FCC Identifies Nearly 1 Million Locations Eligible for CAF II Fixed Broadband Support
The FCC identified almost 1 million locations eligible for a Connect America Fund auction of up to $2 billion in aggregate broadband-oriented subsidies over 10 years. The residential and small-business locations are in census blocks traditionally served by major telcos. Participants can bid on those locations in the reverse (low bids favored) CAF Phase II auction of support for fixed broadband and voice services with data speeds of at least 10/1 Mbps. The commission also listed census block groups (and their reserve prices) on which bids can be placed, and made available a map showing the eligible blocks within those groups, said a news release and public notice Tuesday. Industry parties welcomed the developments, some noting continuing issues.
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“Closing the digital divide is my number one priority, and through this innovative [CAF] auction, we are poised to take the next big step,” said Chairman Ajit Pai, who cited broadband as key to creating rural opportunities. The auction is set to begin in 2018, the agency said.
The final list of eligible census blocks includes those in price-cap telco territories "that, based on December 31, 2016 Form 477 data, are not served by the incumbent price cap carrier or by an unsubsidized competitor with voice and broadband at speeds of 10/1 Mbps or higher; and based on averaged cost, are identified by the model as high-cost or extremely high-cost," said the PN. Release suggests the auction probably will begin well before the end of next year so the market specifics "don't become stale," said Ross Lieberman, American Cable Association senior vice president-government affairs.
“This is another important step towards conducting the CAF II auction and bringing broadband to more of rural America," said a USTelecom spokeswoman. ITTA is "pleased to see the commission move one step closer to implementing the CAF II auction by finalizing the list of eligible locations," said President Genny Morelli.
The Wireless ISP Association "is pleased that the FCC is moving forward with the auction, and the release of this information is a key step," said Chairman Chuck Hogg via statement. "Doling out more and more subsidies isn’t the only solution to bridge the digital divide. The Commission should also be harnessing private capital, which is why it is so important that the current CBRS [citizens band radio service] rules -- which allow bidders of all sizes to compete -- be maintained."
NTCA has "a number of members very interested in participating if they believe the [broadband performance tier] weighting rules already adopted and other auction design issues still being addressed will ultimately give them a meaningful opportunity to compete in the bidding process," said Senior Vice President Mike Romano. "We continue to talk and work with the FCC on how best to achieve such results.”