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JERRY MORAN

COMMITTEES:

KANSAS

APPROPRIATIONS

BANKING, HOUSING, AND

361A RUSSELL SENATE OFFICE BUILDING

URBAN AFFAIRS

WASHINGTON, DC 20510-1606

P: (202) 224-6521

ilnitrd ~tatrŝrnatr

F: (202) 228-6966

VETERANS' AFFAIRS

moran.senete.gov

'-/C£

April 22, 2014

Received & Inspected

MAY - 1 2014

The Honorable Tom Wheeler

Chairman

FCC Mail Room

Federal Communications Commission

445 12th Street Southwest

Washington, D.C, 20554

Dear Chairman Wheeler:

I write to express my deep concern about the impact of Federal Communications Commission's

Wireline Competition Bureau's announcement that it will modify the "rate floor," which will increase the

price of phone service for over one million phone customers in rural America. The decision not only

contradicts Congressionally-mandated policy, but it also provides no benefit to the federal government.

The Communications Act requires the FCC to make telephone service "affordable." While the

initial plan to raise the rate floor from $14 to $20.46 may be modified for a slower phase in, I remain

concerned that about the policy objectives of raising the rate floor. This decision to raise rates only

makes phone service less affordable in rural areas, where incomes are lower and families have fewer

telecommunications options. Furthermore, the rate floor is designed so that the Universal Service Fund

will still distribute the same support to rural telephone companies, providing no savings to taxpayers.

In addition, a major priority of the 2011 Universal Service Transformation Order was to

transition the fund to support broadband service instead of phone service. As I expressed to you in the

recent Financial Services and General Government Subcommittee on Appropriations hearing, many

Kansans receive both broadband and phone service from the same company. Increasing phone creates an

even greater challenge for rural telephone companies who provide broadband service with no federal

support for that service.

The goal of universal service requires thoughtful policy attention. I urge the Commission to

freeze the rate floor indefinitely and review this policy.

Very truly yours,

~err'"\ vYl o~"'

Jerry Moran

Cc: Commissioner Mignon Clyburn

Cc: Commissioner Jessica Rosenworcel

Cc: Commissioner Ajit Pai

Cc: Commissioner Michael O'Reilly

HAYS OFFICE

MANHATTAN OFFICE

OLATHE OFFICE

PITTSBURG OFFICE

WICHITA OFFICE

1200 MAIN STREET

923 WESTf'ORT PLACE

23600 COLLEGE BOULEVARD

306 N. BROADWAY STREET

3450 N. ROCK ROAD, BLDG 200

SUITE 402

SUIT£ 210

SUITE 201

SUITE 125

SUITE 209

HAYS, KS 67601

MANHATTAN, KS 66502

OLATHE, KS 66061

PITTSBURG, KS 66762

WICHITA, KS 67226

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