the fcc has failed to keep pace. we have rules in place to basically assume entire media marketplace is free broadcast television stations and night and a daily newspaper that clunks on your front doorstep in the morning bread as we are just talking that's vastly different market. we have rules in place to preserve that current competition and it is not working. newspapers are closing on the dozen around the country and we are stopping at the fcc additional investment in local news gathering because to your point, a lot of the local newspapers and tv stations are now competing with social media giants for ad dollars. i think we should allow additional investment in the broadcast and media space. >> some people would say if you open the door to consolidation of the local news market it might in the short-term benefit those dollars [inaudible] how do you protect against a situation where you open the door for these transactions and essentially [inaudible] the content because in the same media market and suddenly maybe

. >> at what point will the fcc >> at what point will the fcc start considering that proposal and when will public comment start? commissioner carr: there are aspects we have been working on for one year, one point five years. i expect a vote in the coming years or months. my goal is to hold an auction of the spectrum. i think we are solidly on track to do that. that is going to mark a good win for american families. >> something you alluded to is the case for 5g. what is something that has been overhyped? >> the same dynamic you are talking about, is it too much hype, is it not? it is something we saw play out when we were shifting from 3g or 4g. there were a lot of articles and analysts writing, saying, is it worth it? are they going to cut copper lines? it is hard to envision the transformations that are going to come. think of your life 10 years ago. how you got across town. you pick up the phone, call a taxi, now with 4g and smart phones, you can have uber and lyft on your phone. think about banking ten years ago. we are on the cusp of seeing that type of transformational shift in

the fcc is failed to keep pace. we have rules in place that assume the entire media marketplace is three broadcast television stations at night and the daily newspaper on your front doorstep in morning. it is a vastly different market. we have rules in place that preserve that current competition and it's not working. newspapers are closing by the dozen around the country and we are stopping at the fcc additional investment in local newsgathering because a lot of these local newspapers and tv stations are now competing with social media giants for advertising dollars. we should allow additional investments in the broadcasting media space. >> some people would say if you open the door to consolidation of more it might benefit a newspaper. how to protect against a situation where you open the door for these transactions and there's homogeneity of who owns these outlets of the continuity between them? essentially the content becomes the same in two outlets in the same media markets only those outlets are more sustainab

time.ok more you that the are fcc was aggressive enough? review lasted well over a year, beyond the clock we try to meet in these transactions we dug into the record. i did not think it was necessary to get the remedies and divestitures. what you sow was, we define the market using a definition we first adopted in 2008. when you look at competition through that view, the fcc was clearly transaction was in the public interest. --ushed to monetize modernize our approach. when you see the market where competitors are competing, the benefits get bigger. the att merger played out as it should? see consumer choice and options, it is not the first time we see it build out. some of the markers for that, i spent a lot of time outside of d.c.. in 33 states. sioux falls, south dakota, they are going to be firing up 5g. i have been to small towns like fisher, indiana. cities, still had zero. when you are looking at progress, success, we have to measure it by those types of stories. some pushbackeen from localities. >> that is right. i fully understand.

fcc standard. at the window you are looking at which is 33 feet away from the pole it's less than half a percent. 2,000 times below the window. in this case the antennas are directional, 80° and 260° looking up and down the street so there's no antenna that's facing that building. i guess i should add also in response to some of the comments that i mentioned raj of the hemet and edson company was on the subcommittee for the ieee which just concluded their review they review the standards every seven years and concluded earlier this year and confirmed that the standard should remain at the level that it's at with respect to emissions. the fcc has had since 2013 a review process regarding the standards and they announced earlier this summer they were going to reaffirm the standards. that's because the physics has not changed. the frequencies have not changed. they've been around for a long time. and the standards are adequate and are what they should be and they are constantly reviewed. there was t

and we have a great witness from the fcc to talk to us about that. we need to be involved and hopefully be a leader in setting the standards. we need to look at a trusted supply chain. and then where there is not proper market activity, and i hate to say this, but we are competing against a non-market economy. a very strategic kpt tort. competitor. we may have to look at market breakdowns here and do something from a stand point of government to make sure we support the type of supplier base we're going to need. that's my simple definition with the problem and some of the top priorities. rare testimony. let's encourage everybody to simplify as much as possible so when we leave this hearing with a pretty good understanding of what we're facing and the first steps that we have to take. one final comment. i think you were in that secured briefing. which was called a month ago. i know my input was who in charge of this effort. i'm heartened by the fact in testimony we have an answer. it's the national economic council reresiding in the white house. i spo

every device that has radio frequency at some point passes through the fcc. if you want proof, just pull out your smartphone and look at the back of your computer television. you'll see an identification number from the fcc. it's a stamp of approval. i mean that ice complies with fcc interference rules before it is marketed or imported into the united states. the fcc needs to revisit this process and use it to explore how we can encourage device manufacturers to build security into all the products. to do this, we could build a national institute of standards and technology that security recommendations for the internet and things. the most important thing to do is to get started right now. german johnson, ranking member peters and members and committee, thank you for having me today i before to answering any questions might have. >> thank you miss rosenworcel, i in the appreciate their time at although it might questioning. >> thank you mister chairman. on monday, the fcc presented to address the supply chain risk on our networks. this includes a proposal no

in a long way and the fcc rooms with commercial spectrum and i'm pleased to share as far as the fcc to look for ways to expand the sharing techniques with its ears broadband service. when it comes to securing those networks and foreign adversaries, our thank walden and mrs. doris matsui and she is with the network act. they will prohibit the spending a federal dollars and the communications equipment and services that undermine national security. they will establish the billion dollar reimbursement to help small carriers to have equipment and replace it with secure alternatives. as we've heard, much of the global supplv chain with flows through china at one point or another. the industrial policies allows state run manufacturers like huawei to sell suspect equipment to providers cheaper than everyone else. many of the carriers avoided these threats wit$ smaller and more rural carriers of using suspect clips. the networks are interconnected and one week link among the system. and they were move the good of the entire country. with them and issues will share supply and risk information a

taylor: that was fcc commissioner jessica rosenworcel. tesla's lineup is about to get a new addition. we bring you the details of the new secret vehicle. that's next. this is bloomberg. ♪ taylor: after months of secrecy, tesla is getting ready to unveil its electric pickup truck late on thursday. up until now, the only limbs the public had of the vehicle was a cryptic looking tweet from ceo elon musk. for more details on what to expect, let's head to detroit where bloomberg auto reporter chester dawson joins us. why trucks? chester: it's a good question. elon musk has been talking about her for years, and it's one of the more anticipated items to come out of tesla's skunk works, but it's a very lucrative market. the detroit three make most of their money from pickups, particularly ford motor, who has the best-selling pickup. if you are an automaker, there's some bragging rights, but it also is a big profit generator. taylor: it's a big profit generator, but also a closely held loyal, loyal, loyal market. i think you had in the story tha

we propose to want use of fcc funding. and looking backward we want to understand if there is existing network equipment from those companies and figure out how to rip and replace it. this is not a risk we can allow in this country. >> it has to be something every american is rejoicing upon hearing the chairman of the fcc say that. but we are also looking at a whole government. the united states government. is it a whole government effort we are witnessing or is it somewhat ad hoc in the you midst of foreign policy concerns arctic late by secretary of state pompeo recently in a speech declaring china's threats to this country is simply unacceptable. >> all i can speak to is what the fcc believes. from our perspective these two companies present a national security risk to the united states. i have done many trips abroad where we presented a coherent and consistent message. lou: what's the response? >> it's generally favorable. other countries understand the risk. lou: there is also a competitive risk here and a structural

the fcc is proposing to rules, what are they? (laughs) >> thank you congresswoman for the question, before i answer i do want to express my gratitude to the wilson center for hosting this in-person conversation and obviously the center has been some of the most impulsive discussions here in washington and in my view of course, i don't think there is much more important than this. i want to thank you personally for your leadership in congress over the years having viewed you from afar i found consistently on how house intelligence committee and the other legislative assignments you had you always share your responsible these with the bipartisanship in the national interest. >> back at you. >> i appreciate that. i want to say on a personal note i feel like i've been chasing you, we share the extinction of having a chief counsel of the subcommittee on the constitution and the senate judiciary committee, obviously you've gotten to much higher ground but i feel like i have a little bit of chasing to do. >> who was your chairman when y

and the fcc? >> correct. >> and what is your message to the energy and commerce committee, particularly? what would you like to see legislatively? >> it is this. help support the fcc in this noble effort. let's take what this chairman so graciously did and launch the rural digital opportunity fund. give him the tools to ensure the money gets where it will have benefits. and that the transition plan supports a natural transition that does not take funding away. or services away from those customers that of already begun experiencing the benefits of broadband. >> when you think of territories in your own market, where ardof money, other types of state or federal support might be needed, is it strictly just lack of population density? what makes it tough for you to go, we should serve this community but we cannot? because market forces are x? what are the barriers of extending fiber to this or that community? >> it is typically density. in some cases it is density plus the challenges of the terrain.

shery: that was fcc chairman ajit pai. he says where the money comes the pans on congress, including credit, before the process takes place. some of these small and rural carriers do not have the money to carry this out. amanda: great interview. still ahead, more details on walgreens, said to be exploring a potential deal to take the company private. this is bloomberg. ♪ amanda: this is bloomberg markets. i'm amanda lang in toronto. shery: i'm shery ahn in new york. let's get more on that breaking headlines from earlier this hour. walgreens sent to explore a potential deal to go private. it would be the largest leveraged buyout in history. ed hammond joins us now with the details. he helped to break the story. .e had a guest earlier as soon as he heard the breaking news, said it would not happen. too much money. what are you hearing? ed: understandable instinct, and people are saying that. it may will not happen. the biggest leveraged buyout in history. even if you factor in the fact that the ceo has 16% of the company,

i said i used to work at the fcc, i think i should run that. and he said, okay. >> important lesson on asking for what you want. >> so that worked out. and i became chairman of the federal communications commission. in his first term. it was a wonderful experience which we can loop back to. it helped a lot that i'd been at the fcc, that i'd been at the private sector, that i had some time in congress. those three years were filled with net neutrality, wire and wireless broadband initiatives, cybersecurity, you know, on and on. and then that was exhausting. and i tried to retire again after that and realized that i was old but not that old and it was a little bit too early to retire and one thing led to another and i took a job as a partner at the carlisle group which is where i am now. i'm an investing partner investing in companies in the u.s. and around the world. continuing in the same space that i decided to be in at my clerkship, tech media telecom. that world has evolved and it's been great fun along the way. i had a chance after the fcc

we propose to want use of fcc funding. and looking backward we want to understand if there is existing network equipment from those companies and figure out how to rip and replace it. this is not a risk we can allow in this country. >> it has to be something every american is rejoicing upon hearing the chairman of the fcc say that. but we are also looking at a whole government. the united states government. is it a whole government effort we are witnessing or is it somewhat ad hoc in the you midst of foreign policy concerns arctic late by secretary of state pompeo recently in a speech declaring china's threats to this country is simply unacceptable. >> all i can speak to is what the fcc believes. from our perspective these two companies present a national security risk to the united states. i have done many trips abroad where we presented a coherent and consistent message. lou: what's the response? >> it's generally favorable. other countries understand the risk. lou: there is also a competitive risk here and a structural

one of the rules for your fcc. >> thank you congresswoman for the question. before you answered though, i do want to express my gratitude to the lesson center for your hosting this important conversation and obviously the center some of the most important policy discussions in washington. it might be of course, there has brought much more things were important than news. i thank you personally for your your personal leadership. i found consistently on house intelligence committees as well as the other legislative assignments you have, always have a a sense of bipartisanship and the focus on the national interest. >> back at you thank you. his tunic and saunas and a personal note, we actually shares might be aware the extension of having both services of cancel the subcommittee in the constitution and the senate judiciary committee. obviously you can't do much higher grounds that i have a feeling they have a little bit of chasing to do. in order to keep up with you. stigma chairman. >> romac. former house member who you might've served with. >> but this is in

the fcc standards for human exposure to electromagnetic radio frequencies. finally the discussion about compliance with conditions of approval i agree that the communication could have been better. that's on me. she did e-mail me. i happened to be out of town. i responded a week or so later and said i got your e-mail, i'll get back to you with more information, and i never did. that's my fault. however, that doesn't result in noncompliance of these conditions. i would like to read the conditions and discuss why. this is for antenna directions listed in a report. i know i skimmed through that quick will you. but a new antenna direction has not been introduced. there are no antennas activated. everything is as it always has been with this application. that condition has been met and will continue to be met. the other one the appellant went into more detail on is we should be aware the general public may have concerns about the antenna and potential rf source near the dwellings. we are aware. we should have in place a procedure of taking rf power density levels

she is an fcc commissioner. this is balance of power. ♪ david: this is balance of power, i am david westin. most of us have not thought much about electromagnetic spectrum's since physics in high school. not a week does by where there is news about how we will use specialist -- precious spectrum to support cellular technologies. jessica has been working on these problems as one of the fcc commissioners who will decide how to ration out spectrum. we welcome her from washington. welcome, great to have you with us. give us a sense of the overall situation. we have a certain amount of electromagnetic spectrum and you license it out -- you licensed it out. what are the new demands that are coming in? have wireless phones and we rely on them like never before. we download our lives into them and we cannot imagine what it would be like to not be connected at all times. all of those activities have consequences for our spectrum and our airways. the airways all around us are some invisible infrastructure and it is impo

taylor: that was fcc chairman ajit pai. so interesting, you spoke with him about other news, particularly twitter's decision to pull political ads and taking a firm stance against facebook. what was his take? shery: i asked him that because ajit pai has been vocal about free speech, about transparency among these big tech companies. i asked him what did you think about these bans on political ads by twitter and facebook not doing it? he said we don't regulate content companies so he does not want to talk about that. he says it is important to have transparency, that you want to know how these companies are making those decisions. he was very vocal on emphasizing privacy concerns, transparency. something he actually talked about already in a blog post last year. i asked him what did you think of progress made since then? he said those are coming in fits and starts around d.c., but at least the conversation is going there. taylor: thank you to bloomberg's shery ahn for that great interview and haidi stroud-watts. much more to

pai.xt, fcc chairman ajit this is bloomberg. ♪ vonnie: live from new york, i'm vonnie quinn. guy: from london, i'm guy johnson. this is "bloomberg markets." vonnie: u.s. trade with china plunged in september following new tariffs. commerce secretary wilbur ross says licenses to sell to huawei will come very shortly. our next guest warns about the threat that chinese tech firms posed to u.s. national security. let's get to bloomberg's shery ahn. shery: thank you so much. i'm standing by with the federal communications commission chairman ajit pai. thank you for joining us in the new york studio. let me get started with your concerns about chinese equipment. you had an op-ed published last week that said lending this equipment in america's 5g networks would open the door to censorship, surveillance, espionage, and other harms. what sort of evidence have you seen that lead you to this conclusion? ajit: we've seen a great variety of evidence with respect to particular chinese vendors behaving in ways not consistent with the rule of law, with free markets and the like. earlier thi

what is the fcc doing? we will be voting this week on a proposal that is forward-looking and backward looking. the forward component involves our universal service fund. overseas.fund the fcc the money is distributed to telecom companies across the broadband inploy rural areas. one of the things we propose to do is prohibit the use of that funding from used by recipients on equipment or services that present a national security threat. based on legislation passed last include as a cte ontion huawei and the prohibited list. that is forward-looking. the backward looking component is there may be problematic equipment in our networks. we are starting to understand where that might be, who is using it, etc. and also kickstarting a conversation about financing the replacement of that equipment to the extent we are talking about rural carriers who have incorporated this equipment and might not have the resources to do that. in consultation with them and others we want to have a sense of where we are right now. it

the fcc is proposing two rules. what are they. >> before i answer it i want to express my gratitude for the wilson center, to host this, this is been the locus of the most important policy discussions in washington and in my view i don't think there's much more important than this. i thank you for your leadership in congress over the years, i found consistently on the house intelligence committee and other legislative assignments, you discharge your responsible is with a sense of the partisanship and focus on the national interest as opposed to narrow partisan interest of the time, very much appreciate that. i want to say on a personal note i feel like i have been chasing you, we actually share the distinction of being chief counsel of the subcommittee on the constitution in the senate judiciary committee. obviously you have gotten to higher grounds and i feel i have a little bit of chasing to do to keep up with you. >> who was your chairman kick you >> sam brownback, former house member. so this is a really importa

the fcc started a proceeding but it is a heated one. we are having discussions about it. we are looking at other places for wi-fi to go, including the 5.9 gigawatt band. david: give us an extent to which partisan politics enters into this. president trump has said it is a priority for the country to go to 5g. how much is it republicans and democrats and how much is it republicans and democrats united on the goal? jessica: we are united on the goal. we want the united states to lead the next generation of technology, but when it comes to tactics, we might differ. i am the senior democrat at the industry and the administration does not have a plan for 5g service. there is no leadership from the senate. the national security advisor, we need a map when it comes to 5g. you have the fcc fighting with congress and the department of transportation over airwaves, and the president tweeting out that he has asked for assistance with 5g. this is not a master plan. we need one. other economies around the world are making strides and we do not want to fall behind. taylor: coming up, t

today the fcc decision refers to cases where u.s. companies receive subsidies in the federal government. that tends to be mostly small, rural phone companies. companies like verizon don't get those subsidies. so it is an incremental measure. meanwhile, another measure in congress right now that would subsidize those companies to pull some of that huawei or zte gear out of their networks. this is small compared to previous actions against those companies, such as for having them from getting federal contracts, making it hard for them to access american components for their products. thank you for your time. that is peter coy. check out his stories on bloomberg businessweek. meantime, one of president trump's picks for the federal reserve and judicial 10 is challenging the orthodoxy of how u.s. monetary policy is conducted. she questioned whether the federal reserve should be independent of political influence. she shared her views with ubs employees saying i don't see any reference to independence and the legislation that the five the

i went to see the president and chairman by at the fcc -- and chairman pai at the fcc. they are going to do a public auction of these radio waves and just let all american companies bid. it will be the best thing that ever happened to our 5g effort, and it's going to been about $60 billion for taxpayers, some of which we can use to help rural folks connect. kevin: you are aligned with chairman pai. sen. cassidy: absolutely, desks dy:. cassidy: -- sen. kenne absolutely, but this one was close. some powerful people in government were going to just give away a $60 billion asset, and i raised fresh hell, and some of my friends in the house did, too. thanks to the president and chairman pai, we turned it around. guy: john kennedy speaking to our washington correspondent kevin cirilli. vonnie: let's get the latest bloomberg business flash now, a look at some of the biggest business stories in the news. alibaba's $13 billion hong kong share sale is proving wildly popular, according to dow jones. the offering is already multiple times subscribed. they will start selling early,

we meet with the fcc on a regular basis. i think it is also important to recognize, there is significant differences in the delivery of our programs, whereas the fcc provides operational cost reimbursement and high cost areas. we provide the capital construction costs to be able to build those services into a community. so we have distinctly different missions and different funding methodology is to achieve that. however, common to both of us is that we have to have good mapping to be able to determine where service is and where it is not. i think the fcc has done a superb job this summer of working to try to improve their methodology for collecting data, we are working with, not just the fcc, but also with the ntia and also private stakeholders to properly understand what is currently out there, what we have found when we have put boots on the ground and going out to do site validation's, there are oftentimes, there is no single source that has the absolute correct data to be able to recognize who currently has service on t

shery: that is fcc chairman ajit pai. joining us now is the director of the national security and policy program at george mason university. thank you for joining us today. is the security threat posed by chinese equipment such as huawei and zte worth the financial they, the financial costs would have to bear, the u.s. would have to bear in trying to ban this equipment and trying to rip and replace them at the same time? guest: there is no doubt this will be costly but that is the point. national security cannot be put at risk as a matter of cost. we recognize there are a number of these rural phone companies that ended up buying huawei or cde gear because it is cheaper. it is cheaper because it is subsidized by the chinese government through low-interest or no interest loans. intellectual property that was handed over by foreign companies to generate profit. there is the actual the quitman itself. that is why we are having these carriers charge lower prices. we have to help the net on the back end to get this equipment o

they do comply with the fcc's regulations. that is about the extent that i know of it. >> there's a couple of things that are not in the readings. one is you have indicated that planning staff has reviewed this based on the historical guidelines. that is one of the criteria. i see no summary of that analysis other than the fact that you indicated it in your brief. secondly the letter of approval is usually included by, excuse me by the permit holder. i didn't see that either. lastly in the last page of their submission they show various sites that they attempted to look out, i presume, but they provide very little information there. the code says something about good faith efforts. when so many puts on the table that there was no interest. i have no idea whether that is a good faith effort, or not. i need to see these things before i make a final decision. >> i would be happy to respond. my understanding, the first item you brought up was our compliance with the design guidelines and preservation review. did i understand that