OFFICE OF THE CHAIRMAN FEDERAL CoMMUNIcATIoNS coMMISSIoN WASHINGToN June 24,2014 The Honorable John Thune Ranking Member Committee on Commerce, Science and Transportation United States Senate 560 DirksenSenate Office Building Washington, D.C. 20510 Dear Senator Thune: Thank you for Your letter supporting the implementation of a universal service mechanism to allow rural rate-of-return carriers to ieceive support for broadband-only lines.This is one of the key issues that the commission raised in the connect America Fund FurtherNotice of Proposed Rulemakingthat we adopted in April. Your views on this matter are veryimportant, and will be included in the.".o.d^ of the proceeding and considered as part of theCommission's review. The universal service program is one of the most important tools at our,Jisposal to ensurethat consumers and businesses in rural America have the same opportunities as their urban andsuburban counterparts to be active participants in the unitea States of the 2lst century. we arefocused on updating the universal service program to ensure that we are delivering the bestpossible voice and broadband experiences to rural America within the confines of our ConnectAmerica budget, *hil-. providing increased certainty and predictability for all carriers and aclimate for increased broadbandixpansion. I agree witr, |ou that we need to ensure the universal service support mechanisms are serving their iniended purpose of ..increas[ing] !rg{!ana deploymenl, facilitat[ing] transition tJnew communiCations technologies. andbridg[ing] the digital divide." To that end, in April, the Commission voted to move forward with phase II of theConnect America Fund for price-cap carriers, and took several steps to imp.or" the climate forbroadband investment in areas te*.d by incumbent rate-of-return carriers. Most notably, weeliminated the Quantile Regression Analysis benchmarks rule because it was not serr,,ing itsintended purpose. In addition, in the above-mentioned Further Notice,the Commissionproposed to adopt a stand-alone broadband funding mechanism for rate-of-return carriers andsought comment on how to support the deploymerit of broadband-capable networks by rate-of-return carriers within the current budget for the program. we welcome a dialogue regarding how a standalone broadband mechanism could be stiuctired to provide support con"sistent with the $2billion budget for rate-of-return territories. Page 2-The Honorable John Thune I look forward to working with you as we continue the workmodernizing the universal service funa trigh-cost prograrnlas wellFund - to ensure that all Americans have access to robust voice and I appreciate your interest in this assistance. matter. Please let me know of reforming and as other components of the broadband services. if I can be of any further /Sincerely, OFFICE OF THE CHAIRMAN FEDERAL COMMUNICATIONS COMMISSION WASHINGTON June24.2014 The Honorable John Hoeven United States Senate 338 Russell Senate Office Building Washington, D.C. 20510 Dear Senator Hoeven: Thank you for your letter supporting the implementation of a universal service mechanism to allow rural rate-of-retum carriers to receive support for broadband-only lines. This is one of the key issues that the Commission raised in the Connect America Fund Further Notice of Proposed Rulemakingthatwe adopted in April. Your views on this matter are very important, and will be included in the record of the proceeding and considered as part of the Commission's review. The universal service program is one of the most important tools at our disposal to ensure that consumers and businesses in rural America have the same opportunities as their urban and suburban counterparts to be active participants in the United States of the 21st century. We are focused on updating the universal service program to ensure that we are delivering the best possible voice and broadband experiences to rural America within the confines of our Connect America budget. while providing increased certainty and predictability for all carriers and a climate for increased broadband expansion. I agree with you that we need to ensure the universal service support mechanisms are serving their intended purpose of "increas[ing] broadband deployment, facilitat[ing] transition to new communications technologies, and bridg[ing] the digital divide." To that end, in April, the Commission voted to move forward with Phase II of the Connect America Fund for price-cap carriers, and took several steps to improve the climate for broadband investment in areas served by incumbent rate-of-returx carriers. Most notably, we eliminated the Quantile Regression Analysis benchmarks rule because it was not serving its intended purpose. In addition, in the above-mentioned Further Notice, the Commission proposed to adopt a stand-alone broadband funding mechanism for rate-of-return carriers and sought comment on how to support the deployment of broadband-capable networks by rate-of- retum carriers within the current budget for the program. We welcome a dialogue regarding how a standalone broadband mechanism could be structured to provide support consistent with the $2 billion budget for rate-of-return territorie s. Page2-The Honorable John Hoeven I look forward to working with you as we continue the work of reforming andmodernizing the universal service fundilgh-cost prolrarni as well as other components of theFund - to ensure that all Americans have access to robust voice and broadband services. assistanlJ:preciate your interest in this matter. Please let me know if I can be of any further OFFICE OF THE CHAIRMAN FEDERAL CoMMUNICATIoNS CoMM ISSIoN wASHINGToN June 24,2014 The Honorable John Barrasso United States Senate 307 DirksenSenate Office Building Washington, D.C. 20510 Dear Senator Barrasso: Thank you for your letter supporting the implementation of a universal servicemechanism to allow rural rate-of-reiurn cu.ri.r, to ieceive support for broadband-only lines.This is one of the key issues that the commission raised in the connect America Fund FurtherNotice of Proposed Rulemaking thatwe adopted i, aprir. your views on this matter are very &'rl,Xffh#:fr','"T. incrudeJin the record- of the proceeding and consid.r.o u, part of the The universal service program is one of the most important tools at our disposal to ensurethat consumers and businesses in-rural America have the same opportunities as their urban andsuburban counterparts to be active participants in the u"i[a states of the 2lsi-century. we arefocused on updating the universal service program;;;;;;;. that we are delivering the bestpossible voice and broadband experiences to rural America within the confines of our connectAmerica budget, *hil." providing increased certainty anJ preoictability fbr all carriers and aclimate for increased broadband-expansion. t ug... *itt |ou that we need to ensure theuniversal service support mechanisms are serving their iniended purpose of ..increas[ing]broadband deploymenl, facilitat[ing] transition tJnew communications technologies, andbridg[ing] the digital divide.,, To that end, in April, the commission voted to move forward with phase II of theconnect America Fund for price-cap carriers, and took severar steps to improve the climate forbroadband investment in areas t.*.d by incumbent rate-orreturn carriers. Most notably, weeliminated the Quantile Regression Analysis benctrmart , *t" because it was ntt serving itsintended purpose. In addition, in the above-mentioned Further Notice,the commissionproposed to adopt a stand-alone broadband frnding -."t unir- for rate-of-retum carriers andsought comment on how to support the deploym"ri oru."uJb*d-.upuble networks by rate-oireturn carriers within the current budget.for the prog.arn wL *.trorne a dialogue regarding howa standalone broadband mechanism could b. rd";;;to'proride support consistent with the $2billion budget for rate-of-return territorie s. Page 2-The Honorable John Barrasso I look forward to working with you as we continue the workmodernizing the universar servici fund higtr-cost prolrarn]as welrFund - to ensure that all Americans have access to robust voice and I appreciate your interest in this assistance. matter. Please let me know of reforming and as other components of the broadband services. if I can be of any further OFFICE OF THE CHAIRMAN FEDERAL CoMMUNIcATIoNS coMMISSIoN WeSxINGToN June24,2014 The Honorable .Terry Moran United States Senate 3614. Russell Senate Office Building Washington, D.C. 205t0 Dear Senator Moran: Thank you for your letter supporting the implementation of a universal servicemechanism to allow rural rate-of-retuh carrie., to ieceive support for broadband-only lines.This is one of the key issues that the commission raised in the connect America Fund FurtherNotice of Proposed Rulemaking thatwe adopted in april. Your views on this matter are veryimportant, and will be included in the ,".ord- of the proceeding and consid"r.J u. part of theCommission's review. The universal service program is one of the most important tools at our disposal to ensurethat consumers and businessei in rural America have the same opportunities as their urban andsuburban counterparts to be active participants in the u"ii"a staG of the 21st century. we arefocused on updating the universal service program to ensure that we are delivering the bestpossible voice and broadband experiences to rural America within the confines of our ConnectAmerica budget, *hil-. providing increased certainty anJfredictability foralicarriers and aclimate for increased broadbandixpansion. t ugr." *ith |ou that we need to ensure theuniversal service support mechanisms are serviig their iniended purpose of .,increas[ing]broadband deploymenl, facilitat[ing] transition to new communications technologies, andbridg[ing] the digital divide.', - To that end, in April, the Commission voted to move forward with phase II of theconnect America Fund for price-cap carriers, and took several steps to improve the climate forbroadband investment in areas t.*id by incumbent rate-of-return carriers. Irrlost notably, weeliminated the Quantile Regression Analysis benchmarks rule because it was not serving itsintended purpose. In addition, in the above-mentioned Further Notice,the commissionproposed to adopt a stand-alone broadband funding mechanism for rate-of-return carriers andsought comment on how to support the deploym"ni oruroudb*d-.upuble networks by rate-of-return carriers within the current budget.fo-r the program. we welcome a dialogue regarding howa standalone broadband mechanism could be structired to provide support consistent with the $2billion budget for rate-of-retum territori es. Page 2-The Honorable Jerry Moran I look forward to working with you as we continue the work of reforming andmodemizing the universal servic-e fund high-cor, piogru--- as well as other components of theFund - to ensure that all Americans have access to robust voice and broadband services. "rrru*'.Slpreciate your interest in this matter. Please let me know if I can be of any further - OFFICE OF THE CHAIRMAN FEDERAL coMMUNICATIoNS CoMMISSIoN wASHINGToN June 24,2014 The Honorable Jeff Merkley United States Senate 313 Han Senate Office Building Washington, D.C. 20510 Dear Senator Merkley: Thank you for your letter supporting the implementation of a universal service mechanism to allow rural rate-of-reium "u..i"., to ieceive support for broadband-only lines.This is one of the key issues that the Commission raised in the Connect America Fund FurtherNotice of Proposed Rulemaking that we adopted in April. Your views on this matter are veryimportant, and will be included in the r..ord of the proceeding and considered as part of theCommission's review. The universal service program is one of the most important tools at our disposal to ensurethat consumers and businesses inhral America have the same opportunities as their urban andyburbSn counterparts to be active participants in the united StaG of the 21st century. we arefocused on updating the universal service program to ensure that we are delivering the bestpossible voice and broadband experiences to rural America within the confines of our ConnectAmerica budget, *hil-" providing increased certainty and predictability for all carriers and aclimate for increased broadbandixpansion. I agree with y;, that we need to ensure theuniversal service support mechanisms are serving their iniended purpose of ..increas[ing] frgflana deploymenl, facilitat[ing] transition tJnew communications technologies, andbridg[ing] the digital divide.,, To that end, in April, the Commission voted to move forward with phase II of theConnect America Fund for price-cap carriers, and took several steps to irnp.or. the climate forbroadband investment in areas te*"d by incumbent rate-of-return carrierr. Mort notably, weeliminated the Quantile Regression Analysis benchmarkr rul. because it was not serving itsintended purpose. In addition. in the above-mentioned Further Notice,the Commissionproposed to adopt a stand-alone broadband funding mechanism for rate-of-retum carriers andsought comment on how to support the deploymenl of broadband-capable networks by rate-of-return carriers within the current budget.for the program. we welcome a dialogue regarding how a standalone broadband mechanism cbuld be structired to provide support corisistent with the $2bi I lion budget for rate-of-return territories. Page 2-The Honorable Jeff Merkley I look forward to working with you as we continue the work of reforming andmodemizing the universal servic-e fund high-cort p*gr-*-- as well as other components of theFund - to ensure that all Americans have access to robust voice and broadband services. urrru*'.Slpreciate your interest in this matter. Please let me know if I can be of any funher tril,L Tom Wheeler - OFFICE OF THE CHAIRMAN FEoennI CoMMUNICATIoNS coMMISsIoN WASHINGToN June24,2014 The Honorable Jeanne Shaheen United States Senate 520Hart Senate Office Building Washington, D.C. 20510 Dear Senator Shaheen: Thank you for your letter supporting the implementation of a universal service mechanism to allow rural rate-of-return carriers to ieceive support for broadbana-onty tin"r. This is one of the key issues that the Commission raised in the Connect America Fund FurtherNotice of Proposed Rulemaking thatwe adopted in April. Your views on this matter are veryimportant, and will be included in the r".ord of the proceeding and considered as part of theCommission's review. The universal service program is one of the most important tools at our disposal to ensure that consumers and businesses in rural America have the same opportunities as their urban and luburban counterparts to be active participants in the United States of the 2lst century. We arefocused on updating the universal service program to ensure that we are delivering the bestpossible voice and broadband experiences to rural America within the confines of our ConnectAmerica budget, whlle providing increased certainty and predictability for all carriers and a climate for increased broadband expansion. I agree with you that we need to ensure the universal service support mechanisms are serving their iniended purpose of ,.increas[ing] lrgadband deployment, facilitat[ing] transition to new communiCations technologies, andbridg[ing] the digital divide." To that end, in April, the Commission voted to move forward with phase II of theConnect America Fund for price-cap carriers, and took several steps to improve the climate forbroadband investment in areas served by incumbent rate-of-retum carriers. Most notably, we eliminated the Quantile Regression Analysis benchmarks rule because it was not serving its intended pulpose. In addition, in the above-mentioned Further Notice,the Commission proposed to adopt a stand-alone broadband funding mechanism for rate-of-return carriers and sought comment on how to support the deployment of broadband-capable networks by rate-of- retum carriers within the current budget for the program. We welcome a dialogue regarding how a standalone broadband mechanism could be structured to provide support con"sistent with the $2billion budget for rate-of-return territories. Page 2-The Honorable Jeanne Shaheen I look forward to working with you as we continue the work of reforming and modernizing the universal service fund high-cost program - as well as other components of theFund - to ensure that all Americans have access to robust voice and broadband services. I appreciate your interest in this matter. Please let me know if I can be of any further assistance. OFFICE OF THE CHAIRMAN FEDERAL CoT'a na U N ICATIoNS CoM M ISSIoN WASHINGToN June24,2014 The Honorable James Risch United States Senate 483 Russell Senate Office Building Washington, D.C. 20510 Dear Senator Risch: Thank you for your letter supporting the implementation of a universal service mechanism to allow rural rate-of-return carriers to ieceive support for broadband-only lines. This is one of the key issues that the Commission raised inthi Connect America Fund Further Notice of Proposed Rulemaking thatwe adopted in April. Your views r:n this matter are very important, and will be included in the reco.d of the pioceeding and considered as part of the Commission's review. The universal service program is one of the most important tools at our disposal to ensure that consumers and businesses in rural America have the same opportunities as their urban and suburban counterparts to be active participants in the United States of the 2l st century. We are focused on updating the universal service program to ensure that we are delivering the best possible voice and broadband experiences to rural America within the confine, of o* Connect America budget, while providing increased certainty and predictability for all carriers and a climate for increased broadband expansion. I agreewith you that we need to ensure the universal service support mechanisms are serving their iniended purpose of .,increas[ing] broadband deployment, facilitat[ing] transition to new communiCations technologies, and bridg[ing] the digital divide.,' To that end, in April, the Commission voted to move forward with phase II of the Connect America Fund for price-cap carriers, and took several steps to improve the climate for broadband investment in areas served by incumbent rate-of-return carriers. Most notably, we eliminated the Quantile Regression Analysis benchmarks rule because it was not serving its intended purpose. In addition, in the above-mentioned Further Notice,the Commission proposed to adopt a stand-alone broadband funding mechanism for rate-of-return carriers and sought comment on how to support the deployment of broadband-capable networks by rate-of- retum carriers within the current budget for the program. We welcome a dialogue regarding how a standalone broadband mechanism could be structured to provide support "on]irt"rt with ihe $2bi llion budget for rate-of-return territories. Page2-The Honorable James Risch I look forward to working with you as we continue the work of reforming and modernizing the universal service fund high-cost program - as well as other components of theFund - to ensure that all Americans have access to robust voice and broadband services. ^^^,^.^_'^lrpreciate your interest in this matter. Please let me know if I can be of any further asslstance. Sincerely, L om Wheeler FEDERAL CoMMUNICATIoNS CoMMISSIoN WASH INGToN OFFICE OF THE CHAIRMAN June 24,2014 The Honorable James Inhofe United States Senate 205 Russell Senate Office Building Washington, D.C. 20510 Dear Senator Inhofe: Thank you for your letter supporting the implementation of a universal service mechanism to allow rural rate-of-return carriers to receive support for broadband-only lines. This is one of the key issues that the Commission raised in the Connect America Fun:d Further Notice of Proposed Rulemaking that we adopted in April. Your views on this matter are very important, and will be included in the record of the proceeding and considered as part of the Commission's review. The universal service program is one of the most important tools at our disposal to ensure that consumers and businesses in rural America have the same opportunities as their urban and suburban counterparts to be active participants in the United States of the 2lst century. We are focused on updating the universal service program to ensure that we are delivering the best possible voice and broadband experiences to rural America within the confines of our Connect America budget, while providing increased certainty and predictability for all carriers and a climate for increased broadband expansion. I agree with you that we need to ensure the universal service support mechanisms are serving their intended purpose of "increas[ing] broadband deployment, facilitat[ing] transition to new communications technologies, and bridg[ing] the digital divide." To that end, in April, the Commission voted to move forward with Phase II of the Connect America Fund for price-cap carriers, and took several steps to improve the climate for broadband investment in areas served by incumbent rate-of-return carriers. Most notably, we eliminated the Quantile Regression Analysis benchmarks rule because it was not serving its intended pu{pose. In addition, in the above-mentioned Further Notice. the Commission proposed to adopt a stand-alone broadband funding mechanism for rate-of-return carriers and sought comment on how to support the deployment of broadband-capable networks by rate-of- return carriers within the current budget for the program. We welcome a dialogue regarding how a standalone broadband mechanism could be structured to provide support consistent with the $2 billion budget for rate-of-return territorie s. Page 2-The Honorable James Inhofe I look forward to working with you as we continue the work of reforming and modernizing the universal service fund high-cost program - as well as other components of the Fund - to ensure that all Americans have access to robust voice and broadband services. I appreciate your interest in this matter. Please let me know if I can be of any further assistance. OFFICE OF THE CHAIRMAN FEDERAL CoMMUNIcATIoNs coMM IssIoN WASHINGToN June24,2014 The Honorable Heidi Heitkamp United States Senate 502 Hart Senate Office Building Washington, D.C. 2OSIO Dear Senator Hei&: Thank you for your letter supporting the implementation of a universal servicemechanism to allow rural rate-of-reiurn .u{"r.r to ....i* rrpport for broadband-only lines.This is one of the key issues that the commission raised intie connect America Fund FurtherNotice of Proposed Rulemakingthat we adoptedin april. -v"* views on this matter are veryimportant, and will be included*in the record of the proceeding and considered as part oftheCommission's review. The universal service program is oneof the most important tools at our disposal to ensurethat consumers and businesses in-rural America have the same opportunities as their urban andsuburban counterparts to be active participants in the United States of the 21st century. we arefocused on updating the universal service program to ensure that we are delivering the bestpossible voice and broadband experiences to rural America within the confines of our connectAmerica budget, whilg nroviding increased certainty *J prrJi.t bility for all carriers and aclimate for increased broadband-e*p*rior. I agree with you that we need to ensure theuniversal service support mechanisms are serviig their inlend"a purpor. of ..increas[ing]broadband deployment, facilitat[ing] transition to'new communications technologies, andbridg[ing] the digital divide.,, To that end' in April, the commission voted to move forward with phase II of theconnect America Fund for price-cap "uoirrr, and took severar steps to improve the climate forbroadband investment in areas r"*id u-v incumbent rate-of-retu"r'";;;;^u*l'r"Luly, weeliminated the Quantile Regression anayrir urn.t roar[. *t-, ur.rrre it was not serving itsintended purpose. rn addition, in th.;;;;;;r;;;;;;;;ri *orrrr,the commissionproposed to adopt a stand-alone broadbandfirnding;;;ili;; for rate-of-return carriers andsought comment on how to support the deploymd "ab;il;;-capable nerworks by rate-of-return cariers within the current budget for trre p.ogr* w" ielcome a dialogue regarding howa standalone broadband mechanism c-ould be roir,iiJio;;";fo. support consistent with the $2billion budget for rate-of-retr* t"*ii".i"r. Page 2-The Honorable Heidi Heitkamp I look forward to working with you as we continue the work of reforming andmodernizing the universal servic-e n*aiigt-"ort p-grr- - * *"u as other components of theFund - to ensure that all Americans rru* i.."r, to robust voice and broadband services. *rir*I"3lpreciate your interest in this matter. Please let me know if I can be of any further OFFICE OF THE CHAIRMAN FEDERAL CoMMUNICATIoNS coM M ISSIoN WASHINGToN June 24,2014 The Honorable Dick Durbin United States Senate 711 Hart Senate Office Building Washington, D.C. 20510 Dear Senator Durbin: Thank you for your letter supporting the implementation of a universal service mechanism to allow rural rate-of-return carriers to ieceive support for broadband-only lines. This is one of the key issues that the Commission raised inthi Connect America Fund FurtherNotice of Proposed Rulemakingthatwe adopted in April. Your views on this matter are very important, and will be included in the.."ord of the proceeding and considered as part of theCommission's review. The universal service program is one of the most important tools at our disposal to ensure that consumers and businesses in rural America have the same opportunities as their urban and luburban counterparts to be active participants in the United States of the 21st century. We are focused on updating the universal service program to ensure that we are delivering the bestpossible voice and broadband experiences to rural America within the confines of our Connect America budget, while providing increased certainty and predictability for all carriers and a climate for increased broadband expansion. I agree with you that we need to ensure the universal service support mechanisms are serving their iniended purpose of ..increas[ing] !r9{!and deployment, facilitat[ing,1 transition to new communiCations technologies, andbridg[ing] the digital divide." To that end, in April, the Commission voted to move forward with phase II of the Connect America Fund for price-cap carriers, and took several steps to improve the climate for broadband investment in areas served by incumbent rate-of-return-carriers. Most notably, we eliminated the Quantile Regression Analysis benchmarks rule because it was not serving its intended purpose. In addition, in the above-mentioned Further Notice,the Commission proposed to adopt a stand-alone broadband funding mechanism for rate-of-return carriers and sought comment on how to support the deploymeni of broadband-capable networks by rate-of- return carriers within the current budget for the program. We welcome a dialogue regarding how a standalone broadband mechanism could be structured to provide support corisistent with the $2billion budget for rate-o f-return territorie s. Page 2-The Honorable Dick Durbin I look forward to working with you as we continue the work of reforming andmodernizing the universal servic-e trna trigtr-co* p.og.u*- as well as other components of theFund - to ensure that all Americans t ur. u...rs to roLust voice and broadband services. "rrr.,rnlllpreciate your interest in this matter. please let me know if I can be of any further Sincerely, - OFFICE OF THE CHAIRMAN FEDERAL CoMM UNICATIoNS coMMISSIoN WASHINGToN lvne24,2014 The Honorable Debbie Stabenow United States Senate 133 Hart Senate Office Building Washington, D.C. 20510 Dear Senator Stabenow: Thank you for your letter supporting the implementation of a universal servicemechanism to allow rural rate-of-reiurn carriers to ieceive support for broadband-only lines.This is one of the key issues that the commission raised in the connect America Fund FurtherNotice of Proposed Rulemaking thatwe adopted in april. your views on this matter are veryimportant, and will be included in the.."o.d- of the proceeding and considered as part of theCommission's review. The universal service program is one of the most important tools at our disposal to ensurethat consumers and businesses inlural America have the same opportunities as their urban andsuburban counterparts to be active participants in the u"i[a staies of the 2lst century. we arefocused on updating the universal service p.og.urr a;;;r;;. that we are delivering the bestpossible voice and -blgaabano experiences to rural America within the confines of our connectAmerica budget, while providing increased certainty and pieoictability for all carriers and aclimate for increased broadband expansior. t ug.." *ith |ou that we need to ensure theuniversal service support mechanisms are serving their iniended purpose of ..increas[ing]broadband deployment, facilitat[ing] transition tinew communications technologies, andbridg[ing] the digital divide.', To that end, in April, the Commission voted to move forward with phase II of theconnect America Fund for price-cap carriers, and took severar steps to improve the climate forbroadband investment in areas t.tu.d by incumbent rate-of-return carriers. Most notably, weeliminated the Quantile Regression Analysis benchmark, *t. because it was not serving itsintended purpose. In addition, in the above-mentioned Further Notice,the Commissionproposed to adopt a stand-alone broadband funding me"h*is- for rate-of-return carriers andsought comment on how to support the deploymeni orbroadband-capable networks by rate-of-retum carriers within the current budget-for the program. we welcome a dialogue regarding howa standalone broadband mechanism could be structired to provide support consistent with the $2bi llion budget for rate-o f-return territorie s. Page 2-The Honorable Debbie Stabenow I look forward to working with you as we continue the work of reforming andmodernizing the universal servici fund high-cor, progru,n-- as well as other components of theFund - to ensure that all Americans have access to robust voice and broadband services. urriuunlSlrreciate your interest in this matter. Please let me know if I can be of any further Sincerely, / /ffi OFFICE OF THE CHAIRMAN FEOEnnI CoMMUNICATIoNs CoMMIsSIoN WASHINGToN June24,2014 The Honorable Deb Fischer United States Senate 383 Russell Senate Office Building Washington, D.C. 20510 Dear Senator Fischer: Thank you for your letter supporting the implementation of a universal service mechanism to allow rural rate-of-return carriers to receive support for broadband-only lines. This is one of the key issues that the Commission raised inthe Connect America Fund Further Notice of Proposed Rulemaking that we adopted in April. Your views on this matter are very important, and will be included in the record of the proceeding and considered as part of the Commission's review. The universal service program is one of the most important tools at our disposal to ensure that consumers and businesses in rural America have the same opportunities as their urban and luburban counterparts to be active participants in the United Staies of the 2lst century. We are focused on updating the universal service program to ensure that we are delivering thl best possible voice and broadband experiences to rural America within the confine, of o* Connect America budget, while providing increased certainty and predictability for all carriers and a climate for increased broadband expansion. I agree with you that we need to ensure the universal service support mechanisms are serving their intended puryose of "increas[ing] broadband deployment, facilitat[ing] transition to new communiCations technologies, and bridg[ing] the digital divide." To that end, in April, the Commission voted to move forward with Phase II of the Connect America Fund for price-cap carriers, and took several steps to improve the climate for broadband investment in areas served by incumbent rate-of-retum carriers. Most notably, we eliminated the Quantile Regression Analysis benchmarks rule because it was not serving its intended purpose. In addition, in the above-mentioned Further Notice,the Commission proposed to adopt a stand-alone broadband funding mechanism for rate-of-return carriers and sought comment on how to support the deployment of broadband-capable networks by rate-of- retum carriers within the current budget for the program. We welcome a dialogue regarding how a standalone broadband mechanism could be structured to provide support coniirte.rt wittr ihe $Z billion budget for rate-of-retum territories. Page 2-The Honorable Deb Fischer I look forward to working with you as we continue the work of reforming and modernizing the universal service fund high-cost program - as well as other components of the Fund - to ensure that all Americans have access to robust voice and broadband services. I appreciate your interest in this matter. Please let me know if I can be of any further assistance. OFFICE OF THE CHAIRMAN FEDERAL CoMMUNICATIoNS CoM M IsSIoN WASHINGToN June 24,2074 The Honorable Dean Heller United States Senate 324Hart Senate Office Building Washington, D.C. 20510 Dear Senator Heller: Thank you for your letter supporting the implementation of a universal service mechanism to allow rural rate-of-ret-urn carriers to ieceive support for broadband-only lines.This is one of the key issues that the Commission raised in the Connect America Fund FurtherNotice of Proposed Rulemaking thatwe adopted in April. your views on this matter ile veryimportant, and will be included in the r..ord^ of the pioceeding and considered as part of theCommission's review. 'Ihe universal service program is one of the most important tools at our disposal to ensurethat consumers and businesses in rural America have the same opportunities as their urban andsuburban counterparts to be active participants in the unitea staG of the 21st century. we arefocused on updating the universal serviceprogram to .nr*. that we are delivering the bestpossible voice and broadband experiences to rural America within the confines of our ConnectAmerica budget, *hil-" providing increased certainty and predictability for all carriers and aclimate for increased broadband expansion. I agree with |ou that we need to ensure theuniversal service support mechanisms are serviig their iniended purpose of ..increas[ing]prgfland deploymenl, facilitat[ing] transition to new communications technologies, andbridg[ing] the digital divide.,, - To that end, in April, the Commission voted to move forward with phase II of theconnect America Fund for price-cap carriers, and took several steps to improve the climate forbroadband investment in areas setrid by incumbent rate-of-return carriers. Most notably, weeliminated the Quantile Regression Analysis benchmarks rule because it was not serving itsintended purpose. In addition, in the above-mentioned Further Notice,the Commissionproposed to adopt a stand-alone broadband funding mechanism for rate-of-return carriers andsought comment on how to support the deploymen-t of broadband-capable networt