OFFICE OF
THE CHAIRMAN
FEDERAL COMMUNICATIONS COMMISSION
WASHINGTON
August 6, 2010
The Honorable Joe Baca
U.S. House ofRepresentatives
2245 Rayburn House Office Building
Washington, D.C. 20515
Dear Congressman Baca:
Thank you for your letter regarding the Commission's April 16,2010, Order andNotice
ofProposed Rulemaking (NPRM) in which it declined to adopt the high-cost support mechanism
proposed by the Puerto Rico Telephone Company (PRTC). I understand your concerns, and I
firmly believe that ongoing improvement and lasting benefits for Puerto Rico are dependent on
comprehensive universal service fund reform.
In the Order and NPRM, the Commission acknowledged that there may be a significant
number oflow-income consumers in Puerto Rico who lack access to voice telephone service
because they are unable to afford line connection charges when new facilities must be built to
reach them. Nevertheless, the record revealed dramatic increases in telephone subscribership in
Puerto Rico, with telephone subscribership rising from 73.8 percent to 91.9 percent between
2005 and 2008. In light ofthese positive developments, we found that it was not necessary to
provide a separate universal service high-cost support mechanism for non-rural insular carriers.
Instead, the Order and NPRMproposed targeted changes to our rules to help eligible consumers
in Puerto Rico take better advantage ofexisting universal service low-income support programs.
The proposed rules would provide additional funding through the Link-Up Program to help
offset special construction charges incurred by consumers when facilities must be built to
provide them with access to voice telephone service. By removing an impediment to affordable
voice telephone service, we hope to further close the gap in telephone subscribership rates
between the Commonwealth and non-insular areas.
For a permanent solution, I am committed to accomplishing comprehensive reform of
universal service - as recommended in the National Broadband Plan - to provide a more
efficient and effective vehicle for addressing service issues in insular and high-cost areas like
Puerto Rico. On April 21, 2010, the Commission began the process oftransitioning legacy
universal service high-cost support to a new high-cost program that would support broadband as
well as voice services. The April21 5t Notice ofInquiry andNPRM examines near- and longer 
term processes to target funding toward new deployment ofbroadband networks in unserved
areas while considering final rules to implement a new Connect America Fund (CAF)
mechanism that efficiently ensures universal access to broadband and voice services. As the
Commission comprehensively reforms universal service and implements the National Broadband
Page 2-The Honorable Joe Baca
Plan recommendations, you have my personal assurance that we will keep in mind your concerns
and the unique barriers present in Puerto Rico and other insular areas.
Thank you for your interest in this important matter. Please do not hesitate to contact me
ifI can be offurther assistance.
Sincerely,
------- .
Julius Genachowski
OFFICE OF
THE CHAIRMAN
FEDERAL COMMUNICATIONS COMMISSION
WASHINGTON
August 6, 2010
The Honorable Silvestre Reyes
U.S. House ofRepresentatives
2433 Rayburn House Office Building
Washington, D.C. 20515
Dear Congressman Reyes:
Thank you for your letter regarding the Commission's April 16, 2010, Order andNotice
ofProposed Rulemaking (NPRM) in which it declined to adopt the high-cost support mechanism
proposed by the Puerto Rico Telephone Company (PRTC). I understand your concerns, and I
firmly believe that ongoing improvement and lasting benefits for Puerto Rico are dependent on
comprehensive universal service fund reform.
In the Order and NPRM, the Commission acknowledged that there may be a significant
number of low-income consumers in Puerto Rico who lack access to voice telephone service
because they are unable to afford line connection charges when new facilities must be built to
reach them. Nevertheless, the record revealed dramatic increases in telephone subscribership in
Puerto Rico, with telephone subscribership rising from 73.8 percent to 91.9 percent between
2005 and 2008. In light ofthese positive developments, we found that it was not necessary to
provide a separate universal service high-cost support mechanism for non-rural insular carriers.
Instead, the Order and NPRMproposed targeted changes to our rules to help eligible consumers
in Puerto Rico take better advantage ofexisting universal service low-income support programs.
The proposed rules would provide additional funding through the Link-Up Program to help
offset special construction charges incurred by consumers when facilities must be built to
provide them with access to voice telephone service. By removing an impediment to affordable
voice telephone service, we hope to further close the gap in telephone subscribership rates
between the Commonwealth and non-insular areas.
For a permanent solution, I am committed to accomplishing comprehensive reform of
universal service - as recommended in the National Broadband Plan - to provide a more
efficient and effective vehicle for addressing service issues in insular and high-cost areas like
Puerto Rico. On April 21, 2010, the Commission began the process oftransitioning legacy
universal service high-cost support to a new high-cost program that would support broadband as
well as voice services. The April 21 st Notice ofInquiry andNPRMexamines near- and longer 
term processes to target funding toward new deployment ofbroadband networks in unserved
areas while considering final rules to implement a new Connect America Fund (CAF)
mechanism that efficiently ensures universal access to broadband and voice services. As the
Commission comprehensively reforms universal service and implements the National Broadband
Page 2-The Honorable Silvestre Reyes
Plan recommendations, you have my personal assurance that we will keep in mind your concerns
and the unique barriers present in Puerto Rico and other insular areas.
Thank you for your interest in this important matter. Please do not hesitate to contact me
ifI can be offurther assistance.
Sincerely,
-
Julius Genachowski