fcc.gov :: February 2011

Federal		

Communications		

Commission

FY 2010 Summary 

of Performance & 

Financial Information
2 FY 2010 SummarY oF PerFormance & Financial inFormation :: fcc.gov

Message from Our Chairman

I am pleased to present the Federal Communications 

Commission’s (FCC) Summary of Performance & Financial 

Information. This report is intended for a general audience 

of consumers, businesses, and other stakeholders. My goal 

in publishing this summary is to increase our agency’s 

accountability by making financial and performance 

information more transparent and accessible to all citizens.

With each passing day, communications 

devices and networks become more essential 

to the fabric of the daily lives of all Americans. 

They are how we receive news, information, 

and entertainment; how we stay in touch 

with our family and friends; how we work at 

and run our businesses, large and small; how 

we communicate and coordinate in times of 

emergency; and how we—and people across the 

globe—learn about government and express 

our points of view.

Our nation is at a crossroads. We face a number 

of tremendous challenges: our economy, education, health care, and energy, to name a few.

If we can harness the power of communications

to confront these challenges, we will have chosen 

the right course, and we will make a real 

positive difference in the lives of our children 

and future generations. 

As the country’s expert agency on communications, it is the FCC’s job to pursue this vision 

of a more connected America, focusing on the 

following goals:

 Promoting universal broadband that’s 

robust, affordable, and open.

 Pursuing policies that promote job creation, 

competition, innovation, and investment.

 Seizing the opportunity for the United States 

to lead the world in mobile communications. 

 Protecting and empowering consumers 

and families. 

 Helping deliver public safety communications networks with the best technology 

to serve our firefighters, police officers, 

and other first responders. 

 Advancing a vibrant media landscape, in 

these challenging times, that serves the 

public interest in the 21st century.

This report contains a summary of the progress 

the FCC made during Fiscal Year (FY) 2010 

in meeting the key challenges facing the 

agency and an assessment of the financial 

management of the FCC. I am pleased to 

note that for the fifth consecutive year, the 

FCC obtained an unqualified or “clean” audit 

opinion on its financial statements. A more 

detailed view of the Commission’s financial 

statements can be found in the FY 2010 Agency 

Financial Report, located at www.fcc.gov/omd/

strategicplan/. This is also the location where 

you can find the FY 2010 Annual Performance 

Report, which provides a comprehensive look 

at the FCC’s accomplishments for the fiscal year. 

—Julius Genachowski

Chairman

February 2011
		 fcc.gov :: FY 2010 Summary of Performance & Financial Informat

FY 2010 

Performance

Summary
4 FY 2010 Summary of Performance & Financial Informaion ::  fc

Overview of the 

Federal Communications Commission

The Federal Communications Commission (FCC or Commission) has chosen 

to produce this Summary of Performance and Financial Information to provide 

a citizen-friendly document summarizing the FCC’s financial status and 

performance for Fiscal Year 2010 (October 1, 2009 through September 30, 

2010). We do this in recognition that members of the public, particularly our key 

constituencies, are stakeholders in the work and the results of our agency. Our 

goal is to increase the transparency and accessibility of the FCC and increase 

the accountability of the Commission to you, the citizens of the United States.
		 fcc.gov :: FY 2010 SummarY oF PerFormance & Financial inFormation 5

This Summary document may lead you to seek 

additional information concerning the FCC’s 

finances and performance. The Commission 

has published its Agency Financial Report and 

its Annual Performance Report for FY 2010; 

both are available online on the Commission’s 

Web site at www.fcc.gov/omd/strategicplan. 

Many people who watch television or listen to 

radio recognize that the FCC is part of their 

life due to the Commission’s role in regulating 

interstate communications. What people may 

not recognize is the extent to which every 

area of their life is intertwined with the 

communications technologies the FCC has 

responsibility to regulate. This is particularly 

true of the opportunities provided by mobile 

communications. Breakthrough devices that 

are either available now or in the near future 

include:

 4G mobile devices delivering a high-speed 

Internet experience comparable to what 

many enjoy on desktops.

 Internet connectivity for video and 

games, increasingly including wireless 

connectivity.

 Machine-to-machine wireless technologies. 

Internet-connected sensors are moving 

into appliances and cars, potentially saving 

energy. They are also moving into healthrelated devices, potentially saving lives. 

 Digital textbooks which will expand 

opportunities for kids everywhere. A recent 

FCC survey found that most schools plan to 

increase the use of digital textbooks in the 

next 3 years. 

These are just a few of the ways in which the 

vital work of the FCC helps facilitate both 

personal freedom and the public good. The dayto-day reality may be that the FCC-regulated 

communications industries are a significant 

presence in the lives of most Americans and 

will continue to be in the future.

» Most people don’t recognize the extent to which every area of their 

life is intertwined with the communications technologies the FCC has 

the responsibility to regulate. 
6 FY 2010 SummarY oF PerFormance & Financial inFormation :: fcc.gov

The FCC is an independent regulatory 

agency of the United States Government. 

The Commission was established by the 

Communications Act of 1934 and is charged 

with regulating interstate (between States)

and international communications by 

radio, television, wire, satellite, and 

cable. The Commission also regulates 

telecommunications services for hearingimpaired and speech-impaired individuals, 

as set forth in Title IV of the Americans with 

Disabilities Act (ADA). The Commission’s 

headquarters is located in Washington, D.C., 

with three regional offices, sixteen district 

offices, and nine resident agent offices 

throughout the Nation. 

Five Commissioners direct the work of the 

FCC. All are appointed by the President and 

confirmed by the Senate for 5-year terms, 

except when filling the unexpired term 

of a previous Commissioner. Only three 

Commissioners can be of the same political 

party at any given time and none can have a 

financial interest in any company or entity 

that has a significant interest in activities 

regulated by the Commission.

The President designates one of the 

Commissioners to serve as Chairman. 

The Chairman and the Commissioners at 

the end of FY 2010 were:

 Chairman Julius Genachowski

 Commissioner Michael J. Copps

 Commissioner Robert M. McDowell

 Commissioner Mignon Clyburn

 Commissioner Meredith Attwell Baker

About the FCC

Pictured from left to right are commissioner clyburn, commissioner copps, chairman Genachowski, commissioner mcDowell, 

and commissioner Baker.
		 fcc.gov :: FY 2010 Summary of Performance & Financial Informat

As specified in the Communications Act, the Commission’s mission is to 

“make available, so far as possible, to all the people of the United States, 

without discrimination on the basis of race, color, religion, national origin, or 

sex, rapid, efficient, Nation-wide, and world-wide wire and radio communication 

service with adequate facilities at reasonable charges.”1

 In addition, the 

Communications Act provides that the Commission was created “for the purpose 

of the national defense” and “for the purpose of promoting safety of life and 

property through the use of wire and radio communications.”2

Mission

1

 47 U.S.C. § 15

2 Id.
8 FY 2010 SummarY oF PerFormance & Financial inFormation :: fcc.gov

Organizational Structure

The FCC Chairman leads the Commission as head of the agency. The FCC is 

organized by function. There are seven Bureaus and ten Offices. The Bureaus 

and the Office of Engineering and Technology process applications for licenses 

to operate facilities and provide communications services in specific locations 

and on specific radio frequencies; analyze complaints from citizens and other 

licensees; conduct investigations; develop and implement regulatory programs; 

and participate in hearings. Generally, the Offices provide specialized support 

services. Bureaus and Offices regularly join forces and share expertise in 

addressing FCC-related issues. 

the BureauS

The Consumer and Governmental Affairs

Bureau develops and implements the FCC’s 

consumer policies, including disability access. 

The Bureau serves as the public face of the 

Commission through outreach and education, 

as well as through the Consumer Center, which 

is responsible for responding to consumer 

inquiries and complaints. The Bureau also 

maintains collaborative partnerships with 

State, local, and tribal governments in such 

critical areas as emergency preparedness and 

implementation of new technologies.

The Enforcement Bureau enforces the 

Communications Act and the FCC’s rules. 

The Enforcement Bureau protects consumers, 

fosters efficient use of the spectrum, furthers 

public safety, and promotes competition.

The International Bureau administers the 

FCC’s international telecommunications and 

satellite programs and policies, including 

licensing and regulatory functions. The 

Bureau also has a unique role in promoting 

pro-competitive policies abroad, coordinating 

the Commission’s global spectrum activities 

and advocating U.S. interests in international 

communications and competition. The Bureau 

works to promote a high-quality, reliable, 

globally interconnected, and interoperable 

communications infrastructure.

The Media Bureau recommends, develops, and 

administers the policy and licensing programs 

relating to electronic media, including radio 

and broadcast, cable, and satellite television in 

the United States and its territories.

The Public Safety andHomeland Security

Bureau supports initiatives that strengthen 

public safety and emergency response 

capabilities to better enable the FCC to assist 

the public, law enforcement, hospitals, the 

communications industry, and all levels of 

government in the event of a natural disaster, 

pandemic, or terrorist attack.

The Wireless Telecommunications Bureau is 

responsible for wireless telecommunications 

programs and policies in the United States,

including licensing of wireless communications providers. Wireless communications 
		 fcc.gov :: FY 2010 SummarY oF PerFormance & Financial inFormation 9

services include cellular, paging, personal 

communications, and other radio services 

used by businesses and private citizens. 

The Bureau also conducts auctions of licenses 

for the communications spectrum.

The Wireline Competition Bureau develops 

and recommends policy goals, objectives, 

programs, and plans on matters concerning 

wireline telecommunications (e.g., telephone 

landlines), striving to ensure choice, opportunity, and fairness in promoting the development and widespread availability of wireline 

telecommunications services. 

the oFFiceS 

The Office of Administrative Law Judges is 

composed of judges who preside over hearings 

and issue decisions on matters referred to 

them by the Commission.

The Office of Communications Business

Opportunities promotes competition and 

innovation in the provision and ownership of 

telecommunications services by supporting 

opportunities for small businesses as well as 

women and minority-owned communications 

businesses.

The Office of Engineering and Technology

advises the Commission on technical and 

engineering matters. This Office develops 

and administers FCC decisions regarding 

spectrum allocations and grants equipment 

authorizations and experimental licenses.

The Office ofthe General Counsel serves as 

the Commission’s chief legal advisor.

The Office ofthe Inspector General conducts 

and supervises audits and investigations 

relating to FCC programs and operations.

The Office of Legislative Affairs serves as 

the liaison between the FCC and Congress, 

as well as other Federal agencies.

The Office ofthe Managing Director

administers and manages the FCC.

The Office of Media Relations informs the 

media of FCC decisions and serves as the 

FCC’s main point of contact with the media.

The Office of Strategic Planning and

Policy Analysis works with the Chairman, 

Commissioners, Bureaus, and Offices in 

strategic planning and policy development 

for the agency. It also provides research, 

advice, and analysis of complex, novel, and 

non-traditional economic and technological 

communications issues.

The Office of Workplace Diversity ensures that 

the FCC provides employment opportunities 

for all persons regardless of race, color, sex, 

national origin, religion, age, disability, or 

sexual preference. 

Detailed information on specific Bureau and 

Office responsibilities can be found in Title 

47 of the Code of Federal Regulations and on 

the Commission’s Web site at: www.fcc.gov. 

The Commission’s organizational chart is 

included on the next page.
10 FY 2010 Summary of Performance & Financial Informaion ::  fc

Organizational Chart

consumer &

governmental

affairs bureau

Admin. & Mgmt. Off

Info. & Resources Mgmt. 

Consumer Inquiries 

Complaints Divisio

Consumer Policy Divisio

Reference Information C

Disability Rights Offi

Consumer Affairs 

Outreach Divisio

Office of Intergovernmenta

Affair

Off. of Native Affairs & Pol

enforcement bureau

Office of Management 

Resource

Telecommunications

Consumers Divisio

Spectrum Enforcement

Division

Market Disputes Resolutio

Division

Investigations & Hearing

Division

Regional & Field Offic

wireless

telecommunications

bureau

Mgmt. & Resources Sta

Auctions & Spectrum

Access Divisio

Spectrum Management

Resources & Technologie

Division

Spectrum & Competition

Policy Division

Mobility Divisio

Broadband Division

media bureau

Mgmt. & Resources Sta

Office of Comm. & Indust

Informatio

Policy Division

Industry Analysis Divisi

Engineering Divisio

Office of Broadcast Licens

Policy

Audio Divisio

Video Division

wireline

com petition

bureau

Admin. & Mgmt. Off

Competition Policy Divisio

Pricing Policy Division

Telecommunications Acces

Policy Division

Industry Analysis 

Technology Divisio

public safety &

homeland security

bureau

Administrative &

Management Offi

Policy Division

Public Communications

Outreach & Operations Di

Communications Systems

Analysis Divisio

international

bureau

Management &

Administrative Staf

Policy Division

Satellite Division

Strategic Analysis &

Negotiations Division

Office o

administrative

law judges

Office o

strategic planning

& policy analysis

O f f i c e o 

c o m m u n i c at i o n s

b u s i n e s s

o p p o r t u n i t i e s

Office o

workplace

diversity

Office o

legislative

affairs

C o m m i s s i o n e r 

Julius  Genachowski,  Cha

MIchael J Cap   Robert M. McD      Mignon         Meredith Att

Office of the ins pector genera

Office of  Engineer

&  Technolo

Electromagnetic

Compatibility Divisio

Laboratory Divisio

Policy & Rules Divisio

Administrative Divisio

Office o

general counsel

Administrative Law Divisi

Litigation Divisio

Office of th

m a n a g i n g d i r e c t o r

Human Resources Mg

Infor. Technology Cen

Financial Operation

Administrative Operatio

Performance Eval. &

Records Mgmt

Secretary

Office o

media relations

Media Services Staf

Internet Services Staf

Audio-Visual Services Staf
		 fcc.gov :: FY 2010 SummarY oF PerFormance & Financial inFormation 11

FCC Field Offices

The Commission has multiple regional and

field offices as well as resident agent locations 

around the United States. The Regional and

Field Offices and resident agents are responsible for carrying out on-scene investigations, 

inspections, audits, and other matters that

are the subject of complaints and that are

referred to them from within the Enforcement 

Bureau or by other Bureaus and Offices. These 

functions include immediate response to

safety-of-life issues, interference resolution,

investigation of violations in all communications services, surveys for compliance with 

FCC rules, local assistance to other agencies 

or countries in communications matters, 

and representation of the Commission before 

groups and organizations. In addition, the FCC 

maintains a laboratory in Columbia, Maryland 

so that staff of the Office of Engineering and 

Technology can test, evaluate, and perform 

engineering analyses on communications 

equipment requiring Commission authorization for use. The FCC also has a facility in 

Gettysburg, Pennsylvania housing portions 

of its Wireless Telecommunications Bureau’s 

licensing and spectrum auctions staff and 

a portion of the FCC’s National Call Center 

operated by the Consumer and Governmental 

Affairs Bureau. Below is a map of all Commission Field Offices and resident agent locations. 
12 FY 2010 SummarY oF PerFormance & Financial inFormation :: fcc.gov

Strategic Goals and Objectives

The Commission has identified six long-term strategic goals in its FY 2009 – 

FY 2014 Strategic Plan. The strategic goals serve as guidance directing the 

actions and performance of the FCC. 

Progress toward accomplishing these goals 

is measured by the progress and completion 

of annual performance goals during the 

fiscal year. There are external influences, 

including economic, legal, and organizational 

factors, beyond the Commission’s programs 

and efforts that may influence whether the 

Commission fully meets every performance 

goal. Details on the Commission’s strategic 

goals, as well as the strategies and resources 

used to meet these goals, can be found in 

the Commission’s strategic plan at: www.fcc.

gov/omd/strategicplan. The FCC’s long-term 

strategic goals are:

StrateGic Goal oBJectiVe

 

broadband

all americans should have affordable access to robust and reliable broadband products 

and services. regulatory policies must promote technological neutrality, competition, 

investment, and innovation to ensure that broadband service providers have sufficient 

incentive to develop and offer such products and services.

competition

competition in the provision of communications services, both domestically and overseas, 

supports the nation’s economy. the competitive framework for communications services 

should foster innovation and offer consumers reliable, meaningful choice in affordable 

services.

spectrum

efficient and effective use of non-Federal spectrum domestically and internationally 

promotes the growth and rapid deployment of innovative and efficient communications 

technologies and services.

media the nation’s media regulations must promote competition and diversity and facilitate the 

transition to digital modes of delivery. 

publicsafety and

homelandsecurity

communications during emergencies and crises must be available for public safety, health, 

defense, and emergency personnel, as well as all consumers in need. the nation’s critical 

communications infrastructure must be reliable, interoperable, redundant, and rapidly 

restorable.

modernize thefcc

the commission shall strive to be a highly productive, adaptive, and innovative 

organization that maximizes the benefit to stakeholders, staff, and management 

from effective systems, processes, resources, and organizational culture.
		 fcc.gov :: FY 2010 Summary of Performance & Financial Informati

Performance Highlights for FY 2010

During the previous fiscal year, the Commission made significant progress toward 

accomplishing its performance goals. Greater detail on these accomplishments 

is available in the FCC Annual Performance Report (APR) for FY 2010 which can 

be found on the Commission’s Web site at www.fcc.gov/omd/strategicplan. 

In the discussion below, we identify achievements in the Commission’s major 

initiatives during the past fiscal year, organized by strategic goal.
14 FY 2010 SummarY oF PerFormance & Financial inFormation :: fcc.gov

Broadband

All Americans should have affordable access to robust and reliable 

broadband products and services. Regulatory policies must promote 

technological neutrality, competition, investment, and innovation to 

ensure that broadband service providers have sufficient incentive to 

develop and offer such products and services.

The American Recovery and Reinvestment 

Act of 2009 (Recovery Act) tasked the FCC 

with creating a National Broadband Plan. 

The Recovery Act stated that the Plan shall 

seek to ensure all people of the United States 

have access to broadband capability and 

that the Plan shall establish benchmarks 

for meeting that goal. Broadband is the 

major infrastructure challenge of our 

time. Earlier generations faced, and rose to, 

similar challenges with railroads, highways, 

telephones, and electricity—networks that have 

connected Americans, served as a platform for 

commerce, and improved the quality of life for 

all Americans. 

The chart below shows what broadband makes 

possible in improving our nation and the 

quality of life for its citizens.

BroaDBanD FacilitateS our nation’S PrioritieS 

nationalpriorities

health care

enerGY / 

enVironment eDucation

GoVernment

oPerationS

economic

oPPortunitY

PuBlic

SaFetY

     

electronic 

health records

remote/home

monitoring

mobile

monitoring

telemedicine

health

information

exchange

Smart grid

Smart home 

appliances

Smart 

transportation

telework

american 

Graduation 

initiative

Science and 

math education

national education 

technology Plan

electronic student 

data management

Service delivery 

and efficiency 

government

improved 

performance

transparency

civic engagement

Policy

Job creation 

and economic 

development

Job training 

and placement

community 

development

interoperable 

voice and 

broadband 

network

next generation 

9-1-1

alerts

cybersecurity

high-speed connectivity universal access ubiquitous adoption
		 fcc.gov :: FY 2010 SummarY oF PerFormance & Financial inFormation 15

On March 16, 2010, the FCC delivered to 

Congress a National Broadband Plan setting 

an ambitious agenda for connecting all corners 

of the Nation while transforming the economy 

and society with the communications network 

of the future—robust, affordable Internet. 

Titled “Connecting America: The National 

Broadband Plan,” the Plan found that while 

broadband access and use have increased over 

the past decade, the Nation must do much more 

to connect all individuals and the economy to 

broadband’s transformative benefits. Nearly 

93 million Americans lack broadband at home 

and between 14 to 24 million Americans do not 

have access to broadband even if they want it. 

Only 42 percent of people with disabilities use 

broadband at home, while as few as 5 percent 

of people living on Tribal lands have access. 

Meanwhile, the cost of digital exclusion for 

the student unable to access the Internet to 

complete a homework assignment, or for the 

unemployed worker who can’t search for a job 

online, continues to grow.

Other gaps threaten America’s global 

competitiveness. A looming shortage of

wireless spectrum could impede U.S. 

innovation and leadership in wireless mobile 

broadband services. More useful applications, 

devices, and content are needed to create 

value for consumers. The Nation also has more 

work to do to harness broadband’s power to 

transform delivery of government services, 

health care, education, public safety, energy 

conservation, economic development, and 

other national priorities. 

The Plan’s call for action over the next 

decade includes the following goals and 

recommendations:

 Connect 100 million households to affordable 

100-megabits-per-second service, building 

the world’s largest market of high-speed 

broadband users and ensuring that new jobs 

and businesses are created in America.

 Provide affordable access in every American 

community to ultra-high-speed broadband 

of at least 1 gigabit per second at anchor 

institutions such as schools, hospitals, 

and military installations so that America 

is hosting the experiments that produce 

tomorrow’s ideas and industries.

 Ensure that the United States is leading the 

world in mobile innovation by making 500 

megahertz of spectrum newly available for 

licensed and unlicensed use.

 Move our broadband adoption rates from 

roughly 65 percent to more than 90 percent 

and make sure that every child in America 

is digitally literate by the time he or she 

leaves high school. 

 Bring affordable broadband to rural 

communities, schools, libraries, and 

vulnerable populations by transitioning 

existing Universal Service Fund support 

from yesterday’s analog technologies to 

tomorrow’s digital infrastructure.

 Promote competition across the 

broadband ecosystem by ensuring greater 

transparency, removing barriers to entry, 

and conducting market-based analysis with 

quality data on price, speed, and availability. 

 Enhance the safety of the American 

people by providing every first responder 

with access to a nationwide, wireless, 

interoperable public safety network.

Less than one month after issuing the 

National Broadband Plan, the FCC announced 

an ambitious agenda for implementing key 

recommendations of the Plan that involve 

rulemakings and other notice-and-comment 

proceedings that require Commission 

action. The FCC will simultaneously work to 

implement numerous Plan recommendations 

that do not require formal agency proceedings 

while other government bodies and stakeholders consider Plan recommendations 

that fall outside the agency’s areas of 

responsibility. FCC actions taken to implement 

the Plan can be tracked at www.broadband.gov/

plan/broadband-action-agenda.html.
16 FY 2010 SummarY oF PerFormance & Financial inFormation :: fcc.gov

A major initiative to promote affordable 

broadband access for all Americans is 

reform of the Universal Service Fund. The 

Commission adopted a Notice of Inquiry 

(NOI) and Notice of Proposed Rulemaking 

(NPRM) to cut inefficiencies in existing 

support of voice services and creating a 

Connect America Fund (CAF) that directly 

supports broadband without increasing the 

size of the Universal Service Fund over the 

current baseline projection. The Commission 

also enacted updates to the “E-rate” program, 

through which 97 percent of American schools 

now have Internet access. The National 

Broadband Plan found that many schools 

will need significant upgrades to meet future 

broadband speed and capacity demands and 

that many E-rate policies are out-of-date. The 

E-Rate Order3

 will help bring affordable, superfast fiber connections to America’s schools 

and libraries; open the door to “School Spots” 

where schools have the option to provide 

Internet access to the local community after 

students go home; launch a pilot program 

that supports off-campus wireless Internet 

connectivity for mobile learning devices; 

and index the current disbursement cap in 

a fiscally responsible manner to maintain 

current purchasing power.

The Commission also addressed the 

affordability and availability of broadband 

services by adopting an Order (FCC 10-84, 

released May 20, 2010) speeding and reducing 

the costs of access to an essential piece of 

infrastructure: utility poles. The impact of 

utility pole attachment rates on broadband 

can be particularly acute in rural areas, where 

there often are more poles per mile than 

households. The Commission’s Order reduces 

costs and speeds access to poles by clarifying 

the statutory right of communications 

providers to use the same space and costsaving techniques that pole owners use, such 

as placing attachments on both sides of a pole.

The FCC adopted a Notice of Proposed 

Rulemaking (FCC 10-125, released July 15, 

2010) proposing a new health care connectivity 

program that would expand investment 

in broadband for medically-underserved 

communities across the country. The program 

will give patients in rural areas access to stateof-the-art diagnostic tools typically available 

only in the largest and most sophisticated 

medical centers. This program will invest up 

to $400 million annually to enable doctors, 

nurses, hospitals, and clinics to deliver, through 

communications technology, world-class health 

care to patients, no matter where they live.

To provide consumers with real-time information about their broadband connections, 

the FCC launched two new digital tools 

during FY 2010. The Consumer Broadband 

Test measures broadband quality indicators 

such as speed and latency and reports that 

information to consumers and the FCC. The 

mobile version—the FCC’s first mobile app—

is available through the Apple and Android 

app stores. The Broadband Dead Zone Report 

enables Americans to submit the street 

address location of a broadband “Dead Zone” 

where broadband is unavailable for purchase. 

Both tools are available on www.broadband.gov.

3 Schools and libraries universal Service Support mechanism, a national Broadband Plan for our Future, cc Docket no. 02-06, Gn Docket no. 

09-51, Sixth report and order, Fcc 10-175 (e-rate order), released September 28, 2010.
		 fcc.gov :: FY 2010 SummarY oF PerFormance & Financial inFormation 17

Competition

Competition in the provision of communications services, both domestically 

and overseas, supports the Nation’s economy. The competitive framework for 

communications services should foster innovation and offer consumers reliable, 

meaningful choice in affordable services.

In May 2010, the FCC adopted its 14th annual 

report on the state of competition in the mobile 

wireless industry (FCC 10-81, released May 

20, 2010). Unlike previous reports, which 

examined competition in the provision of 

Commercial Mobile Radio Services (CMRS), 

this year’s report integrated CMRS into the 

broader mobile ecosystem, including mobile 

voice, messaging, and broad-band services. 

Among the report’s findings were that 90 

percent of Americans had a mobile wireless 

device, providers continue to invest significant 

capital in networks despite the economic 

downturn, and there appears to be increasing 

concentration in the mobile wireless market. 

The Commission approved the transfer of 4.8 

million lines in primarily rural and smallercity areas to Frontier Communications Corp. 

(Frontier) from Verizon Communications, Inc.

This transaction included significant deployment commitments from Frontier to bring 

broadband to millions of consumers, small 

businesses, and anchor institutions in 14 

States across the West, Midwest, and South. 

FCC staff also began consultations with staff 

of the Antitrust Division of the Department of 

Justice as to how the two agencies can 

apply their different statutory standards 

to wireless merger divestitures in a more 

coordinated manner.

Access to communications services is vital 

for those citizens whose disabilities make 

it difficult to utilize 21st century technology. 

The FCC took important steps to ensure 

that the latest wireless phones are hearing 

aid-compatible, expanding access to mobile 

networks and services for the eight million 

Americans who use hearing aids. The 

Commission clarified that its hearing 

aid compatibility rules cover customer 

equipment that contains a built-in speaker 

and is designed to be typically held to the 

ear. The Commission also adopted a Policy 

Statement that emphasizes to developers of 

new technologies the necessity of considering 

and planning for hearing aid compatibility 

at the earliest stages of the product design 

process. By focusing on the development stage, 

innovators and entrepreneurs can account for 

compatibility issues before their first device is 

ever produced. Actions were taken to sustain 

the Video Relay Service (VRS) for persons 

with hearing or speech disabilities and to 

protect it from the waste, fraud, and abuse that 

have plagued the program and threatened its 

long-term viability. VRS allows persons with 

disabilities to use American Sign Language to 

communicate with friends and family and to 

conduct business in near real time. 
18 FY 2010 SummarY oF PerFormance & Financial inFormation :: fcc.gov

telePhone SerViceS anD the conSumer Price inDex

Along with access, affordability of communications services is a primary concern 

of consumers. During FY 2010, the FCC 

conducted a survey on the consumer mobile 

experience. The survey indicated that 30 

million Americans, one in six mobile users, 

have experienced “bill shock,” a sudden 

increase in their monthly bill that is not 

caused by a change in service plan. It also 

shows that nearly half of cell phone users who 

have plans with early termination fees (ETFs), 

and almost two-thirds of home broadband 

users with ETFs, don’t know the amount of 

the fees for which they are accountable. In 

response to these results, the FCC’s Consumer 

and Governmental Affairs Bureau launched 

an initiative seeking input on ways to alert 

consumers about the potential for high 

charges before they were charged. 

The FCC proposed revisions to its rules under 

the Telephone Consumer Protection Act 

to further empower residential telephone 

subscribers to avoid unwanted telephone 

solicitations. The proposals would require 

sellers and telemarketers to obtain written 

consent from recipients before making 

prerecorded telemarketing calls, commonly 

referred to as “robocalls,” even when the caller 

has an established business relationship 

with the consumer. Additionally, the FCC 

proposal makes it easier to opt out of receiving 

robocalls. 

Enforcement of the FCC’s rules provides 

consumers with confidence that they are being 

protected from fraudulent and misleading 

practices. In May 2010, in response to an 

Enforcement Bureau investigation, the FCC 

proposed a forfeiture of $1.48 million against 

Silv Communication (Silv) for “slamming” 

violations, changing consumers’ telecom 

carriers without proper authorization. The 

Commission found that Silv committed 25 

slamming violations and concluded that the 

volume of complaints against Silv reflected 

a systemic problem meriting a substantial 

penalty. 

the consumer price for telephone services has remained virtually the same since July 1998 compared to the price of other goods and services. 

the chart above uses data from the Bureau of labor Statistics to compare the consumer Price index (cPi) for telephone Services with the cPi 

for all goods and services, using July 1998 price levels as the base (equal to 100). the telephone Services included in this index include local 

telephone Service, long Distance charges, interstate toll Service, intrastate toll Service, and Wireless telephone Services. in contrast to a 

33.85% increase in the cPi for all goods and services, measured from July 1998 to September 2010, the telephone Services price index has 

increased a mere 1.12%. Jul. ‘98 Consumer Price Index (Dec.1997=100) Jan. ‘99 Jul. ‘99

Jan. ‘00

Jul. ‘00

Jan. ‘01

Jul. ‘01

Jan. ‘02

Jul. ‘02

Jan. ‘03

Jul. ‘03

Jan. ‘04

Jul. ‘04

Jan. ‘05

Jul. ‘05

Jan. ‘06

Jul. ‘06

Jan. ‘07

Jul. ‘07

Jan. ‘08

Jul. ‘08

Jan. ‘09

Jul. ‘09

Jan. ‘10

Jul. ‘10

90

100

110

120

130

140

 all Goods and Services 33.85%  telephone Services 1.12%	
		 fcc.gov :: FY 2010 SummarY oF PerFormance & Financial inFormation 19

Spectrum

Efficient and effective use of non-Federal spectrum domestically and 

internationally promotes the growth and rapid deployment of innovative and 

efficient communications technologies and services.

Making additional spectrum available for 

broadband is critical to driving billions of 

dollars in private investment, fueling worldleading innovations, creating millions of 

new jobs, and enabling endless new products 

and services that can help improve the lives 

of all Americans. According to Cisco, North 

American wireless networks carried 

approximately 17 petabytes per month in 

20094

, an amount of data equivalent to 1,700 

Libraries of Congress. By 2014, Cisco projects 

wireless networks in North America will carry 

some 740 petabytes per month, a greater than 

40-fold increase. In addition, other industry 

analysts5

 forecast large proportional increases 

as shown in the chart below. 

2009 2010 2011 2012 2013 2014

Traffic Relative to 2009

0x

5x

10x

15x

20x

25x

30x

35x

40x

45x

50x

 cisco Systems 

 coda research 

 Yankee Group

4 cisco Systems, cisco Visual networking index: Global mobile Data Forecast 2009–2014 (2010) available at www.cisco.com/en/us/solutions/

collateral/ns341/ns525/ns537/ns705/ns827/white_paper_c11-520862.pdf.

5 Philip marshall, Yankee Group, Spectrum-rich Players are in the Driver’s Seat for mobile Broadband economics (2009) (unpublished manuscript, 

on file with the Fcc); coda res. consultancy, uS mobile traffic Forecasts: 2009–2015 (2009) (unpublished manuscript, on file with the Fcc).

This growth is due to increased adoption 

of Internet-connected mobile devices and 

increased data consumption per device. 

These new devices drive higher data usage 

per subscriber, as users engage with dataintensive social networking applications and 

user-generated video content. The rollout of 

advanced 4G networks using new versions of 

Long Term Evolution (LTE) and Worldwide 

Interoperability for Microwave Access 

(WiMAX) technologies will also intensify 

the impact on mobile broadband networks.

inDuStrY ForecaStS oF moBile Data traFFic
20 FY 2010 SummarY oF PerFormance & Financial inFormation :: fcc.gov

To promote mobile innovation and investment, 

the National Broadband Plan recommended 

that the Commission make 500 megahertz 

of spectrum available for broadband use in 

the next 10 years, including 300 megahertz 

for broadband use in the next 5 years. The 

Commission adopted several items in FY 2010 

to facilitate this additional spectrum. First, 

it adopted rules that will make available 25 

megahertz of spectrum for mobile broadband 

service in much of the United States by opening 

the Wireless Communications Service to mobile 

operations. The Commission also initiated a 

proceeding to make 90 megahertz of prime 

spectrum by promoting flexible use of Mobile 

Satellite Service bands. Steps were also taken to 

free up vacant airwaves between TV channels, 

called “white spaces,” to unleash a host of new 

technologies such as “super Wi-Fi” and myriad 

other diverse applications. This is the first 

significant block of spectrum made available 

for unlicensed use in more than 20 years.

The FCC is committed to greater international 

engagement and cooperation in an interconnected world. Preparations are taking 

place for the 2012 World Radiocommunication 

Conference (WRC-12). Preliminary views and 

proposals are being drafted and discussed 

within informal working groups and between 

the FCC, State Department, and the National 

Telecommunications and Information 

Administration. These negotiations will 

lead to recommendations that become part 

of U.S. positions and draft proposals and 

they will form the basis for discussions 

at bilateral, regional, and international 

meetings in preparation for WRC-12. The 

FCC also continues to strongly advocate 

for U.S. spectrum interests internationally, 

particularly in cross-border efforts between 

the U.S. and Canada and the U.S. and Mexico 

to protect American communications licensees 

and consumers against interference.

In January 2010, after a 7.0 magnitude earthquake struck Haiti, the FCC announced a 

series of actions to assist Haiti in its recovery. 

The FCC’s actions included:

 Coordinating with the U.S. Agency for 

International Development on Haitian 

Relief and Restoration Efforts on 

telecommunications matters in Haiti;

 Reaching out to contacts in industry and the 

international community to determine the 

status of communications services in Haiti 

and between Haiti and other countries; 

 Working with Federal partners, including 

the National Communications System, to 

coordinate efforts, including identification 

of the status of communications, determination of priority needs for temporary 

communications and restoration of existing 

systems, as well as related needs such as 

fuel and technical expertise; 

 Working with the State Department on 

issues related to importation and operation 

of emergency communications equipment 

in Haiti; and

 Taking steps to increase available satellite 

capacity over Haiti.

In order to develop and advance an agenda 

aimed at bringing the benefits of a modern 

communications infrastructure to consumers 

in all Native communities, the FCC established 

an Office of Native Affairs and Policy. The 

office will work to promote the deployment 

and adoption of communications services 

and technologies throughout Tribal lands and 

Native communities by, among other things, 

ensuring robust government-to-government 

consultation with Tribal governments 

and increased coordination with Native 

organizations. 
		 fcc.gov :: FY 2010 SummarY oF PerFormance & Financial inFormation 21

Media

The Nation’s media regulations must promote competition and diversity and 

facilitate the transition to digital modes of delivery.

Whether you receive the signals over the 

air, through a subscription service, or via 

the Internet, broadcast television and radio 

remains a primary source of information 

and entertainment for Americans. The FCC 

licenses radio and television stations as either 

commercial or noncommercial educational 

(NCE). Commercial stations generally support 

themselves through the sale of advertising. 

In contrast, NCE stations generally meet 

their operating expenses with contributions 

received from listeners and viewers and also 

may receive government funding. By the 

end of FY 2010, there were more than 30,000 

broadcast stations licensed by the FCC.

Fcc licenSeD tV anD raDio StationS

amradio 4,784

commercialfmradio 6,512

non-commercialfmradio 3,251

lowpowerfmradio 864

fmtranslators&boosters 6,161

ToTal radio	sTaTions 21,572

commercialtv 1,392

non-commercialtv 391

classatv 525

lowpowertv 2,387

tvtranslators 4,518

ToTal TV	sTaTions 9,213

Early in the year, the FCC launched an 

initiative on the future of media and the 

information needs of communities in the 

digital age. This initiative is examining the 

changes underway in the media marketplace, 

analyzing the full range of future technologies 

and services that will provide communities 

with news and information in the digital 

age, and, as appropriate, will make policy 

recommendations to the FCC, other 

government entities, and other parties. 

The FCC has held workshops and solicited 

comments from the public.

The Commission acted to promote innovation 

and consumer choice in the video device 

marketplace by issuing a Notice of Inquiry and 

a Further Notice of Proposed Rulemaking to 

seek to create a competitive retail market for 

navigation devices for use with multichannel 

video programming distributors (MVPD). 

Consumers are increasingly accessing video 

from multiple sources, including MVPD 

services, the Internet, DVDs, and over-the-air 

broadcasting. The FCC is looking to foster a 

more competitive marketplace for navigation 

devices and to address calls for a standardized 

interface that enables smart video devices 

to bring video from all of these sources 

together for ease of selection, recording, and 

viewing. The service provider would be free 

to innovate within its network to improve its 

services without requiring replacement of 

the consumer’s home devices and a consumer 

could switch from one provider to another and 

continue to use the same smart video devices.
22 FY 2010 SummarY oF PerFormance & Financial inFormation :: fcc.gov

Children live in a dramatically different media 

environment from the one their parents and 

grandparents grew up in decades ago. From 

television to mobile devices to the Internet, 

electronic media today offer an array of 

opportunities to access educational content, 

communicate with family and peers, and 

acquire the skills and technological literacy 

necessary to compete in a global economy. 

However, digital media can also pose risks of 

harm to children, including exposing them 

to exploitative advertising, inappropriate 

content, and cyber bullying. The Commission 

released a Notice of Inquiry asking how 

children can be served and protected and 

parents can be further empowered in the new

digital media landscape. Chairman Genachowski 

announced the FCC’s Children’s Agenda for 

Digital Opportunity to help children and 

empower parents. The FCC also launched 

Parents’ Place, a new Web site that provides 

parents with the tools and information they 

need to positively shape their children’s experiences in the complex media landscape. It can 

be found at www.fcc.gov/parents.
		 fcc.gov :: FY 2010 SummarY oF PerFormance & Financial inFormation 23

One of the FCC’s main missions is to ensure 

continuous operations and reconstitution

of critical communications systems and

services during and following emergencies. 

To facilitate this mission, the FCC established 

its new Emergency Response Interoperability

Center(ERIC) under the Public Safety and

Homeland Security Bureau. ERIC’s primary 

mission is to lead the development of a technical and operational framework that will 

support and foster nationwide operability 

and interoperability in wireless broadband 

communications for America’s first responders. 

The ERIC will serve as the driving force for the 

development of standards that will bring true 

interoperability to public safety broadband 

networks nationwide. As broadband standards 

and technology evolve, the ERIC will adopt

and implement: technical requirements and

procedures for ensuring a nationwide level of 

interoperability; mechanisms to address

operability, roaming, priority access, gateway

functions and interfaces, and interconnectivity 

of public safety broadband wireless networks; 

and authentication and encryption requirements 

for common public safety broadband applications 

and network usage.

Enhancing the cyber security of the nation’s 

infrastructure is critical to the proper 

functioning of communications networks 

serving America’s financial institutions, 

national energy grid, medical institutions, 

educational system, and public safety. Yet, 

broadband communications networks are 

susceptible to malicious attack. Despite the 

increasing threat of cyber attacks, many 

communications end users do not consider 

cyber security a priority. The Commission 

adopted a Notice of Inquiry seeking public 

comment on the proposed creation of a new 

voluntary cyber security certification program 

that would encourage communications service 

providers to implement a full range of cyber 

security best practices. This might serve as a 

first step to implementing a comprehensive 

roadmap to help counter cyber attacks and 

better protect America’s communications 

infrastructure. 

Public Safety and Homeland Security

Communications during emergencies and crises must be available for public 

safety, health, defense, and emergency personnel, as well as all consumers 

in need. The Nation’s critical communications infrastructure must be reliable, 

interoperable, redundant, and rapidly restorable. 
24 FY 2010 SummarY oF PerFormance & Financial inFormation :: fcc.gov

The Commission launched an inquiry on 

the ability of existing broadband networks 

to withstand significant damage or severe 

overloads as a result of natural disasters, 

terrorist attacks, pandemics, or other major 

public emergencies. Although core broadband 

networks are generally presumed to be quite 

resilient, there may be weaknesses closer to 

the network edge. Accordingly, the inquiry 

seeks comment, analysis, and information 

on the present state of the resiliency and 

redundancy of broadband networks to 

withstand physical damage and severe 

network overload. 

The Commission adopted an Order prohibiting 

the further distribution and sale of devices 

that operate in the 700 MHz frequency. This 

action helps clear the 700 MHz band to enable 

the rollout of communications services for 

public safety and the deployment of next 

generation 4G wireless devices. The FCC also 

granted conditional approval of 21 petitions 

filed by cities, counties, and States that sought 

waivers to move forward with the construction 

of regional or Statewide interoperable wireless 

broadband networks in the 700 MHz public 

safety broadband spectrum. The Commission 

required these broadband networks to be 

deployed under a common interoperability 

framework in coordination with the ERIC. 

This common framework will ensure that 

all networks being deployed are technically 

compatible and fully interoperable. 

The FCC released two comprehensive white 

papers that build on the National Broadband 

Plan recommendations to create an economically viable, technically sound, and

robust interoperable public safety wireless 

broadband network across America. A Broadband Network Cost Model: The Basis for Public 

Funding Essential to Bringing Nationwide 

Interoperable Communications to America’s First 

Responders offers a detailed analysis of how 

the FCC’s plan for creation and funding of the 

network would meet public safety needs for 

accessibility, reliability, and affordability. 

The plan would also ensure true interoperability for public safety across the 

Nation, stretching beyond large cities and 

metropolitan areas and into rural America. 

The Commission took action to help 

strengthen and improve the ability of Public 

Safety Answering Points (PSAPs or 9-1-1 

call centers) to quickly locate wireless 9-1-1 

callers and dispatch emergency responders 

to assist them during emergencies. The FCC 

requires wireless carriers to provide reliability 

data on each 9-1-1 call upon the request of a 

PSAP, which will improve the ability of public 

safety personnel to assess the accuracy of 

location information. Most importantly, the 

Commission’s action will help save lives by 

enabling emergency response personnel in 

many places to reach people sooner who call 

9-1-1 from mobile devices.
		 fcc.gov :: FY 2010 SummarY oF PerFormance & Financial inFormation 25

Wireless Priority Service (WPS) is a Federal program that authorizes cellular communications service providers to prioritize calls over wireless 

networks. Participation in the WPS program is voluntary. the Fcc sets the rules and policies for the WPS program; the national communications 

System, a part of the u.S. Department of homeland Security, manages the WPS program. in FY 2008, the commission began an outreach program 

to increase participation in WPS. From august 1, 2009 to July 31, 2010, WPS subscribership increased from 97,771 to 105,333, an increase 

of 8%. the WPS program facilitates the deployment of public safety technology and increases the chances that critical users, such as first 

responders, will be able to use cell phone services in an emergency. 

WireleSS PrioritY SerVice SuBScriBerS

telecommunicationS SerVice PrioritY ParticiPation

2005 2006 2007 2008 2009 2010

All years end on July 31

Number of Subscribers

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

110,000

120,000

12,367

36,458

46,142

80,803

97,771

105,333  active and Pre-approved Subscribers 

2004 2005 2006 2007 2008 2009 2010

Number of Lines

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

All years end on July 31

 hospitals  911 call centers  State & local Governments  Federal Government

the commission established the telecommunications Service Priority (tSP) program to support priority restoration of communications services 

that support national security and emergency preparedness (nS/eP) missions during disasters, including terrorist attacks. the national 

communications System (ncS) oversees day-to-day operation of the tSP program. any Federal, State, or local government entity that relies on 

telecommunications services to accomplish its nS/eP mission can qualify for tSP. although all 911 call centers would qualify for the tSP program, 

only a small percentage of 911 call centers participate. in FY 2004, the commission began an outreach program to inform 911 administrators 

of the tSP program and to expedite their enrollment. at the beginning of august 2009, a total of 14,297 911 call center circuits were enrolled in 

the tSP program. at the end of July 2010, a total of 17,788 911 call center circuits were covered by the tSP program. this amounted to a 24% 

increase in 911 call center circuits enrolled in tSP.

at the beginning of august 2009, State and local governments had 22,441 circuits enrolled in the tSP program; by the end of July 2010, a total of 

26,618 State and local government circuits were covered. this change amounted to a 19% increase in covered State and local circuits. the tSP 

program increases the reliability of essential nS/eP communications services by minimizing out-of-service times. as a result, these circuits were 

made more reliable, thus helping to achieve the commission’s tSP objectives. 
26 FY 2010 SummarY oF PerFormance & Financial inFormation :: fcc.gov

The FCC made tremendous strides during FY 

2010 to become more efficient, effective, and 

accountable to the American people. It launched 

Reboot.FCC.gov (www.reboot.fcc.gov/), the firstever Web site dedicated to soliciting public 

input on ways to improve citizen interaction 

with the FCC. Reboot.FCC.gov highlighted key 

elements of FCC reform for public discussion 

and feedback. As part of a long-overdue 

redesign of the FCC Web site, the agency 

solicited ideas on how best to streamline and 

improve the experience for all site visitors. 

Because data underlies all agency proceedings, 

the FCC launched FCC.gov/data (www.reboot.

fcc.gov/data/), an online clearinghouse for 

the Commission’s public data, providing 

an additional way to increase openness, 

transparency, efficiency, and public oversight. 

The agency reevaluated how citizens engage in 

government and explored new ways to increase 

public participation through the use of new 

media tools. The FCC enhanced its Electronic 

Comment Filing System and is working toward 

creating a Consolidated Licensing System to 

include all radio services. 

The Commission proposed revisions to its 

rules as part of its larger effort to reform 

and transform the agency into a model of 

excellence in government. Changes were 

proposed to the FCC’s procedural and 

organization rules concerning reconsideration 

of agency proceedings and case management. 

The proposals are designed to enhance 

efficiency and reduce backlogs, make it easier 

for interested persons to follow and participate 

in the process, and reduce confusion by the

public about certain deadlines. The Commission 

also proposed changes to its rules governing 

disclosure of communications with Commission 

staff and decision makers when all parties to a 

proceeding are not present (so-called ex parte 

communications). The proposed rule changes 

are designed to make the Commission’s 

decision-making processes more open, 

transparent, fair, and effective.

The FCC launched its Data Innovation

Initiative to modernize and streamline how 

it collects, uses, and disseminates data. 

The FCC’s Wireline Competition, Wireless

Telecommunications, and Media Bureaus

released Public Notices seeking input on what 

current data collections should be eliminated, 

what new ones should be added, and how 

existing collections can be improved. The 

Public Notices also included inventories of the 

Bureaus’ current data collection. As part of 

this initiative, the Commission also proposed 

rule changes to complete the transition to 

electronic filing of tariffs, which disclose the 

rates, terms, and conditions set by certain 

carriers. Non-dominant carriers would file 

their tariffs using the FCC’s Electronic Tariff 

Filing System, and tariff filings would be 

standardized to ease review by the public and 

the FCC. On-line filing of tariffs will afford 

the public and the FCC immediate access to 

new tariffs filed by carriers, providing more 

opportunity for review and comment. The 

change will also reduce the burden on carriers 

and FCC staff associated with filing and 

administering paper records.

Modernize the FCC

The Commission shall strive to be a highly productive, adaptive, and innovative 

organization that maximizes the benefit to stakeholders, staff, and management 

from effective systems, processes, resources, and organizational culture.
		 fcc.gov :: FY 2010 SummarY oF PerFormance & Financial inFormation 27

As part of the initiative, the FCC also 

launched a suite of new tools designed to 

unlock FCC data and drive innovation across 

the public and private sectors. The suite of 

tools includes a number of APIs (Application

Programming Interface), interfaces that 

enable communication between independent 

databases, for use by developers across a 

broad range of industries, including Federal, 

State, and local governments. The FCC 

also announced the creation of a developer

community (www.fcc.gov/developer) designed 

to help drive future releases through feedback 

and collaboration. An example of the APIs 

released is License View which provides 

snapshots such as the number of licenses 

across different services, how many licenses 

different entities have, and how many licenses 

are up for renewal in the near future. The APIs 

represent a step toward reform of the licensing 

systems and improvement in how the FCC 

makes licensing information available to the 

public. Currently available APIs include:

Fcc DeVeloPer aPPlication ProGramminG interFaceS

aPPlication oBJectiVe

 

fccconsumer

broadbandtest

over 1 million user speed tests were generated from Fcc consumer Broadband test. this 

aPi delivers data on the number of tests, average user download/upload speeds, and more.

fcccensusblock

conversions

unlock the u.S. census Block number of any geographic coordinate using the Fcc census 

Block Search. this aPi also returns the associated u.S. State and county name.

fccfrnconversions Quickly tap Fcc registration numbers to learn more company information about 

broadband providers, which often change from State to State.

fcclicenseview license View provides information on over 3 million Fcc issued licenses for use of the 

nation’s airwaves and other purposes. 

spectrumdashboard

the Spectrum Dashboard allows new ways for citizens to search spectrum in the united 

States. these aPis deliver information on spectrum band allocation and who own licenses 

within the 225 mhz to 3700 mhz frequency range.
28 FY 2010 SummarY oF PerFormance & Financial inFormation :: fcc.gov

The FCC is committed to helping consumers 

through information, complaint mediation, 

and regulatory policy. Consumers deserve 

clear, complete information to help them make 

the best choices in communications services. 

To assist consumers, the FCC launched a new, 

easy-to-use, ConsumerHelp Center that puts 

them within one click of all the information 

they want from the FCC. The portal at www.

fcc.gov/consumers allows consumers to learn 

about different issues in telecommunications, 

makes it easy for consumers to find out 

what’s going on at the FCC, provides tips 

for making the best choices in purchasing 

communications devices and services, allows 

consumers to have their voices heard by filing 

comments on issues that interest them, and 

provides them with a means to file a complaint 

when there are problems.

The FCC’s Consumer Task Force initiated a 

Wireless World Travel Week to coincide with 

the beginning of summer and a busy travel 

season. Americans make over 60 million 

international trips each year and many take 

their mobile phones with them. Throughout 

that week, the FCC and wireless companies 

offered tips to help travelers save money on 

international wireless use.

» The FCC was recognized as the “most improved” agency across the entire 

Federal government according to the 2010 OPM Viewpoint Employee 

Satisfaction Survey released by the Office of Management and Budget. 

The survey results reflect the work being done throughout the agency to 

make the FCC a model of excellence in government, including creating 

new opportunities for employees to provide feedback, improving employee 

communication through technology and new media, and focusing on 

leadership development and opportunities for employees.
		 fcc.gov :: FY 2010 Summary of Performance & Financial Informati

FY 2010 

Financial 

Information
30 FY 2010 SummarY oF PerFormance & Financial inFormation :: fcc.gov

How We Managed Our Funds: 

A Message from Our Chief Financial Officer 

I am pleased to present the Commission’s financial 

statements for fiscal year (FY) 2010 and to report that the 

Commission’s auditors issued an unqualified opinion on 

each of the Commission’s financial statements for FY 2010. 

I am also proud to say that this is the fifth straight fiscal year 

the Commission has received an unqualified opinion—the 

longest consecutive period of “clean” audit opinions that 

the Commission has received in the 12 fiscal years its financial statements have 

been audited, dating back to FY 1999. The Commission is proud of the work of

its staff over the last 5 fiscal years to obtain and maintain an unqualified opinion. 

Throughout FY 2010, the Commission worked 

diligently on closing audit findings from 

previous audits. The Commission as a whole 

closed 29 audit findings during FY 2010 and 

has closed more than 510 audit findings in

the last 5 fiscal years. As part of this effort, 

the Commission made progress on resolving 

matters raised by its auditors in their FY 2010 

audit report. The Commission closed findings 

relating to its information technology control 

deficiencies and made progress in resolving 

findings related to its financial management 

systems by continuing with the development of 

a new core financial system and reviewing its 

current feeder systems as required by Office of 

Management and Budget Circular A-127.

Significantly, for FY 2010 the Commission’s 

independent auditor did not report any 

material weaknesses for the Commission 

or its reporting components. Despite these 

successes, there is still work to be done at the 

Commission. The FY 2010 audit report points 

out two significant deficiencies related to 

internal controls and notes one instance of 

non-compliance that must still be resolved. 

The primary areas of concern relate to 

financial reporting processes, information 

technology controls, and compliance with the 

Federal Managers’ Financial Integrity Act.
		 fcc.gov :: FY 2010 SummarY oF PerFormance & Financial inFormation 31

One of the Commission’s greatest challenges in 

resolving the auditors’ findings and improving 

the performance of its financial reporting 

process is to implement a new core financial 

management system. In October 2010, we 

made significant strides to resolve this 

finding by launching our new core financial 

management system. Before launching the 

system, we trained all Commission staff 

involved in processing financial transactions 

on the new system to ensure that the Commission maintains its strong culture of efficient 

and accurate financial management of Commission funds. It will be a challenge in the upcoming 

year to fully deploy this financial management 

system so that we efficiently maximize the 

re-engineered processes to provide stronger 

controls and more accurate and timely data.

Intertwined with the Commission’s challenge 

of implementing its own new core financial 

management system are the Commission’s 

efforts to work closely with its reporting 

components in their efforts to implement new 

core financial systems. During FY 2011, the 

Commission plans to continue to work closely 

with its reporting components in their efforts 

to modernize their financial systems.

Finally, the Commission is committed to 

minimizing the risk of improper payments 

and reducing improper payments to customers 

and beneficiaries of its reporting components, 

the Universal Service Fund and the Telecommunications Relay Service Fund. The Commission continues to make improvements to the 

management, administration, and oversight 

of these funds; we have established a dedicated 

team to oversee the funds and have initiated 

a robust audit program to detect improper 

payments from these funds.

I look forward to FY 2011 and continuing 

our efforts to strengthen the Commission’s 

and its reporting components’ internal 

control environments and to improving the 

effectiveness of the Commission’s and its 

reporting components’ financial operations.

— Mark Stephens

Chief Financial Officer

February 2011
32 FY 2010 Summary of Performance & Financial Informaion ::  fc

Key FY 2010 Financial Management 

Accomplishments 

The FCC’s FY 2010 Agency Financial Report, found at www.fcc.gov/Reports

fr2010.pdf, contains a full list of FY 2010 Financial Management Accomplishments, the full audit report from the external auditor, and our Summary of 

Management Assurances, among other financial information.

area accomplishme

 

Stewardship  O

Fund

The Commission worked with the Universal Service Administrative Company (USA

the Department of Justice in successfully pursuing wrongdoers who sought to defraud the 

Universal Service Fund (USF). In FY 2010, these efforts yielded cash recoveries of ov

$850 thousand in fraudulent disbursements. In addition the defendants in these cases

relinquished claims valued at over $135 million.

The Commission entered into several consent decrees valued at over $22 million fo

violations of the Telecommunications Relay Service Fund (TR

Financial  Syst

Modernizatio

The Commission “went live” with the Core Financial System Replacement (Genes

project on October 14, 2010. As a modern, integrated core financial system, Genesi

allows the Commission to manage its finance, accounting, and budget activities in

a more efficient and effective manner. The newly implemented financial system reduces

and/or eliminates instances of duplicate transaction entry and reduces preparation of 

manually intensive reconciliations. Financial business processes were reengineered to 

leverage best practices and improved functionality provided by the new system. Genesis 

provides a Web-enabled self-service capacity for the Bureaus and Offices to execute

accounting functions using business analytics for decision making, and it supports the 

reduction of the paper chain associated with the approval and manual distribution 

of documents. 

Procuremen

The FCC established a partnership with the Small Business Administration to incre

contract awards to small and disadvantaged businesses. The agency met its goals

for Small Disadvantaged Business and exceeded its goals for Small Disadvantaged 

Veteran-Owned Business. We made many awards using recovery funds in support

of the National Broadband Plan
		 fcc.gov :: FY 2010 Summary of Performance & Financial Informati

Our Financial Results 

This section contains condensed financial statement information, a description of 

our major balance sheet components and our cost of operations, and budgetary 

resources. We also present the results of our performance in the area of financial 

management using established metrics. Our complete financial statements are 

available on the FCC Web site at www.fcc.gov/Reports/fr2010.pdf.

Changes in Financial Position (Consolid

 % Change in

 Net Financial Conditio  Financia

 (Dollars in Thousands) FY 2010 FY2009 Positio

  Intragovernmen

Fund Balance with Treasury $ 457,368 $ 359,735 27.0% 

Investments 6,087,715 6,016,693 1.0% 

Accounts Receivable 571 889 -36.0% 

Other 33,838 400,451 -92.0% 

Total  Intragovernmental $ 6,579,492 $ 6,777,768 -3

Cash and Other Monetary Assets 100,344 68,852 46.0% 

Accounts Receivable, net 783, 620 763,843 3.0% 

Loans Receivable, net 48,470 83,589 -42.0% 

General Property & Equipment, net 65,167 49,616 31.0% 

Other Assets 13,088 7,735 69.0%

  TOTAL ASSETS  $ 7,590,181 $ 

  Intragovernmen

Debt $ 87,726 $ 46,484 89.0% 

Other 251,972 117,921 114.0% 

Total  Intragovernmental $ 339,698 $ 164,405 107

Accounts Payable 120,477 79,733 51.0% 

Deferred Revenue 132,386 528,234 -75.0% 

Prepaid Contributions 74,915 57.670 30.0% 

Accrued Liabilities for Universal Service 622,400 591,512 5.0% 

Other 49,408 62,778 -21.0%

  TOTAL LIABILITIES  $ 1,339,28

Unexplained Appropriations $ 21,183 $ 44,000 -52.0%

Cumulative Results of Operations 6,229,714 6,223,071 0.0%

  TOTAL NET POSITION  $ 6,250

  NET COST  $ 8,961,165 $ 8,1

  BUDGETARY RESOURCES  $ 13,612
34 FY 2010 SummarY oF PerFormance & Financial inFormation :: fcc.gov

Assets

The chart below presents the total assets of the Commission as of September 30, 

2010. The large Intragovernmental Investments balance of $6,088 million mainly 

results from carryover in the USF Schools and Libraries and Rural Healthcare 

programs ($5,733 million) and carryover in the Telecommunications Relay 

Service program ($355 million) that have grown since the programs’ inception 

as a result of annual contributions that have exceeded annual distributions. 

The Accounts Receivable balance of $784 million is primarily composed of USF 

receivables totaling $775.6 million.

2010 aSSetS BY cateGorY (Dollars in thousands)

category % assets

 Intragovernmental Investments 80.0% $6,087,715

 Accounts Receivable, net 10.0% $783,620

 Remaining Intragovernmental Assets 7.0% $491,777

 Cash and Other Monetary Assets 1.0% $100,344

 General PP&E 1.0% $65,167

 Loans Receivable, net 1.0% $48,470

 Other Assets < 1.0% $13,088

totalassets $7,590,181
		 fcc.gov :: FY 2010 SummarY oF PerFormance & Financial inFormation 35

Liabilities 

The chart below presents the total liabilities of the Commission as of September 

30, 2010. The Commission’s most significant liabilities are Deferred Revenue 

of $132 million and Accrued Liabilities for Universal Service of $622 million, 

which accounted for 56 percent of total liabilities as of September 30, 2010. 

The Deferred Revenue balance includes $33.8 million in winning bids for auction 

#73 and $33.2 million for other auctions where the corresponding licenses 

have not yet been granted. As these licenses are granted, the revenue will 

be recognized on the Statement of Custodial Activity by the Commission. 

The Accrued Liabilities for Universal Service represent the expected October 

(FY 2011) payments for the Telecommunications Relay Service Program and 

the Universal Service Fund High Cost and Low Income Programs.

net Position: as of September 30, 2010, the agency’s total net position was $6,251 million, consisting of cumulative 

results of operations of $6,230 million and unexpended appropriations of $21 million.

2010 total liaBilitieS BY cateGorY (Dollars in thousands)

category % liabilities

 Accrued Liabilities for Universal Service 46.5% $622,400

 Total Intragovernmental 25.3% $339,698

 Deferred Revenue 9.9% $132,386

 Accounts Payable 9.0% $120,477

 Prepaid Contributions 5.6% $74,915

 Other 3.7% $49,408

totalliabilities $1,339,284
36 FY 2010 SummarY oF PerFormance & Financial inFormation :: fcc.gov

Costs

The graph below presents the total gross costs of each Commission program 

as of September 30, 2010. The costs are aligned with the six strategic goals of 

the Commission: Broadband, Competition, Spectrum, Media, Public Safety and 

Homeland Security, and Modernize the FCC. The cost of the Competition and 

Spectrum strategic goals may be significantly higher than the other four goals 

as they include additional program costs. For example, the program costs for the 

USF, TRS, and NANP are included within the Competition strategic goal while the 

Commission’s subsidy costs for the Spectrum Auction Loan Program are included 

with the Spectrum strategic goal. Contributions received for the USF and TRS 

programs are shown on the Statement of Changes in Net Position and do not 

directly offset the costs of these programs on the Statement of Net Cost. 

2010 total GroSS coSt (Dollars in thousands)

category % costs

 Competition 95.0% $9,023,883

 Spectrum 2.0% $154,485

 Broadband 1.0% $80,775

 Modernize the FCC 1.0% $70,145

 Media 1.0% $50,180

 Public Safety & Homeland Security < 1.0% $42,320

totalgrosscosts $9,421,788
		 fcc.gov :: FY 2010 SummarY oF PerFormance & Financial inFormation 37

Budgetary Resources

The Commission receives most of its budgetary authority from Congressional 

appropriations. Budgetary resources consist of the resources available to the 

Commission at the beginning of the year (carried forward), plus appropriations, 

spending authority from offsetting collections, and other budgetary resources 

received during the year. The Commission had $13.6 billion in budgetary 

resources of which $11.0 billion was incurred and $2.6 billion remained 

unobligated. The chart below compares the status of budgetary resources 

between FY 2010 and FY 2009.

StatuS oF BuDGetarY reSourceS – FY 2010 & FY 2009 (Dollars in thousands)

Obligations Incurred Unobligated Balance

$2,571,959

0

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

$9,446,300

$11,040,412

$3,047,460

totalbudgetaryresources:

 FY 2010 $13,612,371 

 FY 2009 $12,493,760
38 FY 2010 Summary of Performance & Financial Informaion ::  fc

Financial Management Indicators

FIANIAL MANA GEMEN

indicator sta

 

Debt  Managem

Debt eligible transferred to Treasury 100.0

Funds  Managem

Fund balance with Treasury (Identifies the difference between the fund balance reported in Treasu

reports and the agency fund balance with Treasury recorded in its general ledger on a net basis

100.0% 

reconciled

Payment  Managem

Timely vendor payments (per Prompt Payment Act) 86.

Percentage interest penalties paid to invoices processed 0.01%

Percentage of total dollars outstanding in current status* (good standing) for centrally billed 

travel accounts 100.0%

Percentage of total dollars outstanding in current status* (good standing) for Purchase Cards 100.0

Percentage of travel vouchers processed within 10 business days 96.0%

*The Office of Management and Budget threshold for delinquency is 61 da
		 fcc.gov :: FY 2010 Summary of Performance & Financial Informati
fcc.gov :: February 2011

Federal

Communications

Commission

445 12th Street, SW, Washington, DC 2055

Phone: 1-888-CALL -FCC (1-888-225

TT Y: 1-888-TELL -FCC (1-888-8

Fax: 1-866-418-0232

www.fcc.gov