DIANA DEGETTE
1ST DISTRICT, COLORADO
2335 RAYBURN HOUSE OFFICE BUILDING
WASHINGTON, DC 20515
(202) 225-4431
FAX (202) 225-5657
DISTRICT OFFICE:
600 GRANT STREET, SUITE 202
DENVER, CO 80203
(303) 844-4988
FAX 13031844-4996
http://degette_house _gov
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June 2, 2011
CHIEF DEPUTY WHIP
COMMITTEE ON ENERGY AND
COMMERCE
VICE CHAIRMAN
SUBCOMMITTEE ON HEALTH
SUBCOMMITTEE ON
COMMUNICATIONS, TECHNOLOGY AND
THE INTERNET
SUBCOMMITTEE ON OVERSIGHT AND
INVESTIGATION
SUBCOMMITTEE ON COMMERCE, TRADE
AND CONSUMER PROTECTION
COMMITTEE ON NATURAL
RESOURCES
SUBCOMMITTEE ON NATIONAL PARKS,
FORESTS AND PUBLIC LANDS
SUBCOMMITTEE ON INSULAR AFFAIRS,
OCEANS AND WILDLIFE
The Honorable Julius Genachowski
Chairman
Federal Communications Commission
445 12
th
Street, SW
Washington, D.C. 20554
Dear Chairman Genachowski,
Thank you for your hard work on behalfofthe millions ofAmericans who need greater access to
fast and reliable broadband services. In particular, I want to reiterate my appreciation for the
Commission's effort on the Recovery Act Broadband Initiatives Program (BIP), under which the
$100 million satellite project category was established, and the Broadband Technology
Opportunities Program (BTOP), which supported the EAGLE-Net (Educational Access Gateway
Learning Environment Network) Alliance project that will benefit Colorado's public schools and
anchor institutions. When the Energy and Commerce Committee drafted and debated the
broadband grants in early 2009, I fought to ensure that satellite services would be on a level
playing field with other competitors. Unfortunately, I am once again requesting fair treatment of
satellite service providers, this time with respect to the Notice of Proposed Rulemaking on the
Connect America Fund (CAF).
I am concerned the FCC has proposed to structure the Connect America Fund in a way that
limits the ability of satellite companies to compete as a direct or prime contractor in reverse
auctions and precludes all participation in Phase I ofthe CAF. It is almost always my preference
for proposals like this to remain neutral on technology, both on its face and as applied, so that all
broadband providers are eligible to compete based upon cost and capabilities. In setting up a
reverse auction, the NPRM appears to effectively propose eliminating satellite from primary
consideration. Any technology capable of providing service should be allowed to participate in
the FCC's process as a direct or primary bidder, or in a partnership, in order to most efficiently
bring the benefits of broadband to households in need of service. This would allow the FCC to
best determine what type of service provider meets the needs of those in hard to reach places in
the most cost-effective manner.
Satellite is a proven technology that is demonstrating its ability to provide the necessary
broadband services every day. In fact, the Recovery Act Broadband Initiatives Program (BIP)
through the Rural Utility Service (RUS) shows how satellite service providers can quickly and
cost-effectively reach rural Americans. In its first six months, one satellite provider connected
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nearly 80,000 rural households under its award. Other RUS grant recipients see demand
outstripping supply offunds available through their grants and expect funding to be exhausted by
later this year, nearly 2 years in advance ofthe RUS deadline.
Satellite capabilities have advanced exponentially in the past decade and could greatly reduce the
size of the high-cost fund while providing speeds that exceed the highest speeds possible with
long-loop DSL. According to recent studies, satellite broadband providers will be able to use
expanding capacity, along with significant advances in technology, to offer service
improvements that exceed evolving standards. I have been told that satellite broadband operators
will have sufficient capacity in 2015, after the launch oftwo next-generation satellites scheduled
for this year and next, to provide speeds ofapproximately 4/1 Mbps, leading to better broadband
service availability for about one million currently "unserved" households. Additional analysis
suggests satellite broadband providers could deploy more satellites with enough capacity to serve
over six million households by 2020 and offer the least expensive way to fill more than 45
percent ofthe broadband service gap.
I appreciate the willingness of the FCC to reconsider and reevaluate the role it envisions for
satellite service in this proposed program. I look forward to continuing to work with the
Commission on this and other important issues. If you have any questions or would like to
discuss this issue further, please contact my StaffDirector~Brendan Devine, at (202) 225-4431
or bye-mail at Brendan.Devine@mail.house.gov.
Sincerely,
p~~
Diana DeGette