CLIFF STEARNS
6TH DISTRICT, FLORIDA
WASHINGTON:
2306 RAYBURN HOUSE OFFICE BUILDING
WASHINGTON, DC 20515-0906
{2021 225-5744
FAX: {202} 225-3973
We B: wWW,HOUSE,GOV/STEARNS
AIR FORCE CAUCUS, CO-CI1AIRMAN
CHRONIC OBSTRUCTIVE PULMONARY
DISEASE CAUCUS, CO-CIIAIRMAN
CYSTIC FIBROSIS CAUCUS, CO-CHAIA/,.1A11
flORIDA CONGRESSIONAL DELEGATION
CHAIRMAN
[ongress of the llnitcd~tQtcs
i10USC of1Rcprrscnmiurs
tiUashington, Blt 20jlj-ogoo
October 27, 2011
COMMITTEE ON ENERGV AND COMMERCE
SUBCOMMITTEES
OVERSIGHT AND INVESTIGATIONS
CHAIRMAN
COMMUNICATIONS AND TECHNOLOGY
COMMERCE. MANUFACTURING AND
TRADE
COMMITTEE ON VETERANS' AFFAIRS
SUBCOMMIT1EES
HEALTH
OVERSIGHT AND INVESTIGATIONS
TRANSATLANTIC LEGISLATORS' DIALOGUE
CttAIR'..tMI
The Honorable Julius Genachowski
Chainnan
Federal Communications Commission
445 12th Street, S.W.
Washington, D.C. 20515
Dear Chairman Genachowski:
Today's reform ofthe high cost program - the largest and most wasteful part of the
Universal Service Fund (USF) - is significant. Coupling this refonn with changes to the
agency's Intercarrier Compensation (lCC) program is an important step forward.
However, the work ofthe Federal Communications Commission (FCC) is far from over.
As a Member of the House Energy and Commerce Committee, serving as the Chairman
ofthe Subcommittee on Oversight and Investigations and senior member of the
Subcommittee on Communications and Technology, [ have a unique interest in how the
FCC tackles reform. The role ofthe FCC, as all independent agencies, is to carry out the
will ofCongress pursuant to its statutory grant of authority. As overseers, we must
. ensure that the FCC is not overstepping its authority prescribed by Congress, which at
times the agency has unfortunately done.
However, reforming the Fund is an important agency action that the Commission does
have the authority to do. As reform to these programs was voted on today, I do not at this
time comment on the merits of the FCC's order. Instead, I point out that reforming the
contribution factor to the Fund is the next logical step.
The contribution factor is the percentage of interstate end-user revenues that
telecommunication companies pay, ultimately passing on this cost to their consumers.
This percentage changes quarterly based on the needs of the Universal Service programs.
Through the years this percentage has witnessed unfettered growth. FCC reports indicate
that in the past decade the factor has grown 2.3 times - from 6.7% in 2001 to 15.3%
today. No otJler customer in the world pays the rates that American constuners pay.
Therefore, if the Commission is serious about reform, it will now address the contribution
factor to the Fund.
o OCALA
115SE25'''AVENUE
OCALA, Fl341l71
l352l351-8777
o GAINESVILLE
1900 SW 34'" STREET: 1207
GAINESVILLE. Fl32608
13521 337.QOO3
PRINTED ON RECYCLED PAPER
o ORANGE PARK
1726 KINGSLEY AVENUE, /f8
oRANGE PARK. FL 32073
(9().11269-3203
1538
Thank you for your attention to my concerns, and J look forward to the Commission's
prompt action on continued reform.
Sincerely,
Cli
Ch irrnan
Subcommittee on Oversight and Investigations
cc: Conunissioner Michael Copps
Commissioner Robert McDowell
Conunissioner Mignon Clyburn