All in USF
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.
At its December 12, 2018, open meeting, the Federal Communications Commission will classify text messaging service as a Title I service under the Communications Act. The FCC’s Declaratory Ruling will undoubtedly have a negative impact on universal service fund contributions.
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.
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.
The FCC is seeking comment on the applicability of the National Defense Authorization Act for Fiscal Year 2019 to the FCC’s “national security” rulemaking. The FCC wants input on how Section 889 of the NDAA may impact the FCC’s proposal to prohibit the use of Universal Service Fund support to purchase equipment or services from suppliers that pose a national security threat.
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.
