JERRY MORAN KANSAS COMMITTEES: APPROPRIATIONS 361A RUSSELL SENATE OFFICE BUILDING WASHINGTON, DC 20510-1606 P: (202) 224-6521 F: (202) 228-6966 ilnitrd ~tatrs ~rnatr BANKING, HOUSING, AND URBAN AFFAIRS VETERANS' AFFAIRS moran.senete.gov The Honorable Tom Wheeler Chairman Federal Communications Commission 445 12th Street Southwest Washington, D.C, 20554 Dear Chairman Wheeler: April 22, 2014 '-/C£ Received & Inspected MAY - 1 2014 FCC Mail Room I write to express my deep concern about the impact of Federal Communications Commission's Wireline Competition Bureau's announcement that it will modify the "rate floor," which will increase the price of phone service for over one million phone customers in rural America. The decision not only contradicts Congressionally-mandated policy, but it also provides no benefit to the federal government. The Communications Act requires the FCC to make telephone service "affordable." While the initial plan to raise the rate floor from $14 to $20.46 may be modified for a slower phase in, I remain concerned that about the policy objectives of raising the rate floor. This decision to raise rates only makes phone service less affordable in rural areas, where incomes are lower and families have fewer telecommunications options. Furthermore, the rate floor is designed so that the Universal Service Fund will still distribute the same support to rural telephone companies, providing no savings to taxpayers. In addition, a major priority of the 2011 Universal Service Transformation Order was to transition the fund to support broadband service instead of phone service. As I expressed to you in the recent Financial Services and General Government Subcommittee on Appropriations hearing, many Kansans receive both broadband and phone service from the same company. Increasing phone creates an even greater challenge for rural telephone companies who provide broadband service with no federal support for that service. The goal of universal service requires thoughtful policy attention. I urge the Commission to freeze the rate floor indefinitely and review this policy. Very truly yours, ~err'"\ vYl o~"' Cc: Commissioner Mignon Clyburn Cc: Commissioner Jessica Rosenworcel Cc: Commissioner Ajit Pai Cc: Commissioner Michael O'Reilly HAYS OFFICE 1200 MAIN STREET SUITE 402 HAYS, KS 67601 MANHATTAN OFFICE 923 WESTf'ORT PLACE SUIT£ 210 MANHATTAN, KS 66502 Jerry Moran OLATHE OFFICE 23600 COLLEGE BOULEVARD SUITE 201 OLATHE, KS 66061 PITTSBURG OFFICE 306 N. BROADWAY STREET SUITE 125 PITTSBURG, KS 66762 WICHITA OFFICE 3450 N. ROCK ROAD, BLDG 200 SUITE 209 WICHITA, KS 67226