FCC Chairman Brendan Carr on SpaceX Spectrum deal

SPECTRUM AUCTION IN A BID TO BOOST DIRECT TO DEVICE SERVICES. THE SAME TECH USED BY SPACEX'S STARLINK. AND JOINING US THIS MORNING IN A CNBC EXCLUSIVE IS THE CHAIRMAN OF THE FCC BRENDAN CARR. CHAIR CARR GOOD TO HAVE YOU BACK. >> GOOD TO SEE YOU. YEP. >> STREETS REALLY WRESTLING WITH THIS ONE BECAUSE THE STOCKS ARE MOVING. BUT SOME OF THE DESKS ARE POINTING OUT LOOK A REAL NETWORK NEEDS POWER AND LEASES AND SPECTRUM AND TOWER AND CUSTOMER SUPPORT DEVICE SUPPORT. HOW BIG OF A DEAL DO YOU THINK THIS IS? >> WELL, IF YOU. >> STEP BACK, ONE OF THE THINGS THAT PRESIDENT TRUMP HAS BEEN CLEAR ABOUT FROM DAY ONE IS HE WANTS AMERICA TO LEAD THE WORLD IN NEXT GENERATION TECHNOLOGIES. AND WE'RE SEEING THAT ACROSS THE COMMUNICATIONS SECTOR, WHETHER IT'S FIVE G, SIX G, OR NOW THIS NEW GENERATION OF WHAT WE CALL DIRECT TO DEVICE TECHNOLOGY, WHERE YOU CAN GO RIGHT FROM A SATELLITE TO YOUR SMARTPHONE. WE'RE SEEING A LOT OF NEW COMPETITION AND INVESTMENT AT THE FCC. WE'VE SEEN PROBABLY OVER $100 BILLION IN DEAL FLOW IN SPECTRUM ALONE. AND WE'VE REINVIGORATED THE FCC'S WORK ON SPECTRUM AUCTIONS. WE'RE PROBABLY GOING TO BRING OVER $100 BILLION OF SPECTRUM INTO THE MARKET OVER THE NEXT TWO YEARS. SO WE'RE SEEING A LOT OF COMPETITION. WE'RE SEEING A LOT OF INNOVATION. LOOK, THERE'S GOING TO BE MOVES IN THE MARKET. PEOPLE ARE GOING TO TRY TO OUTCOMPETE OUTINNOVATE. AND I THINK THAT'S GREAT. WE'RE GOING TO SEE HOW THIS PLAYS OUT. IT'S NOT FOR US ULTIMATELY TO PICK WINNERS AND LOSERS. THE MARKET WILL DECIDE, CONSUMERS WILL DECIDE. BUT ALL OF THIS ULTIMATELY IS GOING TO BE REALLY GOOD NEWS FOR THE AMERICAN CONSUMERS. THEY'RE GOING TO SEE SPEEDS UP. THEY'RE GOING TO SEE PRICES DOWN. IT'S A REALLY INTERESTING ENVIRONMENT RIGHT NOW. >> YEAH. DO YOU FORESEE ANY OPERATION BETWEEN, FOR EXAMPLE, SPACEX AND ANY OF THE LEGACIES? >> WELL, THERE'S A TREMENDOUS NUMBER OF WAYS THAT THIS COULD PLAY OUT. AND WE JUST WANT TO MAKE SURE THAT MARKETS AND CONSUMERS CAN DECIDE THE TRADITIONAL MOBILE WIRELESS CARRIERS. THEY HAVE A JOINT VENTURE WHERE THEY'RE WORKING TOGETHER ON POTENTIALLY DIRECT TO SELL TECHNOLOGIES. THERE'S OTHER DIRECT TO SELL PLAYERS OUT THERE. AMAZON IS NOW GETTING A SIGNIFICANT NUMBER OF SATELLITES UP. I THINK THEY'RE STARTING THEIR DIRECT TO SELL SERVICE SOMETIME LATER THIS YEAR. SO IT'S A REAL INTERESTING ERA. THERE'S A LOT OF CHANGE. I THINK A LOT OF THIS REALLY GOES BACK TO EARLIER, A COUPLE OF YEARS AGO, A YEAR AGO ACTUALLY, WHEN ECHOSTAR EXITED THE MOBILE WIRELESS MARKET AND PUSHED THEIR SPECTRUM INTO THE MARKET. YOU'VE SEEN A LOT OF MOVES MADE SINCE THEN, SINCE ECHOSTAR EXITED. AND AGAIN, ULTIMATELY IT'S GOING TO BE REALLY TO THE BENEFIT OF CONSUMERS. IN FACT, THERE WAS A STUDY OUT, I THINK, A WEEK OR TWO AGO THAT JUST SAID THAT PRICES FOR HIGH SPEED FIBER INTERNET ARE DOWN 7 TO 14% FOR CONSUMERS OVER THE LAST YEAR. SO THIS IS ALL GOOD COMPETITION. AGAIN, WE DON'T KNOW EXACTLY HOW IT'S GOING TO PLAY OUT, BUT LET'S SEE WHAT HAPPENS. >> YEAH, I'M THINKING BACK TO WHEN I THINK IT WAS EITHER SECRETARY YELLEN OR MAYBE FED CHAIR YELLEN WHO SAID THAT WIRELESS WAS ACTUALLY A BIG NEEDLE MOVER IN JUST OVERALL PRICE ACTIVITY IN THIS COUNTRY, MEANING CPI YOU'D BE YOU'D THINK THAT WOULD BE A WELCOME RELIEF GIVEN THE INFLATION BACKDROP. >> WELL, IF YOU STEP BACK AGAIN, YOU KNOW, WHAT HAPPENED IN MY PERSPECTIVE DURING THE BIDEN YEARS IS, AT LEAST IN THE TECHNOLOGY SECTOR, THEY PUT A REAL REGULATORY WET BLANKET ON TOP OF THIS SECTOR. THERE WAS HEAVY HANDED REGULATION, DEAL FLOW DROPPED TO ABOUT ZERO, AND THE MARKET WAS SORT OF STUCK IN A LOT OF IRRATIONAL WAYS, SPECTRUM BEING A KEY PIECE OF THAT, RIGHT. WE HAD SPECTRUM IN THE HANDS OF PROVIDERS THAT WEREN'T NECESSARILY USING IT, THAT WEREN'T PUTTING IT TO ITS HIGHEST AND BEST USE. AND I THINK IT'S A GOOD THING THAT SPECTRUM CAN NOW RATIONALIZE, AND NOW IS THE TIME FOR PEOPLE TO DO THAT. CONSUMERS ARE GOING TO BENEFIT. AGAIN, WE'RE SEEING PRICES DRIVE DOWN, AND THAT'S A GOOD THING, WHETHER IT'S FOR CPI OR JUST FOR CONSUMERS POCKETBOOKS. >> BRENDAN VERIZON HAD SOME THOUGHTS ON THIS, SAYING IN A STATEMENT, QUOTE, SATELLITE COMPLEMENTS TRADITIONAL TERRESTRIAL NETWORKS. ACQUISITION OF SPECTRUM ALONE DOES NOT PROVIDE THE NETWORK OR INFRASTRUCTURE TO OFFER TRUE NATIONWIDE COVERAGE OR TO COMPETE WITH MOBILE PROVIDERS. ESSENTIALLY, THEY SAY, A COMPANY CAN HAVE BILLIONS OF DOLLARS OF SPECTRUM, BUT IF THEY DO NOT HAVE THE NETWORK TO USE IT, IT'S JUST EMPTY AIRWAVES. DOES THE FCC, WILL IT BE MONITORING SPACEX'S USE OF SPECTRUM AND ITS ABILITY TO REALLY BUILD OUT THE TRUE TRADITIONAL TERRESTRIAL TYPE OF INFRASTRUCTURE NEEDED TO TO BE A MOBILE CARRIER THAT COMPETES WELL? >> THERE IS A BIG DEBATE TAKING PLACE RIGHT NOW. YOU KNOW, IS SPACEX SERIOUS ABOUT BEING A, YOU KNOW, TRADITIONAL MOBILE WIRELESS CARRIERS WITH TERRESTRIAL TOWERS? THERE'S PEOPLE THAT ARE TAKING BOTH SIDES OF THAT BET RIGHT NOW. AGAIN, WE'RE GOING TO STEP BACK AND WATCH IT. BUT AGAIN, FOR OUR PART, WE JUST WANT TO MAKE SURE THAT THIS SPECTRUM CAN CONTINUE TO MOVE. WHEN YOU TALK ABOUT SPECTRUM AS A GENERAL MATTER, MAYBE SORT OF JUST A QUICK ONE ON ONE FOR VIEWERS. THERE'S BASICALLY THREE CATEGORIES OF SPECTRUM OUT THERE, WHAT WE CALL LOW BAND SPECTRUM, WHICH IS REALLY GOOD FOR COVERING WIDE GEOGRAPHIES, PENETRATING THROUGH BUILDINGS. THERE'S THEN HIGH BAND SPECTRUM, WHICH GIVES YOU REALLY HIGH CAPACITY, HIGH DATA RATES, BUT IT DOESN'T TRAVEL VERY FAR. IT DOESN'T GO THROUGH BUILDINGS. AND THEN THERE'S THE MID-BAND SPECTRUM, OBVIOUSLY, WHICH IS A SIGNIFICANT COMPROMISE BETWEEN THE TWO OF THOSE. AND THAT'S REALLY WHAT PEOPLE VIEW AS THE GOLDILOCKS. SO SPACE OBTAINED MID-BAND SPECTRUM THROUGH THAT ECHOSTAR DEAL. NOW THIS NEW DEAL ANNOUNCED YESTERDAY GIVES THEM THE LOW BAND SPECTRUM, AT LEAST A PORTION OF LOW BAND SPECTRUM. SO CARRIERS ARE MOVING AWAY FROM HIGH BAND. SO PEOPLE ARE SERIOUS ABOUT GETTING INTO THE TERRESTRIAL GAME. YOU'RE GOING TO WANT A PORTFOLIO THAT INCLUDES BOTH MID-BAND AND LOW BAND SPACE. NOW HAS THAT. BUT AGAIN, THERE'S GOING TO BE LOTS MORE SPECTRUM ON THE MARKET. AS YOU NOTED IN THE OPENING, WE'VE GOT 25MHZ COMING ONLINE IN