Federal Communications Commission FCC 18-29
STATEMENT OF 
COMMISSIONER BRENDAN CARR
Re: Connect America Fund, WC Docket No. 10-90; ETC Annual Reports and Certifications, WC Docket 
No. 14-58; Establishing Just and Reasonable Rates for Local Exchange Carriers, WC Docket No. 
07-135; Developing a Unified Intercarrier Compensation Regime, CC Docket No. 01-92 
In my seven months on the Commission, I have had the opportunity to meet with rural broadband 
providers around the country, from Mississippi to Texas to Colorado.  These providers and others like 
them – many of which are small or family-owned businesses – are doing yeoman’s work each day to 
bring more broadband to more Americans.  And this isn’t an easy task, or an easy business case to make 
work.  But thanks to support from the FCC’s Universal Service Fund, rate-of-return carriers are deploying 
networks in places like the Nebraska Sandhills, which has more cattle than people, or the Badlands of 
South Dakota.  Their work is vitally important to closing the digital divide and ensuring that everyone has 
access to the opportunities that broadband enables.         
That is why I am glad to support this item, which includes several reforms to ensure high-cost 
funding for rate-of-return carriers is predictable and sufficient.  This includes directing USAC to continue 
forecasting high-cost demand at its current amount, as well as proposing to establish a minimum 
threshold support amount for legacy providers that would not be subject to a budget cap.  We rightly seek 
comment on what the minimum threshold support amount should be, and leave all options on the table 
when it comes to setting that amount.  I also support the proposal to adjust the high-cost budget for 
inflation, which has not been done in the past and is a much-needed step to bring the high-cost program 
into parity with the other universal service programs.  Finally, I am pleased that the Notice asks about 
opening up new model offers.
As the FCC continues to think about ways to incentivize greater broadband deployment, we must 
make sure rural communities are not left behind.  The item we adopt today is a step in the right direction, 
and it has my support.