Pai FCC Approves $170 Million in CAF II Funds for New York Broadband Auction
The FCC repurposed $170 million of Connect America Fund auction funds to help New York implement the next phase of the state's own broadband reverse auction targeting unserved rural areas, as expected (see 1701190060). The FCC money will be combined with at least $200 million in state funding, said an agency release Thursday, noting the federal money had been declined in New York by incumbent telco Verizon as part of CAF Phase II. It was the first commission action under new Chairman Ajit Pai, the release said.
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“Broadband is critical to economic opportunity and job creation,” said Pai in the release. “This is a first step of many to fulfill my promise to empower Americans with online opportunities, no matter who they are and no matter where they live." Pai also tweeted that the federal and state actions were "fiscally responsible measures to help close #digitaldivide, esp. upstate." He also issued a statement attached to the order. Commissioner Mike O'Rielly dissented in part and cited various reasons in his statement, including divergence from some "sound policy decisions" in giving New York a waiver.
“New York State is very pleased with Chairman Pai’s desire to partner with the State to help close the digital divide in New York. The decision recognizes the many benefits that will result from working with New York on funding broadband deployment in the State,” emailed Skadden Arps attorney John Beahn, counsel to the state.
Verizon, which backed New York's petition, applauded the action. "The FCC takes the smart move of enabling better coordination between the FCC and New York broadband programs," emailed Will Johnson, senior vice president-federal regulatory affairs. "This step will speed the deployment of broadband to New Yorkers in rural and other unserved areas."
The American Cable Association was also laudatory. "New York has one-upped the FCC by instituting a program to bring broadband service with performance capabilities that exceed those required by the FCC to unserved areas while ensuring government money is used efficiently and accountably," said ACA President Matt Polka in an emailed statement. "New York is chipping in substantial additional funding. That forward-looking approach, which greatly benefits New York residents, businesses, and communities, should be rewarded. So long as those robust requirements are met, the FCC should permit other states to join New York in partnering in the Connect America Fund program."
The Wireless ISP Association and ViaSat had opposed the request. “After robust opportunity for public input, last year the FCC adopted a CAF II framework that was truly technology neutral, and designed to harness the power of competition to deliver the most broadband, to the most Americans, at the lowest overall price," emailed WISPA counsel Stephen Coran of Lerman Senter. "Unfortunately, today’s action appears to deviate from this approach by providing disproportionate support to one state at the expense of others, which will now be competing for even less federal support. We expect the Commission to exercise the oversight necessary to ensure fair and open participation by all in the New York program, but are concerned that the action will encourage additional states to make end runs to receive 'off-the-top' money in a manner contrary to nationwide CAF objectives."