JON TESTER 
MONTANA 
SENATE HART BLJILDING 
SuiTE 724 
WASHINGTON, DC 20510 
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INTERNET: 
http://tester.senate.gov/contact 
October 9, 2012 
President Barack Obama 
The White House 
1600 Pennsylvania i\ venue, NW 
Washington, D.C. 20500 
Dear Mr. President and Chairman Genachowski: 
Chairman Julius Genachowski 
Federal Communications Commission 
445 1 i 11 Street, SW 
Washington, D.C. 20554 
I write today to share my continued concerns about actions taken by the federal 
Communications Commission (FCC) to reform and modernize the Universal Service Fund 
(USF) and the intercarrier compensation system. As I mentioned in my July 8111 letter to 
President Obama and in my Apri I 61h letter to Chairman Gcnachowski, I believe that 
comprehensive reform is long overdue, but I remain extremely concerned about the aggressive 
reforms currently being considered. That's why I encourage you to shelve the current proposal 
and work to promote smart telecommunications policy that won't adversely affect Rural Local 
Incumbent Carriers (RLEC). 
The aggressive action taken by the FCC has placed regulatory uncertainly into a 
marketplace that wasn't there before, threatens jobs in rural America, and cuts off access to 
much needed capital for rural America's telecommunications carriers. The FCC's establishment 
of the Quantile Regression Analysis (QRA), which detennines the appropriate funding for the 
high cost fund portion of the USF, not only threatens rural communication carriqrs' ability to 
investment in new infrastructure, but it also affects their ability to maintain current 
infrastructure. The QRA has already forced carriers across rural America to freeze build-out 
plan, cut back on jobs, and it is preventing carriers from ordering new equipment. This is 
unacceptable and we can do better. 
The USF and the intercanrier compensation system arc crucial to RLECs' ability to 
connect rural America's schools, libraries, rural health care clinics, low-income residents and our 
nation's veterans who use tele-medicine, with the rest ofthe country. This public-private 
partnership has done great things for rural America, but I remain concerned that if the FCC 
continues down this path, this decades-old pa1tncrship will cease to exist. 
BOZEMAN 
(406) 586-4450 
BUTTE 
(406) 723-3277 
GLENDIVE 
(406) 365-2391 
BILLINGS 
(406) 252-0550 
GREAT FALLS 
(406) 452-9585 
HELENA 
(406) 449-5401 
MISSOULA 
(406) 728-3003 
I<AUSPI:'L L 
(406) 257-3360 
1201
As I stated in my July 8th letter, I continue to ask that the FCC prioritize the three
following items:
1. Remove uncertainly currently facing rural companies by shelving the current proposal
to impose further cuts to carriers in rural America until the full impact of the Order
released in November of last year can bc fully understood.
2. Create a fund that is similar to the "Connect America Fund" for RLECs. This will
allow companies in rural America to make the much needed investments in their
communities and will allow them to continue connecting rural America.
3. Establish a meaningful waiver mechanism for companies who believe they will be
negatively impacted by the Order. The current waiver system is cumbersome and
will only be considered if voice service could be lost, even though this Order is
supposed to bring the fund into the broadband world. And many carriers cannot
afford the $8,000 waiver, let alone the fees many of them will have to pay outside
companies to prepare the paperwork for the waiver.
I, along with the rural telecommunication companies in Montana, have tried to work with
the FCC, but have yet to get a meaningful response. I appreciate your attention to this matter and
look forward to working with you to expand broadband in rural America.
Sincerely,
Jon Tester