CenturyLink Asks FCC To Deny CAF II Challenge, But Draft Would Grant Appeal
CenturyLink urged the FCC to uphold a bureau decision denying USF challenges to its eligibility to receive broadband-oriented Connect America Fund Phase II support in certain census blocks in Missouri. But a draft order that recently circulated would approve an…
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application for review of the decision, a person familiar with the proceeding told us Wednesday. In a filing posted in docket 10-90, CenturyLink said the Wireline Bureau had correctly rejected challenges by Co-Mo Comm and United Services based on insufficient evidence. CenturyLink also said the Co-Mo/United application for review was "procedurally defective and inconsistent with the CAF II challenge process" because "it submits new evidence that was not presented to the Bureau." Even with the new evidence, Co-Mo and United had failed to show they offer "the requisite voice service, particularly in census blocks where their own evidence shows they do not have customers," CenturyLink said. In addition, CenturyLink said it believed it would be able to meet its CAF II deployment obligation in Missouri without counting any locations in the challenged census blocks. "Accordingly, even if the Commission grants the Application for Review, it should direct the Bureau not to reduce the amount of CAF II funding for Missouri," it said. "Instead, the challenged census blocks should simply be removed from the list containing CAF II eligible locations while allowing the funding to continue to be used to bring broadband to high-cost areas in Missouri." CenturyLink accepted $77.85 million in CAF II annual support for 2015-2020, its single largest state allotment. "We obviously disagree with CenturyLink," said Randy Klindt, Co-Mo general manager. "We should have won the challenge in the first place. We both have built unsubsidized fiber-to-the-home networks doing gigabit service, and we think it’s a waste of funds to provide CenturyLink with CAF II support in these areas." He also said the companies do provide the requisite voice service over a dedicated link, but CenturyLink was trying to seize on a "technicality" to argue it was "over-the-top service" when it wasn't. Darren Farnan, United's chief development officer, told us he couldn't comment on the CenturyLink filing because he hadn't reviewed it, but he said United's aim was simply to ensure CAF II money was spent wisely in light of the challengers' deployment of fiber networks and gigabit service to rural customers.