'Ilnitfl1~tI1tt.s~rnatt WASHINGTON, DC 20510 April 6, 20 II The Honorable Julius Genachowski Chainnan Federal Communications Commission 445 12" Street, SW Washington, D.C. 20554 Dear Chairman Genachowski: We write to you regarding the FCC's current efforts to reform the Universal Service Fund and intercarrier compensation system. We support modernizing these programs, including making them more accountable and broadband-focused to meet the goal of providing affordable and comparable communications service to all Americans. However. we also encourage the development ofa support mechanism framework that does not jeopardize current or hamper future private sector and federal lending program investment. Over the last three decades, communications carriers in rural areas have invested millions ofdollars in communications networks supported not only by universal service, but also by private investment and federal telecommunications and broadband loan programs. As part ofthe ongoing refonn effort, the FCC now proposes a number of new program restraints. benchmarks and fonnulas intended to make universal service more efficient and implement a new intercarrier compensation s)'stem. Telecommunication providers will be expected to adapt and manage their investments and businesses to those new standards and rules. Consequently, we believe these reform proposals must strike a balance to protect the investments that have already occurred and the need to overhaul the programs. We believe strongly robust broadband networks will lead to increased adoption, job creation and economic opponunity. However, as the regulatory reform effort moves forward, we must also ensure new rules and regulations do not have unintended consequences and hamper our investment in our rural communities. Thus. we request that you seriously consider these concerns. 0462 We look forward to working with you to address these matters. Sincerely, ~~J'?;~ Senator Mark Begich cg..~ i d.zr: "~,.... • - 75'-~'---~~,~d~.~ QJ••~'(.~~\~ a~_.-JihA.~ 1~~ ~~~..u:-. ~~~a­ c:rP~ A-;L.~L_._