HOUSE OF" REPRESENTATIVES
WASHINGTON. D.C. 20515
December 17, 2010
The Honorable Julius Genachowski
Chainnan, Federal Communications Commission
445 12
th
Street, S.W.
Washington, DC 20554
Dear Chainnan Genachowski:
The National Broadband Plan makes a series ofrecommendations to refonn the Intercarrier
Compensation (ICC) system, an important goal with potentially far-reaching impact on the
ability ofcarriers to invest in rural broadband infrastructure. As the Federal Communications
Commission evaluates the recommendations in the Plan and moves to take action on ICC refonn,
we applaud your leadership and your recent comments at the NARUC annual meeting in Atlanta
highlighting the need to fix phantom traffic and traffic pumping. .
Phantom traffic and traffic pumping, by some conservative estimates, cost carriers billions
annually, which is ultimately passed on to our constituents through higher local rates and/or
reduced investment in broadband infrastructure. Similarly, disputes over deviations from the
long-standing industry practice regarding compensation for traffic that may originate or
tenninate on the public switched telephone network using Internet Protocol reduce the amount of
dollars that carriers could otherwise invest to expand and enhance their underlying networks.
We believe the record is complete on phantom traffic and traffic pumping, and the time to act is
now. For example, the Commission issued a public notice in November of2006 requesting
comment on an interim proposal for national unifonn treatment ofnetwork traffic and call detail
record exchange rules.
i
Despite wide support from industry stakeholders, the Commission has
not yet established meaningful refonn ofphantom traffic to stop communications arbitrage from
continuing to occur.
The carriers serving our rural constituents are committed to deploying the next generations of
networks and services. By moving forward on these two issues and clarifying the status ofIP
traffic when it accesses traditional phone networks, incentives and certainty would be created for
incumbent carriers to continue to invest in broadband and meet the goals established in the
National Broadband Plan. More importantly, taking immediate action in these areas will provide
the momentum and building blocks necessary for comprehensive intercarrier compensation
refonn that can benefit consumers for decades to come.
•
fCongress
Sincerely,
Member ofCongress
I See Public Notice: Comment Sought on Missoula Plan Phantom Traffic Interim Process and Call Detail Records
Proposal; CC Docket 01-92, DA 06-2294 (November 8,2006).