This report contains an assessment of the economic impact of proposed Federal Communications Commission (FCC) rule changes on the New Mexico economy (FCC February 9, 2011). The proposed FCC rule changes are associated with a 2009 congressional mandate to establish a National Broadband Plan to ensure that all Americans have access to broadband. The rule changes would essentially eliminate the Universal Service Fund (USF) mechanism for providing revenue to rural exchange carriers –a long-standing major source of revenue for rural carriers. The report has been prepared by Arrowhead Center under contract with the New Mexico Exchange Carriers Group.