back in the day it was a very large incentive
to get our business going and to be what I would call a market
maker. I do not know that I am qualified to answer what impact
that would have, and so I can defer that question and certainly
get back to you with an answer.
Mr. COLLINS. Yeah. I mean, common sense would say
municipalities are strapped for cash.
Mr. FELDMAN. They are very strapped. Yeah.
Mr. COLLINS. So if that came back you would probably sell
more of those.
Mr. FELDMAN. Yes.
Mr. COLLINS. And I think you pointed out the way the laws
are written, the solar credits, tax credits really, because of
the unique product, do not apply much to what you are doing?
Mr. FELDMAN. Correct. Yes, that is correct. Yeah,
unfortunately. Because we are not connected directly to the
grid, most of the solar credits go towards if you are putting
it on your house, for example, or buildings, which are actually
feeding energy back into the electric system and there are
credits available for that. In our particular case that does
not apply which is a shame.
Mr. COLLINS. Right. Right. Right.
Now, have you looked at any public-private partnerships
where somebody would buy these, take the tax credits, if you
will, whatever they could get, and lease it back to a
municipality?
Mr. FELDMAN. We do offer leasing in what we call a managed
service program, but I am not sure if it is exactly what you
are asking.
Mr. COLLINS. Now, do a lot of towns start with two or three
of these, see how they work, and then expand?
Mr. FELDMAN. Yeah. Typically in a scenario we will try to
get 5 to 10. Where the benefit comes in for this particular
product is density of deployment. To put one in front of city
hall is nice. The mayor can say, yes, we did it, but what we
really want is a deployment up and down Main Street or in some
very congested area, and we like to get a situation where there
are 5 to 10 or so deployed. We can show the benefit. The truck
does not have to go there that often. And we can start showing
the ROI, if you will, on their investment. And that leads to
the further deployments. Yes.
Mr. COLLINS. And do they require much maintenance or are
these----
Mr. FELDMAN. There is some maintenance. It has a LED-acid
battery in it, just like your car. You need to change the
battery. Obviously, they need to be emptied. We recommend
cleaning, to be power washed and whatnot, to keep them looking
nice so the public will use them. But beyond that they are
really built for a 10-year lifecycle.
Mr. COLLINS. Okay. All right.
Well, I am intrigued. It is a great product and I certainly
wish you a lot of success.
Mr. FELDMAN. As my time winds down, I have got a perhaps
off-topic question for Mr. McCloskey.
On many occasions, my wife has opened the garage door, put
the car in reverse, and crashed into somebody parked behind
her. Would your braking system prevent that?
Mr. McCLOSKEY. Well, it is a fair question, Congressman.
Thank you.
You are seeing that kind of active sensing deployment in
almost all automobiles anymore. I think Nissan was one of the
first automobile makers to lead the way with it, but you are
seeing that as a sensor deployment in the back of all cars so
that it will first warn you. And with my wife that might not
work either. And so then it will eventually stop the car for
you so you would not hit anything. And really where that
matters most is not the vehicle behind you but children playing
behind you in the street or crossing the driveway as you are
backing out. And so it is good technology and it creates more
data, which people want to hear about. And there are
entrepreneurs out there that would like to play with that data.
Mr. COLLINS. Good. Thank you very much.
Mr. Chairman, I yield back my last five seconds.
Mr. LUETKEMEYER. Thank you, Mr. Collins.
With that, Ranking Member Velazquez.
Ms. VELAZQUEZ. Thank you, Mr. Chairman.
Mr. Feldman, your product showcases just how innovation can
improve efficiency for cities and businesses. I would
appreciate if you could discuss your experience with the
regulatory process and how long it took to get your product to
the market.
Mr. FELDMAN. Yeah, the regulatory process is cumbersome for
a small company, and I think small business entrepreneurs who
are trying to get into and produce a wirelessly connected
product can really be overwhelmed I think with the amount of
not only just the paperwork but certainly the certifications
and the testing that needs to go into it. It would really help
if there were, when we were starting out, more education or
resources, online training resources, something that said, hey,
guys. This is what you are in for. And be prepared it is going
to cost this much and it is going to take this long. To get
technical a little bit, but to build a computer board that is
one thin and you need four layers to it instead of one layer.
Who knew? And we did not know that going into the whole
project. So there are a lot of issues with that.
Ms. VELAZQUEZ. Any thoughts in terms of how the process can
be streamlined or better improved?
Mr. FELDMAN. In terms of streamlining it, I would ask for
more education, online resources as I said.
Ms. VELAZQUEZ. Mr. West, cybersecurity remains a hot topic
these days, as we continue to hear about breach after breach of
store security systems, yet small businesses have limited
resources and time to give to protecting investment from those
attacks. How can we assist these businesses to ensure they have
adequate security systems without forcing them to spend
excessive resources?
Mr. WEST. A lot of small businesses do not realize that
they are at risk because they think they are small, they are
operating in a limited geographic area, and so therefore,
people would not be of interest. But what businesses have to
understand is they sell things, so they have credit card
numbers. And so their information is quite valuable and they
are at risk. And so there are a variety of things that they
should do, some of which do not involve anything to do with
government. People need to take their security more seriously.
They need more serious passwords. There have been studies
suggesting that some of the most common passwords are 12345,
things like that. So people need to get much more serious about
cybersecurity.
We also think there is a role for government in some areas.
For example, in the data breach area. Right now, it is
primarily state legislation that handles this, and so there are
a wide variety of rules and regulations in place across the 50
states. So Congress might consider a national data breach law
just to standardize the requirements and make sure that all
companies are operating along a level playing field.
Ms. VELAZQUEZ. Thank you.
Mr. Marshall, while access to broadband has increased in
recent years, there is some discrepancy in its availability
between geographic areas. Connectivity is becoming vitally
important to enabling small businesses to engage in e-commerce
and will be closely linked to the future success. What efforts
besides relocating spectrum can be taken to expand these
services to small businesses?
Mr. MARSHALL. I really do not know how to answer that
question.
Ms. VELAZQUEZ. Anyone--Mr. West?
Mr. WEST. I am not sure exactly what to say. Maybe I would
defer to someone else.
Ms. VELAZQUEZ. No? Okay.
Well, Mr. West, the FCC has conducted more than 80
auctions, raising tens of billions of dollars and issuing
thousands of new spectrum licenses. What makes the upcoming
incentive auction so unique from previous ones?
Mr. WEST. What makes the upcoming auction unique is, one,
we have rising demand, and so there is a greater need for this
auction to be successful. And then secondly, we are pinpointing
an industry, the broadcast industry that has unused spectrum in
trying to create incentives for them to sell to other people.
It is a very complicated auction because Congress and the NTIA
and the FCC are having to balance a lot of different things. We
want money to reduce the national deficit, we want to encourage
the repurposing of spectrum to higher priority areas. Congress
is setting aside some of the proceeds for the First Responders
Network, so it is important to think about how to use that
auction to maximize each of those goals. It is important to
promote competition so that small firms have an opportunity to
bid on the spectrum. So it is very important that this be
executed properly.
Ms. VELAZQUEZ. Thank you.
Thank you, Mr. Chairman.
Mr. LUETKEMEYER. Thank you.
With that, it looks like I will ask some questions here.
Mr. Marshall, farming is a completely different business
than it was when your dad started out many years ago, and I
tell people if you want to jump into the cockpit of a combine,
it will look like the cockpit of an airplane anymore with all
the dials and all the instruments. It is like quite a panel
there. This technology is not cheap. You mentioned a while ago
I think it was $10,000 to fit one of your combines up with
something. Is that right?
Mr. MARSHALL. That is correct. For an auto steer system.
And that is for an economy auto steer system. I have not
purchased one in over a year, but for the one that was more
accurate than the current model that I have it was closer to
$20,000 for one tractor.
Mr. LUETKEMEYER. I assume that that makes you money,
otherwise, you would not be doing that.
Mr. MARSHALL. That is correct.
Mr. LUETKEMEYER. It makes you that much more efficient that
it saves you--well, what is the payback? One year, three years,
10 years?
Mr. MARSHALL. I do not know what the actual payback is. It
would depend on the items, too. With something low row clutches
or shutoffs for a product application rig, the payback is
fairly quick, especially where we farm where it is a lot of
small fields that are irregular shaped, having GPS to shut off
a boom on an application rig or to shut off the row units on a
planter can pay back very quickly. For auto steer, it is not
quite as quick, but where we work a lot of hours in the spring
and in the fall, the reduction in operator fatigue is worth
quite a bit. I spend a fair amount of hours in a tractor in the
spring, and having the auto steer there really does help me out
over the course of a day.
Mr. LUETKEMEYER. Now, I read an article last night getting
ready for today with your Farm Bureau president who made some
points with regards to the data that is accumulated by the
information and the technology on your combine and on your
planter with regards to what is planted, what kind of land you
are planting it on, so therefore, you get an idea of what kind
of a crop you are going to get in the ground as well as get
back out of the ground. And there are some concerns about the
ownership of that data. Would you like to expand on that just a
little bit?
Mr. MARSHALL. Sure.
Mr. LUETKEMEYER. You mention in your testimony it is a huge
issue.
Mr. MARSHALL. Yeah, it is a huge issue that is on the
horizon here, coming up a lot quicker than I thought it was
going to. And what has changed is that now a lot of that data
is being uploaded to the cloud, or if it is not, it will be by
next year. I know that there was a project out this fall where
they had 1,000 combines running in the field, uploading real-
time data. And it is impressive what can be done. I think it
has a lot of potential to really do good for the industry. The
concern that I have, like I mentioned in my remarks, is who is
going to own that data and what is going to be done with it. If
you have several combines running across the Midwest at harvest
time, uploading data every few seconds, that is very accurate
data. You are getting everything from elevation of the field,
moisture of the corn, to the yield itself, and if all those
combines are uploading to the cloud and someone could access
that, it would have a real ability to move a market. If you
look at how much time it takes for the USDA to do a survey, and
even with them being more efficient than they used to be with
advances in technology, it is nowhere near what we could do
with this data being uploaded every few seconds to the cloud.
And how much value does that have to a trader in Chicago or to
someone else that is interested in markets?
Mr. LUETKEMEYER. Can you confine that data to your own
database----
Mr. MARSHALL. With everyone that is----
Mr. LUETKEMEYER.--so that you own it yourself and so it is
not out there for everybody else to have access to?
Mr. MARSHALL. With everyone that is using online storage
now that I am aware of, you can opt out of their collection.
And I am concerned about with what might happen going forward.
Like I said, this is new. The main purpose is making the
Committee aware of it. But this data is going to have a big
value to it. It is important not only potentially to markets
but to seed companies as well. With the accuracy of that data,
effectively what I have done just on my farm is I have set up
what they call side-by-side test plots. Seed companies used to
pay a lot of money for that. If you take a machinery company
that is now collecting data from combines, that data that they
have collected from all these farmers now has a very big value
to a seed company potentially. It could save them a lot of
time.
Mr. LUETKEMEYER. Okay. You brought up a whole lot of issues
here. Is the Farm Bureau working on answers to this? Are the
individuals, the companies that have access to information, are
they working with you trying to find ways to sort of shift
through this regulatory ownership of data situation here?
Mr. MARSHALL. Good question. I feel like Farm Bureau has
been very active in trying to see what their members feel, and
also talking with industry leaders on it. I have been able to
talk with some industry officials as well. And again, we are at
the beginning of this process. I feel like there has been some
good discussion on it. But again, I hope that everyone is aware
of how quickly this is progressing along.
Mr. LUETKEMEYER. So even though we have access to gobs and
gobs of data, sometimes it causes more problems than it
alleviates originally, does it not?
Let me stop there. And we have got a lot of folks who want
to ask some questions yet today.
With that, we go to Ms. Chu from California.
Ms. CHU. Thank you.
Mr. Feldman, you have quite a story with BigBelly Solar. I
am ranking member in the Access to Capital Subcommittee, and I
am very interested to know where BigBelly Solar got funding
when it started out and whether those sources have changed over
time. Would you share with the Committee how you got financing
for your business and what obstacles, if any, did you encounter
in the process?
Mr. FELDMAN. Sure. I can reveal a little bit of that.
We are privately funded, and our founder, Jim Poss, who
started the company really, mom and dad helped start the
business. This was really a couple of guys in a garage, you
know, bolting some solar panels and batteries and chains
together to work on the product. So that is its inception.
Through the years one of our largest distributors, Waste
Management, is an investor in the company, but it is still all
private money. There is no VC funding at all, nothing of that
sort. So it is what we consider private money.
Ms. CHU. Did you encounter any obstacles?
Mr. FELDMAN. While searching for the financing? You know, I
cannot answer that. I was not around at the company during that
timeframe, so I would not be able to answer that.
Ms. CHU. Okay.
Well, Mr. West, do technology startups face similar to
different access to capital challenges compared to brick-and-
mortar businesses? And can you expand on policy recommendations
for the Committee to improve access to capital for these types
of companies or if anything, all small businesses?
Mr. WEST. Startups do face a lot of barriers to getting
access to capital, especially over the last few years with the
financial crisis, banks and other financial institutions often
have been reluctant to take risks. And so oftentimes, in an
atmosphere when they are not wanting to take risk, the first
people they cut off are startups and small firms. And this is
unfortunate because we know that a lot of the innovation,
especially in the wireless area, takes place from small firms.
You have small app developers who are creating cool education
or health-related apps. You have small manufacturing companies
that may be designing new products or developing new services.
So we think that Congress should continue the path of the
Startup Act and try and ease financing for startups. That is
going to be a major source of innovation. And so you could
think about expanding credits that are targeted specifically on
small firms with say under $5 million in revenue. So it is a
highly targeted type of thing. You could also target small
firms that are new, meaning firms that have existed for less
than five years. So those are a couple ways that Congress might
make rules changes that would help startup firms.
Ms. CHU. Mr. McCloskey and Mr. West, while venture
capitalists see the mobile app sector as the next big thing,
the regulatory uncertainty has caused hesitancy by these
investors, can you elaborate on why these investors are
critical to the wireless industry and how continued regulatory
delay has hindered its growth?
Mr. McCLOSKEY. Sure. And thank you for the question.
I guess I would start with the level playing field. So a
lot of app developers want to give you an easy way to consume a
service, whether it is a parking service or a navigation
service, some way in your transportation lifestyle to move
around. And to do that they need data about the transportation
environment, and that data is very hard to come by. It is
highly inconsistent from jurisdiction to jurisdiction. The
policies in each of the jurisdictions on what is collected, how
long it is kept, who has access to it and for how long, is as
different as night and day from one jurisdiction to another.
And so from an investor perspective they do not have that
runway of capital investment that says if I invest here then I
can prosecute multiple markets with a single investment. And
without that access to data that is really the public's data
anyway because it is being collected by a public agency,
without some clarity around that there are impediments in the
system.
Ms. CHU. Mr. West?
Mr. WEST. So mobile designers and manufacturers do complain
about regulatory uncertainty and how that creates problems for
them. And I can give examples in the healthcare area because
the Food and Drug Administration has just gone through a
process to try and ease that uncertainty. There are a wide
range of new apps and devices in the healthcare area. You have
mobile apps that bring information to consumers to try and help
them get more informed about healthcare. You have wearable
devices. People exercise and a device will keep track of their
number of calories they burn while exercising. And then you
have more elaborate devices that physicians and hospitals are
starting to deploy that might track someone's sugar levels or
vital signs or heart rhythm and electronically transmit that.
And so right now it has been difficult to get certainty in
terms of what devices are subject to FDA regulation. So over
the last year the FDA has gone through this process. They have
put a wide range of devices into one of three categories--
either devices that are not going to be subject to FDA
regulation, those that definitely are, and then this middle
category of enforcement discretion where the FDA indicated it
was not likely to regulate unless there was some demonstrable
threat or problem that popped up with a specific device.
So I think that is an example of where government can be
helpful to private industry just by trying to clarify what the
rules are, who is subject to regulation, and under what
conditions are they going to be regulated.
Ms. CHU. Thank you. And I yield back.
Mr. LUETKEMEYER. Thank you.
Mr. Chabot?
Mr. CHABOT. Thank you very much, Mr. Chairman.
This morning, INC. Magazine featured an article online
listing the eight best startup industries. Almost all of these
industries are technology-based, and five of the eight depend
on wireless technology and the infrastructure that supports it.
So I would like to thank the chairman for hosting this timely
and important discussion. I expect it will not be the last time
that this Committee sits down to examine the topic.
My question for the panel is simply how do we as a nation
put ourselves in the best position to continue to capitalize on
the wireless revolution? I understand there is no magic recipe
for success, but in your opinions, what objectives should this
Committee and the Federal government set so that every day we
are working towards the goal of job creation and supporting
small businesses that utilize the technology that we have been
discussion to grow our economy. If you just want to go down the
line and just take a moment or as much time as you would like,
that would be fine.
Mr. Feldman, would you like to start?
Mr. FELDMAN. Sure. I would be happy to.
I think as a nation and as a government, it is probably
obvious, not to stranglehold the entrepreneurs. Make them feel
like the broadband and the access to the wireless technology
should be there and available. Instead of broadband I actually
meant bandwidth for the data. A lot of these startup companies,
a lot of us are looking at ways of getting video technologies
and all the video streaming. This hearing itself is being video
streamed across the Internet. And people who are on their cell
phone that want to watch this hearing, we need to make sure
that there is that bandwidth available to do that.
Mr. CHABOT. I am sure there are millions and millions of
people glued to their screens.
Mr. FELDMAN. This is riveting.
But I think in some senses it is a very fine balance in my
mind of the government helping and the government staying out
of the way. And I am not sure where that line is. I am not
qualified to answer that particular question. But there
certainly, as we talk about spectrum and how to reuse it, we
ourselves are right now a victim of the 2G network that is
being shut down in the country by one of the carriers. And that
is going to be a financial burden to us as a small company. We
have to now go out and visit all of these trashcans and upgrade
the internal computer on them to get onto at least the 3G
network, not the 4G. And that is a burden. And so anything we
can do to help alleviate that I think is a step in a positive
direction.
Mr. CHABOT. Thank you.
Mr. Marshall?
Mr. MARSHALL. I do not know how well I can address your
question. I will just make a few observations from where I am
from.
When I started farming full-time, one of the first things I
wanted was good Internet access. And I tried three different
satellite Internet companies before I got one that worked
respectable. The first one was extremely high maintenance. The
second one was moderate improved. And the third one was decent.
We do now have fiber in our area, but I am one of few that has
access to that fiber out where I live. And it has been a
tremendous improvement over the satellite Internet. It does
make a big difference for how I run my small business to have
good Internet access.
Same thing with cell phone coverage. If I am driving on 36
Highway, which is a four-lane highway, from my house over to
St. Joe, several times on that route I lose cell phone
coverage. And so all I can perhaps say is that I would
encourage you to, of course, have favorable regulation as Mr.
Feldman has mentioned, and hopefully not have excess
regulation.
Mr. CHABOT. Thank you.
Mr. McCloskey?
Mr. McCLOSKEY. Thank you for the question, Congressman.
I would add two things. One is you asked about spectrum,
and I think everyone on the panel would agree that access to
network is important. There are also spectrum allocations today
from the FCC for the safety services that the automotive
industry is relying on, the 5.9 gigahertz range. And there has
been a good bit of talk in the industry about sharing that
spectrum. So I would say two things. One is there has been very
little technical work on how sharing would really work in
practice, and so some good detail work around that to provide
clarity would be a good investment of time, but I would also
suggest that allowing the safety services to mature, because if
we have 30,000 odd deaths on the road here every year and
hundreds of thousands worth of injuries, the technology as
forecasted by the Department of Transportation to reduce up to
80 percent of the traffic incidents that might be caused by
unimpaired drivers. And so to take that incident off the road
has tremendous benefits in congestion, which then benefits the
entire economy. And so I would encourage us to go slowly in
this concept of sharing certain elements of the spectrum that
have been allocated for safety.
The second point I would make is that--and I think Mr.
Marshall would share my opinion here--is that there should be
some clarity around data. Once the data is collected there
should be some participatory way where the industry may lead
but is encouraged by government in order to provide access to
data for businesses that want to grow, while also maintaining
anonymity for those who would contribute that data into the
study.
Mr. CHABOT. Thank you very much.
Mr. Chairman, I would ask unanimous consent if we have time
for Mr. West to answer the question.
Mr. LUETKEMEYER. Absolutely. Go ahead.
Mr. CHABOT. Thank you very much.
Mr. West?
Mr. WEST. Thank you very much.
So at Brookings, we have a Center for Technology
Innovation, and we very much support a pro-innovation agenda.
And there are three particular points I would emphasize in
response to your question. One, the need for infrastructure
improvements. The world is going mobile, and so we need faster
speeds. We have new innovations in healthcare, energy,
transportation, and otherwise that are going online and going
through mobile networks. And we are going to need more
broadband and faster speeds to take advantage of those.
The last thing I will emphasize is the importance of
encouraging more universal access to the Internet. We still
have many Americans who are outside the technology revolution,
who for various reasons are not making use of mobile devices
and/or accessing the Internet. And so we need to think about
digital literacy programs to encourage them to get online and
take advantage of the services that are available. Part of it
is addressing cost considerations, and also letting them know
some of the benefits that would avail to them.
Mr. CHABOT. Thank you very much. My time is expired. I
yield back, Mr. Chairman.
Mr. LUETKEMEYER. Thank you.
Mr. Payne from New Jersey?
Mr. PAYNE. Thank you, Mr. Chairman.
I would like to thank all of the witnesses today for their
testimony.
Just a couple things in general before we start.
Mr. Feldman, I believe, and correct me if I am wrong, but
BigBelly has a fairly decent presence in Jersey City, New
Jersey?
Mr. FELDMAN. We do. Yes.
Mr. PAYNE. And that was through a federal grant?
Mr. FELDMAN. That was one of the EECB grants; correct.
Mr. PAYNE. Based on prior, I was not sure.
There was quite some pride in my district when they were
available, so we thank you for that.
Mr. FELDMAN. Thank you.
Mr. PAYNE. And Mr. Marshall, in terms of the size of your
farm, we have just gone through the farm reauthorization and
some of these definitions of big farms or small farms. I hear
you talk about three tractors. What size is your farm in
acreage?
Mr. MARSHALL. We have 4,200 acres of row crop. I would
consider us to be a medium-size farm now.
Mr. PAYNE. I want to write that down for next year. Medium.
Mr. MARSHALL. As a youngster, I am from Newark, New Jersey,
but my mother was from Dinwiddie County, Virginia, and when
people thought I was going for summer retreat, I was actually
going to work. I cut tobacco as an 8-year-old and shucked corn
and milked cows. And everybody would say, ``Oh, how was your
vacation?'' And I would show them my hands. I just wanted to
get an idea based on what you were talking about what size your
farm was.
I am also on Homeland Security, and I am very interested in
these kinds of technologies that are being discussed. I am the
ranking member on Communications and Response, Emergency
Preparedness. I introduced a smart grid bill which deals with a
study of the electrical grid across the country and seeing
steps to make it more resilient and where we need to upgrade in
certain areas. And I am glad to say that it was amended and
added to the cybersecurity bill that just came out of Homeland
Security. So we have seen, and because of that, you know, my
experience with natural disasters like Hurricane Sandy, we see
how it can devastate our power grid and expose us to cyber-
attacks and even harm small businesses.
I would love to hear your thoughts on specific technologies
we can use in the face of natural disasters and other
devastating events. Mr. West?
Mr. WEST. We actually did a panel at Brookings last summer
on natural disasters and the role that technology can play, and
we had people from the Red Cross and some academics who studied
and so on. And what we learned is that mobile technology
increasingly has become part of the way we are dealing with
natural disasters. That after they hit, that sometimes cell
phones and smartphones are the primary way that people access
information. It is the way both organizations like the Red
Cross, as well as government organizations get information that
allows them to allocate resources so they can get the help to
the people who need it in a timely manner. We also discovered
that social media networks are becoming a big part of the
problem. That people now use social media to communicate all
sorts of needs, and during natural disasters, that has become a
tremendous source of information. So we have to figure out ways
to do the data analytics so that we can mine that information
in a very productive way.
Mr. McCLOSKEY. If I could, I would like to add that Japan
learned recently after the tsunami and the Fukushima disaster
that they could use their version of the safety network that
the Department of Transportation announced two weeks ago that
it was moving forward with. That is fairly well deployed in
Japan at this point. And the challenge with a disaster is that
when it occurs, everybody goes to their mobile. They want to
call their family. They want to let people know they are okay.
They want to check on things. And so the network gets
congested. It floods. And what they found in Japan was that
with the safety network there is a feature of the technology
that allows them to suppress all the other traffic, and then
the first responders could use that underlying network as a
means of communication for the first responder community. And
what I would like to point out by way of that example is that
wireless networks are not about one giant network where all the
video that you want can be downloaded to it. What you really
want are lots of wireless networks of different features
because then if something happens to one you have other access
avenues in order for the communication to occur.
And so I would encourage you when you think about wireless
networks, it is not just the services we get when we sign up
for AT&T phones and our Verizon phones, but it is also the
myriad ways that communication is occurring out there and we
want them all to be available, whether it is a good event or a
bad event.
Mr. FELDMAN. If I could add also something in there.
Probably not as much a natural disaster but as a result of the
Boston Marathon bombings last April, in response to that a
little backdrop. The BigBelly is bolted to the street. It does
not move. And it has a handle that you open up and deposit your
trash in, which is a very safe system because it does prevent
large objects from getting in the BigBelly. But there is a
concern, of course, with any trashcan at any public event that
terrorist actions or just whomever may deposit explosive
devices.
In response to that event, we have developed a system on
the BigBelly, in fact, where you can lock that BigBelly and be
notified wirelessly to the security personnel or the police
that there has been a breach of that trashcan. So, in fact, we
can say this is closed for the event, and it goes into a
special mode, if you will, where if someone opens that door or
attempts to breach that BigBelly, it will notify somebody and
they will get it on their cellphone, mobile phone, and back at
the command center for immediate response. So that is something
that we have tried to use, the wireless for ourselves, in
response to some of these events that are happening. You cannot
get away from it.
Mr. PAYNE. Thank you, Mr. Chairman.
Mr. LUETKEMEYER. Thank you.
That concludes the first round. We will go with the second
round, and I think we have got just a couple folks that want to
do that. So if you will indulge us, panel, you are doing a
great job.
Ranking Member Ms. Velazquez.
Ms. VELAZQUEZ. Thank you.
Mr. West, the FCC has several options available in
designing the upcoming auction, and I would like to ask you,
one issue that still needs resolution is whether to make it
open or restricted. In terms of small businesses, what do you
think is the best option?
Mr. WEST. What we recommend on the auction is a balanced
approach in the sense that you need the benefits of both open
and closed. We feel that all of the businesses, including the
large players, like AT&T and Verizon, have a right to compete
and to bid on the auction, but there also is an interest in
encouraging small firms to have a fair shot at it. So there are
ways to try to balance the needs of large and small firms in
this regard. So you can think about putting restrictions on the
number of licenses that say the largest companies could bid on,
or you could think about a cap in terms of the overall
holdings. So that is a way to kind of think about encouraging
competition but still allowing the large firms to bid because
we are trying to get $27 billion from this auction, and so you
need the large firms there because they have the deep pockets,
but we also want to help the small firms and make sure they
have a fair right to compete.
Ms. VELAZQUEZ. Any other comments?
Thank you, Mr. Chairman.
Mr. LUETKEMEYER. I think Mr. Payne has one follow-up as
well.
Mr. PAYNE. Thank you, Mr. Chairman.
Mr. West, in what ways are these new technologies creating
new markets and attracting unlikely entrepreneurs? And how can
these technologies benefit or attract entrepreneurs and small
business owners from low-income backgrounds?
Mr. WEST. The wireless space is very vibrant and dynamic,
so almost by definition it is a great sector in terms of
attracting unconventional firms or people who you might not
expect to play a role. Because, for example, it does not take a
lot of capital or infrastructure or organization to develop a
mobile app, but you could develop an app that could be very
valuable. We do need to make sure that everybody has a fair
chance of playing in this area, and certainly, we want people
from diverse backgrounds to be able to access capital, develop
products, design things. We think there are long-term things,
like putting money into the STEM fields that would encourage
women to go into those areas as well as minorities. So there
are both kind of short and long-term things that we think would
make a difference in that area.
Mr. PAYNE. Anyone else? No?
Thank you, Mr. Chairman. I yield back.
Mr. LUETKEMEYER. Thank you.
I do not have any follow-up questions. Just some
observations very quickly.
We are talking today in our Committee hearings about
building on the wireless revolution: opportunities and barriers
for small firms. I think we have got three great examples here
of opportunities that were not available probably 10, 15, 20
years ago, that technology has enabled us to make our lives
better from making it more efficient, saving dollars, saving
lives. We save lives with some of those things that Mr.
McCloskey talked about. So it is a wonderful thing, but each of
you have pointed out some problems, things that we have to be
careful, whether it is data we have to worry about or potential
on the spectrum to make sure we allow small guys to be able to
participate. Those are some of the things we have to think
about here, and hopefully we will have some thought on this and
we can make some suggestions.
But with that I will conclude by saying thank all of you
for being here today. You guys did a great job. I appreciate
your testimony. It has helped us to better understand the
opportunities and barriers of this emerging industry. Your
products and all the things that you do hold great promise for
economic development and job creation across our country. I
look forward to working with my colleagues to ensure that
federal policies do not obstruct the continued growth
innovation because you are the entrepreneurs. We want more
folks here next year, next week, on the same panel telling us
lots of great stories about things they are able to do with
their products and their inventions and make lives better for
all of us.
With that, I ask unanimous consent that members have five
legislative days to submit statements and supporting materials
for the record.
Without objection, so ordered.
This hearing is now adjourned.
[Whereupon, at 2:16 p.m., the Committee was adjourned.]

A P P E N D I X

Testimony of

Michael Feldman

Vice President of Engineering

BigBelly Solar, Inc.

Committee on Small Business

U.S. House of Representatives

Building on the Wireless Revolution:

Opportunities and Barriers for Small Firms

February 11, 2014

Chairman Graves, Ranking Member Velazquez, and Committee
Members. I am excited to have this opportunity to share with
you how BigBelly Solar uses wireless technology to help curb
the usage of our natural resources and help improve our
environment.

My name is Michael Feldman and I am the Vice President of
Engineering at BigBelly Solar. BigBelly Solar was founded in
Newton, MA with the mission of reducing CO2 emissions from gas
hungry garbage collection vehicles by eliminating unnecessary
miles driven. A standard garbage truck gets 3 miles per gallon
and travels an average of 25,000 miles per year. Each truck
emits an estimated 100 tons of CO2 per year. In the United
States alone, with an estimated 180,000 garbage trucks
traveling the roads, they collectively consume over 1 Billion
gallons of oil contributing 18 Million Tons of CO2 into the
atmosphere each year. That is the equivalent usage of an Exxon
Valdez oil spill every 4 days. And this does not include the
congestion and nuisance they cause amongst our city streets and
roadways. By reducing, or even eliminating, unnecessary driving
miles we can significantly cut into the emissions emitted. And
this paradigm works even if the vehicles use alternative fuel
technologies. As we like to remind people, the cheapest and
cleanest mile is the one never driven.

Manufactured in Lexington Kentucky, The BigBelly Waste and
Recycling System provides a unique combination of information
technology software and on-site compaction at public space
locations where citizens deposit their trash and recyclables.
By compacting the waste, which increases storage capacity, we
are left with a trash can that does not require emptying as
often. In fact, the BigBelly compacts at a ratio of up to 5 to
1 which is equivalent to storing five 30 gallon bags of trash
into one bag. The BigBelly is capable of holding 5 times more
waste and is more intelligent than traditional trash cans. This
has been shown to reduce collections on average from twice a
day to approximately once every other day. Furthermore,
utilizing solar energy to power the compaction mechanics allows
a BigBelly to be placed virtually anywhere without the need to
connect to the electric grid.

BigBelly has been an early champion and recognized leader
in the growing Machine to Machine (M2M) marketplace. This
industry is aimed at connecting devices together all around us,
and providing useful data for humans to make intelligent
decisions. A significant part of the BigBelly solution
incorporates wireless technology to transmit data from the
trash receptacles to a central database for processing. Users
of the system access this data from a simple and easy to use
WEB Application that provides important information including
which cans need to be emptied, historical reports and
analytical reports. There is even a mobile application for
smartphones and tablet devices that allow users, such as
supervisors and collection personnel, to get up to the minute
information about the BigBelly's on their streets. The
technology used is very similar to that found in modern call
phones today, only instead of calling another person, the
BigBelly calls another machine.

Today, you can find a BigBelly in every state in the US,
and over 40 countries around the world. Our product can be seen
in cities and towns both large and small, colleges and
universities, military bases, national parks and government
agencies. Each BigBelly trash compactor is equipped with a
series of electronic sensors, solar panel, a battery, and an
internal computer. The solar panel is used to keep the battery
charged which drives the compaction mechanisms. A compaction is
triggered when the trash level inside the bin crosses a senor
beam. As more waste is deposited, this process continues until
the internal computer determines the bin is full. The computer
will then use the wireless network to transmit the fullness
data to a central computer system, where users can see that the
bin requires service. The central system can even be configured
to send an e-mail to users for real time updates. We are
pioneers in the notion of Smarter Cities--leveraging
technologies and information to better manage resources. Trash
cans have never been smarter. Example images of our WEB
Management Console can be seen on the last pages of this
testimony.

Typically, early in the morning, the Waste Operations
department will get a report from the central WEB application
system that identifies which BigBelly's need to be emptied.
These reports are then provided to the truck drivers. In this
scenario the trucks only visit those locations that require a
collection as opposed to driving up and down every city street,
stopping at each waste receptacle. For some of our customers,
such as the National Parks, no one needs to be sent to remote
areas until it is necessary. The results are measurable and
tangible savings in time, fuel and resources.

Efficiency in collection operations vary by customer and
usage. After the first year the City of Philadelphia deployed
the BigBelly System, they estimated a savings of $850,000.00
and moved 11 employees to service a new public space recycling
program. The program has been a revenue source to the city by
diverting trash from costly landfills. Instead, the recyclables
are sent to processing centers where the city is paid per ton
of material. This fundamental shift has transpired with many of
our customers.

Like all small businesses, we are not without our share of
challenges. As a member of a unique club of American businesses
that are ``market makers'', those who venture into uncharted
territory, we need help and assistance to overcome some of
these challenges. As a small privately funded company of 40
employees, our available financial resources are stretched thin
placing this technology on the streets and pushing its
adoption. For any business wishing to connect wireless devices,
there are specific rules and regulations in place by the
telecommunications industry requiring costly certification,
upwards of $30,000, before they will allow new devices to
connect to their network. While we certainly are in full
agreement and have no issue with the intent and protection the
carriers require, in many instances, these rules and standards
are mostly aimed at cell phones, smartphones and tablet style
devices. Not for M2M devices such as the BigBelly. After all,
you cannot hold a BigBelly up to your ear!

Similarly, federal assistance for Energy Efficiency
Community Block Grants, or EECB grants, has run out. This is
most unfortunate as it enabled municipalities to participate in
new green products such as BigBelly that have proven rewards
not only to the town's balance sheets and budgets, but to the
environment as well. Past recipients of EECB grant money used
to subsidize the purchase of a BigBelly system include
Philadelphia, Albany NY and Jersey City. Your sponsorship,
endorsement and legislation assisting environmental and
technology products like BigBelly, and creating new or similar
program such as the EECB, will benefit all Americans.

There are of course other barriers to adoption. For
example, cash strapped cities and towns are unable to apply for
and receive Solar Energy credits for the deployment of a
BigBelly System. As explained earlier, our use of wireless
technology allows the BigBelly product to operate out of the
prevue of the electric grid. However Solar Energy grants only
apply to products that connect to this grid. Given the positive
dollar savings, environmental and economic impact this class of
product has, we ask the committee to research and investigate
how these solar credits are disbursed and to implement changes
that could incorporate new solar technologies like BigBelly
that would enable your cities and towns to receive these
credits.

And we know firsthand these programs work. For example, the
Federal Transit Authority has the ability to assist local
Transit Authorities by issuing Formula Grants, or 5307 Grants.
Under this program, a BigBelly qualifies as an ``amenity''
which enables local transit systems to deploy BigBelly's at bus
stops or rail stations. Without EECB assistance, the City of
Philadelphia would not have the deployment and budget impact
they see today. These programs are of significant value to the
local communities as well as small businesses like BigBelly. We
ask for your assistance in helping to legislate funding for a
cleaner environment.

In closing, I would again like to thank the members of the
Small Business committee for allowing me this opportunity to
present the BigBelly Solar story, and provide insight into how
we are using wireless technology to save real budget dollars,
resources and most importantly make a tangible impact on the
environment.

Respectfully submitted,

Michael Feldman.

[GRAPHIC] [TIFF OMITTED] T6640.001

[GRAPHIC] [TIFF OMITTED] T6640.002

[GRAPHIC] [TIFF OMITTED] T6640.003

Chairman Graves and Ranking Member Velazquez, Members of
the Committee: Thank you for the opportunity to testify on
behalf of the American Farm Bureau Federation and the Missouri
Farm Bureau Federation. I am here today to discuss how the
advancement of technology is affecting modern agriculture.

I own and operate a farm about an hour north of Kansas City
in Maysville, Missouri. Both of my grandfathers farmed in the
Maysville area as does my father today. In fact, while I am
here before you, Dad is fighting the cold and snow to get our
farm work done, just like he does every day regardless of the
weather. My wife, Kelly, and I farm with my parents, raising
waxy corn, soybeans, wheat and cattle. It gives me a sense of
pride to be farming the same land that my parents and
grandparents did. My wife and I are happy to be raising a
little boy who loves everything to do with farming and a little
girl who loves everything that's pink.

I am excited to share with you how my father and I are
incorporating new technologies into our day-to-day operations.
I will also offer perspectives from my fellow Farm Bureau
members developed through our organization's recently completed
annual policy development process. Our new policies regarding
``big data'' and unmanned aircraft systems (UAS), as well as
our rural infrastructure, are relevant to today's discussion.

After graduating college I worked for a while as a manager
for a construction company before returning to the farm when
the opportunity to join our family operation arose. While I did
not envision being the new ``tech guy,'' that role has become a
large part of my responsibility as our farm, and our use of
technology, has grown. A couple weeks ago, I spent a day trying
to fix a problem I was having downloading data from our combine
to my computer. As a young man 20 years ago, that is not how I
envisioned working on the farm. While this wave of cutting-edge
tech equipment for farming does sometimes have drawbacks, it
has ushered in a new world of benefits that outweigh those
complications.

I do want to be clear that no matter how advanced a new
program or system is, or how accurate a touted device may be
today or even years from now, technology cannot take all of the
risk out of farming and ranching. Expensive equipment, adverse
weather, volatile global markets and changing regulations are
simply part of the life we lead.

On our farm we use Global Positioning System (GPS) on
several pieces of equipment to handle a multitude of different
functions. The application rig we use to apply crop protection
products is equipped with auto steer. This feature is not new
to agricultural equipment, but is a great help with this
particular piece of machinery. Allowing a computer to guide the
machine increases accuracy, reduces operator fatigue and allows
me to more closely monitor its performance. Our new application
rig is also equipped with the AIM Command system, a new method
of application that uses pulse width modulation and computer
assistance to manage flow and droplet size specific to the
product being applied. This ensures a consistent pattern will
be maintained at any speed and the chances of offsite
application are greatly reduced. It also decreases operator
errors. On our rig the computer turns the tips on and off based
on the GPS signal, ensuring the product is applied where
needed. This upgrade paid for itself in the first year through
reduced input costs.

The most important piece of equipment on our farm is the
planter because it is very difficult to fix a poorly planted
crop, although Mother Nature gives us a ``do over'' from time
to time. We use a lot of products manufactured by the company
Precision Planting. We have added aftermarket parts, such as
precision monitor to track everything from seed placement to
the amount of force used to put the seed in the ground. In most
of our corn fields, we typically plant around 30,000 seeds per
acre. If even one of those seeds is planted too close to
another, my monitor will alert me, identify in which of the 16
planter rows it occurred and exactly when it happened. I also
have an iPad synced to my planter monitor running software that
allows me to do real time mapping and data analysis in the
field.

When any farmer plants in an irregular shaped field, the
potential for over-planting increases. As planters have
increased in size, so too has the potential for overplanting.
To reduce this potential, we equipped our planter with point
row clutches. The point row clutches rely on a GPS signal to
shut them off whenever crossing into any part of the field that
has already been planted. Not only does this save seed cost,
but it helps eliminate yield loss from plant overcrowding in
double planted areas.

Three of my tractors are equipped with auto steer. At
$10,000 per machine for an economy system, it is not cheap to
put auto steer on a tractor. All of the technology we have
discussed did require a sizable investment. But we have
determined that the benefits outweighed the costs. We feel that
the reduction in inputs as well as operator fatigue alone pays
for these investments. The same may not be true for our
neighbor down the road and certainly not for every farm or
ranch.

For years, farmers have used technology advances to better
match varieties of seeds, production inputs and management
practices with specific field characteristics. Additionally,
many farmers have had the ability to map yields with a GPS
receiver. While farmers have been experimenting with this
technology for well over a decade, only now is the industry
starting to consider all the use of this transformative
technology.

Agribusiness firms are offering and designing
``prescription'' type services for farmers, enabling them to
apply seed and fertilizer in varying amounts across their
fields using the technology I described earlier. Just recently,
Dad and I met with an agronomist to discuss prescriptions for
our farm. Many farms across the Midwest have soil types and
yield potential that vary widely; our land is no different.
With the technology available today, we can merge 10 years'
worth of data to get a more complete picture from which to make
management decisions.

We have maps generated by our planter, yield maps from our
combine, and advanced Light Detection and Ranging (LIDAR) soil
maps that we can now combine to generate useful prescriptions
for maximizing yield and reducing inputs. If a yield map shows
a soil type with a lower yield potential, the prescription can
then call for a lower seeding rate and less fertilizer in that
management zone. Similarly, if the LIDAR elevation map shows
the lower ground is more productive, we can increase the plant
population in those zones.

It is the combination of these different maps that is
leading to new breakthroughs. Mini weather stations and weather
services with field specific data will only help to improve the
accuracy of prescriptions as we go forward. The ability to
overlay data from our planters with data from our combine is a
very recent development. This one advancement has given us a
wealth of farm specific information that can now be generated
in the combine. Ten years ago it took careful planning and a
support team with specific in-field scales to tediously test a
few acres and generate only a fraction of the data we can have
instantly in our combines today. This will lead to increased
yield as farmers and agronomists now have better tools for
selecting the corn and soybean varieties best suited for each
individual farm.

This use of an individual farmer's data to design a
different program for each acre in a field that may span 200 or
more acres will augment the farmers' years of experience with
satellites and algorithms. The new technology undoubtedly will
help make farmers more efficient and allow the use of fewer
inputs while increasing their overall level of outputs and
profitability. While companies have collected and analyzed
agronomic, yield and other farm level data for some time, the
amount of real-time information gained at a micro-level unit is
a big change that has largely taken place within the last two
years and is of concern to our organization.

Several agricultural equipment firms have introduced
technology whereby the data from combines is uploaded every few
seconds to the Cloud. If a large agribusiness firm had access
to real-time information from 1,000 or more combines randomly
spread across the Corn Belt, that information would be
extremely valuable to traders dealing in agricultural futures.
Traders have traditionally relied on private surveys and U.S.
Department of Agriculture (USDA) yield data. These yield
estimates are neither timely nor necessarily accurate. But now,
real-time yield data is available to whoever controls those
databases. Virtually every company says it will never share,
sell or use the data in a market-distorting way--but we would
rather verify than trust.

From Farm Bureau's perspective, one of the most important
issues related to ``big data'' goes directly to property rights
and ``who owns and controls the data'' (Attachment 1). The
risks to privacy that the farmer faces, such as his pesticide
or GMO usage that may be an accepted practice but politically
unpopular, are of great concern.

In addition, a farmer's information is valuable to the
companies, so farmers should have a say in and be compensated
when their data is sold. Farmers need to protect their data and
make sure they bargain wisely as they share their data with
suppliers and companies who desire access to their information.

Farmers are rightly concerned about data privacy. Even if
an individual operator does everything to the best of his
ability, following all the applicable rules, regulations, and
best management practices, there is still concern that the
Environmental Protection Agency (EPA) or one of the numerous
environmental organizations that plague agriculture might gain
access to individual farm data through subpoenas or an overall-
clad Edward Snowden type.

Related to this issue, Farm Bureau supports the use of
unmanned aircraft systems (UASs) for commercial purposes
including agriculture, forestry, and other natural resources
uses (Attachment 2). As the law stands now, if I wanted to hire
someone to scout my crops with a UAS, they would be subject to
the same FAA regulations as a commercial jet. Requiring a UAS
to have a tail number may be a bit excessive in my personal
opinion.

Our organization believes the operator of an UAS should be
required to gain the consent of the landowner and or farmer if
the UAS will be surveying or gathering data about the
landowner's property below navigable airspace. We oppose a
federal agency using UASs for the purpose of regulatory
enforcement, litigation,, and as a sole source for natural
resource inventories used in planning efforts or surveying and
gathering data without the consent of the landowner and or
operator below navigable airspace.

The future is truly exciting in terms of technological
advancement in agriculture, but we should not overlook the gaps
that exist, particularly in rural areas.

High-speed broadband services have great potential for
expanding business, healthcare, and education opportunities in
our communities. According to the Federal Communications
Commission's (FCC) Broadband Statistics Report,\1\ the
broadband availability gap between urban and rural areas
nationwide is narrowing (100 percent available in urban areas
versus 94.2 percent available in rural areas). In 2012 my
county, DeKalb, ranked 87th out of 114 counties (plus St. Louis
City) in terms of broadband speed greater than 25 Mbps and
2834th out of 3234 U.S. counties and territories.\2\
---------------------------------------------------------------------------
\1\ http://www.broadbandmap.gov/download/reports/national-
broadband-map-broadband-availability-in-rural-vs-urban-areas.pdf
\2\ www.broadbandmap.gov/rank

Until last fall, we had tried three different satellite
Internet providers. The last one was fair at times, but the
first two were awful--high maintenance, high cost and low
speed. We now have high speed internet through our rural
electric cooperative's fiber-to-the-home network, a project
made possible through federal loans and grants. The added
competition in our area helped us find an Internet package that
---------------------------------------------------------------------------
better fits are needs.

The switch from analog to all-digital television in 2009 is
another issue that continues to impact rural residents. On its
website, the FCC describes Digital Television (DTV) as an
``advanced broadcasting technology that has transformed the
television viewing experience.'' I believe that most people in
my hometown would agree that their TV viewing experience
certainly changed, but not for the better. Even with a digital
converter box and an antenna, only one broadcast station in St.
Joseph has a signal strength rated as ``moderate.'' St. Joseph
is about 40 miles from our farm. No stations in Kansas City,
about 70 miles southwest of Maysville, have signal strength
above ``weak.'' (Attachment 3).

This is the reason farmer and rancher voting delegates at
the Missouri and American Farm Bureau Federation annual
conventions adopted policy urging the FCC to examine ongoing
problems resulting from the analog to digital conversion and
work with broadcast stations to ensure the continued
availability of free local programming.

Cell phone reception continues to be a problem in rural
areas even though wireless companies have made strides in
expanding service. I frequently travel 36 Highway, a four-lane
road that runs east to west in northern Missouri, and always
lose reception and drop calls even though I have service with a
large carrier and multiple companies have towers along 36. Our
organization supports the FCC working with cell phone companies
to increase interoperability among towers.

I find it ironic that I can upload yield data in real-time
from my combine to the Cloud as I am picking corn yet it is
difficult to watch local programs on my television or have a
cell phone conversation in certain spots in my area. I hope the
committee will share these concerns with the FCC since they
affect farmers and other small business owners in rural areas.

As I have learned by attending county Farm Bureau board
meetings and young farmer conferences, what works on my farm
may not necessarily be feasible for my neighbor. America's
farms and ranches vary in size and scope, and farmers need a
variety of tools in the toolbox. I do not expect you to share
my level of enthusiasm for pulse with modulation or point row
clutches, but I hope you are excited about farmers' use of
technology to increase efficiencies, better manage inputs such
as fertilizer and ultimately help us better serve consumers
from my hometown to Brooklyn, New York.
Attachment 1: American Farm Bureau Federation (AFBF)
proprietary data policies as adopted by voting delegates at the
95th Annual Meeting held January 2014.

1. Proprietary data collected from farming and agricultural
operations is valuable, should remain the property of the
farmer, and warrants protection.

2. We support:

2.1. Efforts to better education farmers and ranchers
regarding new technology or equipment that may receive, record,
and/or transmit their farming and production data;

2.2. Requiring companies that are collecting, storing, and
analyzing proprietary data to provide full disclosure of their
intended use of the data;

2.3. Formation of standardized protocols regarding privacy
and terms of conditions to ensure a standard definition of all
components within the contract. We should be an active
participant in developing these protocols;

2.4. Compensation to farmers whose proprietary data is
shared with third parties that offer products, services or
analyses benefitting from that data;

2.5. Multiple participation options being included in all
contracts;

2.6. All proprietary information between the farmer and the
company remaining between the two entities. This would not
preclude a farmer from sharing data with whomever he/she
chooses (e.g., a consultant);

2.7. Utilizing all safeguards to ensure proprietary data is
stored at an entity that is not subject to a Freedom of
Information Act (FOIA) request;

2.8. The farmers' right to enter into agreement and their
rights to sell their proprietary data to another producer
(e.g., in land sale);

2.9. Private companies entering into agreements which would
allow for the compatibility/updating of equipment and updating
of software;

2.10. The right of a farmer to have access to their own
data, regardless of when it was shared with a company; and

2.11. The right of the producer who no longer wishes to
participate in aggregated data sharing with a private company,
to remove their past aggregated data from the company's
database and revoke that company's ability to sell or use that
data in the future.

3. We oppose any federal agency or FOIA-eligible entity
from serving as a data clearinghouse for all proprietary data
or aggregated data collected by private companies.
Attachment 2: American Farm Bureau Federation (AFBF)
unmanned aircraft systems (UAS) policies as adopted by voting
delegates at the 95th Annual Meeting held January 2014.

1. We support:

1.1. The use of unmanned aircraft systems (UASs) for
commercial purposes (i.e., agriculture, forestry, and other
natural resource use);

1.2. Requiring the operator of the UAS to gain the consent
of the landowner and or operator, if the UAS will be surveying
or gathering data about the landowner's property below
navigable airspace; and

1.3. The regulation of UASs as recreational aircraft.

2. We oppose:

2.1. A federal agency using UASs for the purpose of
regulatory enforcement, litigation and as a sole source for
natural resource inventories used in planning efforts;

2.2. UASs surveying and gathering data without the consent
of the landowner and or operator below navigable airspace; and

2.3. FAA regulations of UASs as fixed-winged aircraft.

[GRAPHIC] [TIFF OMITTED] T6640.004

[GRAPHIC] [TIFF OMITTED] T6640.005

Chairman Graves, Ranking Member Velazquez, and members of
the Committee, thank you for inviting me to testify about the
rapid growth in innovative wireless technologies and services
being developed and commercialized by small businesses in the
transportation industry.

The Intelligent Transportation Society of America (ITS
America) is the nation's largest association bringing together
the transportation, technology and research communities to
advance solutions to our nation's infrastructure, safety and
mobility challenges. About half of our nearly 500 members are
public agencies, universities and research labs. The other half
are private sector companies, from the major automakers, high-
tech, telecom, tolling and infrastructure firms to small
businesses, start-ups and entrepreneurs who are increasingly
taking the transportation world by storm.

Intelligent Transportation Systems (ITS) encompass a broad
range of information and communications technologies that
improve transportation safety, efficiency, convenience and
system performance. When integrated into the nation's roadways,
vehicles, and public transit networks, ITS can help reduce
congestion, improve mobility, save lives and optimize existing
infrastructure. Examples of ITS include advanced traffic,
freight, and incident management systems; synchronized and
adaptive traffic signals; electronic tolling and payment
systems; real-time traffic, transit, routing and parking
information; collision avoidance and response technologies;
high-occupancy toll (HOT) lanes; dynamic carsharing and
ridesharing; infrastructure condition assessment technologies;
and other high-tech solutions tailored to local or regional
challenges.

ITS and Small Business

It is widely accepted that a transportation system which
enables the efficient movement of goods and people is necessary
for economic growth. Inventory deliveries, shipments to
customers and a ready workforce all benefit from a predictable
and free-flowing transportation system.

ITS builds upon these efficiencies using real-time traffic
data to reduce congestion via integrated corridor management,
real-time incident and emergency response systems, traveler
information systems, traffic signal optimization, electronic
truck inspections, and even simple things like ramp meters. In
addition, this same real-time data is being used by private
sector innovators to give today's commuters better information
about current traffic conditions, more efficient routing
alternatives, public transportation options and even available
car and truck parking spaces.

Researchers from the Information Technology and Innovation
Foundation (ITIF) and the London School of Economics have found
that investing in ITS creates a network effect throughout the
economy and stimulates job creation across multiple sectors,
including the high-tech, automotive, information technology,
consumer electronics, and related industries of which a large
proportion are small businesses. In addition, an average of 50
percent of ITS project spending goes directly to wages and
salaries according to U.S. DOT, as compared with 20 percent for
new highway construction. Moreover, according to ITIF, the use
of ITS technologies on average provides an estimated 9-to-1
benefit-cost ratio as compared to an estimated 2.7-to-1
benefit-cost ratio for the addition of conventional highway
capacity.

You may have seen the U.S. Department of Transportation's
recent announcement about the advancement of vehicle-to-vehicle
communications technology, which is expected to prevent or
reduce the impact of 80 percent of unimpaired crash scenarios.
While a reduction in automobile crashes may not appear to be a
job creation activity, mitigating congestion and improving
throughput on our nation's transportation system is a
foundation for a strong economy on which businesses of all
sizes can better plan for growth.

Historically, the auto industry has focused much of its
safety efforts on mitigating the impacts of a crash after it
happens; but the next giant leap in reducing the number of
fatalities and injuries on our nation's roads is to prevent
crashes before they happen. This has a direct impact on
congestion on our roadways. According to the Texas A&M
Transportation Institute's latest Urban Mobility Report, the
financial cost of congestion is more than $120 billion each
year, wasting nearly 5.5 billion hours and $3 billion gallons
of gasoline, causing the average commuter to spend almost a
full work week stuck in traffic, and putting more than 56
billion additional pounds of emissions into our communities,
towns and cities.

Connected vehicle technologies would not be here today
without the innovation of small businesses and entrepreneurs
who were willing to take a risk in order to provide the public
with better products and services. While U.S. DOT and the
automakers have received much of the coverage for these
technological advancements, it would not be happening without
small businesses like Santa Clara, California-based Savari
Networks serving as the leading supplier of on board and road
side units for the connected vehicle market in the United
States. While still a small company, Savari just opened an R&D
center in Detroit and expects to double its employee strength
by end of the year. And they are one of many small businesses
who are working to transform our transportation future.

Other companies are working to integrate transportation
services based on connected vehicle technology into smart
phones and other aftermarket devices so these groundbreaking
safety benefits can be extended all throughout the nation's
infrastructure as well as to pedestrians, motorcyclists and
bicyclists. This promises to significantly reduce the number of
deaths and injuries on our nation's roads while unleashing a
new wave of innovation, from advanced traffic management
systems and on-demand services to real-time traffic, transit
and parking information and countless new transportation
applications that we haven't even thought of yet.

Even before we reach a fully-deployed connected vehicle
network, the explosion of real-time transportation information,
location data, wireless billing and smart phone platforms have
transformed mobility, providing commuters with a plethora of
new options from car-sharing, ride-sharing and on-demand
services to smart parking and navigation apps. Small businesses
like Uber, Lyft, WAZE, RideScout, Car2Go, Streetline,
ParkMobile, Parkopedia, Getaround, and many other companies
which didn't exist five years ago are fast becoming household
names, using wireless technology and transportation data to
provide more efficient and convenient services to the public.

These small businesses are creating good jobs, thousands of
jobs, with technologies that enable smarter use of the nation's
transportation system and services.

Removing Barriers for Small Business

Today's market is enchanted by driverless vehicles, which
is creating even greater excitement around the ITS industry.
However, autonomous and connected transportation produces
incredible amounts of data which needs to be collected,
analyzed, secured and in some cases made available. While this
provides tremendous opportunity for innovation, our future
transportation network is challenged by a patchwork of data
policies that undermines connectivity and creates an uncertain
environment for entrepreneurs.

Absent leadership and clear policy direction from Congress
and governmental agencies, businesses that could provide
valuable services in the market and generate jobs are unable to
find firm footing. And our awareness of transportation system
performance is much worse because of inconsistent or incomplete
policies from the hundreds of agencies that operate the
nation's transportation network. A common policy that makes
transportation data available and secure, while maintaining
complete anonymity for individual and commercial users, is both
possible and necessary.

Another challenge is the need to preserve dedicated
spectrum in the 5.9 GHz band which was set aside by the Federal
Communications Commission (FCC) to ensure high-speed, accurate,
secure and reliable communications which are critical for
connected vehicle safety systems. It is essential that the
availability and performance of this spectrum is protected for
safety purposes, while also freeing up additional spectrum
where it makes sense and where it can be done without
jeopardizing safety for expanded WiFi applications.

These innovations described here will be showcased from
September 7-11, 2014 at the 21st World Congress on Intelligent
Transportation Systems which will be held in the birthplace of
America's auto industry in Detroit, Michigan. I invite each of
you to visit Detroit and ride in a connected or automated
vehicle or check out the latest transportation innovations on
display. You will learn firsthand how dedicated men and women
from innovative businesses large and small are working to
improve our nation's transportation system and provide new
services while creating good jobs and strengthening our
nation's economic future.

I thank you for the opportunity to testify, and look
forward to answering your questions.

[GRAPHIC] [TIFF OMITTED] T6640.006

Chairman Graves, Ranking Member Velazquez, and members of
the Committee. Thank you for the opportunity to testify at this
hearing on ``Building on the Wireless Revolution: Opportunities
and Barriers for Small Firms.''

Since 2008, I have been Vice President and Director of
Governance Studies at the Brookings Institution. I am the
author of 18 books, including Digital Government: Technology
and Public Sector Performance (Princeton University Press,
2005), Digital Medicine: Health Care in the Internet Era
(Brookings Institution Press, 2009) and Digital Schools: How
Technology Can Transform Education (Brookings Institution
Press, 2012). I direct the Brookings Center for Technology
Innovation.

As the statement below demonstrates, wireless
communications is growing dramatically and is vital for
economic development. There are tremendous opportunities for
small businesses if we can overcome the obstacles that
currently exist. We need a balanced spectrum policy that
includes licensed and unlicensed spectrum, greater efficiency
in the use of current spectrum, incentive auctions that
reallocate underutilized bandwidths to high priority areas, and
universal access to high-speed broadband.

The Growth of Mobile Technology

Mobile usage is rising rapidly in the United States.
According to an eMarketer Statista analysis, the number of U.S.
smartphone users has risen dramatically since 2010. The total
increased from 62.6 million in 2010 to 140 million in 2013 (see
Figure 1). By 2017, it is likely to rise to 207.4 million
smartphone users.\1\

[GRAPHIC] [TIFF OMITTED] T6640.007

The Role of Mobile Technology in Economic Development,
Education, and Health Care

Mobile technology is an important driver of job creation
and economic growth. An analysis by economists Harald Gruber
and Pantelis Koutroumpis, for example, found that national
growth improves significantly based on mobile usage. Looking at
192 nations from 1990 to 2007, they found increasing returns in
terms of productivity and growth linked to the use of mobile
devices. For high income nations, mobile technology added 0.20
percent annually to Gross Domestic Product, while in low income
countries, it contributed 0.11 percent.\2\ They also looked at
mobile infrastructure investment and found that it paid off in
economic growth. Nations that invested saw annual GDP gains of
0.39 percent in high income places and 0.19 percent among low
income places.\3\

A Deloitte analysis of the United States meanwhile
``estimated $25-53 billion investment in 4G mobile wireless
technology in the US is projected, using standard GDP
multipliers for the industry, to create $73-151 billion in GDP
growth and between 371,000 and 771,000 new jobs.'' \4\ This and
other studies around the world corroborate the contention that
investment in mobile broadband enhances economic growth.

With new advances in mobile learning and mobile health
care, it is crucial to have high-speed networks that promote
connectivity and communications. In the education area, for
example, wired classrooms, handheld devices, and electronic
instruction let pupils learn at their own pace. Personalization
makes education more adaptive and timely from the student
standpoint and increases the odds of pupil engagement and
mastery of important concepts.\5\

We are seeing the growing use of wireless devices in health
care. Medical treatment now draws upon remote monitoring
devices, electronic medical records, social networking sites,
video conferencing, and Internet-based recordkeeping systems.
Using remote monitoring devices, people can measure their own
weight, blood pressure, pulse, and sugar levels, and send test
results electronically to health care providers. They can get
personalized feedback via email and reminders when they gain
weight, have an uptick in their cholesterol levels, don't take
their medicine, or have high blood pressure.\6\

Around 80 percent of American doctors use a mobile device
in their medical practice. According to research by Andrea
Downing Peck, doctors rely upon their smart phones to ``search
for drug and treatment reference materials, learn about new
research, diagnose diseases, and educate patients.'' Ready
access to information makes them more efficient and effective
in their operations.\7\

Research by the Boston Consulting Group and Telenor Group
found that ``mHealth can reduce the costs of medical care among
the elderly by 25 percent [and] double access to physicians by
those living in rural areas.'' \8\ According to those
researchers, it has made a huge difference in medical service
delivery and helped to bring health care to underserved areas.

Current Barriers

Mobile technology is vital for small businesses because it
helps entrepreneurs launch companies, build businesses, and
provide jobs. Wireless broadband allows them to stay connected
even while they are on the go. They can reach bank officers,
suppliers, and customers as they travel around the area. This
helps them remain in close contact with key people and build
the required personal relationships.\9\

But there are a number of obstacles that make it difficult
for small businesses to take advantage of the mobile
revolution. These problems include financing, regulation,
spectrum availability, infrastructure, and access. Below, I
review these challenges in greater detail.

Financing

It is hard for small businesses to attract sufficient
financial capital. The Startup Act addressed some of these
issues through an easing of paperwork requirements and
regulatory oversight. But in the aftermath of the Great
Recession, large financial institutions often don't want to
lend money to new businesses. They worry about lending risk,
business models, and long-term sustainability. These fears make
them reluctant to take risks with emerging companies, and this
creates obstacles in terms of new firms getting off the ground.

Regulation

It is a struggle for many small firms to deal with
government regulations. They don't have large staffs to process
the required paperwork and make sure they are compliant with
federal rules. Mobile industry companies have to deal with a
large number of agencies, such as the Federal Communications
Commission, which regulates telecommunications, the Securities
and Exchange Commission, which oversees finance and business
operations, the Federal Trade Commission, which examines market
completion issues, and the Food and Drug Administration, which
regulates medical devices. Facing detailed record-keeping and
oversight, it often is difficult for small firms to gain a
foothold in the industry.

Spectrum
Spectrum policy has significant implications for small
businesses. If one looks at spectrum policy, it historically
has been allocated on a band-by-band basis for particular
services. That means that certain frequencies have been
reserved for aviation, television broadcasting, paging
services, medical devices, cellular, and the like.\10\
Overtime, a hodge-podge of decisions has led to inefficiencies.
Rapidly-growing areas are running out of available spectrum,
while others experience demand that is far below the available
spectrum capacity.

As shown in Figure 1, demand has risen tremendously in the
wireless area and is out-stripping the available supply.
According to the FCC, we need a minimum of 300 MHZ for mobile
technology over the next five years in order to accommodate
growing cellphone usage, handheld devices, smartphones,
tablets, and mobile broadband.\11\ It is vital to gain access
to spectrum in order to facilitate job creation, economic
development, and long-term innovation.

Infrastructure and Access

There are issues for small business in regard to mobile
infrastructure. Firms require high-speed networks that connect
them with consumers and businesses. Right now, we need faster
networks with more universal connectivity. Based on Pew
Research Center polls, around 30 percent of Americans do not
have home Internet access.\12\ There are many reasons why
people have not adopted broadband service. A survey undertaken
by the Federal Communications Commission, for example, reveals
that 36 percent cite the overall cost of the service, 22
percent say they are uncomfortable with the Internet, and 19
percent find digital content not compelling enough to warrant
usage.\13\

Needed Policy Actions

Broadband utilization and mobile technology innovation are
growing rapidly, but there remain several actions that would
further business opportunities and long-term economic
development. Below, I review specific actions that will help
small businesses take advantage of wireless technology.\14\

Access to Financial Capital

In order to help small firms get off the ground, we must
make it easier for them to attract financial capital. One
reform that would be helpful in this regard is a research
credit for new firms that earn less than $5 million. This
investment would bolster capital acquisition and help these
companies bring innovative products or services to the
marketplace. Small investments of targeted tax credits can
yield significant economic benefits.

More Flexible Rules

We need to think about more flexible rules in regard to the
mobile sector. There is tremendous vibrancy and dynamism in
this sector and federal agencies should be careful that they
encourage innovation at the same time they protect the health
and well-being of consumers. The Food and Drug Administration,
for example, took useful steps in this regard through its 2013
guidance on mobile medical devices.\15\ It reviewed a variety
of apps and products, and outlined which ones should be subject
to regulation, which ones should not, and which ones would be
subject to ``enforcement discretion'', meaning that they are
not likely to pose significant risks to consumers. This kind of
thoughtful oversight helps medical app and device manufacturers
plan for the future and understand what regulatory environment
they are likely to face in the future.

Incentive Auctions to Reallocate Scarce Spectrum

One of our big challenges is the mismatch between spectrum
supply and demand in particular bandwidths. A market-based
mechanism for reallocating scarce resources is spectrum
auctions.\16\ Used successfully in the past, members of
Congress should allow companies that no longer need spectrum to
sell them to other business willing to pay.

This approach would have several benefits. It would provide
a way for companies to sell unused resources. It gives access
to spectrum for cell and mobile providers so they better can
serve consumers and businesses. Auctions also bring in needed
resources to the federal government to finance the national
budget.

The Federal Communications Commission currently is working
on its specifications for an upcoming auction. Legislators
should make sure that small businesses have a fair shot at
competing for unused spectrum and that entrepreneurs from
diverse walks of life have an opportunity to bid on spectrum.

Fees for Unused Spectrum

A number of public or private organizations has unused
spectrum. This includes the military forces, broadcast
television, and government agencies. They sit on spectrum
thinking that someday they may use it. Rather than not making
use of a valuable resource, they should pay fees for holding
that spectrum. Having fees for unused spectrum would provide
clearer incentives for organizations to employ the spectrum or
understand the value to others if they don't make use of it. It
is a way to bring market valuations into the spectrum rights
engine.

Unlicensed Applications in the 5 GHz bandwidth

A number of innovative small business services make use of
unlicensed Wi-Fi. Consumers can access a wide range of digital
services at coffee shops, in airports, and through business
establishments around the country. According to the Cisco
Visual Networking Index, 55 percent of all Internet Protocol
traffic will run over Wi-Fi networks by 2017.\17\ A number of
Internet service providers are moving their service delivery to
Wi-Fi hotspots. These are provided either by consumers
themselves or made available through phone carriers. Improving
availability to unlicensed spectrum through the 5 GHz band will
alleviate some of the current congestion. However, next-
generation Wi-Fi (so-called Gigabit Wi-Fi) will need unlicensed
spectrum in the 5 GHz band.

Better Use of 3.5 GHz Bandwidth

There currently is under-utilized bandwidth in the 3.5 GHz
area. It is possible to turn this low-power segment into a
Citizens Broadband Service.\18\ Right now, it is deployed for
naval radar utilization, but could be used for civilian
purposes in geographic areas where the Navy does not operate.
This spectrum repurposing would allow people to take advantage
of these networks.

More Efficient Use of Existing Spectrum

We need to determine ways to make more efficient use of
existing spectrum. Advances in cognitive radio applications
help to make more efficient use of current resources.
Scientists are working on ways that allow multiple, non-
interfering uses of various bandwidths. This is helping to
create greater efficiency in the spectrum rights system.

In a Brookings paper, Robert Matheson and Adele Morris
propose technical solutions designed to improve the efficiency
of spectrum utilization. They argue that it is possible to
improve bandwidth utilization through a series of technical
improvements. For example, they suggest that licensees should
be able to ``buy, sell, aggregate, and subdivide their LERs
(licensed electrospace right) at will.'' \19\ A ``flexible
rights regime'' offers greater efficiency, they say, than the
current ``command and control'' approach.

Infrastructure Improvements
New applications in education, health care, high-definition
television, and video conferencing require high-speed mobile
broadband. We need to improve data-sharing networks and promote
wireless connections that take advantage of these new
developments. Although nearly all of the investment for
infrastructure improvement will come from the private sector,
the FCC should make sure its rules facilitate innovation.

We need to encourage local communities to streamline the
approval process for building new cell towers and laying fiber
optic lines. Right now, communities have different rules and
processes and this makes it expensive for private companies to
expand digital infrastructure in a timely and affordable
manner.\20\

Higher Home Broadband Adoption Among Underserved
Populations

For underserved populations, there are a variety of actions
that would increase home broadband adoption. For example,
digital literacy programs would train people on online
applications that may be useful to them. Improved market
competition also would help drive down consumer cost barriers
that currently limit use. And outreach programs could help
bridge the digital divide based on age, race, gender, income,
and education. With these proposed actions, consumers and small
businesses would have better opportunities to gain the benefits
of the mobile economy.
Notes

------------------------------------------

1eMarketer Statista report, ``Number of
Smartphone Users in the U.S. from 2010-2017'', see link at
http://www.statista.com/statistics/201182/forecast-of-
smartphone-users-in-the-us/.

2Harald Gruber and Pantelis Koutroumpis,
``Mobile Telecommunications and the Impact on Economic
Development.'' Economic Policy, Volume 67, July 2011, pp. 387-
26.

3Harald Gruber, and Pantelis Koutroumpis,
``Mobile Telecommunications and the Impact on Economic
Development.'' Economic Policy Volume 67, July 2011, pp. 387-
426.

4Deloitte, ``The Impact of 4G technology on
commercial interactions, economic growth, and U.S.
competitiveness'', August 2011. http://www.deloitte.com/assets/
DcomUnitedStates/Local%20Assets/Documents/
TMT--us--tmt/
us--tmt--impactof4g--081911.pdf.

5Ruth Moody and Michael Bobic, ``Teaching the
Net Generation without Leaving the Rest of Us Behind: How
Technology in the Classroom Influences Student Composition'',
Politics & Policy, Volume 39, no. 2, 2011, pp. 169-194.

6Darrell M. West, ``Improving Health Care
through Mobile Medical Devices and Sensors,'' Brookings
Institution Center for Technology Innovation, October, 2013.

7Andrea Downing Peck, ``App-solutely fabulous'',
Medical Economics, suppl, Nov. 25, 2011, pp. S11-S14.

8Boston Consulting Group and Telenor Group,
``Socio-Economic Impact of mHealth'', February 28, 2012.

9Darrell M. West, Allan Friedman, and Walter
Valdivia, ``Smart Policy: Building an Innovation-Based
Economy'', Washington, D.C.: Brookings Institution Center for
Technology Innovation, 2013.

10See the Federal Communications Commission's
``Spectrum Dashboard'' at http://reboot.fcc.gov/
spectrumdashboard.

11Federal Communications Commission, Connecting
America: National Broadband Plan, 2010, p. 75.

12Pew Research Center, ``Home Internet Access,''
May, 2013.

13Federal Communications Commission, Connecting
America: National Broadband Plan, 2010, p. 168.

14Additional proposals can be found at Darrell
M. West, ``Technology and the Innovation Economy'', Washington,
D.C.: Brookings Institution Center for Techno9logy Innovation,
October 19, 2011.

15Darrell M. West, ``Improving Health Care
through Mobile Medical Devices and Sensors,'' Brookings
Institution Center for Technology Innovation, October, 2013.

16Jeffrey Rosen, ``The Future of Spectrum'',
Washington, D.C.: Brookings Institution Issues in Technology
Innovation, August, 2011.

17Cisco Visual Networking Index, ``Forecast and
Methodology, 2012-2017,'' May 29, 2013.

18Michael Calabrese, ``Solving the `Spectrum
Crunch': Unlicensed Spectrum on a High-Fiber Diet,'' Time
Warner Cable Research Program on Digital Communications, Fall,
2013, p. 15.

19Robert Matheson and Adele Morris, ``The
Technical Basis for Spectrum Rights: Policies to Enhance Market
Efficieny'', Washington, D.C.: Brookings Institution, March 3,
2011.

20Darrell M. West, Allan Friedman, and Walter
Valdivia, ``Smart Policy: Building an Innovation-Based
Economy'', Washington, D.C.: Brookings Institution Center for
Technology Innovation, 2013.
House Committee on Small Business

Hearing: ``Building on the Wireless Revolution: Opportunities and
Barriers for Small Firms''

February 11, 2014

Question for the Record

Rep. Hanna: Question for Michael Feldman of Big Belly
Solar.

As I understand, there is value to park services using
BigBelly in terms of reduced waste management costs, litter and
animal control in parks. Please explain any barriers to entry
into the National and State Park services including any
improvements or suggestions for what the committee could do to
assist increase use of sustainable devices such as BigBelly in
parks.

Answer response

Representative Hanna, thank you for the question.

The largest hurdle faced by the parks department is funding
for this type of technology equipment. From conversations
within the department, we believe the value proposition is well
understood, along with the benefits you mentioned. However, the
purchase of a BigBelly System is not specifically included
during budget cycles and makes it very difficult for the
Service to approve the expenditure. Any insight, assistance or
introductions to those responsible for the Parks Service
budgeting process would help get the BigBelly savings deployed
to an already cash depleted Service. We would be thrilled to
save tax payer dollars on trash collection in the Parks system.
[GRAPHIC] [TIFF OMITTED] T6640.008

The Computer & Communications Industry Association (CCIA)
represents large, medium-sized, and small companies in the high
technology products and services sectors, including computer
hardware and software, electronic commerce, telecommunications
and Internet products and services--companies that collectively
generate more than $250 billion in annual revenues.\1\
---------------------------------------------------------------------------
\1\ A complete list of CCIA members is available at http://
www.ccianet.org/members.

CCIA applauds the Committee for convening this hearing.
Small businesses in almost every industry sector from clean
energy to agriculture to retailing are increasingly relying on
fixed wireless connections including WiFi in their daily
operations. Cisco predicts that by 2017, WiFi will handle a
majority of all data that consumers access from the
Internet.\2\
---------------------------------------------------------------------------
\2\ Cisco Visual Networking Index, Forecast and Methodology, 2012-
2017 (May 2013), available at http://www.cisco.com/en/US/solutions/
collateral/ns341/ns525/ns537/ns705/ns827/
white--paper--c11-
481360--ns827--Networking--Solutions--
White--Paper.html.

WiFi runs on unlicensed spectrum that anyone can use as
long as they comply with FCC technical rules that prevent
interference. Coffee shops, airports and libraries make WiFi
available to customers. WiFi provides a platform for techies to
``innovate without permission'' in their garages and basement
---------------------------------------------------------------------------
offices where start-up companies are often born.

WiFi offloading at the edges of carrier networks makes both
wireline broadband and mobile cellular connections faster and
more effective.

The exclusively licensed frequencies that mobile carriers
use require huge sums for capital investment in spectrum
acquisition and expensive and sophisticated regulatory
operations that small businesses simply do not have. That's why
unlicensed WiFi is such a valuable alternative. The largest two
carriers have already aggregated about three quarters of mobile
licensed spectrum all for themselves, making market dominance
another barrier to entry even for mid-sized firms. That's why
FCC limits on spectrum holdings are so important ahead of the
2015 incentive auctions of 600 MHz frequencies.

Wireless Internet Service Providers (WISPs) provide small
businesses and consumers an independent option for local area
broadband access using WiFi. WISPs are particularly popular in
rural areas with little or no landline infrastructure.
Regulation is minimal and rates are often very affordable.\3\
---------------------------------------------------------------------------
\3\ Richard Thanki, The Economic Significance of License-Exempt
Spectrum to the Future of the Internet (June 2012), available at http:/
/download.microsoft.com/download/A/6/1/A61A8BE8-FD55-480B-A06F-
F8AC65479C58/Economic%20Impact%20of%20License%20Exempt%20Spectrum%20-
%20Richard%20Thanki.pdf.

Unfortunately, WiFi is vulnerable to overcrowding and
congestion from the deluge of data being consumed and sent by
an ever-proliferating sea of devices from smartphones to
---------------------------------------------------------------------------
tablets to industrial monitors and video game consoles.

Engineers are developing creative solutions for making more
unlicensed spectrum available. Improving the availability of
spectrum through the 5 GHz band can help. Some experts believe
that the future of spectrum is about various forms of
sharing.\4\ Cognitive radio applications that use smart
transmitters and receivers that can detect other signals and
avoid interference on the fly are a promising way to increase
the efficiency of spectrum use. The FCC is in the process of
harvesting spectrum from TV broadcasters who are willing to
share a channel with others, move to less valuable frequencies
or go off the air and deliver their programming online only.
Two Los Angeles TV stations recently announced their testing of
a new channel sharing arrangement.\5\
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\4\ Kevin Werbach & Aalok Mehta, The Spectrum Opportunity: Sharing
as the Solution to the Wireless Crunch, 8 INT'L J. COMM. 128 (2014),
available at http://ijoc.org/index.php/ijoc/article/view/2239/1054.
\5\ Joe Flint, Two Los Angeles TV stations to test sharing
spectrum, L.A. TIMES, Jan. 28, 2014, available at http://
www.latimes.com/entertainment/envelope/cotown/la-et-ct-two-los-angeles-
tv-stations-to-test-sharing-spectrum-20140128,0,5373030.story.

Another promising opportunity is the reallocation of
spectrum currently assigned to federal agencies for commercial
use instead. Spectrum sharing arrangements could allow for
occasional mission critical government uses, while freeing up
capacity most of the time for private sector uses. The 3.5 GHz
band, for example, is currently underutilized by the military
and could be made available for civilian use in many geographic
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areas.

We urge the Committee to support the FCC and other federal
agencies as they preserve existing unlicensed spectrum
designations, clear new spectrum for unlicensed use, and adopt
simple rules for unlicensed uses that small businesses can rely
on when making investments and designing products and systems.