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July 1,2015 JUt 062015
The Honorable Thomas Wheeler
Chairman
Federal Communications Commission
445 12th Street SW
Washington, DC 20554
Dear Chairman Wheeler:
We commend the Federal Communications Commission (FCC) for its ongoing work to design and
implement the 600 MHz Broadcast Incentive Auction (Incentive Auction). Given its propagation
characteristics, 600 MHz spectrum provides a unique opportunity to ensure that consumers, small
businesses, students, agriculture and energy producers and others based in rural America have access to
state-of-the-art wireless broadband communication services.
Section 309(j) of the Communications Act of 1934, as amended, requires the agency to ensure that rural
telephone companies have the opportunity to contend for spectrum in competitive bidding systems. The
FCC's proposed bidding credit rules are a positive step toward promoting a competitive marketplace and
ensuring rural consumers obtain wireless services that are reasonably comparable to their urban
counterparts.
We are encouraged to see the proposed rules recognize the congressional intent in Section 309(j), but we
recommend that the FCC adjust its rural carrier bidding credit proposal to more comprehensively address
the challenges faced by rural telephone companies. A well-designed rural telco bidding credit would offer
rural providers the opportunity to better compete for spectrum against providers that may concentrate
resources in urban areas and leave spectrum underused in rural areas.
Rural telephone companies have a history of providing modern communication services to sparsely-
populated areas and making service decisions based on the needs of the rural communities where they are
based. Despite this commitment to rural connectivity and interest in obtaining additional spectrum, rural
providers were virtually shut out of the recent A WS-3 auction and accounted for just 1.55 percent of the
total licenses won.
Given our shared commitment to rural consumers and a successful implementation of the Incentive
Auction, we urge the FCC to increase the rural provider bidding credit to help ensure that rural providers
have a reasonable opportunity to obtain spectrum to serve rural consumers. We look forward to hearing
from you about this important matter.
Sincerely,
~~~'~~~~
Ke in Cramer
.Member of Congress
Kristi Noem
Member of Congress
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