FEDERAL COMMUNICATIONS COMMISSION
May 31,2011
JULIUS GENACHOWSKI
CHAIRMAN
The Honorable Sanford D. Bishop Jr.
U.S. House of Representatives
2429 Rayburn House Office Building
Washington, D.C. 20515
Dear Congressman Bishop:
Thank you for your letter regarding the Commission's current efforts to refornl
the Universal Service Fund and the intercarrier compensation system. I understand and
share your concern that these reforms should be designed so that they adequately
consider potential impact on existing investment in rural areas.
The Commission is mindful of the fact that changes to the Universal Service Fund
and intercarrier compensation system may affect providers serving rural areas that
receive public funding from other governmental agencies such as the Rural Utilities
Service (RUS). A reformed, broadband-focused Universal Service Fund and intercarrier
compensation system should complement RUS's efforts to spur broadband build-out in
rural America through public-private partnerships. To that end, the Commission has
requested data from firms currently receiving RUS support to examine the potential
impact ofchanges to the system and has been working closely with RUS to address
related issues. The Commission will analyze the data we receive to determine the
appropriatc size of future recovery mechanisms and any necessary transitions to those
mechanisms.
Please be assured that I understand your concerns. and that as we move forward,
the Commission will fully take into account the needs ofconsumers in rural areas and
carriers serving them. I appreciate the opportunity to provide feedback on these
important issues.
Sincerely,
•
Julius Genachowski
445 12THSTREETS.W WASHINGTON,DC 20554.202-418-1000