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March 31,2011
The Honorable Julius Genachowski
Chairman
Federal Communications Commission
445 12
th
Street, SW
Washington, D.C. 20554
Dear Chairman Genachowski:
We write to you regarding the FCC's current efforts to reform the universal service
(USF) program and intercarrier compensation system (ICC). We support making these
programs more accountable and encourage the FCC to develop a smooth and predictable
transition toward reform.
The country has made significant progress in linking small communities with our urban
centers and global markets through communications. These investments have been made
through loans, loan guarantees, grants, and significant private sector investment to build
infrastructure in sparsely populated and remote areas which would not otherwise be
served.
As part ofongoing reform efforts, the FCC is reviewing a number ofnew and reformed
program restraints, benchmarks, and formulas intended to make universal service more
efficient and implement a new intercarrier compensation system. The FCC should
implement these reforms in a way that manages the providers' transition.
We would welcome your response to a few briefquestions. In particular, could you
describe how the FCC will specifically account for the impact any changes to USF and
ICC may have on service providers who are also RUS borrowers? Will the FCC conduct
a thorough analysis ofUSF and ICC changes and the potential impact ofthose changes
on RUS borrowers' ability to repay loans? And, will you conduct such an analysis before
making any changes to USF and ICC rules?
We are confident that you share our vision and dedication to connecting rural America
through sound investments in telecommunications infrastructure and we welcome the
opportunity to work with you to address these matters. We respectfully request your
response to this letter by May 2, 2011 and look forward to your reply.
Sincerely,
. Johnson
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The Honorable Julius Genachowski
March 31, 2011
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The Honorable Julius Genachowski
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