5.

,1E R E

The LIBRE Initiative

Submission of The LIBRE Initiative in Response to the C0mmissi0ns Request for Written Submissions in the Matter of Electronic Digital Media Devices, Inv. N0. 337-TA-796
Dear Ofce of the Secretary:
The LIBRE Initiative respectfully submits these comments in response to the Notice of Commission Decision to Review in Part a Final Initial Determination Finding a Violation of Section 337; Request for Written Submissions issued by the United States International Trade Commission in the matter of Electronic Digital Media Devices, Inv. No. 337-TA-796, on May 28, 2013.
The LIBRE initiative is founded upon principles of economic freedom and prosperity through promoting free enterprise, responsibility, and limited government. LIBRE partners with individuals and organizations to inform people across the country about our goals for economic freedom. We strive for a prosperous Hispanic and Latino community in the U.S. that contribute to building a renewed and free economy at home.

Should the Commission rule in favor of Apple, hundreds of thousands of Samsung phones may be disallowed from entering the U.S. The LIBRE Initiative is wary of this ruling for a number of reasons, including the negative impact on the health and welfare of the Latino community, decrease in marketplace competition, and increase costs for consumers.
AN EXCLUSION ORDER WILL NEGATIVELY IMPACT HEALTH AND WELFARE OF THOUSANDS OF HISPANIC AND LATINO U.S. RESIDENTS
For many Latino and minority Americans, mobile broadband devices are the primary means for which they are able to access the Intemet. Tens of thousands of minority interests in the United States rely on Wireless broadband as their primary, often only, source of Internet access. According to Pew Research Center, 76 percent of Latino Intemet users access the Intemet by mobile devices compared to 60 percent of white users. For too many children and teens, the only means of accessing the Internet outside of school is via their mobile devices, putting them at a direct disadvantage to students in wealthier areas.
Whats more, 30 percent of rural students (many of whom are minorities) attend schools where Advanced Placement (AP) classes, a staple on any application to a top university, are not available. Because of this, schools in Louisiana, Alabama, New York and elsewhere, are offering distance-leaming AP classes, in which students teleconference with a teacher and class miles away and participate in interactive assignments, broadening their knowledge and making them more attractive to university admissions committees. In these classes, students often use e-text books stored on tablets and smartphones or are expected to complete homework assignments and exams online. Limiting mobile broadband access by eliminating a large proportion of modern and affordable devices from the marketplace will put many of these students at risk and widen the gap between them and their peers because they simply do not have Intemet access at home.

Latino and minority communities also use Wireless broadband devices to access critical medical resources like health records, monitor blood or glucose levels, and contact emergency services when there is no immediate access to emergency rooms. Increasingly, such devices are used to monitor chronic disease which disproportionately affects the minority community and provide real-time consultation with medical personnel. These applications require modern devices which Samsung provides at a variety of price points and distribution channels, both prepaid and postpaid. They also use their wireless device in the instance of a natural disaster to locate the nearest emergency shelter or meeting point. Being able to nd these shelters when land communications infrastructure is out of service is critical to ones survival and should not be determined by limited availability of devices and budgets of consumers. These services save lives.

Because Samsung is the largest mobile device provider in the U.S. market, excluding Samsung products will put more Latinos health and welfare at risk. Without Samsung on the shelves, device selection for many Hispanic and Latino consumers will be unduly restricted and prices will rise. To the extent that mobile devices are available to minority communities, some will be faced with the choice of purchasing more expensive, less desirable, older and non-broadband models or none at all.

AN EXCLUSION ORDER WOULD DECREASE MARKETPLACE COMPETITION AND SEVERELY LIMIT AFFORDABLE OPTIONS FOR U.S. HISPANIC AND LATINO RESIDENTS
If the Commission issues an exclusion order in this case, marketplace competition will greatly decrease and prices will climb. This will severely limit affordable options for Americans, and especially for minorities. Fewer options and higher prices will be the new reality that millions of Latinos, and minority citizens will either be forced to comply with the new prices or be left out of mobile broadband entirely. First, many minority residents do not have the purchasing power for more expensive devices or tablets. Samsungs smartphones currently represent more than 26 percent of the U.S. mobile market, and unlike Apple, they offer a broad range of mobile phones at various price and distribution points to provide access to those consumers who might otherwise be priced out of the market. Second, Samsung is the largest smartphone competitor to Apple in the United States, providing consumers with less expensive mobile broadband devices. Less competition means fewer affordable plans including pre-paid and intemational calling.
It is clear to us that the impacts as a result of the ruling in case 337-TA-796 could severely harm the U.S. Hispanic and Latino populations. The LIBRE Initiative strongly recommends that the public interest would not be served by a ban on Samsung mobile devices. Should Samsung devices be limited in the U.S., it will impact Hispanic and Latino health and welfare, marketplace competition and free enterprise, and increase prices of mobile devices for consumers. We thank you for taking the time to consider our apprehensions and are readily available to address any future inquiries.

Respectfully,

Dan Garza Executive Director The LIBRE Initiative