FEDERAL COMMUNICATIONS COMMISSION
September 7, 20 II
..JULIUS GENACHOWSKI
CHAIRMAN
The Honorable Edward J. Markey
U.S. Ilouse of Representatives
2J08 Rayburn House Office Building
Washington, D.C. 20515
Dear Congressman Markey:
Thank you for your letter regarding the Commission's current efforts to refornl the
Universal Service Fund and the intercarrier compensation system. As you noted, one of the
issues the Commission is examining in its No/ice ofProposed Ru/emaking is access stimulation
and the impact ofCommission policies on services such as conference calling services.
Interested parties recently submitted comments and reply comments on proposals
regarding access stimulation, and the Commission's staff is in the process of reviewing these
filings. The Proposed Ru/emaking did not propose to declare the practice unlawful, as many
providers have urged. Rather, it required entities engaging in revenue sharing, which may
include a conference call company, to refile their rates to reflect the volume oftraffic delivered.
Resolution ofthis issue should bring ccrtainty to providers while taking action to reduce inflated
revenues that result from intercarrier compensation rates based on elevated traffic volumes.
As the Commis ion considers these issues, our objective is to spur deployment of
broadband and IP networks while taking measures to prevent gaming the intercarrier
compensation system and eliminate any abuses and inefficiencies that are occurring with the
current system. The reforms also will create a level playing field to enable all providers to
compete on equal tenns. Please be assured that any decision by the Commission will take into
account the interests ofconsumers, businesses, and carriers, and the importance of continued
investment in underserved areas.
I appreciate learning of your concerns and look forward to your continued input on these
important issues.
445 12lH STREET S W. WASHINGTON. D.C 20554 • 202-4 I 8-1 000