FEDERAL COMMUNICATIONS COMMISSION
September 7, 20 II
JULIUS GENACHQWSKI
CHAIRMAN
The Honorable Cliff Stearns
U.S. House of Representatives
2306 Rayburn House Office Building
Washington, D.C. 20515
Dear Congressman Stearns:
Thank you for your leller regarding the Commission's current efforts to reform the
Universal Service Fund and the intercarrier compensation system. As you noted, one ofthe
issues the Commission is examining in its Notice ofProposed Rulemaking is access stimulation
and the impact of Commission policies on services such as conference calling services.
Interested pal1ies 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 Rulemaking 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 thcir rates to reflect the volume of traffic delivered.
Resolution ofthis issue should bring certainty to providcrs while taking action to reduce inflated
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 enable all providers to
compete on equal terms. Please be assured that any decision by the Commission will take into
account the interests of consumers, businesses, and carriers, and the importance of continued
investment in underserved areas.
I appreciate learning ofyour concerns and look forward to your continued input on these
important issues.
ulius Genachowski
445 12TH STREET S.W. WASHINGTON, D.C. 20554 • 202-418-1000