FEDERAL COMMUNICATIONS COMMISSION
June 14,2012
.JULIUS GENACHOWSKI
CHAIRMAN
The Honorable DOIUla M. Christensen
U.S. House of Representatives
1510 Longworth House Office Building
Washington. D.C. 20515
Dear Congresswoman Christensen:
Thank you for your Ictter exprcssing concern about the effect of the Commission's
Universal Service Fund (USF) reforms on rural telecommunications providers in insular areas
like the U.S. Virgin Islands. I value your views and your Ictter will be included in the rccord of
the procecding and considered as the Commission implemcnts it USF rcforms.
The Commission recognizes that unique circumstances exist in insular areas. In the
USFI/CC Transforlllation Order. the Commission directed its Wireline Competition Bureau to
consider unique circumstances in Alaska, Hawaii, Puerto Rico, the U.S. Virgin Islands, and
Northern Marianas Islands as the Burcau implemcnts a forward-looking cost model for price-cap
carricrs like Virgin Island Telephonc. This modcl will be used to makc up to $1.8 billion in
annual funding available in the areas served by these carriers and bring broadband to the millions
of unservcd consumers who live there. As you note in your letter. the Trallsforllla/ion Order al 0
provides an expedited waiver process for insular area in order to address individual
circumstanccs.
On April ::!5. 2012.thc Bureau also releascd a Public otice announcing support amounts
for the Connect America Fund (CAF) Phasc I incrcmental support. Undcr CAF Phase I. up to
$300 million in savings rccovered from USF reforms will be distributed to price cap carriers to
advance broadband development. Companies that accept AF Phase I funding - as well as the
accountability mcasures and buildout requirements allachedto it - will help delivcr broadband to
homes, businesses and anchor institutions in communities that currcntly lack access to high­
specd Internet. I am plcased to report that Virgin Islands Tclephonc has been offered CAF Phasc
I support.
I appreciate your thoughtful input and continuing interest I this very important matter.
Pleasc let me know if I can be of any further assistance.
Julius Genacho\Vski
445 12TH STREET S.W. WASHINGTON, D.C 20554 • 202-4 I 8-1000