Federal Communications Commission FCC 17-36
STATEMENT OF
COMMISSIONERMIGNON L. CLYBURN
Re:   Connect America Fund; ETC Annual Reports and Certifications; Developing a Unified 
Intercarrier Compensation Regime, WC Docket Nos. 10-90, 14-98, CC Docket No. 01-92.
Just over a year ago, the Commission took substantial steps to modernize the rate-of-return 
program. In doing so, we placed the high-cost fund on solid economic footing for the next decade. As part 
of the Rate-of-Return Reform Order, we welcomed ongoing input and partnership from carriers and their 
associations as we implemented said reforms. Today’s action is a direct result of the feedback we 
received.
The Order we adopt this morning addresses an unintended consequence of those much needed 
reforms. When we instituted the capital investment allowance in the Rate-of-Return Reform Order in 
2016, the goal was a noble one: to promote the efficient use of universal service funds. While this 
continues to be important, I never envisioned the mechanisms we put in place would harshly penalize 
carriers for going just one dollar over their capital investment allowance. 
By amending the capital investment allowance rule to permit carriers to recoup capital expenses 
up to the per-location limit today, we modify a requirement that had the potential to chill broadband 
infrastructure investment. Carriers were inadvertently placed in the difficult position of having to exclude 
certain locations for broadband deployment in order to reduce the average per-location cost of all projects 
if they exceeded the per-location allowable cost threshold. This disallowance of all, not simply the excess 
of reimbursements, had the potential of leaving adjacent locations “permanently stranded” without 
broadband-capable service. 
Today’s Order continues not only to promote our goals under the Rate-of-Return Reform Order, 
it provides carriers with the flexibility they need to undertake broadband deployment projects in high-cost 
areas, enabling them to build out broadband to a greater number of locations. This represents another step 
forward in our efforts to advance deployment of affordable broadband services in all areas of the United 
States and close the broadband deployment gap, consistent with Congressional expectations. In that same 
vein, I hope and expect that we will also act soon to pause the imminent voice rate floor hike, coupled 
with action to rein in waste, fraud, and abuse in the high-cost program.    
My thanks go to the staff of the Wireline Competition Bureau for their hard work on this very 
important item.