JUN-30-2010 12:37 FROM:HON. NYDIA VELAZQUEZ 202 226 0327 TO:202 418 2806 June 25,2010 ~ongres~iona(J$i~pani[~U[t1.9' Ifnlttb iPtllttS €Onarr1f 1mIllf{Jinlrtoh. ta( 20515 CHAIRWOMAN .NYDIA M. VELAZQUEZ The Honorable Julius Genachowski Chainnan, Federal Communications Commission 445 12 1h Street, N. W. Washington, D.C. 20544 Dear Chairman Genachowski: We are writing to encourage you to reconsider the April 16, 2010 order issued by the Federal Communications Commission (}ICC) denying the adoption ofa new high-cost area support mechanism to address the telecommunications needs ofPuerlo Rico. Tne Congressional Hispanic Caucus (CHC) is concerned that the failure to implement an insular-specific Universal Service Fund (USF) support mechanism, in contravention ofa 1996 congressional mandate, has deprived the residents ofPuerto Rico ofthe benefits of having a variety oftclecommunications and information services. The FCC's decision ignores undisputed data showing that Puerto Rico has extremely low wireline telephone and broadband penetration rates, very high maintenance costs resulting from its mountainous topography, and higher than average infrastructure deterioration due to severe tropical weather and atmosphere associated with its location in the Caribbean. In addition, because Puerto Rico is an island, costs are made even higher because materials and supplies must be transported into Puerto Rico. While the most recent Census data reported that the telephone penetration rate in Puerto Rico was 91 %, recent surveys by the FCC place the figure at only approximately 75%. Both figures arc signHicantly below the U.S. mainland penetration rate of98.2%. In the area ofbroadband penetration, the FCC's Wireline Bureau reported in February 2010 that only 24% ot'households in Puerto Rico have access to high-speed Internet, compared to 60% access in the United States mainland. Despite these extrllOrdinary conditions, and the mandate contained ill the Telecommunications Act of 1996 that consumers in insular lIDd high-cost areas have reasonably comparative telecommunications and information services l() those available in urbllD areas, the FCC has denied the special consideration which consumers in Puerto Rico warrant. In its order denying insular funding to Puerto Rico, the FCC appears to have taken the position that the problems associated with telephone and broadband penetration in Puerto Rico can be resolved by wireless service. By dictating that telephone and broadband penetration problems must be resolved through wireless services, the FCC is treating the 24158 RAvaUITN tlOl.lSll O.,IClBvILOIN~ W.f.l'MlN/JT'OIIl,OC2u&,E! I~02122h'2410 NOT PItINTlI:l ATT"'~h.•t"·;E.P~N. JUN-30-2010 12: 38 FROM: HJN. NYDIA VELAZQUEZ 202 226 0327 TD:202 418 2806 Island differently than the rest ofthe nalion, which continues to have the benefit of USF suppon ofboth wireline and wireless systems. Thus, the FCC seems to be superimposing its technology policies. many ofwhich are now being reviewed by Congress, without consideration for the documented needs ofthe people ofPueno Rico. Funhermore, the maintenance. deployment and upgrading ofPucno Rico's wireline infrastructure is essential to the delivery ofbroadband services because it is the infrastructure that delivers these services to consumers. Without insular high-cost area support ofPueno Rico's wireline infrastructure, the digital divide between Pucno Rico Wld the rest of the nalion will continue to persist and to widen. Although we are aware that the FCC has proposed to provide some additional monies to low-income consumers in Puerto Rico by slightly increasing the amount ofthe subsidy available under its Link Up prolll'arn, this proposal is not sufficient t(l upgrade and extend wirelinc infrastructure in Pueno Rico. We believe that the FCC's denial ot"insular high-cpst area USF support is contrary to the mandate ofCongress that the FCC ensure that every citizen have comparable access to telecommunications seT\lices. We strongly urge you to grant the Petition for Reconsideration which is currently pending. We appreciate your timely and prompt action in this matter. IfyoII have any questions, please contact Patricia Villarrell1, CIIC Executive Director, at (202) 225-2410. ~.c..~ Joe Baca Co-Chair CHC. COlmnunications, Technology and the Arts Task Force Sincerely. N1J!tjt{~ Chair Congressional Hispanic Caucus "? r;.) ~ "'''' ",- "'..." " .' ~eyes ..~;;'7- Co-Chair CHC, Communications, Technology and the Arts Task Force Ju-l-30-2010 12: 37 FROM: HJN. NYDIA VELAZQUEZ 202 226 0327 TO:202 418 2806 Congresswoman Nydia Velazquez • FAX Cover Sheet To:I,..EU)\~)(),*",!fiŁo..\ rs From:S'Aro('~()..\I.u.~etk"f X'ClM S:)\l