FEDERAL COMMUNICATIONS COMMISSION
January 8, 2013
JULIUS GENACHOWSKI
CHAIRMAN
The Honorable Jack Kingston
U.S. House of Representatives
2372 Rayburn House Office Building
Washington, D.C. 20515
Dear Congressman Kingston:
Thank you for your letter regarding the FCC's Universal Service Fund reforms. I
appreciate your interest this matter and am pleased to provide the enclosed letter on this issue
from the Chiefof the Wireline Competition Bureau's Telecommunications Access Policy
Division.
If you have any additional questions or need any further assistance, please do not hesitate
to contact me.
Sincerely,
Julius Genachowski
Enclosure
445 I2THSTREETS.W.WASHINGTON, D.C. 20554.202-418-1000
•
Federal Communications Commission
Washington, D.C. 20554
January 8, 2013
The Honorable Jack Kingston
U. S. House of Representative
2372 Rayburn House Office Building
Washington, D.C. 20515
Dear Congressman Kingston:
Thank you for your letter expressing concerns about the effect of the Commission's
Universal Service Fund (USF) reforms on rural telecommunications providers. I want to assure
you that the Commission will continue to work with all stakeholders, including rural carriers,
throughout the reform process.
The Commission's implementation of the Transformation Order continues to be guided
by three key goals: expanding broadband to the millions ofunserved Americans, preserving
voice and broadband service in areas that would not be served absent support, increasing fiscal
responsibility and accountability in USF spending to ensure the long term sustainability of the
Fund, and setting forth transition periods that recognize business realities. In addition as we hear
from stakeholders about concerns with implementation, we will make adjustments as
appropriate. For instance, on April 25, 2012, the Commission extended the transition for
originating intercarrier compensation payments, a concern raised by many smaller carriers.
Likewise, in the Wireline Competition Bureau's April Benchmarks Order, the Bureau revised the
initially proposed high-cost loop support benchmark categories to respond to a number of the
concerns raised by smaller carriers. In particular, the revised methodology accounts for several
additional drivers of cost in comparing spending between carriers, it takes recent investment into
consideration, it extends the transition period to give carriers greater time to adjust, and it
provides a streamlined process to address any concerns about the accuracy of carriers' data. The
Commission also extended a number ofreporting deadlines for smaller carriers.
Even as we continue to make necessary adjustments, the Chairman believes that it is
important to keep moving forward with implementation of the Commission's once-in-a
generation reforms and not roll back progress that we have made. As we do, the Commission
and staffwill continue to run a fair, open process in which the valid concerns of stakeholders are
addressed - working closely with affected carriers to ensure that residents of the nation's rural
Page 2 - The Honorable Jack Kingston
and high-cost areas receive the quality voice and broadband services that all Americans need. I
appreciate your interest in this very important matter. Please let me know if I can be of any
further assistance.
Sincerely,
-
Trent B. Harkrader
Chief
Telecommunications Access Policy Division
Wireline Competition Bureau
cc: The Honorable Michael B. Enzi
The Honorable Cynthia Lurnmis