FEDERAL COMMUNICATIONS COMMISSION July 2,2012 JULIUS GENACHOWSKI CHAIRMAN The Honorable John R. Thune United States Senate 493 Russell Senate Office Building Washington, D.C. 20510 ...",' ""i'~.~'" ':,.,.. '; / Dciilr S~nator Thune: .' \_' . .. ,t., :.:' ,',; '. ,.- : 'V r "/<.; . ;, ~.-;::.. Thank you for your letter expressing concerns about the effect of the Commission's Universal Service Fund (USF) reforms on rural telecommunications providers. I want to assure you 'that the Commission will continue to work with all stakeholders, including smaller rate-of­ return carriers, throughout the reform process. Your letter will be included in the record of the proceeding and considered by the Commission. As you note, the Commission's unanimous overhaul of the Universal Service program focused on three key goals: delivering broadband to the millions of unserved Americans, requiring fiscal responsibility and accountability in USF spending to ensure the long-term sU,$t,ainability of the Fund, and pi'oviding transition periodS that recognIze Dusiness realities. " "These reforms will put America on the path to universal broadband and advanced mobile coverage - important steps to create new jobs in rural American and across the nation. In particular, the creation of the Connect America Fund (CAF) will accelerate broadband build-out , " to, the 18 million Americans living in rural areas who currently have no access to robust broadband infrastructure. This will create jobs and economic opportunity for small and large businesses in rural America, as well as construction workers and salespeople. Increased broadband availability in rural areas will also help schools and teachers and provide telemedicine opportunities for doctors and health care providers. The Commission's ,implementation qfthe USFIICC Tran.sjprmation Order continues to .' be.~guided by these principles, including· rriaking adjustments to the Order as appropriate. For instance, on April 25, 2012, the Commission extended the transition for originating intercarrier compensation payments, addressing a concern raised by a number of smaller carriers. Likewise, in the Wireline Competition Bureau's April Benchmarks Order, the Bureau revised the initially proposed high-cost loop support benclunark categories to respond to concerns raised by smaller carriers. The revised methodology accounts for several additional drivers of cost in comparing spending between carriers; it takes recent investment into consideration; it extends the transition period to give carriers more time to adjust; and it provides a streamlined process to address any concerns about the accuracy of carriers' data. The Commission has also extended a number of reporting deadlines for smaller carriers. I,"' . 445 12TH STREET s.w. WASHINGTON, D.C. 20554 • 202-4 I 8-1 000 Page 2-The Honorable Jolm R. Thune Even as we continue to make necessary adjustments, in order to extend broadband to unserved rural communities while ensuring fiscal responsibility, it is important to keep moving forward with implementation of the Commission's reforms. As we do so, the Commission will continue to run a fair, open process in which the valid concerns of stakeholders are addressed ­ working closely with affected carriers to ensure that residents of the nation's rural and high-cost areas receive the quality voice and broadband services that all Americans need. I appreciate your interest in this very important matter. Please let me know if I can be of any further assistance. Sincerely, - JULIUS GENACHOWSKI CHAIRMAN FEDERAL COMMUNICATIONS COMMISSION July 2, 2012 The Honorable Mark Begich United States Senate 144 Russell Senate Office Building Washington, D.C. 20510 Dear Senator Begich: Thank you for your letter expressing concerns about the effect of the Commission's Universal Service Fund (USF) reforms on rural telecommunications providers. I want to assure you that the Commission will continue to work with all stakeholders, including smaller rate-of­ return carriers, throughout the reform process. Your letter will be included in the record of the proceeding and considered by the Commission. As you note, the Commission's unanimous overhaul of the Universal Service program focused on three key goals: delivering broadband to the millions of unserved Americans, requiring fiscal responsibility and accountability in USF spending to ensure the long-term sustainability of the Fund, and providing transition periods that recognize business realities. These reforms will put America on the path to universal broadband and advanced mobile coverage - important steps to create new jobs in rural American and across the nation. In particular, the creation of the Connect America Fund (CAF) will accelerate broadband build-out to the 18 million Americans living in rural areas who currently have no access to robust broadband infrastructure. This will create jobs and economic opportunity for small and large businesses in rural America, as well as construction workers and salespeople. Increased broadband availability in rural areas will also help schools and teachers and provide telemedicine opportunities for doctors and health care providers. The Commission's implementation of the USFIICC Transformation Order continues to be guided by these principles, including making adjustments to the Order as appropriate. For instance, on April 25, 2012, the Commission extended the transition for originating intercarrier compensation payments, addressing a concern raised by a number of smaller carriers. Likewise, in the Wireline Competition Bureau's April Benchmarks Order, the Bureau revised the initially proposed high-cost loop support benchmark categories to respond to concerns raised by smaller carriers. The revised methodology accounts for several additional drivers of cost in comparing spending between carriers; it takes recent investment into consideration; it extends the transition period to give carriers more time to adjust; and it provides a streamlined process to address any concerns about the accuracy of carriers' data. The Commission has also extended a number of reporting deadlines for smaller carriers. 445 12TH STREET S.W. WASHINGTON, D.C. 20554 • 202-418-1000 Page 2-The Honorable Mark Begich Even as we continue to make necessary adjustments, in order to extend broadband to unserved rural communities while ensuring fiscal responsibility, it is important to keep moving forward with implementation of the Commission's reforms. As we do so, the Commission will continue to run a fair, open process in which the valid concerns of stakeholders are addressed ­ working closely with affected carriers to ensure that residents ofthe nation's rural and high-cost areas receive the quality voice and broadband services that all Americans need. I appreciate your interest in this very impOliant matter. Please let me know if I can be of any fmiher assistance. Sincerely, - JULIUS GENACHOWSKI CHAIRMAN FEDERAL COMMUNICATIONS COMMISSION July 2, 2012 The Honorable John Barrasso United States Senate 307 Dirksen Senate Office Building Washington, D.C. 20510 Dear Senator Barrasso: Thank you for your letter expressing concerns about the effect of the Commission's Universal Service Fund (USF) reforms on rural telecommunications providers. I want to assure you that the Commission will continue to work with all stakeholders, including smaller rate-of­ return carriers, tlu'oughout the reform process. Your letter will be included in the record of the proceeding and considered by the Commission. As you note, the Commission's unanimous overhaul of the Universal Service program focused on three key goals: delivering broadband to the millions of unserved Americans, requiring fiscal responsibility and accountability in USF spending to ensure the long-term sustainability of the Fund, and providing transition periods that recognize business realities. These reforms will put America on the path to universal broadband and advanced mobile coverage - important steps to create new jobs in rural American and across the nation. In particular, the creation of the COlmect America Fund (CAF) will accelerate broadband build-out to the 18 million Americans living in rural areas who currently have no access to robust broadband infrastructure. This will create jobs and economic opportunity for small and large businesses in rural America, as well as construction workers and salespeople. Increased broadband availability in rural areas will also help schools and teachers and provide telemedicine oppOliunities for doctors and health care providers. The Commission's implementation of the USFI/CC Transformation Order continues to be guided by these principles, including making adjustments to the Order as appropriate. For instance, on April 25, 2012, the Commission extended the transition for originating intercarrier compensation payments, addressing a concern raised by a number of smaller carriers. Likewise, in the Wireline Competition Bureau's April Benchmarks Order, the Bureau revised the initially proposed high-cost loop support benchmark categories to respond to concerns raised by smaller carriers. The revised methodology accolmts for several additional drivers of cost in comparing spending between carriers; it takes recent investment into consideration; it extends the transition period to give carriers more time to adjust; and it provides a streamlined process to address any concerns about the accuracy of carriers' data. The Commission has also extended a number of reporting deadlines for smaller carriers. 445 /2l1-i STREET S.W. WASHINGTON, D.C. 20554 • 202-418-1000 Page 2-The Honorable John Barrasso Even as we continue to make necessary adjustments, in order to extend broadband to unserved rural communities while ensuring fiscal responsibility, it is important to keep moving forward with implementation of the Commission's reforms. As we do so, the Commission will continue to run a fair, open process in which the valid concerns of stakeholders are addressed ­ working closely with affected carriers to ensure that residents of the nation's rural and high-cost areas receive the quality voice and broadband services that all Americans need. I appreciate your interest in this very important matter. Please let me know if I can be of any fmiher assistance. Sincerely, Julius Genachowski FEDERAL COMMUNICATIONS COMMISSION July 2, 2012 ...JULIUS GENACHOWSKI CHAIRMAN The Honorable Max S. Baucus United States Senate 511 Hart Senate Office Building Washington, D.C. 20510 Dear Senator Baucus: Thank you for your letter expressing concerns about the effect of the Commission's Universal Service Fund (USF) reforms on rural telecommunications providers. I want to assure you that the Commission will continue to work with all stakeholders, including smaller rate-of­ return carriers, throughout the reform process. Your letter will be included in the record of the proceeding and considered by the Commission. As you note, the Commission's unanimous overhaul of the Universal Service program focused on tlu-ee key goals: delivering broadband to the millions of unserved Americans, requiring fiscal responsibility and accountability in USF spending to ensure the long-term sustainability of the Fund, and providing transition periods that recognize business realities. These reforms will put America on the path to universal broadband and advanced mobile coverage - impoltant steps to create new jobs in rural American and across the nation. In particular, the creation of the Connect America Fund (CAF) will accelerate broadband build-out to the 18 million Americans Jiving in rural areas who currently have no access to robust broadband infrastructure. This will create jobs and economic opportunity for small and large businesses in rural America, as well as construction workers and salespeople. Increased broadband availability in rural areas will also help schools and teachers and provide telemedicine opportunities for doctors and health care providers. The Commission's implementation of the USFIICC Transformation Order continues to be guided by these principles, including making adjustments to the Order as appropriate. For instance, on April 25, 2012, the Commission extended the transition for originating intercarrier compensation payments, addressing a concern raised by a number of smaller carriers. Likewise, in the Wireline Competition Bureau's April Benchmarks Order, the Bureau revised the initially proposed high-cost loop support benchmark categories to respond to concerns raised by smaller carriers. The revised methodology accounts for several additional drivers of cost in comparing spending between carriers; it takes recent investment into consideration; it extends the transition period to give carriers more time to adjust; and it provides a streamlined process to address any concerns about the accuracy of carriers' data. The Commission has also extended a number of reporting deadlines for smaller carriers. 445 12TH STREET S.W. WASHINGTON, D.C. 20554 • 202-418-1000 Page 2-The Honorable Max S. Baucus Even as we continue to make necessary adjustments, in order to extend broadband to unserved rural communities while ensuring fiscal responsibility, it is important to keep moving forward with implementation of the Commission's reforms. As we do so, the Commission will continue to run a fair, open process in which the valid concerns of stakeholders are addressed ­ working closely with affected carriers to ensure that residents of the nation's rural and high-cost areas receive the quality voice and broadband services that all Americans need. I appreciate your interest in this very important matter. Please let me know if I can be of any further assistance. Sincerely, Julius Genachowski FEDERAL COMMUNICATIONS COMMISSION July 2, 2012 ,JULIUS GENACHOWSKI CHAIRMAN The Honorable Saxby Chambliss United States Senate 416 Russell Senate Office Building Washington, D.C. 20510 Dear Senator Chambliss: Thank you for your letter expressing concerns about the effect of the Commission's Universal Service Fund (USF) reforms on rural telecommunications providers. I want to assure you that the Commission will continue to work with all stakeholders, including smaller rate-of­ return carriers, throughout the reform process. Your letter will be included in the record of the proceeding and considered by the Commission. As you note, the Commission's unanimous overhaul of the Universal Service program focused on three key goals: delivering broadband to the millions of unserved Americans, requiring fiscal responsibility and accountability in USF spending to ensure the long-term sustainability of the Fund, and providing transition periods that recognize business realities. These reforms will put America on the path to universal broadband and advanced mobile coverage - important steps to create new jobs in rural American and across the nation. In particular, the creation of the COIUlect America Fund (CAF) will accelerate broadband build-out to the 18 million Americans living in rural areas who currently have no access to robust broadband infrastructure. This will create jobs and economic oppoliunity for small and large businesses in rural America, as well as construction workers and salespeople. Increased broadband availability in rural areas will also help schools and teachers and provide telemedicine opportunities for doctors and health care providers. The Commission's implementation of the USFIICC Transformation Order continues to be guided by these principles, including making adj ustments to the Order as appropriate. For instance, on April 25, 2012, the Commission extended the transition for originating intercarrier compensation payments, addressing a concern raised by a number of smaller carriers. Likewise, in the Wireline Competition Bureau's April Benchmarks Order, the Bureau revised the initially proposed high-cost loop support benchmark categories to respond to concerns raised by smaller carriers. The revised methodology accounts for several additional drivers of cost in comparing spending between carriers; it takes recent investment into consideration; it extends the transition period to give carriers more time to adjust; and it provides a streamlined process to address any concerns about the accuracy of carriers' data. The Commission has also extended a number of reporting deadlines for smaller carriers. 445 12TH STREET S.W. WASHINGTON, D.C. 20554 • 202-418-1000 Page 2-The Honorable Saxby Chambliss Even as we continue to make necessary adjustments, in order to extend broadband to unserved rural communities while ensuring fiscal responsibility, it is important to keep moving forward with implementation of the Commission's reforms. As we do so, the Commission will continue to run a fair, open process in which the valid concerns of stakeholders are addressed­ working closely with affected carriers to ensure that residents of the nation's rural and high-cost areas receive the quality voice and broadband services that all Americans need. I appreciate your interest in this very impOltant matter. Please let me know if I can be of any further assistance. Sincerely, - Julius Genachowski ..JULIUS GENACHOWSKI CHAIRMAN FEDERAL COMMUNICATIONS COMMISSION July 2,2012 The Honorable Michael D. Crapo United States Senate 239 Dirksen Senate Office Building Washington, D.C. 20510 Dear Senator Crapo: Thank you for your letter expressing concerns about the effect of the Commission's Universal Service Fund (USF) reforms on rural telecommunications providers. I want to assure you that the Commission will continue to work with all stakeholders, including smaller rate-of­ return carriers, throughout the reform process. Your letter will be included in the record of the proceeding and considered by the Commission. As you note, the Commission's unanimous overhaul of the Universal Service program focused on three key goals: delivering broadband to the millions of unserved Americans, requiring fiscal responsibility and accountability in USF spending to ensure the long-term sustainability of the Fund, and providing transition periods that recognize business realities. These reforms will put America on the path to universal broadband and advanced mobile coverage - important steps to create new jobs in rural American and across the nation. In particular, the creation of the Connect America Fund (CAF) will accelerate broadband build-out to the 18 million Americans living in rural areas who currently have no access to robust broadband infrastructure. This will create jobs and economic opportunity for small and large businesses in rural America, as well as construction workers and salespeople. Increased broadband availability in rural areas will also help schools and teachers and provide telemedicine opportunities for doctors and health care providers. The Commission's implementation of the USFIICC Transformation Order continues to be guided by these principles, including making adjustments to the Order as appropriate. For instance, on April 25, 2012, the Commission extended the transition for originating intercarrier compensation payments, addressing a concern raised by a number of smaller carriers. Likewise, in the Wireline Competition Bureau's April Benchmarks Order, the Bureau revised the initially proposed high-cost loop support benchmark categories to respond to concerns raised by smaller carriers. The revised methodology accounts for several additional drivers of cost in comparing spending between carriers; it takes recent investment into consideration; it extends the transition period to give carriers more time to adjust; and it provides a streamlined process to address any concerns about the accuracy of carriers' data. The Commission has also extended a number of reporting deadlines for smaller carriers. 445 12TH STREET S.W. WASHINGTON, D.C. 20554 • 202-418-1000 Page 2-The Honorable Michael D. Crapo Even as we continue to make necessary adjustments, in order to extend broadband to unserved rural communities while ensuring fiscal responsibility, it is important to keep moving forward with implementation of the Commission's reforms. As we do so, the Commission will continue to run a fair, open process in which the valid concerns of stakeholders are addressed working closely with affected carriers to ensure that residents of the nation's rural and high-cost areas receive the quality voice and broadband services that all Americans need. I appreciate your interest in this very important matter. Please let me know if I can be of any futiher assistance. Sincerely, JULIUS GENACHOWSKI CHAIRMAN FEDERAL COMMUNICATIONS COMMISSION July 2, 2012 The Honorable Mike Enzi United States Senate 379A Russell Senate Office Building Washington, D.C. 20510 Dear Senator Enzi: Thank you for your letter expressing concerns about the effect of the Commission's Universal Service Fund (USF) reforms on rural telecommunications providers. I want to assure you that the Commission will continue to work with all stakeholders, including smaller rate-of­ return carriers, throughout the reform process. Your letter will be included in the record of the proceeding and considered by the Commission. As you note, the Commission's unanimo IS overhaul of the Universal Service program focused on three key goals: delivering broadband to the millions of unserved Americans, requiring fiscal responsibility and accountability in USF spending to ensure the long-term sustainability of the Fund, and providing transition periods that recognize business realities. These reforms will put America on the path to universal broadband and advanced mobile coverage - important steps to create new jobs in rural American and across the nation. In paliicular, the creation of the COlU1ect America Fund (CAF) will accelerate broadband build-out to the 18 million Americans living in rural areas who currently have no access to robust broadband infrastructure. This will create jobs and economic opportunity for small and large businesses in rural America, as well as construction workers and salespeople. Increased broadband availability in rural areas will also help schools and teachers and provide telemedicine opportunities for doctors and health care providers. The Commission's implementation of the USFIICC Transformation Order continues to be guided by these principles, including making adjustments to the Order as appropriate. For instar1ce, on April 25, 2012, the Commission extended the transition for originating intercarrier compensation payments, addressing a concern raised by a number of smaller carriers. Likewise, in the Wireline Competition Bureau's April Benchmarks Order, the Bureau revised the initially proposed high-cost loop support benchmark categories to respond to concerns raised by smaller carriers. The revised methodology accounts for several additional drivers of cost in comparing spending between carriers; it takes recent investment into consideration; it extends the transition period to give carriers more time to adjust; and it provides a streamlined process to address any concerns about the accuracy of carriers' data. The Commission has also extended a number of reporting deadlines for smaller carriers. 445 12TH STREET S.W. WASHINGTON, D.C. 20554 • 202-418-1000 Page 2-The Honorable Mike Enzi Even as we continue to make necessary adjustments, in order to extend broadband to unserved rural communities while ensuring fiscal responsibility, it is important to keep moving forward with implementation of the Commission's reforms. As we do so, the Commission will continue to run a fair, open process in which the valid concerns of stakeholders are addressed ­ working closely with affected caniers to ensure that residents of the nation's rural and high-cost areas receive the quality voice and broadband services that all Americans need. I appreciate your interest in this very impOliant matter. Please let me know if I can be of any fmiher assistance. Sincerely, Julius Genachowski JULIUS GENACHOWSKI CHAIRMAN FEDERAL COMMUNICATIONS COMMISSION July 2,2012 The Honorable Charles E. Grass1ey United States Senate 135 Hart Senate Office Building Washington, D.C. 20510 Dear Senator Grassley: Thank you for your letter expressing concerns about the effect of the Commission's Universal Service Fund (USF) reforms on rural telecommunications providers. I want to assure you that the Commission will continue to work with all stakeholders, including smaller rate-of­ return carriers, throughout the reform process. Your letter will be included in the record of the proceeding and considered by the Commission. As you note, the Commission's unanimous overhaul of the Universal Service program focused on three key goals: delivering broadband to the millions of unserved Americans, requiring fiscal responsibility and accountability in USF spending to ensure the long-telm sustainability of the Fund, and providing transition periods that recognize business realities. These reforms will put America on the path to universal broadband and advanced mobile coverage - important steps to create new jobs in rural American and across the nation. In paliicular, the creation of the Connect America Fund (CAF) will accelerate broadbal1d build-out to the 18 million Americans living in rural areas who cWTently have no access to robust broadband infrastructure. This will create jobs and economic OPPOliunity for small and large businesses in rural America, as well as construction workers and salespeople. Increased broadbal1d availability in rural areas will also help schools and teachers and provide telemedicine oppOliunities for doctors al1d health care providers. The Commission's implementation of the USFIICC Transformation Order continues to be guided by these principles, including making adjustments to the Order as appropriate. For instance, on April 25, 2012, the Commission extended the transition for originating intercarrier compensation payments, addressing a concern raised by a number of smaller carriers. Likewise, in the Wireline Competition Bureau's April Benchmarks Order, the Bureau revised the initially proposed high-cost loop support benchmark categories to respond to concerns raised by smaller carriers. The revised methodology accounts for several additional drivers of cost in comparing spending between carriers; it takes recent investment into consideration; it extends the transition period to give carriers more time to adjust; and it provides a streamlined process to address any concerns about the accuracy of carriers' data. The Commission has also extended a number of reporting deadlines for smaller carriers. 445 12TH STREET S.W. WASHINGTON, D.C. 20554 • 202-418-1000 Page 2-The Honorable Charles E. Grassley Even as we continue to make necessary adjustments, in order to extend broadband to unserved rural communities while ensuring fiscal responsibility, it is important to keep moving forward with implementation of the Commission's reforms. As we do so, the Commission will continue to run a fair, open process in which the valid concerns of stakeholders are addressed ­ working closely with affected carriers to ensure that residents of the nation's rural and high-cost areas receive the quality voice and broadband services that all Americans need. I appreciate your interest in this very important matter. Please let me know if I can be of any further assistance. Sincerely, Julius Genachowski ..JULIUS GENACHOWSKI CHAIRMAN FEDERAL COMMUNICATIONS COMMISSION July 2,2012 The Honorable Tom Harkin United States Senate 731 HaIi Senate Office Building Washington, D.C. 20510 Dear Senator Harkin: Thank you for your letter expressing concerns about the effect of the Commission's Universal Service Fund (USF) reforms on rural telecommunications providers. I want to assure you that the Commission will continue to work with all stakeholders, including smaller rate-of­ return carriers, throughout the reform process. Your letter will be included in the record of the proceeding and considered by the Commission. As you note, the Commission's unanimous overhaul of the Universal Service program focused on three key goals: delivering broadband to the millions of unserved Americans, requiring fiscal responsibility and accountability in USF spending to ensure the long-term sustainability of the Fund, and providing transition periods that recognize business realities. These reforms will put America on the path to universal broadband and advanced mobile coverage - important steps to create new jobs in rural American and across the nation. In particular, the creation of the Connect America Fund (CAF) will accelerate broadband build-out to the 18 million Americans living in rural areas who currently have no access to robust broadband infrastructure. This will create jobs and economic Oppoliunity for small and large businesses in rural America, as well as construction workers and salespeople. Increased broadband availability in rural areas will also help schools and teachers and provide telemedicine opportunities for doctors and health care providers. The Conunission's implementation of the USFIICC Transformation Order continues to be guided by these principles, including making adjustments to the Order as appropriate. For instance, on April 25, 2012, the Commission extended the transition for originating intercarrier compensation payments, addressing a concern raised by a number of smaller carriers. Likewise, in the Wireline Competition Bureau's April Benchmarks Order, the Bureau revised the initially proposed high-cost loop support benclunark categories to respond to concerns raised by smaller carriers. The revised methodology accounts for several additional drivers of cost in comparing spending between carriers; it takes recent investment into consideration; it extends the transition period to give carriers more time to adjust; and it provides a streamlined process to address any concerns about the accuracy of caITiers' data. The Commission has also extended a number of reporting deadlines for smaller carriers. 445 12TH STREET s.w. WASHINGTON, D.C. 20554 • 202-418-1000 Page 2-The Honorable Tom Harkin Even as we continue to make necessary adjustments, in order to extend broadband to unserved rural communities while ensuring fiscal responsibility, it is important to keep moving forward with implementation of the Commission's reforms. As we do so, the Commission will continue to run a fair, open process in which the valid concerns of stakeholders are addressed ­ working closely with affected carriers to ensure that residents of the nation's rural and high-cost areas receive the quality voice and broadband services that all Americans need. I appreciate your interest in this very important matter. Please let me know if I can be of any fmiher assistance. Sincerely, Julius Genachowski JULIUS GENACHOWSKI CHAIRMAN FEDERAL COMMUNICATIONS COMMISSION July 2,2012 The Honorable Orrin G. Hatch United States Senate 104 Hart Senate Office Building Washington, D.C. 20510 Dear Senator Hatch: Thank you for your letter expressing concerns about the effect of the Commission's Universal Service Fund (USF) reforms on rural telecommunications providers. I want to assure you that the Commission will continue to work with all stakeholders, including smaller rate-of­ return carriers, throughout the reform process. Your letter will be included in the record of the proceeding and considered by the Commission. As you note, the Commission's unanimous overhaul of the Universal Service program focused on three key goals: delivering broadband to the millions of unserved Americans, requiring fiscal responsibility and accountability in USF spending to ensure the long-tenn sustainability of the Fund, and providing transition periods that recognize business realities. These reforms will put America on the path to universal broadband and advanced mobile coverage - important steps to create new jobs in rural American and across the nation. In particular, the creation of the COimect America Fund (CAF) will accelerate broadband build-out to the 18 million Americans living in rural areas who currently have no access to robust broadband infrastructure. This will create jobs and economic opportunity for small and large businesses in rural America, as well as construction workers and salespeople. Increased broadband availability in rural areas will also help schools and teachers and provide telemedicine opportunities for doctors and health care providers. The Commission's implementation of the USFIICC Transformation Order continues to be guided by these principles, including making adjustments to the Order as appropriate. For instance, on April 25, 2012, the Commission extended the transition for originating intercarrier compensation payments, addressing a concern raised by a number of smaller carriers. Likewise, in the Wireline Competition Bureau's April Benchmarks Order, the Bureau revised the initially proposed high-cost loop support benchmark categories to respond to concerns raised by smaller carriers. The revised methodology accounts for several additional drivers of cost in comparing spending between carriers; it takes recent investment into consideration; it extends the transition period to give carriers more time to adjust; and it provides a streamlined process to address any concerns about the accuracy of carriers' data. The Commission has also extended a number of reporting deadlines for smaller carriers. 445 12TH STREET S.W. WASHINGTON, D.C. 20554 • 202-418-1000 Page 2-The Honorable Orrin G. Hatch Even as we continue to make necessary adjustments, in order to extend broadband to unserved rural communities while ensuring fiscal responsibility, it is important to keep moving forward with implementation of the Commission's reforms. As we do so, the Commission will continue to run a fair, open process in which the valid concerns of stakeholders are addressed­ working closely with affected carriers to ensure that residents of the nation's rural and high-cost areas receive the quality voice and broadband services that all Americans need. I appreciate your interest in this very important matter. Please let me know if I can be of any further assistance. Sincerely, - Julius Genachowski JULIUS GENACHOWSKI CHAIRMAN FEDERAL COMMUNICATIONS COMMISSION July 2,2012 The Honorable James M. Inhofe United States Senate 453 Russell Senate Office Building Washington, D.C. 20510 Dear Senator Inhofe: Thank you for your letter expressing concerns about the effect of the Commission's Universal Service Fund (USF) reforms on rural telecommunications providers. I want to assure you that the Commission will continue to work with all stakeholders, including smaller rate-of­ return carriers, tlu'oughout the reform process. Your letter will be included in the record ofthe proceeding and considered by the Commission. As you note, the Commission's unanimous overhaul of the Universal Service program focused on three key goals: delivering broadband to the millions of unserved Americans, requiring fiscal responsibility and accountability in USF spending to ensure the long-term sustainability of the Fund, and providing transition periods that recognize business realities. These reforms will put America on the path to tmiversal broadband and advanced mobile coverage - important steps to create new jobs in rural American and across the nation. In particular, the creation of the COill1ect America Fund (CAF) will accelerate broadband build-out to the 18 million Americans living in rural areas who currently have no access to robust broadband infrastructure. This will create jobs and economic oppOltunity for small and large businesses in rural America, as well as construction workers and salespeople. Increased broadband availability in rural areas will also help schools and teachers and provide telemedicine opportunities for doctors and health care providers. The Commission's implementation of the USFIICC Transformation Order continues to be guided by these principles, including making adjustments to the Order as appropriate. For instance, on April 25, 2012, the Commission extended the transition for originating intercarrier compensation payments, addressing a concern raised by a number of smaller carriers. Likewise, in the Wireline Competition Bureau's April Benchmarks Order, the Bureau revised the initially proposed high-cost loop support benclunark categories to respond to concerns raised by smaller carriers. The revised methodology accounts for several additional drivers of cost in comparing spending between carriers; it takes recent investment into consideration; it extends the transition period to give carriers more time to adjust; and it provides a streamlined process to address any concerns about the accuracy of carriers' data. The Commission has also extended a number of reporting deadlines for smaller carriers. 445 /2ll-i STREET S.W. WASHINGTON, D.C. 20554 • 202-4 I 8-1000 Page 2-The Honorable James M. Inhofe Even as we continue to make necessary adjustments, in order to extend broadband to unserved rural communities while ensuring fiscal responsibility, it is important to keep moving forward with implementation of the Commission's reforms. As we do so, the Commission will continue to run a fair, open process in which the valid concerns of stakeholders are addressed­ working closely with affected carriers to ensure that residents of the nation's rural and high-cost areas receive the quality voice and broadband services that all Americans need. I appreciate your interest in this very impOliant matter. Please let me know if I can be of any fmiher assistance. Sincerely, ------- . Julius Genachowski c.lULIUS GENACHOWSKI CHAIRMAN FEDERAL COMMUNICATIONS COMMISSION July 2, 2012 The Honorable Tim Jolmson United States Senate 136 Hart Senate Office Building Washington, D.C. 20510 Dear Senator Johnson: Thank you for your letter expressing concerns about the effect of the Commission's Universal Service Fund (USF) reforms on rural telecommunications providers. I want to assure you that the Commission will continue to work with all stakeholders, including smaller rate-of­ return carriers, throughout the reform process. Your letter will be included in the record of the proceeding and considered by the Commission. As you note, the Commission's unanimous overhaul of the Universal Service program focused on three key goals: delivering broadband to the millions of unserved Americans, requiring fiscal responsibility and accountability in USF spending to ensure the long-term sustainability of the Fund, and providing transition periods that recognize business realities. These reforms will put America on the path to universal broadband and advanced mobile coverage - important steps to create new jobs in rural American and across the nation. In particular, the creation of the Connect America Fund (CAF) will accelerate broadband build-out to the 18 million Americans living in rural areas who currently have no access to robust broadband infrastructure. This will create jobs and economic opportunity for small and large businesses in rural America, as well as construction workers and salespeople. Increased broadband availability in rural areas will also help schools and teachers and provide telemedicine opportunities for doctors and health care providers. The Commission's implementation of the USFIICC Transformation Order continues to be guided by these principles, including making adjustments to the Order as appropriate. For instance, on April 25, 2012, the Commission extended the transition for originating intercarrier compensation payments, addressing a concern raised by a number of smaller carriers. Likewise, in the Wireline Competition Bureau's April Benchmarks Order, the Bureau revised the initially proposed high-cost loop support benchmark categories to respond to concerns raised by smaller carriers. The revised methodology accounts for several additional drivers of cost in comparing spending between carriers; it takes recent investment into consideration; it extends the transition period to give carriers more time to adjust; and it provides a streamlined process to address any concerns about the accuracy of carriers' data. The Commission has also extended a number of reporting deadlines for smaller carriers. 445 12n-i STREET S.W. WASHINGTON, D.C. 20554 • 202-418-1000 Page 2-The Honorable Tim Johnson Even as we continue to make necessary adjustments, in order to extend broadband to unserved rural communities while ensuring fiscal responsibility, it is important to keep moving forward with implementation of the Commission's reforms. As we do so, the Commission will continue to run a fair, open process in which the valid concerns of stakeholders are addressed ­ working closely with affected carriers to ensure that residents of the nation's rural and high-cost areas receive the quality voice and broadband services that all Americans need. I appreciate your interest in this very impOliant matter. Please let me know if I can be of any fmiher assistance. Sincerely, Julius Genachowski ..JULIUS GENACHOWSKI CHAIRMAN FEDERAL COMMUNICATIONS COMMISSION July 2,2012 The Honorable Mike Lee United States Senate 825 Hart Senate Office Building Washington, D.C. 20510 Dear Senator Lee: Thank you for your letter expressing concerns about the effect of the Commission's Universal Service Fund (USF) reforms on rural telecommunications providers. I want to assure you that the Commission will continue to work with all stakeholders, including smaller rate-of­ return carriers, throughout the reform process. Your letter will be included in the record of the proceeding and considered by the Commission. As you note, the Commission's unanimous overhaul of the Universal Service program focused on three key goals: delivering broadband to the millions of unserved Americans, requiring fiscal responsibility and accountability in USF spending to ensure the long-term sustainability of the Fund, and providing transition periods that recognize business realities. These reforms will put America on the path to universal broadband and advanced mobile coverage - important steps to create new jobs in rural American and across the nation. In particular, the creation of the Connect America Fund (CAF) will accelerate broadband build-out to the 18 million Americans living in rural areas who currently have no access to robust broadband infrastructure. This will create jobs and economic opportunity for small and large businesses in rural America, as well as construction workers and salespeople. Increased broadband availability in rural areas will also help schools and teachers and provide telemedicine opportunities for doctors and health care providers. The Commission's implementation of the USFIICC Transformation Order continues to be guided by these principles, including making adjustments to the Order as appropriate. For instance, on April 25, 2012, the Commission extended the transition for originating intercarrier compensation payments, addressing a concern raised by a number of smaller carriers. Likewise, in the Wireline Competition Bureau's April Benchmarks Order, the Bureau revised the initially proposed high-cost loop support benchmark categories to respond to concerns raised by smaller carriers. The revised methodology accounts for several additional drivers of cost in comparing spending between carriers; it takes recent investment into consideration; it extends the transition period to give carriers more time to adjust; and it provides a streamlined process to address any concerns about the accuracy of carriers' data. The Commission has also extended a number of reporting deadlines for smaller carriers. 445 12TH STREET S.W. WASHINGTON, D.C. 20554 • 202-418-1000 Page 2-The Honorable Mike Lee Even as we continue to make necessary adjustments, in order to extend broadband to unserved rural communities while ensuring fiscal responsibility, it is important to keep moving forward with implementation of the Commission's reforms. As we do so, the Commission will continue to run a fair, open process in which the valid concerns of stakeholders are addressed ­ working closely with affected carriers to ensure that residents of the nation's rural and high-cost areas receive the quality voice and broadband services that all Americans need. I appreciate your interest in this very important matter. Please let me know if I can be of any further assistance. Sincerely, ----_...._- . Julius Genachowski FEDERAL COMMUNICATIONS COMMISSION July 2,2012 JULIUS GENACHOWSKI CHAIRMAN The Honorable Carl Levin United States Senate 269 Russell Senate Office Building Washington, D.C. 20510 Dear Senator Levin: Thank you for your letter expressing concerns about the effect of the Commission's Universal Service Fund (USF) reforms on rural telecommunications providers. I want to assure you that the Commission will continue to work with all stakeholders, including smaller rate-of­ return carriers, throughout the reform process. Your letter will be included in the record of the proceeding and considered by the Commission. As you note, the Commission's unanimous overhaul of the Universal Service program focused on three key goals: delivering broadband to the millions of unserved Americans, requiring fiscal responsibility and accountability in USF spending to ensure the long-telm sustainability of the Fund, and providing transition periods that recognize business realities. These reforms will put America on the path to universal broadband and advanced mobile coverage - important steps to create new jobs in rural American and across the nation. In particular, the creation of the Connect America Fund (CAF) will accelerate broadband build-out to the 18 million Americans living in rural areas who currently have no access to robust broadband infrastructure. This will create jobs and economic opportunity for small and large businesses in rural America, as well as construction workers and salespeople. Increased broadband availability in rural areas will also help schools and teachers and provide telemedicine opportunities for doctors and health care providers. The Commission's implementation of the USFIICC Transformation Order continues to be guided by these principles, including making adjustments to the Order as appropriate. For instance, on April 25, 2012, the Conmlission extended the transition for originating intercalTier compensation payments, addressing a concern raised by a number of smaller carriers. Likewise, in the Wireline Competition Bureau's April Benchmarks Order, the Bureau revised the initially proposed high-cost loop suppOli benchmark categories to respond to concerns raised by smaller calTiers. The revised methodology accounts for several additional drivers of cost in comparing spending between carriers; it takes recent investment into consideration; it extends the transition period to give carriers more time to adjust; and it provides a streamlined process to address any concerns about the accuracy of caniers' data. The Commission has also extended a number of reporting deadlines for smaller carriers. 445 12TH STREET S.W. WASHINGTON, D.C. 20554 • 202-418-1000 Page 2-The Honorable Carl Levin Even as we continue to make necessary adjustments, in order to extend broadband to unserved rural communities while ensuring fiscal responsibility, it is important to keep moving forward with implementation of the Commission's reforms. As we do so, the Commission will continue to run a fair, open process in which the valid concerns of stakeholders are addressed ­ working closely with affected carriers to ensure that residents of the nation's rural and high-cost areas receive the quality voice and broadband services that all Americans need. I appreciate your interest in this very important matter. Please let me know if I can be of any further assistance. Sincerely, • Julius Genachowski FEDERAL COMMUNICATIONS COMMISSION July 2,2012 ..JULIUS GENACHOWSKI CHAIRMAN The Honorable Jeff Merkley United States Senate 313 Hali Senate Office Building Washington, D.C. 20510 Dear Senator Merkley: Thank you for your letter expressing concerns about the effect of the Commission's Universal Service Fund (USF) reforms on rural telecommunications providers. I want to assure you that the Commission will continue to work with all stakeholders, including smaller rate-of­ return carriers, throughout the reform process. Your letter will be included in the record of the proceeding and considered by the Commission. As you note, the Commission's unanimous overhaul of the Universal Service program focused on three key goals: delivering broadband to the millions of unserved Americans, requiring fiscal responsibility and accountability in USF spending to ensure the long-term sustainability of the Fund, and providing transition periods that recognize business realities. These reforms will put America on the path to universal broadbal1d and advanced mobile coverage - important steps to create new jobs in rural American and across the nation. In paliicular, the creation of the Connect America Fund (CAF) will accelerate broadband build-out to the 18 million Americans living in rural areas who currently have no access to robust broadband infrastructure. This will create jobs and economic opportunity for small and large businesses in rural America, as well as construction workers and salespeople. Increased broadband availability in rural areas will also help schools al1d teachers and provide telemedicine opportlmities for doctors and health care providers. The Commission's implementation of the USFIICC Transformation Order continues to be guided by these principles, including making adjustments to the Order as appropriate. For instance, on April 25, 2012, the Commission extended the tral1sition for originating intercarrier compensation payments, addressing a concern raised by a number of smaller carriers. Likewise, in the Wireline Competition Bureau's April Benchmarks Order, the Bureau revised the initially proposed high-cost loop support benchmark categories to respond to concerns raised by smaller carriers. The revised methodology accounts for several additional drivers of cost in comparing spending between carriers; it takes recent investment into consideration; it extends the transition period to give carriers more time to adjust; and it provides a streamlined process to address any concerns about the accuracy of carriers' data. The Commission has also extended a number of reporting deadlines for smaller carriers. 445 12TH STREET S.W. WASHINGTON, D.C. 20554 • 202-418-1000 Page 2-The Honorable Jeff Merkley Even as we continue to make necessary adjustments, in order to extend broadband to unserved rural communities while ensuring fiscal responsibility, it is important to keep moving forward with implementation of the Commission's reforms. As we do so, the Commission will continue to run a fair, open process in which the valid concerns of stakeholders are addressed ­ working closely with affected carriers to ensure that residents of the nation's rural and high-cost areas receive the quality voice and broadband services that all Americans need. I appreciate your interest in this very important matter. Please let me know if I can be of any further assistance. Sincerely, Julius Genachowski FEDERAL COMMUNICATIONS COMMISSION July 2,2012 JULIUS GENACHOWSKI CHAIRMAN The Honorable James E. Risch United States Senate 483 Russell Senate Office Building Washington, D.C. 20510 ............ . D~a:r Senator Risch: Thank you for your letter expressing concerns about the effect of the Commission's Universal Service Fund (USF) reforms on rural telecommunications providers. I want to assure you that the C::ommission will continue to work with all stakeholders, including smaller rate-of­ return can-iers, throughout the reform process. Your letter will be included in the record of the proceeding and considered by the Commission. As you note, the Commission's unanimous overhaul of the Universal Service program focused on three key goals: delivering broadband to the millions of unserved Americans, requiring fiscal responsibility and accountability in USF spending to ensure the long-term su-stainability of the Fund, and providing' transition periods that recognize business realities. , These reforms will put America on the path to universal broadband and advanced mobile coverage - important steps to create new jobs in rural American and across the nation. In particular, the creation of the Connect America Fund (CAF) will accelerate broadband build-out to the 18 million Americans living in rural areas who currently have no access to robust broadband infrastructure. This will create jobs and economic opportunity for small and large businesses in rural America, as well as construction workers and salespeople. Increased broadband availability in rural areas will also help schools and teachers and provide telemedicine oppOliunities for doctors and health care providers. The Commission's implementation of the USFIICC Transformation Order continues to .' be.!guided by these principles, including making adjustments to the Order as appropriate. For instance, on April 25, 2012, the Commission extended the transition for originating intercarrier compensation payments, addressing a concern raised by a number of smaller carriers. Likewise, in the Wireline Competition Bureau's April Benchmarks Order, the Bureau revised the initially proposed high-cost loop support benchmark categories to respond to concerns raised by smaller carriers. The revised methodology accounts for several additional drivers of cost in comparing spending between carriers; it takes recent investment into consideration; it extends the transition period to give carriers more time to adjust; and it provides a streamlined process to address any concerns about the accuracy of carriers' data. The Commission has also extended a number of repOliing deadlines for smaller carriers. 445 12TH STREET S.W. WASHINGTON, D.C. 20554 • 202-418-1000 Page 2-The Honorable James E. Risch Even as we continue to make necessary adjustments, in order to extend broadband to unserved rural communities while ensuring fiscal responsibility, it is important to keep moving forward with implementation of the Commission's reforms. As we do so, the Commission will continue to run a fair, open process in which the valid concerns of stakeholders are addressed ­ working closely with affected carriers to ensure that residents of the nation's rural and high-cost areas receive the quality voice and broadband services that all Americans need. I appreciate your interest in this very important matter. Please let me know if I can be of any fmiher assistance. Sincerely, • Julius Genachowski FEDERAL COMMUNICATIONS COMMISSION July 2,2012 ..JULIUS GENACHOWSKI CHAIRMAN The Honorable Jon Tester United States Senate 724 Hart Senate Office Building Washington, D.C. 20510 Dear'Senator Tester: ',' Thank you for your letter expressing concerns about the effect of the Commission's Universal Service Fund (USF) reforms on rural telecommunications providers. I want to assure yOll that the Commission will continue to work with all stakeholders, including smaller rate-of­ return carriers, throughout the reform process. Your letter will be included in the record of the proceeding and considered by the Commission. As you note, the Commission's wlanimous overhaul of the Universal Service program focused on three key goals: delivering broadband to the millions of unserved Americans, requiring fiscal responsibility and accountability in USF spending to ensure the long-term s,ustainability of the Fund, and providing transition pe'riods that recognize business realities. .' These reforms will put America on the path to universal broadband and advanced mobile coverage - important steps to create new jobs in rural American and across the nation. In particular, the creation of the Connect America Fund (CAF) will accelerate broadband build-out to the 18 million Americans living in rural areas who currently have no access to robust broadband infrastructure. This will create jobs and economic opportunity for small and large businesses in rural America, as well as construction workers and salespeople. Increased broadband availability in rural areas will also help schools and teachers and provide telemedicine opportunities for doctors and health care providers. The Commission's implementatiol} of the USFIICC Transformation Order continues to 'be 'guided by these principles, including making adjustments to the Order as appropriate. For instance, on April 25,2012, the Commission extended the transition for originating intercarrier compensation payments, addressing a concern raised by a number of smaller carriers. Likewise, iIi. the Wireline Competition Bureau's April Benchmarks Order, the Bureau revised the initially proposed high-cost loop support benchmark categories to respond to concerns raised by smaller carriers. The revised methodology accounts for several additional drivers of cost in comparing spending between carriers; it takes recent investment into consideration; it extends the transition period to give carriers more time to adjust; and it provides a streamlined process to address any concerns about the accuracy of carriers' data. The Commission has also extended a number of reporting deadlines for smaller carriers. 445 12TH STREET S.W. WASHINGTON, D. C. 20554 • 202-4 18-1000 Page 2-The Honorable Jon Tester Even as we continue to make necessary adjustments, in order to extend broadband to unserved rural communities while ensuring fiscal responsibility, it is important to keep moving forward with implementation of the Commission's reforms. As we do so, the Commission will continue to run a fair, open process in which the valid concerns of stakeholders are addressed ­ working closely with affected carriers to ensure that residents of the nation's rural and high-cost areas receive the quality voice and broadband services that all Americans need. I appreciate your interest in this very important matter. Please let me know if I can be of any further assistance. Sincerely, • Julius Genachowski