FEDERAL COMMUNICATIONS COMMISSION
January 5, 2012
JULIUS GENACHOWSKI
CHAIRMAN
The Honorable Dan Benishek
U.S. House ofRepresentatives
514 Cannon House Office Building
Washington, D.C. 20515
Dear Congressman Benishek:
Thank you for your letter regarding the Commission's proceeding to reform the Universal
Service Fund (USF) and your concern about the proposal to cap total per line support for all
eligible carriers. I understand your concern and am happy to provide additional information
about the per-line limits and the waiver process.
In October, the Commission comprehensively reformed USF, taking a broken, outdated
system designed for the 20
th
century and modernizing it for broadband - our 21 st century
essential infrastructure. As part ofthis reform, the Commission adopted a cap of$250 per line
monthly for all incumbent and competitive carriers.
This cap will be phased in for affected carriers over three years, beginning July 1 2012
and ending June 30, 2014. As you note, the Commission adopted a waiver process to consider
individual circumstances. Any carrier affected by the per-line cap may file a petition for waiver
or adjustment ofthe cap and must include additional financial data, information, and
justification for the additional support. Carriers receiving waivers will be entitled only to
support above the cap that they can show is necessary - not the amount they received previously
- and they will be expected to re-validate their need for the additional support periodically.
I appreciate your interest in this very important matter. Please let me know ifyou have
any further questions or concerns.
0uliUS Genachowski
445 12TH STREET S.W. WASHINGTON, D.C. 20554 • 202-418-1000