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Westlaw Delivery Summary Report for YOUNG,DANIEL Your Search: "CONNECT AMERICA" & DATE(2011) & "WC DOCKET NO. 10-90" Date/Time of Request: Monday, June 25, 2012 09:41 Central Client Identifier: HALO Database: FCOM-FCC Citation Text: 26 F.C.C.R. 17663 Lines: 51292 Documents: 1 Images: 0 The material accompanying this summary is subject to copyright. Usage is governed by contract with Thomson Reuters, West and their affiliates. 26 F.C.C.R. 17663, 26 FCC Rcd. 17663, 54 Communications Reg. (P&F) 637, Page 1 2011 WL 5844975 (F.C.C.) FEDERAL-STATE JOINT BOARD ON UNIVERSAL SERVICE 26 F.C.C.R. 17663, 26 FCC Rcd. 17663, 54 Communic- ations Reg. (P&F) 637, 2011 WL 5844975 (F.C.C.) CC Docket No. 96-45 NOTE: An Erratum is attached to the end of this docu- LIFELINE AND LINK-UP ment WC Docket No. 03-109 NOTE: A Second Erratum is attached to the end of this document UNIVERSAL SERVICE REFORM -- MOBILITY FUND Federal Communications Commission (F.C.C.) WT Docket No. 10-208 Report and Order and Further Notice of Proposed Rule- FCC 11-161 making **1 IN THE MATTER OF Adopted: October 27, 2011 CONNECT Released: November 18, 2011 AMERICA Comment Date on Sections XVII.A-K: January 18, FUND 2012 WC Reply Comment Date on Sections XVII.A-K: February Docket 17, 2012 No Comment Date on Sections XVII.L-R: February 24, . 2012 10 Reply Comment Date on Sections XVII.L-R: March 30, - 2012 90 *17663 By the Commission: Chairman Genachowski A NATIONAL BROADBAND PLAN FOR OUR FU- and Commissioners Copps and Clyburn issuing separate TURE statements; Commissioner McDowell approving in part, concurring in part and issuing a statement. GN Docket No. 09-51 *17667 I. INTRODUCTION ESTABLISHING JUST AND REASONABLE RATES 1. Today the Commission comprehensively reforms and FOR LOCAL EXCHANGE CARRIERS modernizes the universal service and intercarrier com- pensation systems to ensure that robust, affordable WC Docket No. 07-135 voice and broadband service, both fixed and mobile, are available to Americans throughout the nation. We adopt HIGH-COST UNIVERSAL SERVICE SUPPORT fiscally responsible, accountable, incentive-based WC Docket No. 05-337 policies to transition these outdated systems to the Con- nect America Fund, ensuring fairness for consumers DEVELOPING AN UNIFIED INTERCARRIER COM- and addressing the communications infrastructure chal- PENSATION REGIME lenges of today and tomorrow. We use measured but firm glide paths to provide industry with certainty and CC Docket No. 01-92 sufficient time to adapt to a changed regulatory land- © 2012 Thomson Reuters. No Claim to Orig. US Gov. Works. 26 F.C.C.R. 17663, 26 FCC Rcd. 17663, 54 Communications Reg. (P&F) 637, Page 2 2011 WL 5844975 (F.C.C.) scape, and establish a framework to distribute universal 5. The universal service challenge of our time is to en- service funding in the most efficient and technologically sure that all Americans are served by networks that sup- neutral manner possible, through market-based mechan- port high-speed Internet access--in addition to basic isms such as competitive bidding. voice service--where they live, work, and travel. Con- sistent with that challenge, extending and accelerating 2. One of the Commission's central missions is to make fixed and mobile broadband deployment has been one “available ... to all the people of the United States ... a of the Commission's top priorities over the past few rapid, efficient, Nation-wide, and world-wide wire and years. We have taken a series of significant steps to bet- radio communication service with adequate facilities at [FN1] ter enable the private sector to deploy broadband facilit- reasonable charges.” For decades, the Commis- ies to all Americans. The Commission has provided the sion and the states have administered a complex system tools to promote both wired and wireless solutions by of explicit and implicit subsidies to support voice con- offering new opportunities to access and use spectrum, [FN5] nectivity to our most expensive to serve, most rural, and removing barriers to infrastructure investment, [FN6] insular communities. Networks that provide only voice and developing better and more complete broad- [FN7] service, however, are no longer adequate for the coun- band and spectrum data. Today's Order focuses on try's communication needs. costly-to-serve communities where even with our ac- tions to lower barriers to investment nationwide, private 3. Fixed and mobile broadband have become crucial to sector economics still do not add up, and therefore the our nation's economic growth, global competitiveness, [FN2] immediate prospect for stand-alone private sector action and civic life. Businesses need broadband to at- is limited. We build on the Rural Utilities Service's tract customers and employees, job-seekers need broad- (RUS's) Broadband Initiatives Program (BIP) and the band to find jobs and training, and children need broad- National Telecommunications and Information Admin- band to get a world-class education. Broadband also istration's (NTIA's) Broadband Technology Opportunit- helps lower the costs and improve the quality of health [FN8] ies Program (BTOP), through which Congress ap- care, and enables people with disabilities and Americ- propriated over $7 billion in *17669 grants and loans to ans of all income levels to participate more fully in so- expand broadband deployment and adoption in unserved ciety. Community anchor institutions, including schools and underserved areas. We also build on federal and and libraries, cannot achieve their critical purposes state universal service programs that have supported without access to robust broadband. Broadband-enabled networks in rural America for many years. jobs are critical to our nation's economic *17668 recov- ery and long-term economic health, particularly in small 6. Our existing universal service and intercarrier com- towns, rural and insular areas, and Tribal lands. pensation systems are based on decades-old assump- tions that fail to reflect today's networks, the evolving **2 4. But too many Americans today do not have ac- nature of communications services, or the current com- cess to modern networks that support broadband. Ap- petitive landscape. As a result, these systems are ill proximately 18 million Americans live in areas where equipped to address the universal service challenges there is no access to robust fixed broadband networks. [FN3] raised by broadband, mobility, and the transition to In- And millions of Americans live, work, or travel ternet Protocol (IP) networks. in areas without access to advanced mobile services. There are unserved areas in every state of the nation and 7. With respect to broadband, the component of the its territories, and in many of these areas there is little Universal Service Fund (USF) that supports telecommu- reason to believe that Congress's desire “to ensure that nications service in high-cost areas has grown from $2.6 all people of the United States have access to broadband [FN4] billion in 2001 to a projected $4.5 billion in 2011, but capability” will be met any time soon with current recipients lack any obligations or accountability for ad- policies. vancing broadband-capable infrastructure. We also lack © 2012 Thomson Reuters. No Claim to Orig. US Gov. Works. 26 F.C.C.R. 17663, 26 FCC Rcd. 17663, 54 Communications Reg. (P&F) 637, Page 3 2011 WL 5844975 (F.C.C.) sufficient mechanisms to ensure all Commission-funded without the benefit of such subsidies. Most concerning, broadband investments are prudent and efficient, in- the current ICC system is unfair for consumers, with cluding the means to target investment only to areas that hundreds of millions of Americans paying more on their require public support to build broadband. Due in part wireless and long distance bills than they should in the to these problems, a “rural-rural” divide persists in form of hidden, inefficient charges. We need a more in- broadband access--some parts of rural America are con- centive-based, market-driven approach that can reduce nected to state-of-the-art broadband, while other parts arbitrage and competitive distortions by phasing down of rural America have no broadband access, because the byzantine per-minute and geography-based charges. existing program fails to direct money to all parts of And we need to provide more certainty and predictabil- rural America where it is needed. ity regarding revenues to enable carriers to invest in modern, IP networks. **3 8. Similarly, the Fund supports some mobile pro- viders, but only based on cost characteristics and loca- *17670 10. Under these circumstances, modernizing tions of wireline providers. As a result, the universal USF and ICC from supporting just voice service to sup- service high-cost program provides approximately $1 porting voice and broadband, both fixed and mobile, billion in annual support to wireless carriers, yet there through IP networks is required by statute. The Commu- remain areas of the country where people live, work, nications Act directs the Commission to preserve and and travel that lack even basic mobile voice coverage, advance universal service: “Access to advanced tele- and many more areas that lack mobile broadband cover- communications and information services should be [FN9] age. We need dedicated mechanisms to support mobility provided in all regions of the Nation.” It is the and close these gaps in mobile coverage, and we must Commission's statutory obligation to maintain the USF rationalize the way that funding is provided to ensure consistent with that mandate and to continue to support that it is cost-effective and targeted to areas of need. the nation's telecommunications infrastructure in rural, insular, and high-cost areas. The statute also requires 9. The intercarrier compensation (ICC) system is simil- the Commission to update our mechanisms to reflect arly outdated, designed for an era of separate long- changes in the telecommunications market.
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