The FCC Wireless and Wireline bureaus jointly sought comment on rules...
The FCC Wireless and Wireline bureaus jointly sought comment on rules for a reverse auction to award $300 million through the first phase of the new Universal Service Fund Mobility Fund. This will be the first auction to award high-cost…
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universal service support via the reverse competitive bidding process outlined in October’s reform order. The auction will award one-time support to carriers that commit to provide 3G or better mobile voice and broadband services in areas where service is currently unavailable. The bureaus request comment on procedures for identifying eligible geographic areas, determining basic auction design, and establishing detailed bidding methodologies. With regard to aggregation of eligible areas for bidding, the bureaus seek comment on establishing more stringent coverage requirements, and the development of a target rate to evaluate whether recipients’ rural service rates are comparable to rates in urban areas. In response to the public notice, the Rural Cellular Association expressed concern that the FCC’s auction procedures could harm smaller, competitive carriers. “It will be nearly impossible for smaller rural and regional carriers to provide comparable services at comparable rates” to the large urban carriers like AT&T or Verizon, said RCA President Steve Berry. “Why penalize those carriers who have been providing services to customers in rural areas for years?” Comments are due Feb. 24, and reply comments are due March 9; the auction, designated Auction 901, is scheduled to begin Sept. 27.