Secretary of Agriculture Discusses Rural Broadband With FCC Chairman

Secretary of Agriculture Tom Vilsack, Rural Utilities Service Administrator Jonathan Adelstein, and staff met with Federal Communications Commission Chairman Genachowski and his staff on May 29, 2012, to discuss the importance of broadband to the rural quality of life.

Secretary Vilsack noted that RUS makes loans to finance the construction and upgrade of high capacity broadband networks whose terms can exceed 20 years, and these investments were made under then-current FCC rules with the understanding that the revenues would be necessary to recover costs and repay loans to lenders including RUS. Secretary Vilsack also noted the regression analysis model can affect long term revenues and USF predictability. He suggested the waiver process could be improved by incorporating key elements of the "safety net" process, which was suggested in the October 11 filing by the RUS Administrator which recommends inter alia that the standard for relief should be tied to a default on an obligation to government, not the loss of voice service. Secretary Vilsack underscored the need for USDA and the FCC to continue to work together to address the communications needs of rural America.