ED WHITFIELD
1 ST DISTRICT, KENTUCKY
COMMITIEE ON
ENERGY AND COMMERCE
Honorable Julius Genachowski
Chairman
Federal Communications Commission
445 12th Street, S.W.
Washington, D.C. 20554
WASHINGTON OFFICE:
2368 RAYBURN HOUSE OFFiCE BUILDING
WASHINGTON, DC 20515-1701
(202)225-3115
FAX: (2021 225-3547
www.house.Qovlwhitfield
Dear Chairman Genachowski:
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Dallbington, JIlt 20515-1701
June 6, 2012
suaCOMMITIEES'
CHAIRMAN
ENERGY AND POWER
HEALTH
ENVIRONMENT AND ECONOMY
The Federal Communications Commission deserves credit for tackling many difficult reform issues and for
seeking to put the Universal Service Fund (USF) and intercarrier compensation (ICC) programs on a more sustainable
path. Reform was needed, and some of the steps taken by the FCC can help. However, the job of building robust,
sustainable broadband networks in rural areas is not finished. I am concerned that the agency is considering a number of
additional ideas in a rulemaking that will only perpetuate regulatory uncertainty and, if pursued further, will lead to an
operating environment in which providers will be unable to sustain operations and rural consumers and communities will
ultimately lose out. For instance, in addition to significant cuts in access revenues already approved, the FCC is now
considering whether to expand the cuts further - before Round 1has even been launched, let alone evaluated for its
ramifications on rural consumers.
The hundreds ofcommunications providers that are offering state-of-the-art services throughout significant
portions ofour congressional districts are a major source ofjobs. They are also oftentimes the driving force behind the
economic benefits that individuals and businesses in rural areas enjoy today. These companies evolved to provide
communications services in areas where others viewed it as uneconomical to do so. The USF and ICC cost recovery
mechanisms, along with Rural Utilities Service (RUS) financing, have been instrumental in their ability to achieve this
success, and these cost recovery mechanisms will be critical in fulfilling the opportunities of the future as well.
I am concerned that the FCC has set a stage of limited vision that has all but drawn out of the picture
communications providers serving rural consumers. I believe these providers' continued efforts to invest in infrastructure
are crucial to small businesses in creating jobs in rural America. Moreover, I view their work as critical in ensuring that
rural Americans are not left off the broadband super highway. As you know, studies suggest that broadband allows
businesses and individuals in rural America to live locally, while competing globally in an online environment. That's
why it is so important to preserve the benefits of reform while ensuring that additional regulatory reforms do not
perpetuate uncertainty, create unacceptable "regulatory overhang" or otherwise undermine the efforts of rural carriers to
invest in their networks and provide sustainable broadband services in wide swaths of rural America. Therefore, I request
that the FCC, at a minimum, allow the rural telecommunications industry sufficient time to adapt to the recent reforms
before undertaking further substantial changes in the near future.
Sincerely,
Member of Congress
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