F EDER A L C OMM U N ICATI ON S C OMMISS ION W A SHI NG TON OFFICE O F THE CHAIRMAN The Honorable Rob Bishop U.S. House of Representatives 123 Cannon House Office Building Washington, D.C. 20515 Dear Representative Bishop: October 24, 2014 Thank you for your letter requesting that the Commission consider proposals from broadband providers to permit some flexibility in the implementation of Phase II of the Connect America Fund (CAF II). Your views 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 high-cost program to ensure that we are delivering the best possible voice and broadband experiences to rural areas of states such as Utah, within the confmes of our Connect America budget, all while providing increased certainty and predictability for all carriers, and a climate for increased broadband expansion. In April of this year, the Commission adopted a Connect America Fund Phase II Report and Order to move forward with Connect America for price-cap carriers. In addition, in an associated Further Notice of Proposed Rulemaking (FNPRM), the Commission sought comment on a number ofthe issues you raise, including revising the current broadband perfmmance obligations to require minimum speeds of 10 Mbps downstream. As you note, the FNPRM also seeks comment on a proposal to allow CAF II recipients more flexibility in meeting their performance obligations, including whether we should extend the term of support to longer than five years. Many price cap carriers have argued that building networks capable of providing 10 Mbps will take more time and more funding than meeting the current 4/1 Mbps speed requirement because it will require extending fiber farther into the network and deploying additional equipment. Other commenters argue that extending the CAF II term of support beyond five years will delay a competitive bidding process for the areas served by price cap carriers. The Commission's staff is reviewing the record and giving all of the arguments due consideration before we move forward with any decisions. With respect to the points you raise on the importance of targeting CAF II support to unserved areas and not subsidizing areas where private investment already exists, the Commission has a responsibility to ensure that the funds we collect to support universal service programs are used in the most efficient and effective way possible. To that point, the FNPRM Page 2- The Honorable Rob Bishop proposes to exclude from eligibility those areas served by any provider offering voice and broadband services that meet the Commission's service obligations, regardless of whether the provider is subsidized or unsubsidized. I welcome a dialogue with stakeholders as to how best to accomplish our shared objectives. I look forward to working with you as we continue reforming and modernizing the Universal Service Fund high-cost program- as well as other components of the Universal Service 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 1 can be of any further assistance. Sincerely, Tom Wheeler FEDERAL COMMUNICATIONS CO MMISS ION WASHINGTON OFFICE OF THE CHAIRMAN The Honorable Jason Chaffetz U.S. House ofRepresentatives 2464 Rayburn House Office Building Washington, D.C. 20515 Dear Representative Chaffetz : October 24, 2014 Thank you for your letter requesting that the Commission consider proposals from broadband providers to permit some flexibility in the implementation of Phase II of the Connect America Fund (CAF II). Your views 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 high-cost program to ensure that we are delivering the best possible voice and broadband experiences to rural areas of states such as Utah, within the confmes of our Connect America budget, all while providing increased certainty and predictability for all carriers, and a climate for increased broadband expansion. In April of this year, the Commission adopted a Connect America Fund Phase II Report and Order to move forward with Connect America for price-cap carriers. In addition, in an associated Further Notice of Proposed Rulemaking (FNPRM), the Commission sought comment on a number of the issues you raise, including revising the current broadband performance obligations to require minimum speeds of 10 Mbps downstream. As you note, the FNPRM also seeks comment on a proposal to allow CAF II recipients more flexibility in meeting their performance obligations, including whether we should extend the term of support to longer than five years . Many price cap carriers have argued that building networks capable of providing 10 Mbps will take more time and more funding than meeting the current 4/ 1 Mbps speed requirement because it will require extending fiber farther into the network and deploying additional equipment. Other commenters argue that extending the CAF II term of support beyond five years will delay a competitive bidding process for the areas served by price cap carriers. The Commission's staff is reviewing the record and giving all ofthe arguments due consideration before we move forward with any decisions. With respect to the points you raise on the importance of targeting CAF II support to unserved areas and not subsidizing areas where private investment already exists, the Commission has a responsibility to ensure that the funds we collect to support universal service programs are used in the most efficient and effective way possible. To that point, the FNPRM Page 2- The Honorable Jason Chaffetz proposes to exclude from eligibility those areas served by any provider offering voice and broadband services that meet the Commission's service obligations, regardless of whether the provider is subsidized or unsubsidized. I welcome a dialogue with stakeholders as to how best to accomplish our shared objectives. I look forward to working with you as we continue reforming and modernizing the Universal Service Fund high-cost program- as well as other components of the Universal Service 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 1 can be of any further assistance. Sincerely, Tom Wheeler OFF I CE O F THE C H AIRMAN The Honorable Orrin Hatch United States Senate FEDERAL COMMUNICATIONS CO M MISSION WASHINGTON October 24, 2014 104 Hart Senate Office Building Washington, D.C. 20510 Dear Senator Hatch: Thank you for your letter requesting that the Commission consider proposals from broadband providers to permit some flexibility in the implementation of Phase II of the Connect America Fund (CAF II). Your views are very important and will be included in the record of the proceeding and considered as part of the Commission1s 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 ofthe 21 51 century. We are focused on updating the universal service high-cost program to ensure that we are delivering the best possible voice and broadband experiences to rural areas of states such as Utah, within the confmes of our Connect America budget, all while providing increased certainty and predictability for all carriers, and a climate for increased broadband expansion. In April of this year, the Commission adopted a Connect America Fund Phase II Report and Order to move forward with Connect America for price-cap carriers. In addition, in an associated Further Notice of Proposed Rulemaking (FNPRM), the Commission sought comment on a number of the issues you raise, including revising the current broadband performance obligations to require minimum speeds of 10 Mbps downstream. As you note, the FNPRM also seeks comment on a proposal to allow CAF II recipients more flexibility in meeting their performance obligations, including whether we should extend the term of support to longer than five years. Many price cap carriers have argued that building networks capable of providing 1 0 Mbps will take more time and more funding than meeting the current 4/ 1 Mbps speed requirement because it will require extending fiber farther into the network and deploying additional equipment. Other commenters argue that extending the CAF II term of support beyond five years will delay a competitive bidding process for the areas served by price cap carriers. The Commission's staff is reviewing the record and giving all of the arguments due consideration before we move forward with any decisions. With respect to the points you raise on the importance of targeting CAF II support to unserved areas and not subsidizing areas where private investment already exists, the Commission has a responsibility to ensure that the funds we collect to support universal service programs are used in the most efficient and effective way possible. To that point, the FNPRM Page 2- The Honorable Orrin Hatch proposes to exclude from eligibility those areas served by any provider offering voice and broadband services that meet the Commission ' s service obligations, regardless of whether the provider is subsidized or unsubsidized. I welcome a dialogue with stakeholders as to how best to accomplish our shared objectives. I look forward to working with you as we continue reforming and modernizing the Universal Service Fund high-cost program- as well as other components of the Universal Service 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 1 can be of any further assistance. Sincerely, Tom Wheeler OFF I CE OF THE C H AIRMAN The Honorable Mike Lee United States Senate FEDERAL COMMUNIC ATIONS CO M M ISSION WASHI N GTON October 24, 2014 316 Hart Senate Office Building Washington, D.C. 20510 Dear Senator Lee: Thank you for your letter requesting that the Commission consider proposals from broadband providers to permit some flexibility in the implementation of Phase II of the Connect America Fund (CAF II). Your views are very important and will be included in the record of the proceeding and considered as part of the Commission1s 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 high-cost program to ensure that we are delivering the best possible voice and broadband experiences to rural areas of states such as Utah, within the confmes of our Connect America budget, all while providing increased certainty and predictability for all carriers, and a climate for increased broadband expansion. In April of this year, the Commission adopted a Connect America Fund Phase II Report and Order to move forward with Connect America for price-cap carriers. In addition, in an associated Further Notice of Proposed Rulemaking (FNPRM), the Commission sought comment on a number of the issues you raise, including revising the current broadband performance obligations to require minimum speeds of 10 Mbps downstream. As you note, the FNPRM also seeks comment on a proposal to allow CAF II recipients more flexibility in meeting their performance obligations, including whether we should extend the term of support to longer than five years. Many price cap caniers have argued that building networks capable of providing 10 Mbps will take more time and more funding than meeting the current 4/ 1 Mbps speed requirement because it will require extending fiber farther into the network and deploying additional equipment. Other commenters argue that extending the CAF II term of support beyond five years will delay a competitive bidding process for the areas served by price cap carriers. The Commission's staff is reviewing the record and giving all of the arguments due consideration before we move f01ward with any decisions . With respect to the points you raise on the importance of targeting CAF II support to unserved areas and not subsidizing areas where private investment already exists, the Commission has a responsibility to ensure that the funds we collect to support universal service programs are used in the most efficient and effective way possible. To that point, the FNPRM Page 2- The Honorable Mike Lee proposes to exclude from eligibility those areas served by any provider offering voice and broadband services that meet the Commission's service obligations, regardless ofwhetherthe provider is subsidized or unsubsidized. I welcome a dialogue with stakeholders as to how best to accomplish our shared objectives. I look forward to working with you as we continue reforming and modernizing the Universal Service Fund high-cost program- as well as other components of the Universal Service 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 1 can be of any further assistance. Tom Wheeler FEDERAL COMMUNICATIONS COMMISSION WASHINGTON OFFICE OF THE CHAIRMAN The Honorable Chris Stewart U.S. House ofRepresentatives 323 Cannon House Office Building Washington, D.C. 20515 Dear Representative Stewart : October 24,2014 Thank you for your letter requesting that the Commission consider proposals from broadband providers to permit some flexibility in the implementation of Phase II of the Connect America Fund (CAF II). Your views 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 high-cost program to ensure that we are delivering the best possible voice and broadband experiences to rural areas of states such as Utah, within the confmes of our Connect America budget, all while providing increased certainty and predictability for all carriers, and a climate for increased broadband expansion. In April of this year, the Commission adopted a Connect America Fund Phase II Report and Order to move forward with Connect America for price-cap carriers. In addition, in an associated Further Notice of Proposed Rulemaking (FNPRM), the Commission sought comment on a number ofthe issues you raise, including revising the current broadband performance obligations to require minimum speeds of 10 Mbps downstream. As you note, the FNPRM also seeks comment on a proposal to allow CAF II recipients more flexibility in meeting their performance obligations, including whether we should extend the term of support to longer than five years. Many price cap carriers have argued that building networks capable of providing 10 Mbps will take more time and more funding than meeting the current 4/1 Mbps speed requirement because it will require extending fiber farther into the network and deploying additional equipment. Other commenters argue that extending the CAF II term of support beyond five years will delay a competitive bidding process for the areas served by price cap carriers. The Commission's staff is reviewing the record and giving all of the arguments due consideration before we move forward with any decisions. With respect to the points you raise on the importance of targeting CAF II support to unserved areas and not subsidizing areas where private investment already exists, the Commission has a responsibility to ensure that the funds we collect to support universal service programs are used in the most efficient and effective way possible. To that point, the FNPRM Page 2- The Honorable Chris Stewart proposes to exclude from eligibility those areas served by any provider offering voice and broadband services that meet the Commission's service obligations, regardless of whether the provider is subsidized or unsubsidized. I welcome a dialogue with stakeholders as to how best to accomplish our shared objectives. I look forward to working with you as we continue reforming and modernizing the Universal Service Fund high-cost program- as well as other components of the Universal Service 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 1 can be of any further assistance. Tom Wheeler