Trade Groups Say FCC's CAF II Auction Complexity Will Deter Small Provider Participation
Three trade groups criticized FCC Connect America Fund Phase II auction plans as "so inordinately complex that they will deter many potential bidders from participating" in the reverse auction of subsidies for fixed broadband services. "While these complex mechanisms may…
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be intended to promote efficient auction outcomes among bidders, this intended benefit will be substantially undercut by diminished participation, especially from smaller providers," said the American Cable Association, NTCA and Wireless ISP Association Friday in docket 17-182. "This will leave only the nation’s largest eligible providers to divide up the funds," said the groups, which planned to file separate comments due Monday on a public notice on proposed auction procedures (see 1708070032). "With fewer auction participants, bids will be won at higher than optimal prices, and fewer consumers will reap the benefits intended by the CAF Phase II program." They urged the FCC "to design an auction and adopt procedures that can stimulate the robust participation, especially by smaller entities," and to "provide smaller entities with greater opportunities to use auction experts."