FEDERAL COMMUNICATIONS COMMISSION
September 7. 20 II
...JULIUS GENACHOWSKI
CHAIRMAN
The Honorable Donald M. Payne
.S. House of Representatives
2310 Rayburn Ilouse Office Building
Washington, D.C. 20515
Dear Congressman Payne:
Thank you for your letter regarding the Commission's current efforts to reform the
Universal Service Fund and the intercarrier compcnsation system. As you noted, one of the
issues the Commission is examining in its Notice o/Proposed Rlilemaking is access stimulation
and the impact ofCommission policies on scrviccs such as conference calling services.
Interested parties recently submitted comments and reply comments on proposals
regarding access stimulation, and thc Commission's staff is in the process ofrcviewing these
filings. The Proposed Rlilemaking did not propose to declare the practice unlawful, as many
providers have urged. Rather. it required cntitics cngaging in revenue sharing, which may
include a confcrence call company. to refilc thcir rates to reflect the volume oftraffic dclivered.
Resolution of this issue should bring certainty to providcrs while taking action to reduce inflatcd
revenues that result from intercarrier compensation rates based on elevated traffic volumes.
As the Commission 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 cnable all providers to
compete on equal terms. Please be assured that any decision by the Commission will take into
account the interests ofconsumers. businesses, and carriers, and the importance ofcontinued
investment in underserved areas.
I appreciate learning of your concerns and look forward to your continucd input on these
important issues.
) Jlius Genachowski
II
445 121>< STREET S,W. WASHINGTON. D.C 20554 • 202-418-, 000