WEBVTT - Bloomberg's Barker on Upcoming Net Neutrality Decision (Audio)

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<v Speaker 1>Here's Bill Maloney. Good afternoon, Charlie. Averages are under pressure

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<v Speaker 1>Bill Maloney, Charlie all right, thank you very much, Bill Maloney,

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<v Speaker 1>Pelotons on Bloomberg Business Flash. You're listening to taking stock

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<v Speaker 1>on Bloomberg. Rady pasting live from the Kimpton Morrison House

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<v Speaker 1>Hotel in Alexandria, Virginia and the Washington metro area, home

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<v Speaker 1>to Bloomberg and one oh five point seven FM h

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<v Speaker 1>D two. And you know, Kathleen, one of the things

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<v Speaker 1>that everyone seems to rely on is an understanding of

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<v Speaker 1>the government's position and the Internet, and of course saved

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<v Speaker 1>the Internet net neutrality all very important topics, and here

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<v Speaker 1>to help us understand it a little bit better is

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<v Speaker 1>a Brad Barker. Brad is a senior analyst for a

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<v Speaker 1>Bloomberg Intelligence, and of course Bloomberg Intelligence provides a real

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<v Speaker 1>time research context on the variety of industries and all

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<v Speaker 1>types of government and the market factors. Just type b

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<v Speaker 1>I go uh into your Bloomberg Brad, thanks very much

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<v Speaker 1>for spending time with us. Tell us a little bit

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<v Speaker 1>what is net neutrality and what is going on with

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<v Speaker 1>the court system when we're waiting for a big decision. Sure, thanks, Pim,

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<v Speaker 1>Hello Kathleen, thanks for having me here. So, net neutrality

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<v Speaker 1>essentially prevents um I sps from creating fast lanes on

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<v Speaker 1>the Internet. In other words, they can't charge a Netflix

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<v Speaker 1>or somebody else similar extra money to make sure that

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<v Speaker 1>they connect you to to UH to the end user,

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<v Speaker 1>which is us, the customer. Now that decision is going

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<v Speaker 1>to be handed down by the d C Circuit Court

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<v Speaker 1>on any Tuesday or Friday at ten am going forward.

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<v Speaker 1>Now that's important for a couple of reasons. Uh. The

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<v Speaker 1>first reason is there are two rules going on at

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<v Speaker 1>the FCC right now which would be impacted by this

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<v Speaker 1>The first one are I s P privacy rules. What

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<v Speaker 1>these rules do is they would give the consumer the

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<v Speaker 1>ability to opt out from having their UH data collected

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<v Speaker 1>by the ice piece such as Comcast or Verizon, and

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<v Speaker 1>then have that data then be old to advertisers. This

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<v Speaker 1>is something right now that Facebook and Google are allowed

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<v Speaker 1>to do because they're regulated under the FTC and not

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<v Speaker 1>the FCC. Well, so who is who's fighting whom here

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<v Speaker 1>and who's leading the charge on each side? Sure? So

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<v Speaker 1>on on net neutrality? What you have? You have a

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<v Speaker 1>ten ten century have filed suit and the f c

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<v Speaker 1>C is on the other side of this, and most

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<v Speaker 1>people seem to think that the FEC will most likely

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<v Speaker 1>win this decision. Now you could, we could Who is

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<v Speaker 1>the FCC representing? The FEC didn't just wake up on

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<v Speaker 1>morning and say let's go after it, didn't, Sure the

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<v Speaker 1>FEC is representing the American public. Um they passed net

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<v Speaker 1>neutrality rules and two thousand fifteen, which you know would

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<v Speaker 1>would would not allow the Internet providers to charge fast

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<v Speaker 1>lanes for companies out there as well as create winners.

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<v Speaker 1>You know, because if they could charge, say a Netflix,

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<v Speaker 1>extra money, then if you had another company who was

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<v Speaker 1>smaller and was unable to pay that fee. You know,

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<v Speaker 1>Netflix could connect to the consumers faster. Brad, you mentioned

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<v Speaker 1>rule number one. What was rule number two? Uh? Now,

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<v Speaker 1>if the net neutrialing rules are upheld, it is expected

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<v Speaker 1>that the SEC will then go after um the zero

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<v Speaker 1>rating pens, which are free data plans which are currently

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<v Speaker 1>being offered by by T Mobile, who which which allows

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<v Speaker 1>you to connect to Netflix, Apple Music, Amazon Prime and

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<v Speaker 1>you can stream your stuff on their on their phones

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<v Speaker 1>for free. Now, a lot of people feel that this

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<v Speaker 1>is violating the tenants of net neutrality, and everyone seems

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<v Speaker 1>to think that if the rules are upheld that the

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<v Speaker 1>SEC will then tell T Mobile to shut this down.

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<v Speaker 1>You have Sprint who just yesterday announced that if you

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<v Speaker 1>sign up for their plan, you'll get Amazon Prime for

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<v Speaker 1>free for a year. They could also do the same

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<v Speaker 1>thing with uh A. T and T and Verizon also

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<v Speaker 1>have their similar plans. Well. Mind a certain extent is

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<v Speaker 1>the battle here between people who who do a lot

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<v Speaker 1>of streaming online and listen to lots of music and

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<v Speaker 1>watch a lot of movies on their mobile phones and

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<v Speaker 1>people who don't, who say they're clogging it, they're slowing

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<v Speaker 1>it down. They're doing it at my expense. Is that

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<v Speaker 1>because it isn't just clear cut who wins and who

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<v Speaker 1>loses here, Well, so it sounds sounds a good that's

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<v Speaker 1>a good question, you know, undernet neutrality bottom line, if

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<v Speaker 1>the rules are shut down, that will allow the the

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<v Speaker 1>internet service providers veriz in A, T and T, Comcast,

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<v Speaker 1>Time Owner, Cable, et cetera, to charge other other companies

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<v Speaker 1>money to use their their pipes. So to speak. If

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<v Speaker 1>the rules are upheld, all the internet companies would not

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<v Speaker 1>have to to pay anything for using the pipes. And

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<v Speaker 1>anybody could you know, it could go online and serve

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<v Speaker 1>the web and connect to any any company and not

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<v Speaker 1>have to pay extra for it. Well, Brad Barker, hats

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<v Speaker 1>off to you. This is a very very important issue

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<v Speaker 1>and a very complicated one, and you do a great

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<v Speaker 1>job day in and day out at covering for us

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<v Speaker 1>UH here on Bloomberg Intelligence Bloomberg LP. Brad Barker in fact,

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<v Speaker 1>as a senior analyst, he's usually in the Washington metro area.

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<v Speaker 1>He's in Bloomberg World headquarters in New York City. Today,

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<v Speaker 1>Pim Fox and I are in the Washington metro area

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<v Speaker 1>because we're broadcasting live at the Kempton Morrison House Hotel

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<v Speaker 1>in Alexandria, Virginia. Of course, the Washington metro area is

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<v Speaker 1>home to Bloomberg and one oh five point seven f

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<v Speaker 1>m h D two Mr Bloomberg Radio, Bloomberg Tank. King

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