All in USF
One big CAF II auction winner is AMG Technology Investment Group LLC, receiving a total of $281.28 million over ten years, to serve 100,581 locations in six states. AMG does business as NextLink, a Texas-based fixed wireless Internet service provider. Will AMG be able to follow through on the promises it made to win CAF II funding? On paper seems like a long shot.
The Federal Communications Commission has announced the results of the recently-completed Connect America Fund Phase II auction. There were 103 winning bidders, receiving a total of $1.488 billion in support over a 10-year period.
The Federal Communications Commission has released an Order setting a framework for measuring speed and latency performance for broadband providers that receive high-cost universal service fund support to serve fixed locations. Broadband provides must conduct the required testing using one of three options, and submit their results annually. Failure to comply will result in a loss of support.
NTCA-The Rural Broadband Association has filed comments in response to the FCC’s National Security NPRM, calling the FCC’s proposed rule prohibiting the use of universal service support to purchase equipment and services from blacklisted foreign companies is “overly broad and lacks clarity.” NTCA also identified numerous other concerns with the rule, and likened the NPRM to a notice of inquiry because of the high-level questions asked by the FCC.
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.
The FCC has released a Notice of Proposed Rulemaking that seeks comment on a rule prohibiting the use of universal service fund support to purchase equipment or services from any communications equipment or service providers identified as posing a national security risk to U.S. communications networks or the communications supply chain. Comments are due on or before June 1, 2018, and reply comments are due on or before July 2, 2018.
The FCC’s Wireline Competition Bureau has officially extended 217 revised offers of Alternative Connect America Cost Model support, along with revised deployment obligations, to A-CAM rate-of-return carriers. Each revised offer is based on support up to $146.10 per-location, meaning locations with costs above $52.50 will be funded up to a per-location fund cap of $146.10. Carriers have until June 21, 2017 to accept their revised offers.
On March 23, 2018, the Federal Communications Commission adopted 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 NPRM, the FCC proposes permanent, minor revisions to the high-cost budget that controls USF support disbursements for rate-of-return carriers.
In a speech before the American Enterprise Institute on April 19, 2018, Federal Communications Commission Commissioner Michael O’Rielly offered a new approach to funding universal service fund programs. Commissioner O’Rielly believes “it is time to institute the practice that any further increases in one program must be paired with offsets from another.”
The Federal Communications Commission has issued an Order and Declaratory Ruling which grants a request by FairPoint Communications, Inc. to correct its Eligible Recovery retroactive to January 1, 2015 and restore Local Switching Support amounts for its rate-of-return affiliates.
