OFFICE. Of'
THE CHAIRMAN
FEDERAL COMMUNICATIONS COMMISSION
WASHINGTON
October 13, 20 I0
The Honorable Ike Skelton
U.S. House of Representatives
2206 Rayburn House Office Building
Washington, D.C. 20515
Dear Congressman Skelton:
Thank you for your letter expressing concern about the effect ofthe ational Broadband
Plan's (NBP) proposed universalization level of4 Mbps on rural America. The BP called for a
Connect America Fund to enable all U.S. households to access a network that is capable of
providing both high-quality voice-grade service and broadband that satisfies the National
Broadband Availability Target. Recently, the Commission's Omnibus Broadband Initiative (OBI)
staff released a teclmical paper addressing the Target speed, which I am enclosing for your review.
The OBI paper details the reasons for the 4 Mbps level and notes the importance of periodic
adjustments as the data supporting the Target continues to evolve.
The 4 Mbps speed is very aggressive and represents one ofthe highest levels in the world
today for universalization, while the NBP's 100 Mbps number is based on a long-range goal. Few
residential customers today subscribe to 100 Mbps service, and 4 Mbps currently is the median
speed purchased by consumers. Only 6 percent ofconsumers subscribe to broadband service that is
faster than 10 Mbps. Broadband service at 4 Mbps permits conswners to utilize its full benefits,
including web browsing, e-mail, two-way video conferencing, and watching educational lectures
online in standard definition. The Target speed also is "reasonably comparable" to the broadband
service currently provided in urban areas, which is the standard mandated undcr Section 254 of the
Communications Act for universalization. Cost is also a factor that needs to be considered  
subsidizing universal 100 Mbps deployment today could cost as much as $320 billion, which could
increase the size of the fund to $40-50 billion annually, and lead to a universal service fee, on
average, of$30 per month per American household.
Be assured that 1am committed to making broadband affordable and attainable by all
Americans, regardless ofwhere they live or which service providers they use. 1 look forward to
working with you and other Members of Congress as the Commission transforms its universal
service policies to ensure that there will be no digital divide in our nation. Please do not hesitate to
contact me if I can be of further assistance.
Sincerely.
•
Julius Genachowski
Enclosure