All tagged ruralbroadband

FCC Replaces Rate-Of-Return Competitive Overlap Process With Reverse Auction System

The Federal Communications Commission has approved and released a Report and Order and Further Notice of Proposed Rulemaking that revises many universal service fund rules that apply to rate-of-return incumbent local exchange carriers. Among other things, in the order the FCC replaces the existing overlap process that applies to legacy rate-of-return service areas that are served by unsubsidized competitors with competitive auctions.

FCC’s Draft Rural Broadband Order Attempts To Fix Inadequate Legacy USF Budget

The FCC has released a draft rural broadband order that will be considered at the FCC’s December open meeting. In the draft order, the FCC adopts a new universal service fund budget for rate-of-return carriers subject to legacy cost-based rules that is based on uncapped 2018 claims, increased annually by inflation. The increased budget comes with the condition that support recipients with deployment obligations provide broadband service at speeds of 25/3 Mbps rather than 10/1 Mbps.

A-CAM II: A New Model Offer for “Legacy” Rate-of-Return Carriers

The FCC has released a draft order that revises universal service fund rules that apply to rate-of-return incumbent local exchange carriers. In the order, the FCC offers model-based USF support to all rate-of-return carriers currently subject to “legacy” cost-based rules. The new model offer – A-CAM II –is similar to the original A-CAM offer but with several critical adjustments.

Draft Rural Broadband Order – New A-CAM Funding Offer Will Provide $200 Per Location, With Increased 25/3 Mbps Deployment Obligations

Federal Communications Commission Chairman Ajit Pai has released a draft rural broadband order that will be considered at the FCC’s December 2018 open meeting. Among other things, the draft order provides a new set of model support offers to rate-of-return carriers currently receiving Alternative Connect America Cost Model funding. The new offer provides support of up to $200 per location, per month, tied to an obligation to build out 25/3 Mbps broadband service to additional locations.

(Draft) Order Forbearing From USF Contributions Will Level The Playing Field (Somewhat) For RLEC Broadband Service

The Federal Communications Commission has released a draft version of an order that grants a petition requesting the FCC forbear from applying universal service fund contribution rules to broadband Internet access transmission services provided by rural local exchange carriers. NTCA—The Rural Broadband Association and US Telecom filed the joint forbearance petition in June 2017. The forbearance provided in the order eliminates the current disparate treatment of certain RLEC broadband providers under the FCC’s USF contribution rules.

Rate-of-Return Operating Expense Limitation Now Includes Inflation Adjustment; FCC Tweaks Corporate Operations Expense Limitation

The Federal Communications Commission has released a Report and Order, Third Order on Reconsideration, and Notice of Proposed Rulemaking that continue its efforts to reform the high-cost universal service fund rules that apply to rate-of-return incumbent local exchange carriers. In the Third Order on Reconsideration, the FCC, among other things, revises the formula for calculating a rate-of-return carrier’s operations expense limitation to include an inflationary factor, and makes a revision to its rules to include broadband-only loops when calculating a rate-of-return carrier’s corporate operations expense limitation.

FCC Provides Temporary Relief From Budget Control Mechanism – Will Fully Fund Legacy Rate-of-Return Carrier July 2017 – June 2018 Support Claims

The Federal Communications Commission has released a Report and Order, Third Order on Reconsideration, and Notice of Proposed Rulemaking that continue the FCC’s efforts to reform the high-cost universal service fund support mechanism rules that apply to rate-of-return carriers. In the Third Order on Reconsideration, the FCC has taken action to mitigate the negative effects of the budget control mechanism by fully funding legacy carrier support claims for the July 2017 – June 2018 time period.

FCC Provides More Funding For A-CAM Carriers

The Federal Communications Commission has released a Report and Order, Third Order on Reconsideration, and Notice of Proposed Rulemaking that continue the FCC’s efforts to reform the high-cost universal service fund support mechanism rules that apply to rate-of-return carriers. In the Report and Order, the FCC has decided to increase funding for the Alternative Connect America Cost Model, so that all locations with costs above $52.50 per location will be funded up to a per-location cap of $146.10.

Chairman Pai Proposes Using Over $500 Million In Funding To Promote Rural Broadband Deployment – Part I

According to a recent news release, Federal Communications Commission Chairman Ajit Pai has circulated an Order that will allocate over $500 million to promote rural broadband deployment. While the news release offers only general information on a few aspects of the item, presumably the FCC will use broadband reserve funds to address the current shortfall in high-cost universal service fund support.