MAY/25/2017/THU 01 :36 PM Cttnugr.e.as nf i}Je 1tnifeo ~fate:a E!Jm:dflll!Ji1l1l, ilfil 211515 The Honorable Ajit Pai Chairman Federal Communications Commission 445 12th Street, SW Washington, D.C. 20554 Dear Chaiiman Pai: May25, 2017 P. UUJ We Write to call to your attention a matter of importance to the Commonwealth of Pennsylvania, which will soon be considered by the Federal Comm~nication Commission (FCC). As you ma:y know, on April 19, the Pennsylvania Public Utility Commission (PaPUC) and the Pennsylvania Department of Community and Economic Development (PaDCED), jointly filed a petition requesting the FCC modify its reC$11tly announced Connect America Fund Phase II (CAF II) auction formula. The FCC's decision will determine whether approximately $140 million in funding originally designated for Pennsylvania wili be spent in the state to help expand broadband access and services to underserved tut"al and high cost communities or whether the funding will be redistributed elsewhe~e. The PaPUC- PaDCED Joint Petition from April 19 requests that the FCC reconsider certain aspects of its Connect America Fund Phase Il auction rules and narrowly modify or waive rut es to ensure the effectiveness, efficiency, and fairness of the auction rules for · Pennsylvania. We write to have these essential funds remain in Pennsylvania. The funding provided through the Connect America Fund is crucial to Pennsylvania, which has long committed to the deployment of broadband access networks and services. Approxiinately 25 percent of Pennsylvauia residents throughout 17 of our 67 counties do not have access to high-speed broadband capability. While Pennsylvania is committed to the improved deployment of broadband access JJ-etworks and services, this level of disconnect is unacceptable as . connectivity is an i11creasingly essential aspect to education, employment, and the economic development of our residents. In addition, Pennsylvania co11sumers have long been a major net contributor to Federal Universal Service Fund (USF) programs, consistently ranking fifth in the United States 1n terms of net USF payments. The FCC's Universal Service Monitoring Report notes that, duiillg the period of2005 to 2016, Pennsylvania's net contribution to the federal USF totaled in excess· of $1. 7 billion dollars. Without action, Pe1msylvania consu~ers stand to lose substantial federal funding as a result of CAF II money being declin~d by the Verizon incumbent local exchange carriers operating in Pennsylvania. The declined amount equals approximately $23 million annually over a six-year period, which accounts for 46% of the total CAF II allotment to the state. In the absence of an FCC decision to the contrary, these funds may potentially be reallocated to a different state. Losing almost half of the CAF II funding would create l:\U unfair hardship on Pennsylvania residents in rural and high-costs areas, and would be contrary to the FCC's goal of ensuring broadband access for all. We are asking that the FCC take into consideration the gravity and PfllNTED ON RECYCLED PAPER MAY/25/2017/THU 01:36 PM FAX No. importance of this issue to Pennsylvania, and the sizeable impact losing this CAF IT funding would have on our more rural and underserved areas of the commo.nwealth. Thank you for your attention to this matter. Sincerely, k~~---- Lou Barletta Member of Congress 02_.w~ Charles W. Dent Member of Congress Glenn 'GT' Thompson Member of Congress Patrick Meehan Member of Congre~s ;kva Robert Erady ~ Member of Congress P. 002 )