FEDERAL COMMUNICATIONS COMMISSION
WASHINGTON
OFFiCE OF
THE CHAIRMAN
March 23, 2010
The Honorable Cliff Steams
Ranking Member
Subcommittee on Communications, Technology,
and the Internet
Committee on Energy and Commerce
U.S. House ofRepresentatives
2370 Rayburn House Office Building
Washington, D.C. 20515
Dear Congressman Steams:
Enclosed please find my responses to the questions in your letter of March 12, 2010.
Please let me know if! can be offurther assistance.
Sincerely,
'------ .
Julius Genachowski
Enclosure
Chairman Genachowski's response to Congressman Stearns's Qnestions
1. Why, specifically, was it necessary to delay release ofthe plan to March 17from the
statutorily required deadline ofFebruary 17?
The Commission requested a one-month extension in the interest ofadvancing a National
Broadband Plan that reflected the extraordinary importance ofthe task and that was responsive to
the unprecedented record developed during the comment and workshop period. The
Commission's process for the Plan was unparalleled. It was the most open and participatory
process in the agency's history and included over 50 public workshops and field hearings, 30
Public Notices, and significant hours devoted at eight separate Commission meetings to provide
the public with updates on the Plan's development.
2. What was done between February 17 and March 17?
The additional time enabled the staffto thoroughly compile and review the extraordinary record
developed during this effort~over 74 thousand pages ofcomments from 700 parties -- to obtain
additional input from key stakeholders, and to more fully brief Commissioners on aspects ofthe
Plan as it came together.
3. How much money have you spent in preparing the plan? Please provide a total figure as well
as a breakdown, including figures for categories such as the total amount paid to existing
employees for time spent on the plan, the total amount paid to new employees for time spent on
the plan, amount spent on studies and reports, amount spent on travel, amount spent on
workshops, and amount spent on printing andproduction.
The Chart below provides the information you requested.
o 20 I
FCC's Broadband Plan Exnenditures for FY 20 9&FY 10
Compensation and Benefits In Millions of Dollars
(Estimates)
Existing FCC Employees (over 300 2.38
emplovees, Dart time)
New Employees (78 Temporary 4.00
emolovees, full and Dart time)
Other Expenditures
IT Infrastructure and Support- 5,37
Software and Cost Modeling 3.92
Data & 3
ra
Party Research 4.0]
Outreach (including workshops and 0.34
travel)
Printing and Production 0.60
Total 20.62
Portion ofTotal Funded through FCC 7.34
ADorooriations
Portion of Total Funded through ARRA 13.28
funding
I Expenditures as ofMarch 15, 2010, which includes FCC appropriations and ARRA funds
2 Includes infrastructure upgrades to host new datasets, and web-based tools and information services.
] Includes purchase ofover 20 third-party datasets
4 The printing is being performed in-house, above represents pre-production cost estimate
4. How many staffpeople were hired specifically to work on the plan? From where were they
typically hired? What is the employment classification ofthese staffers? How many ofthem had
a background in communications law as opposed to a general consulting background? Were
they hired through the same process other FCC employees who do not work on the plan are
typically hired?
The limited term hires the agency brought in to develop the Plan reflected Congress's broad
charge to the FCC under the American Recovery and Reinvestment Act, including the
requirement to assess and develop strategies for use ofbroadband to address the important
national purposes Congress requested, such as "advancing consumer welfare, civic participation,
public safety and homeland security, community development, health care delivery, energy
independence and efficiency, education, worker training, private sector investment,
entrepreneurial activity, job creation and economic growth." These limited term hires are highly
qualified and dedicated professionals skilled in a broad array of communications disciplines
(legal and non-legal), or leaders in fields like education, medicine, and energy who understand
the stakes involved in creating a comprehensive broadband infrastructure. In all, the FCC hired
78 limited term staff. Some ofthese staffwere employed for the entire duration ofthe National
Broadband Plan; others were employed for only part ofthat time. These employees typically
were hired from private sector organizations, including consulting firms, law firms, investment
firms and operating businesses, as well as non-profit and other organizations. These employees
serve on non-permanent appointments in various job classifications such as: Economist, Program
Manager, Program Analyst, Telecommunications Analyst, Attorney and Consultant. Nine ofthe
hires had a specific background in communications law; many more had experience in non-legal
aspects ofthe communications sector. The Commission was granted Direct Hire Authority
(DHA) from the Office ofPersonnel Management in response to the congressionally mandated
requirements for a National Broadband Plan. Direct Hire Authority is a competitive process that
allows for a streamlined approach to hiring. In addition to using DHA, the Commission used
appointing authorities that are outside the competitive hiring process such as the Recovery Act
appointing authority, temporary consultant and student appointment authorities, as well as details
ofstafffrom other federal agencies to quickly ramp up its broadband efforts.
5. The Administration has emphasized its policies to limit the hiring of or communication with.
private sector employees in connection with government generally and the American Recovery
and Reinvestment Act in particular. While I am not convinced that such interaction between the
public and private sectors is problematic, I am concerned ifa double standard is being applied.
How is it consistent with the Administrations' overall position on the interaction between the
private and public sectors the FCC used private sector consultants, on a limited-term basis,
many ofwhom may return to the private sector?
The unprecedented scope ofthe requirements set out in the Recovery Act to create this Plan
within one year challenged the FCC to assemble a team and access expertise in the latest
technology that is not readily available in the government. The Commission gained crucial
insight from the broad array ofskilled professionals and stakeholders hired to assist us in
creation ofthe Plan. These professionals included engineers, economists, entrepreneurs,
scholars, analysts, lawyers, as well as leaders from non-profits, medicine, education, energy, and
government. All came together as public servants to tackle vitally important issues focused on
what's right for our country.
6. How did the FCC review potential conflicts ofinterest among employees hiredfrom the
private sector? Does the FCCplan to make available in publicly reviewableform any potential
conflicts so that the American people can be assured that the plan was put together in an
objective manner?
As soon as prospective senior members ofthe Broadband task force were identified, they were
contacted by an ethics official in the FCC's Office ofGeneral Counsel (OGC) and were
personally vetted, in advance ofbeing hired, to ensure that they had no disqualifying conflicts or
appearance concerns and that they were aware ofthe ethics restrictions that would govern their
activities as Federal employees. Those who were determined by OGC to have potential conflicts
or appearance concerns that could not be resolved were not hired.
All individuals who were selected for hire as members ofthe Broadband team were contacted by
the FCC's Human Resources Office and provided a form on which they were required to indicate
whether they had financial holdings or interests of any kind. Those who indicated that they had
such holdings or interests were referred to OGC, and their holdings or interests were reviewed
for potential conflicts with their Federal service. In addition, the two individuals who were hired
as members ofthe Senior Executive Service, and the one who was hired as a Schedule C
employee, were required to file Public Financial Disclosure Reports (SF-278). All other
employees who were hired at or above the GS-13 level were required to complete Confidential
Financial Disclosure Reports (OGE Form-450). Both forms list the investments held by the
filing employee, their~pouseand their dependent children. Any employee who reported any
personal investments in companies subject to significant regulation by the FCC was required to
divest such investments.
Although the FCC is not permitted to make available in a publicly reviewable form the contents
ofany employee's Confidential Financial Disclosure Report, the contents ofthe Public Financial
Disclosure Reports filed by three senior members ofthe Broadband team are available upon
request by members ofthe public.
7. How soon will an electronic, searchable copy ofthe plan be available to help facilitate review
ofthe plan by congressional staffand the public?
A searchable pdf file was available on the FCC's website as soon as the Commission released the
Plan on March 16
th
There will be a Spanish version ofthe plan produced in April and a Braille
version soon after.
8. Please answer yes or no to each ofthefollowingquestions: Ifthe D.C. Circuit rules that the
FCC lacks jurisdiction under Title J to impose network neutrality regulations, will you, as
Chairman, propose that the FCC classifY broadband services under Title II? Might you make
such a proposal even ifthe D. C. Circuit does not so rule and, ifso, why?
9. What is your personal opinion on whether broadband services should be classified under Title
II?
As you know, the Commission is currently litigating the case to which you refer, Comcast Corp
v. FCC, No. 08-1291 (D.C. Cir. argued Jan. 8,2010), before the D.C. Circuit. The FCC is
vigorously asserting the position, presented in the Commission's briefin that case, that Congress
has delegated the agency the authority to address certain broadband issues under Title I and other
provisions ofthe Communications Act. When the D.C. Circuit issues its decision in the Comcast
case, we will review and assess the significance ofthat decision for matters before the
Commission.
On the broader question ofthe appropriate treatment ofbroadband under the Communications
Act, I believe broadband is essential to our country's economic health and global
competitiveness; to improving the lives ofthe American people; and to meeting critical national
challenges like education and public safety. I believe the FCC must pursue policies that promote
investment, innovation, competition and consumer interests associated with broadband networks
and services. I am committed to ensuring an approach to broadband that will continue to allow
the agency to meet the goals Congress has set for it.