Mobility Fund Launched on 3-0 Vote by FCC
Commissioners approved 3-0 a second phase of the Mobility Fund (MFII) Thursday. As expected, the FCC deferred some decisions, agreeing to seek further comment, especially on the process of challenging whether a market should receive funding (see 1702150035). The MFII provides $453 million in annual support for winning bidders to preserve and extend 4G LTE in areas where the market otherwise wouldn't support wireless broadband. The support will run for 10 years, disbursed monthly, said a news release.
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“What the commissions decided to do was rather than deciding all the issues in this report and order, based on the record, to seek further comment on at least a couple of options, plus any other approaches,” said James Schlichting, senior deputy chief of the Wireless Bureau. The FCC uses Form 447 data as “the foundation” because it's the best information available now, he said. “It’s submitted to the commission, it’s verified, it’s certified accurate.” The challenge process was always seen as allowing companies to challenge the Form 477 data, he said.
The order also sets aside up to $34 million per year for 4G LTE on eligible Tribal lands. The item requires carriers to offer service at speeds of 10/1 Mbps, with latency of less than 100 milliseconds. Officials said the order was changed to lead to a more gradual transition from current support to MFII support.
Chairman Ajit Pai said he found himself on the road last year in rural areas, as he traveled from Wichita, Kansas, to Des Moines, Iowa. “More often than I would have liked, I found that the signal on my mobile phone was either weak or nonexistent,” Pai said. “While urban and suburban America continue to see improvements in mobile service, many rural areas continue to be dead zones,” he said. “We cannot leave these areas behind. ... Mobile broadband is critical to rural America.”
Commissioner Mignon Clyburn said she was able to get several changes of the order, including a slower phase down of support for providers who rely on legacy funding. “I am grateful to my colleagues for supporting my request to institute a challenge process that is not unduly burdensome on small providers,” Clyburn said. “While we may not have all the elements in place today, we seek further comment on how best to structure a process that is both fair and balanced. While this will mean more work for the commission staff, it is the right call and will yield the best results in the most expeditious way.”
Commissioner Mike O’Rielly questioned whether a separate technology-specific fund is the best approach, but said some of the decisions made in the 2011 Connect America Fund order “have proven too difficult to revisit, even if more logical outcomes and greater efficiencies were possible.” O’Rielly said in general he supports the order. “This item commits to conduct a nationwide, multi-round reverse auction, shifts from road miles to geographic areas, ensures that there is no duplication between Mobility Fund Phase II and the Remote Areas Fund and provides for greater input from the full commission on future decisions,” he said.
"While serious concerns remain, RWA is pleased with improvements to the initial draft, including an actual transition from current support rather than a flash cut to zero in less than a year’s time," the Rural Wireless Association said in a statement. The Competitive Carriers Association said the FCC made the right calls in the order, allowing a several-year phase-down of legacy support after the MFII auction is complete, while seeking further comment on the challenge process. “Competitive carriers now have the necessary certainty to maintain and enhance their networks and to make financial and investment plans, which is critically important to smaller operators,” said CCA President Steve Berry in a news release. “Consumers in unserved and underserved areas deserve mobile broadband coverage comparable to their urban counterparts.”