FCC Mulls How to Use Leftover CAF Phase I USF Money
The FCC is meeting with stakeholders to decide what to do with the unallocated Connect America Fund Phase I money, according to industry officials and ex parte filings. Carriers accepted only $115 million of the original $300 million, leaving about $185 million still available (CD July 26 p3). The commission is teeing up several questions for a potential rulemaking about how to use that money, industry officials said. The notice, circulating on the eighth floor, proposes adding the unused money into another Phase I round of funding that could dole out $485 million for broadband buildout, an agency official said. As an alternative the notice also contemplates rolling the unused money into Phase II, the official said.
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Some of the questions are about proposals by some of the companies that have asked for waivers to allow them to use the Phase I money more expansively, such as for middle mile facilities, or on locations where buildout cannot be funded for the $775 per location maximum specified in the rules, industry officials said. The notice could also raise other questions, like whether there are other uses for the money, or whether telcos that accept the funding should face additional reporting requirements, which could lead to more transparency earlier in the process, they said. A Wireline Bureau spokesman declined to comment.
The Independent Telephone & Telecommunications Alliance asked the commission to continue funding the Connect America Fund Phase I program for an additional year, offering $300 million for year two of the program plus whatever funds remain from the original $300 million once pending waiver petitions are resolved (http://xrl.us/bnvozv). ITTA met with aides to Commissioners Mignon Clyburn and Jessica Rosenworcel Thursday to discuss the potential further notice of proposed rulemaking. The association asked for “greater flexibility in using the funds to better enable them to achieve the purpose of the CAF Phase I program,” its ex parte filing said. The commission should permit carriers to use the funding to deploy broadband to any location where 4 Mbps/1 Mbps service is not available, or to locations that the National Broadband Map “inaccurately identifies as served by other providers,” it said. ITTA also asked for Phase I funds to be usable for second mile facilities, which would further the objective of expanding voice and broadband availability “as much and as quickly as possible,” it said, quoting the USF/intercarrier compensation order.
If Phase I money is awarded again to accelerate broadband deployment to unserved locations, the FCC should note that in the recent Mobility Fund Phase I auction, all funds were awarded, the American Cable Association said. ACA representatives met separately with Wireline Bureau Chief Julie Veach and aides to Chairman Julius Genachowski and Commissioner Jessica Rosenworcel, ex parte filings said (http://xrl.us/bnvim5). The Phase 1 auction was open to incumbent and competitive providers, and demand exists from non-incumbent providers to access universal service support to provide service in unserved areas, ACA said. The commission should reconsider the current requirements that limit Phase I eligibility to eligible telecom carriers, ACA said. Cable operators are “prepared to deploy broadband to unserved areas if they can obtain CAF support,” and the current ETC requirements are “unduly restrictive and counterproductive to enabling cable operators to access CAF support to bring the highest performance broadband to unserved markets,” ACA said.