FEDERAL COMMUNICATIONS COMMISSION Septanber 20, 2011 JULIUS GENACHOWSKI CHAIRMAN The Honorable Diana DeGette U.S. House ofRepresentatives 2335 Rayburn House Office Building Washington, D.C. 20515 Dear Congresswoman DeGette: Thank you for your letter regarding the Commission's 'efforts to reform and modemize the Universal Service Fund (USF) and the Intercarrier Compensation (ICC) system. Speclfically, you are requesting that the Commission consider proposals that do not limit the ability of ! satellite providers to participate in Phase I ofthe Connect America Fund. I am pleased to report that Commission staffhas had several positive discussions with satellite providers during the course ofthis proceeding. Be assured that the Commission is not seeking to exclude or minimize the role ofsatellite broadband in the Connect America Fund. I am committed to policies that maximize the availability ofbroadband affordable and attainable to all Americans across broadband technologies. Through savings realized from reforms, we can begin transitioning funding to the Connect America Fund, which will directly support broadband for Americans in unserved communities, as well as sustain broadband in areas that are served today only with the assistance ofuniversal service support. On August 3, 2011, the Commission released a Public Notice requesting comment on specific proposals submitted bya variety ofparties in response to theNotice. These include proposals from the Joint Rural Associations, state members ofthe Federal-State JointBo~don Universal Service, and a consortium ofsix price cap carriers. The Public Notice also requests further comment on issues not fully developed in the record. I look forward to working with you and other Members ofCongress as the Commission transforms its universal service policies to help close the digital divide in our nation. Please do not hesitate to contact me ifI can be offurther assistance. Your letter will be included in the record ofthe USF reform proceeding. Si y, Julius Genachowski 445 12n-I STREET S.W. WASHINGTON, D.C. 20554 • 202-416-1000