FEDERAL COMMUNICATIONS COMMISSION
WASHINGTON
OFFICE OF
THE CHAIRMAN
March 17,2015
The Honorable Jerry Moran
United States Senate
345 Russell Senate Office Building
Washington, D.C. 20510
Dear Senator Moran:
Thank you for contacting me regarding your concerns about the potential impact of the
reforms to the universal service program's high-cost loop support (HCLS) mechanism on those
living in rural areas in rural areas of Kansas and on Tribal lands. In your letter, you also urge the
Commission to engage in formal consultation with Tribal Nations regarding these important
issues. Your views are very important and will be included in the record of the proceeding and
considered as part of the Commission's review.
Expanding high-speed broadband connections to all comers of the country is a top
priority for the Commission. And nowhere could meeting this objective be more impactful than
on Tribal lands. The universal service program is one of the most important tools at our disposal
to ensure that consumers and businesses in rural America, including in Tribal lands, have the
same opportunities as their urban and suburban counterparts to be active participants in the
United States of the 21 st century. We are focused on updating the universal service high-cost
program to ensure that we are delivering the best possible voice and broadband experiences to
rural areas of states within the confines of our Connect America budget, while providing
increased certainty and predictability for all carriers and a climate for increased broadband
expansion.
As you note in your letter, in the recent December 2014 Connect America Order, the
Commission revised the HCLS mechanism to distribute high-cost support more equitably among
high-cost carriers to provide better incentives for carriers to curb waste, as it had proposed to do
in April 2014. This is a near-term reform intended to help us get the most out of our USF
dollars. This decision was built on an extensive record, including comments from rural carriers
and their representatives on the proposal, and published Commission staff analysis of the effects
of the revision.
We believe it is important to move forward with implementation of this mechanism to
ensure that universal service funds are being used as cost effectively and efficiently as possible.
That said, I note that the National Congress of American Indians has filed a petition for
reconsideration of the December 2014 Connect America Order. We will give the petition full
consideration. In the meantime, however, please be assured that we will closely monitor the
effects of the interim HCLS mechanism on rate-of-return carriers, particularly those that serve
Indian Country. and will revisit this issue in the event that it has unanticipated results.
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Meanwhile, I expect the Commission will continue to develop the record and act on long-term
rate-of-return reform in the coming year, and I welcome consultation and dialogue with Tribal
Nations and entities as we move forward to ensure that their voices are heard. The
Commission's Office of Native Affairs and Policy (ONAP) is considering potential dates in 2015
when I can meet personally with the Tribally-owned rate-of-return carriers to discuss their
concerns.
The Commission is strongly committed to working with Tribal Nations through
meaningful and vigorous efforts on a regular basis in all regions of the country. We are also
committed to ensuring that Tribal concerns are appropriately considered and addressed as part of
the Commission's broader efforts to improve broadband deployment throughout the United
States. At the National Congress of American Indians 2014 Executive Council Winter
conference, I emphasized the importance of establishing a reinvigorated Tribal consultation
process that addresses many goals, including: (1) improving access to world class broadband
infrastructure; (2) access to spectrum and wireless infrastructure; and (3) ensuring a diversity of
media ownership voices in Indian Country. I also stressed the need for Tribal community
planners and policy representatives to build relationships with the Commission's Office of
Native Affairs and Policy (ONAP). ONAP has developed and manages a comprehensive plan to
strengthen the Commission's consultation and training efforts in all regions of the country. This
includes Commission-hosted regional Tribal training and consultation workshops and
participation in many Indian Country outreach events. In 2014, for example, ONAP hosted five
regional consultation workshops.
Finally, the Commission, with ONAP's leadership, plans to build upon its ongoing
consultative relationship with the Tribal Nations who own and operate rate-of-return carriers.
Upon ONAP's creation in 2010, the very first meeting in which ONAP staff participated in
Indian Country was the National Tribal Telecommunications Association (NTTA) conference on
the Gila River Indian Community in Arizona. NTTA's primary members are the eight Tribally-
owned rate-of-return carriers. In each year since 2010, ONAP has actively engaged with NTTA
both in Indian Country and at the Commission. In 2015, the Commission plans to continue to
engage and consult with Tribal Nations, NTTA, and others in Indian Country on long-term
reform of rate-of-return support.
I appreciate your interest in this matter. Please let me know if I can be of any further
assistance.