**FOR IMMEDIATE RELEASE**: **NEWS MEDIA CONTACT:**

January 15, 2009 Robert Kenny: (202) 418-2668 Email:
robert.kenny@fcc.gov

**CHAIRMAN KEVIN J. MARTIN ANNOUNCES RESIGNATION**

**EFFECTIVE JANUARY 20^th^**

Washington DC -- Today FCC Chairman Kevin J. Martin announced his
resignation from the Federal Communications Commission, effective
January 20, 2009. The Chairman said he leaves the office with great
pride in the FCC's accomplishments and with deep gratitude for having
had an opportunity to serve the American public.

Chairman Martin stated that his philosophy during his tenure at the FCC
"has been to pursue deregulation while paying close attention to its
impact on consumers and the particulars of a given market, to balance
deregulation with consumer protection." He stated that he "approached
his decisions with a fundamental belief that a robust, competitive
marketplace, not regulation, is ultimately the best protector of the
public interest and the best method of delivering the benefits of
choice, innovation, and affordability to American consumers."

During his tenure at the FCC, the Commission has focused on establishing
the appropriate regulatory environment that achieves the right balance
between two competing interests: (1) to encourage investment in
communications infrastructure and (2) to make sure consumers and
innovation are not unintentionally or intentionally disadvantaged by the
owners of that infrastructure. Under Chairman Martin, the Commission
acted to level the playing field so that all entrants could fairly
compete, facilitating increased investment in the next generation of
communications infrastructure. At the same time Chairman Martin was able
to push for more open platforms to spur innovation on the edges of these
networks and deliver lower prices, improved services and greater choice
to consumers.

In his letter of resignation to President Bush, Martin wrote, "I have
had the privilege of serving at the Federal Communications Commission
for almost 8 years, including 4 years as the agency's Chairman. During
this period, we have seen a telecommunications industry undergoing rapid
and unprecedented change. As a result of the market-oriented and
consumer focused policies we have pursued the American people are now
reaping the rewards of convergence and the broadband revolution
including new and more innovative technologies and services at
ever-declining prices."

Upon his departure from the Commission, Chairman Martin will serve as a
Senior Fellow at the Aspen Institute in Washington, D.C.

\-- Attached are Highlights from Chairman Martin's tenure at the
Commission \--

**PRINCIPAL ACHIEVEMENTS OF THE FCC UNDER CHAIRMAN KEVIN J. MARTIN**

**(March 2005 -- January 2009)**

FCC Chairman Kevin J. Martin's accomplishments during his tenure at the
FCC were guided by the philosophy of pursuing deregulation while
focusing on what is best for the consumer. He has focused on
establishing the appropriate regulatory environment that achieves the
right balance between two competing interests: (1) to encourage
investment in communications infrastructure and (2) to make sure
consumers and innovation are not unintentionally or intentionally
disadvantaged by the owners of that infrastructure.  His efforts took
many forms, ranging from the promotion of more competition across
technology platforms to making sure consumers have access to broadband
services without arbitrary blocking or delays. Fostering broadband
deployment was a top policy priority because it affects nearly every
aspect of consumers' lives.

**Promoting Broadband Deployment**

*Eliminating Legacy Regulations and Encouraging Infrastructure
Investment*

1.  **Broadband Growth** -- Under Chairman Martin, the Commission
    achieved a careful balance of promoting investment in broadband
    infrastructure and innovation, while expanding affordable access and
    sustaining an open Internet. Under these policies, broadband prices
    decreased while speeds increased, and there was a dramatic growth in
    the number of high-speed lines available in the United States. Since
    2001, the price of wireline broadband has decreased 50%while
    consumers can now purchase service that is over ten times faster
    than what was offered in 2001. The number of high speeds lines has
    grown from just over five million in 2000 to over 100 million lines.

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1.  **Broadband Investment Incentives** -- During Chairman Martin's
    tenure, the Commission removed regulatory obstacles that discouraged
    broadband infrastructure investment and slowed deployment. It
    classified Digital Subscriber Line ("DSL"), Broadband over Power
    Lines ("BPL") and Wireless Broadband as "information services" not
    subject to legacy regulations such as tariffs and price controls.
    The Commission removed legacy regulations such as tariffs, price
    controls and wholesale unbundling on new fiber investment to
    encourage carriers to invest in infrastructure in an environment
    free of economic regulation. Additionally, the Commission
    streamlined the state and local cable franchise process to encourage
    the entry of new broadband competitors and eased obstacles to
    competitive entry in apartment buildings so broadband services could
    be more accessible to consumers.

2.  **Broadband Data Collection** -- The FCC in 2008 greatly improved
    the quality and precision of the broadband subscribership data that
    it collects. These changes will enable the Commission to better
    identify and analyze broadband deployment throughout the nation. The
    Commission now requires broadband providers to give more detailed
    information about subscribership on a geographic basis and also to
    share more information on the download and upload speeds they offer
    consumers. The agency proposed to better direct resources to rural
    and other "underserved" areas by obtaining and mapping information
    about broadband availability in those areas.

**Ushering In an Era of Wireless Broadband**

*Oversaw Two Most Successful Auctions in Commission History and Opened
Up "White Spaces", Increasing Availability for Broadband*

1.  **Putting Spectrum for Wireless Broadband into the Marketplace** --
    All told, the Commission has made over 354 MHz of spectrum available
    over the last four years for mobile wireless broadband services
    through auction and flexible use policies, which nearly triples the
    approximately 200 MHz of spectrum that had previously been available
    for such services in the Cellular, Specialized Mobile Radio ("SMR")
    and Broadband PCS bands.

> The 700 MHZ spectrum auction, the largest auction in FCC history,
> raised a record \$19.6 billion in 2008. The auction advanced open
> platform policies and created what will be a new wireless broadband
> provider to compete with incumbent telephone and cable companies in
> nearly every home in the United States. The auction allows spectrum
> once used for analog television broadcasting, to be used by various
> communications providers---be they incumbents, new entrants, small
> businesses or rural companies---so they have access to additional
> spectrum to deploy next generation wireless networks.
>
> Both nationwide incumbents that participated in the 700 MHz auction
> have announced they will deploy the very latest generation of wireless
> broadband services using this spectrum, which will operate at speeds
> competitive with the latest DSL and cable modem services. To encourage
> infrastructure investment in the 700 MHz spectrum auctioned in 2008,
> Chairman Martin successfully opposed the application of mandatory
> unbundling or wholesale requirements to these valuable new wireless
> networks. Further, Chairman Martin supported some of the most
> stringent buildout requirements the Commission has ever imposed on the
> licensees of this spectrum, ensuring swift rollout of services to all
> areas of the country.
>
> The 2006 Advanced Wireless Services auction ("AWS-1") grossed nearly
> \$13.9 billion for licenses to offer a wide array of innovative
> broadband services over third generation ("3G") wireless networks. The
> auction allowed telecommunications providers to provide new, creative
> services over spectrum once used for other purposes.

1.  **Innovative use of Unlicensed Spectrum** -- The FCC's 2008
    initiative to use television "white spaces" spectrum handed
    consumers a significant victory. Chairman Martin championed this
    initiative to make more spectrum available to improve wireless
    broadband connectivity and inspire an ever-widening array of new
    Internet-based products and services for consumers.

**Fostering Innovation and Open Technology Platforms**

*Protecting the Vibrant Nature of the Internet*

1.  **Adopted Network Neutrality Principles, Ensuring Consumer Access to
    the Internet** -- Ensuring consumers' unfettered access to lawful
    content on the Internet was a high priority for Chairman Martin. The
    Commission protected this access by adopting an Internet Policy
    Statement containing four principles. It said consumers are entitled
    to access the lawful Internet content of their choice; to run
    applications and use services of their choice, subject to the needs
    of law enforcement; to connect their choice of legal devices to
    networks as long as they do not harm the networks; and have the
    benefits of competition among network providers, application and
    service providers and content providers.

>   

1.  **More Open Wireless Networks** -- Following new rules that governed
    the 700 MHz band spectrum auction in 2007, major wireless carriers
    have made their networks more open to devices and applications
    provided by their customers. Chairman Martin pushed for adoption of
    an open platform in the 700 MHz spectrum band to spur innovation and
    consumer choice. The auction rules required winners of the C-Block
    portion of the 700 MHz band to ensure their networks are compatible
    with the applications and devices of the customer's choice. The
    popularity of open platforms has encouraged other wireless carriers
    to follow suit with a more open and friendly policy toward
    customers.

2.  **Non-Proprietary Set-Top Boxes** -- In 2007, the FCC acted to
    implement a nearly 10-year old statutory requirement to create a
    competitive market for set-top boxes.  The Commission no longer
    allowed cable operators to integrate proprietary security elements
    into their set-top boxes.  As a result, consumers may purchase a box
    of their choice instead of having to lease equipment from their
    cable providers.   Enforcing the Commission's separable security
    requirement provided consumers electronics manufacturers the
    opportunity to develop and market innovative, feature-rich,
    state-of-the-art products.  Chairman Martin's goal of a competitive
    set-top box market will give consumers greater choice and the
    benefits of innovation. 

**Promoting Competition in the Video Marketplace**

1.  **Video Franchise Reform** -- As telecommunications companies
    upgraded their networks to provide video services in competition
    with cable providers they encountered roadblocks when they applied
    for franchises from local and county boards. Under Chairman Martin,
    the FCC reformed the video franchise process by adopting rules that
    limit unreasonable requirements and delays by franchise boards, thus
    speeding the delivery of new video services to consumers.

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1.  **Apartment Building Access** -- All consumers, regardless of where
    they live, should enjoy the benefits of competition. Exclusive
    contracts between owners of apartment buildings and incumbent cable
    or telephone operators posed a significant barrier to entry by
    competing companies. Consumers who lived in apartment buildings
    often were locked into one video or telephone service provider,
    effectively foreclosing competitive choice for these residents. The
    FCC encouraged competition from other providers by barring these
    exclusivity contracts for service in "multiple dwelling units."
    During Chairman Martin's tenure, the Commission also made it easier
    for competitive telecommunications and cable companies to gain
    access to "inside wiring" in these apartment buildings in a
    consistent fashion, further ensuring that all consumersincluding
    those in apartment buildingsbenefit from competition in the
    provision of communications services.

2.  **Greater Consumer Choice** -- New rules were adopted to give
    consumers more choice in the cable market. Leased access reform
    adopted in late 2007 sought to foster the development of independent
    programming channels on cable systems. An expedited complaint
    process and a more rational method of determining leased access
    rates were designed to make it easier for independent programmers to
    gain carriage from cable operators. New program access rules, on the
    other hand, assure that competitive video operators have access to
    critical programming on a nondiscriminatory basis. Finally, the FCC
    voted to cap the number of customers a single cable television
    company may serve nationwide. The order set a 30% limit on
    horizontal ownership nationwide, meeting Congress's mandate that no
    cable operator should be so large that it can impede the flow of
    video programming to consumers.

**Protecting Consumers from Harm**

*Issued Over \$150 Million in Fines, Most Ever Under Any Chairman*

1.  **Protecting the Open Internet** -- Responding to complaints from
    broadband subscribers, the FCC in 2008 ordered Comcast to stop
    arbitrarily delaying subscribers' downloads and blocking their
    uploads.  The Commission found that Comcast's network management
    practices were arbitrarily focused on specific applications rather
    than on the amount of congestion in the network or size of a
    particular file. It required Comcast to change its network
    management practices and to start disclosing these practices to the
    FCC and customers. The action, spearheaded by Chairman Martin,
    affirmed the Commission's willingness to enforce its 2005 Internet
    Policy Statement that outlined consumers' rights to access any
    content or application on the Internet. The Commission announced its
    intention to adjudicate future disputes regarding federal Internet
    policy on a case-by-case basis, using an established framework.
    Specifically, if legal content is arbitrarily degraded or blocked,
    and the defense is "network management," the broadband operator must
    show that its network management practice is reasonable. The
    Commission will look at whether it furthers an important interest
    and is carefully tailored to serve that interest. Finally, the
    Commission concluded that network management practices should be
    disclosed to consumers so that they can make informed decisions when
    purchasing broadband service.

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1.  **Protecting Consumer Privacy** -- During Chairman Martin's tenure,
    the FCC strengthened safeguards against unauthorized disclosure of
    consumers' private calling records. Alarmed by breaches in the
    privacy of "customer proprietary network information," the
    Commission prohibited carriers from releasing sensitive personal
    data over the phone without a customer-provided password and ordered
    providers to notify customers in the event of a breach of
    confidentiality.  The FCC required consumer consent even when phone
    records are being shared with a carrier's joint venture partners or
    independent contractors for marketing purposes, a move that changed
    an "opt-out" approach to consumer consent to an "opt-in"
    requirement.

2.  **Children's Programming** -- Under Chairman Martin's tenure, the
    FCC made clear that it takes seriously the public interest
    obligations of broadcasters. While reviewing a planned transfer of
    Univision to Broadcasting Media Partners in 2007, it came to the
    Commission's attention that Univision was not properly meeting a
    requirement that it air programs to educate and inform children. The
    programs Univision had aired to meet this requirement on 24 of its
    stations for more than two years were telenovelas similar to teen
    soap operas and not educational in nature. In the largest consent
    decree in Commission history, Univision agreed to make a
    contribution of \$24 million to the U.S. Treasury and follow a
    compliance plan designed to ensure that the needs of children and
    families are better served in the future.

3.  **Violence Report** -- During Chairman Martin's tenure, the
    Commission released a Report on the issue of excessively violent
    television programming and its impact on children. The Report found
    that evidence indicates exposure to violence in the media can
    increase aggressive behavior in children, at least in the short
    term. The Commission offered several recommendations to Congress,
    including ways in which the industry could address violent
    programming, such as providing consumers greater choice in how they
    purchase their programming so that they can avoid violent
    programming.

4.  **Enforcement of Indecency Rules** -- Families have a right to
    expect that broadcasters will not expose children to harmful
    programming by carrying indecent, obscene or profane material at
    times when children are likely to be watching or listening. The law
    therefore prohibits stations from airing indecent or profane
    programming at any time between the hours of 6 a.m. and 10 p.m. The
    Commission has taken significant steps both in its own decisions and
    in the courts to enforce this law. Responding to hundreds of
    thousands of viewer complaints about more than fifty television
    programs, the Commission took action against several broadcast
    licensees for airing material that was deemed indecent.
    Specifically, the Commission has issued an Omnibus Television Order
    (deciding forty-eight separate cases) and orders imposing fines
    relating to the broadcast of several shows including Without A
    Trace, Super Bowl XXXVIII, NYPD Blue and Married by America.

5.  **Childhood Obesity Taskforce** -- During Chairman Martin's tenure,
    the FCC used its expertise in children's television issues to
    examine the impact of the media on the rise in childhood obesity. To
    build consensus on voluntary steps to combat childhood obesity, the
    Commission, along with Senators Tom Harkin and Sam Brownback, formed
    the Joint Task Force on Media & Childhood Obesity. Members of the
    Commission take part in the task force, which also is composed of
    representatives from the media, advertising, food and beverage
    industries, along with consumer advocacy groups and health experts.
    The Task Force succeeded in producing some significant voluntary
    commitments aimed at reducing the negative impact of the media on
    children's eating habits and increasing its positive influence on
    their behavior. For example, fifteen of the nation's largest food
    and beverage manufacturers including Kraft Foods and Kellogg agreed
    to curtail advertising of "unhealthy food" to children under age
    twelve and others are reformulating current products.

6.  **Payola Consent Decree** -- The Commission in 2007 reminded
    broadcasters that it won't tolerate violations of its sponsorship
    identification rules because it believes the public should know when
    someone is seeking to influence them. As a result of an FCC
    investigation into possible payola violations, four broadcast
    companies agreed to make significant contributions to the U.S.
    Treasury totaling \$12.5 million and institute business reforms to
    insure their stations and employees do not violate the sponsorship
    identification laws in the future.

7.  **Greater Choice in Packaging and Sale of Video Programming
    Services** -- Since Congress enacted the 1996 Telecom Act, cable
    rates have increased every year, while the prices for other services
    the Commission regulates have decreased. The Commission has
    challenged cable and satellite operators to offer more cost
    effective alternatives, encouraging them to make family-friendly
    programming packages available and to offer networks in a more a la
    carte manner. The Media Bureau's 2006 Further Report on Packaging
    and Sale of Video Programming Services to the Public found that
    themed tiers and a la carte could provide consumers the opportunity
    to reduce their cable bills by purchasing fewer channels or smaller
    packages. Moreover, the Media Bureau found that some type of a la
    carte option could prove better than today's bundling practices in
    fostering diverse programming responsive to consumer demand.

**Fostering Facilities-Based Competition**

1.  **Competitive Networks Order \--** During Chairman Martin's tenure,
    the Commission saw that long-term exclusive contracts between owners
    of residential multi-tenant buildings and incumbent cable or
    telephone operators posed a barrier for new entrants in the
    provision of video and voice services.  The Commission's
    *Competitive Networks Order* recognized the importance of
    eliminating barriers to infrastructure investment while creating
    regulatory parity among entities seeking to provide communications
    services in residential multiple tenant environments (MTEs), such as
    apartment buildings, condominiums, and co-operatives.   

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1.  **Incumbent LEC Inside Wiring Order \--** The Commission also made
    it easier for competitive telecommunications and cable companies to
    gain access to "inside wiring" owned incumbent LECs in these
    apartment buildings in a consistent fashion, further ensuring that
    all consumers -- including those in apartment buildings -- benefit
    from competition in the provision of communications services.

2.  **Local Number Portability \--** The Commission also acted to remove
    a roadblock that had been inhibiting many consumers from switching
    telephone service providers.  Local Number Portability (LNP) gives
    telephone customers the ability to keep their telephone number when
    changing service providers.  The availability of LNP thus eliminates
    a major disincentive to switch carriers, helping to facilitate the
    successful entrance of new service providers and competition between
    such new service providers and existing wireline and wireless
    carriers.  Consumers have ported more than 78 million phone numbers
    from one carrier to another during Chairman Martin's term.  In 2007,
    the Commission took steps to facilitate greater competition among
    telephone providers by extending LNP obligations to interconnected
    VoIP providers.  This measure ensures that interconnected VoIP
    customers have the same ability as customers of traditional
    telephone service to keep their telephone numbers when changing
    telephone service providers.  Enabling customers to port their
    numbers reliably and expeditiously when changing carriers -- whether
    that carrier is a traditional wireline provider, wireless carrier,
    or interconnected VoIP provider -- gives customers flexibility in
    the quality, price, and variety of services they can choose to
    purchase, which in turn enhances competition.

3.  **Interconnection Issues \--** The pro-competitive framework that
    Congress established in the 1996 Act provides that the state
    commissions shall arbitrate any disputes that arise when
    telecommunications carriers request interconnection agreements with
    incumbent carriers.  In the *Time Warner Order*, the Wireline
    Competition Bureau addressed a situation in which state commissions
    had issued conflicting interpretations of federal law in arbitrating
    interconnection agreements between local phone companies and
    requesting telecommunications providers seeking to provide services
    wholesale to other service providers, specifically VoIP providers. 
    Acting on delegated authority, the Bureau affirmed the Commission's
    existing policy that "telecommunications service" can be either a
    wholesale or retail service.  The Bureau went on to make clear that
    regardless of whether a third-party provider's retail VoIP service
    is considered an information service or a telecommunications
    service, the wholesale common carrier has the right under section
    251 of the Act to interconnect with the incumbent local phone
    company.

4.  **Localized Regulatory Relief \--** As a result of increased
    competition for voice services between telephone companies and cable
    companies, the Commission has been able to scale back some of its
    regulations in targeted locations where such "intermodal"
    competition is most pronounced.  Most notably, the Commission
    conditionally forbore from applying certain network unbundling
    requirements and dominant carrier rules that apply to the incumbent
    wireline carrier, but not the incumbent cable operator, in portions
    of the Anchorage study area and the Omaha Metropolitan Statistical
    Area (MSA).  The Commission granted even more regulatory relief in
    Terry, Montana in recognition of the unique factual circumstances
    there.

5.  **Regulatory Relief for Long Distance \--** In the *Section 272
    Sunset Order*, the Commission established a new framework to govern
    the provision of in-region, long distance services by the Bell
    Operating Companies (BOCs) and their independent incumbent LEC
    affiliates.  This framework, which is consistent with the relief
    granted Qwest in the *Qwest Section 272 Sunset Forbearance Order*,
    replaced unnecessarily burdensome regulation with less intrusive
    measures that protect important customer interests while allowing
    AT&T, Qwest, and Verizon to respond to marketplace demands
    efficiently and effectively.  This framework has increased the BOCs'
    ability to develop and deploy innovative long distance services that
    meet their customers' needs.

**Addressing Public Safety Needs**

1.  **Consumer Access to Emergency Services** -- Early in Chairman
    Martin's tenure, the Commission set regulations and deadlines to
    make sure consumers using Internet-based telephones had adequate
    access to enhanced 911 emergency service. Concerned about reports
    that some VoIP providers weren't properly connecting subscribers to
    911 emergency operations, the Commission said interconnected VoIP
    providers must deliver all 911 calls to the customer's local
    emergency operator as a standard feature of the service, and should
    provide the same level of service that other phone companies
    provide.  The Commission has also made strides toward enhanced
    location accuracy for wireless E911 calls, including commitments
    from the three largest wireless carriers to deliver greater accuracy
    to public safety providers by measuring compliance on a county
    basis. Chairman Martin has also aggressively enforced the
    Commission\'s E911 obligations in order to ensure the safety of
    consumers, proposing significant fines for violations of the
    Commission\'s handset penetration rules including fines of \$2.85
    million in 2007 against three major carriers. The Commission also
    adopted rules to ensure that 911 calls made by individuals with
    hearing or speech disabilities over Internet-based TRS are routed
    directly to appropriate emergency services authorities, along with
    location information. This gives Internet-based TRS users access to
    the same kinds of enhanced 911 protections that voice telephone
    customers enjoy.

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1.  **The WARN Act** -- To implement the Warning Alert and Response
    Network ("WARN") Act, the Commission cleared the way for development
    of an emergency alert system that mobile providers will use to
    transmit messages to cell phones and other mobile devices. The
    Commercial Mobile Alert System addresses one of the Commission's
    strategic goals under Chairman Martinto ensure that all Americans
    have the capability to receive timely and accurate alerts and
    information about emergencies. The FCC set deadlines for deployment,
    allowed participating carriers to recover costs and said mobile
    providers opting not to participate in the system must notify their
    customers. Eventually consumers will be able to receive emergency
    alerts wherever the go.

2.  **Hurricane Katrina** -- As broadcasters, telecommunications
    providers and others struggled to restore communications service in
    the wake of Hurricane Katrina's devastation, the FCC under Chairman
    Martin moved quickly to cut bureaucratic "red tape" so disaster
    relief officials could communicate and companies could quickly
    restore services in the Gulf Coast region.  The agency waived
    numerous rules so telephone companies could reroute traffic,
    disconnect and reconnect lines and switch consumers' long distance
    providers so their calls could get through. Rules were waived to
    enable non-commercial broadcast stations to transmit local
    commercial programming so critical emergency information could get
    to the public. The FCC granted more than 100 temporary frequency
    authorizations for emergency workers, organizations and companies to
    provide communications service in the affected areas. Less than a
    month after the August 29, 2005, hurricane, Chairman Martin
    established an independent panel of experts to recommend ways to
    improve disaster preparedness, network reliability and
    communications among first responders such as police, fire fighters
    and medical personnel. The Commission has continued to respond
    swiftly to industry and consumer needs in times of disaster,
    deploying personnel to the field, waiving certain rules and granting
    special temporary authority to carriers during subsequent hurricane
    seasons including the devastation caused by Hurricanes Gustav and
    Ike in 2008.

3.  **New Bureau Created** -- Shortly after Hurricane Katrina hit the
    Gulf Coast, Chairman Martin recommended forming a new Public Safety
    and Homeland Security Bureau to consolidate public safety, national
    security and disaster management policy making and outreach into a
    single central hub. Since its inception in 2006, the Bureau has
    coordinated efforts with the public safety community, other
    government agencies and industry. It has worked to promote
    reliability, interoperability, redundancy and rapid restoration of
    the nation's critical communications infrastructure in emergencies,
    becoming a clearinghouse for critical planning and response
    information and an effective point of contact for public safety
    entities and industry during crisis.

**Overseeing the Digital Transition**

1.  **Consumer Education** --Chairman Martin guided the FCC through one
    of the most massive projects the agency has faced, that of preparing
    consumers for the nationwide transition from analog to digital
    broadcasting on February 17, 2009, as mandated by Congress. FCC
    staff traveled the country for months to spread the word to
    consumers. Agency staff met with local governments and grassroots
    organizations gave speeches, manned booths at community events, set
    up phone banks and reached out to those with special needs such as
    senior citizens, non-English speakers and minorities and people with
    disabilities.  In an unprecedented public-private partnership, the
    Commission joined the Commerce Department and representatives of the
    nation's broadcasters, cable operators and the consumer electronics
    industry to facilitate a smooth transition.

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1.  **Broadcaster Readiness** -- In preparation for the transition, the
    Commission adopted procedures and rules to guide broadcasters,
    including new channel assignments, interference standards and
    build-out schedules. The agency tracked broadcasters' progress,
    requiring each station to file and update the status of construction
    of the new DTV facilities.  Today, 98 percent of broadcasters are on
    track to make the transition successfully.

2.  **Ensuring Stations are Viewable to Consumers** -- Chairman Martin
    led the Commission in taking action to make sure cable operators
    continued to make signals of all broadcast stations viewable after
    the transition, as the statute required. Specifically, under
    Chairman Martin's leadership, the Commission ensured that all
    Americans with cableregardless of whether they are analog or digital
    subscribersare able to watch the same broadcast stations the day
    after the digital transition that they were watching the day before
    the transition. In this manner, the Commission made sure analog
    cable subscribers weren't shortchanged after the digital transition.
    Under the Commission's "Viewability Order" cable operators must
    ensure that all "must carry" local broadcast stations carried are
    "viewable" by all cable subscribers.

3.  **Established Successful Test Market in Wilmington \--** On
    September 8^th^, Wilmington, North Carolina became the first market
    in the country to transition from analog to digital television. The
    early switch to digital in Wilmington was instrumental in helping
    the Commission identify, understand, and hopefully prevent some
    future problems when the rest of the nation transitions on February
    17, 2009.  The majority of Wilmington viewers were aware of and
    prepared for the transition.  Importantly, the consumer education
    campaign that was conducted appears to have been effective.  Prior
    to the transition on September 8th, NAB released a survey indicating
    that 97 percent of Wilmington residents were aware of the switch to
    digital.  Consumer calls received by the Commission at its call
    center also indicated that the vast majority of the 400,000
    television viewers in the Wilmington-area were aware of the
    transition and prepared for it.  The measure of success in
    Wilmington is not what happened on September 8^th^, September 15^th^
    or October 15^th^.  Rather, it is how we are going to take what we
    learned in Wilmington and apply that knowledge to the rest of the
    country.

4.  **DTV Consumer Protections** -- To protect consumers from
    unwittingly buying out-of-date televisions, FCC personnel inspected
    thousands of stores and dozens of websites to assess their
    compliance with rules requiring labels on analog-only television
    receivers. Based on these visits the agency issued hundreds of
    citations to retailers who failed to comply with labeling rules and
    consent decrees were released against about two dozen of them,
    totaling more than \$4.74 million. Commission field agents also
    visited hundreds of retailers to assess how well their employees
    were trained in the DTV transition and the NTIA converter box
    program and the agency threatened fines if retailers didn't measure
    up.

>  

** **

**Ensuring Access to Communications by All Citizens**

1.  **Rural Health Care** -- At Chairman Martin's initiative, the FCC in
    2007 took a critical first step toward bringing more healthcare to
    rural areas that might lack the breadth of medical expertise
    available in urban areas. The Commission voted to make funding
    available for the deployment of broadband healthcare networks across
    the country. It dedicated more than \$400 million over three funding
    years to the construction of broadband networks for state-wide and
    regional healthcare networks reaching over 6,000 healthcare
    facilities. The creation of this pilot program will help bring
    specialty care to patients who otherwise would have to travel long
    distances for such care.

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1.  **E-rate** -- The E-rate program has been instrumental in bringing
    telecommunications and Internet access to schools and libraries
    throughout the county, providing up to \$2.25 billion in universal
    service funds each year. This funding has enabled schools and
    libraries to increase their access to broadband services. In a 2007
    study, the National Center for Education Statistics ("NCES") found
    that access to the Internet is ubiquitous in public schools. NCES
    found that nearly 100%of public schools in the United States had
    Internet access, and 97%of these schools used broadband connections
    to access the Internet.

2.  **Interim Cap on High-Cost Support** -- Changes in technology and
    increases in the number of carriers that receive high-cost universal
    service support have placed significant pressure on the stability of
    the Universal Service Fund. Growth in high-cost support was largely
    attributable to competitive eligible telecommunications carriers
    ("ETCs)", who receive support based on the costs of the incumbent
    providernot their own costseven if their costs of providing service
    are lower. Their support grew from approximately \$1.5 million in
    2000 to well over \$1 billion in 2007 (out of \$4.3 billion in total
    high-cost support for 2007) while support for incumbent carriers
    remained flat. In May 2008, the FCC stemmed this explosive growth by
    imposing an interim cap on the amount of high-cost support available
    to competitive ETCs. The cap will contain the growth of universal
    service in order to protect rural consumers' access to the network.
    In addition, the cap will help to prevent excessive contributions
    from consumers who support the Universal Service Fund.

3.  **Universal Service Fund** -- Under Chairman Martin, the FCC in 2007
    adopted measures to safeguard the Universal Service Fund from waste,
    fraud and abuse as well as measures to improve the management,
    administration and oversight of the multi-billion-dollar Fund. The
    agency strengthened and expanded its debarment rule for parties
    convicted of criminal violations, expanding its application to cover
    all four of the universal service programs supported by the Fund. It
    also strengthened oversight of the contributions and filing process
    and increased penalties for late payments. It strengthened the audit
    process and adopted performance measures to improve the management
    and administration of the programs.

4.  **Communications for People with Disabilities** -- During Chairman
    Martin's tenure, the FCC took several steps to improve
    communications capabilities for individuals with disabilities,
    bolstering the agency's long-time commitment to this goal. The
    Commission adopted a ten-digit numbering system for Internet-based
    TRS enabling users to make and receive calls like voice telephone
    users, and improved emergency call handling procedures for
    Internet-based TRS calls. The Commission also ruled that Internet
    Protocol ("IP") captioned telephone service is eligible for
    reimbursement from the TRS Fund. IP captioned telephone service
    allows a broader range of individuals to communicate as it permits
    users to initiate telephone calls from any Internet-enabled device.
    The FCC also expanded the reach of the TRS Fund by agreeing to
    compensate video relay service translations between spoken Spanish
    and sign language and imposed speed of answer and hours of service
    requirements on video relay service. In addition, in 2008, the
    Commission adopted significant revisions to update the hearing aid
    compatibility requirements applicable to wireless handsets.

> **6. Localism and Diversity in Broadcasting --** The Commission took
> action to maintain the three long-standing core goals of Commission
> media ownership policycompetition, localism and diversity. Chairman
> Martin led the Commission in taking steps to increase diversification
> of ownership in the broadcast services by promoting opportunities for
> new entrants. In addition, the Commission completed a long-standing
> initiative to study localism in broadcasting and made proposals to
> ensure that local stations air programming responsive to the needs of
> their service communities.

1.  **Access to Capital Conference** -- The Commission held an *en banc*
    hearing and conference on overcoming barriers to communications
    financing. This conference was designed to enhance the knowledge of
    the Commission and attendees about: (i) the present state of capital
    markets as those markets impact ownership diversity in the media and
    telecom industries and, particularly, the success of minorities and
    women entrepreneurs; (ii) how financing is secured for new, diverse,
    resource-limited ventures, focusing on actual problems encountered
    by women and minorities attempting to secure financing for media and
    telecom deals; and (iii) potential ways the Commission can help
    facilitate financing opportunities for minorities and women.

**International Accomplishments**

1.  **Supporting US Policy at World Radio Conference (WRC)** -- During
    Chairman Martin's tenure, the Commission has advocated for
    international spectrum allocations and provisions that enhance
    opportunities for U.S. wireless and satellite operators to make the
    most effective and innovative use of spectrum at home and abroad and
    to protect them from interference.  At the WRC in 2007, major
    achievements included the identification of additional International
    Mobile Telecommunications (IMT) spectrum for 3G technologies,
    including WiMax, and protecting U.S. wireless broadband deployment
    in the 2.5 GHz band from foreign satellite interference.

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1.  **Additional Satellite Capabilities --** In order to bring the
    benefits of technology to all Americans, including those living in
    rural and remote communities, the FCC has advanced deployment of
    satellite-based broadband services.  In 2007, the FCC adopted
    flexible service rules for the 17/24 GHz band, which holds the
    promise of bringing a new generation of broadband services,
    including a mix of local and domestic video, audio, data,
    video-on-demand, and multi-media services to U.S. consumers.  In
    addition, the Commission has issued licenses to Ka-band satellite
    operators at Contact and ViaSat, and has allowed a non-U.S.-licensed
    Ka-band satellite operator, Wildblue, to enter the U.S. market.
     Each is expected to provide advanced broadband connectivity.

> **3. TV White Space Promotion** -- To further promote the potential of
> white spaces and the development of a international ecosystem for
> white space devices, Chairman Martin created the International TV
> White Spaces Fellowship and Training Initiative to provide a platform
> for the FCC to work with international regulators and their spectrum
> experts on technical issues associated with the use of TV white
> spaces, building on momentum in this area in the US. 

-FCC-

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