AT&T, Verizon Mostly Back FCC CAF II Auction Plan; CTIA Defends Wireless; Others File Again
AT&T and Verizon supported the thrust of an FCC plan for auctioning USF subsidies for fixed broadband services in areas traditionally served by large carriers. They, CTIA and a few others commented for the first time on proposed procedures for…
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the Connect America Fund Phase II auction of up to $1.98 billion in support over 10 years. Replies were posted Wednesday and Thursday in docket 17-182. The commission largely "got it right," commented AT&T, saying the auction "must be simple enough to enable providers of all sizes, using different technologies, to participate." The design must "enable bidders to maximize efficiencies by allowing them to assemble contiguous networks across census block groups," it said. It disputed concerns package bidding would crowd out smaller bidders (see 1709190002) and urged the FCC to keep anti-collusion rules, while suggesting "modest modifications." Verizon backed the framework and endorsed "targeted changes," including USTelecom proposals to modify package bidding, bid-switching rules and a financial qualifications screen. CTIA objected to "proposals to require additional showings from applicants proposing to use spectrum to provide the supported services (wireless applicants)," including "calls for wireless applicants to include propagation maps in their short-form applications." The Wireless ISP Association also opposed the propagation-map proposal of a rural coalition. Microsoft again sought inclusion of unlicensed "white space" spectrum and backed a WISPA proposal for even broader spectrum use. The Institute for Local Self-Reliance, joined this time by Public Knowledge and other consumer-oriented groups, said "the FCC should only consider bids that cannot cover all premises in the event that there is no bidder that can connect all premises" in an area. Bidders providing "high-quality fixed service" should be preferred over "high-latency satellite options," they said. SpaceX opposed measures "that exclude any technology that meets" baseline criteria. Hughes Network Systems said the FCC should grant its reconsideration petition to change bid weights and should eliminate package bidding and increase bid-switching flexibility from round to round. Repeating its concern about complexity, a rural electric and telco coalition urged the FCC to simplify the auction by "eliminating or substantially modifying its proposal to allow package bidding; prohibiting bidders from switching tiers between rounds; and allowing proxy bidding." It said anti-collusion rules should be altered to let small providers share auction consultants. The American Cable Association supplemented its arguments against package bidding, a proposed "five-point" financial screen, and anti-collusion rules preventing consultant sharing. Also filing again were GeoLinks, Illinois Electric Cooperative and the Rural Wireless Association.