Over $1.4 Billion Allocated in CAF II Auction

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More than $1.4 billion was allocated to a total of 103 providers in the FCC’s Connect America Fund Phase II auction. The Commission released results of the auction yesterday. Bidding began July 24, and ended August 21.

Exactly $1.488 billion will be allocated over the next 10 years to expand rural broadband in areas not served now in 45 states. The FCC says that translates to 700,000 rural homes and businesses getting high-speed internet service for the first time.

More than half will have service available with download speeds of at least 100 mbps. Nineteen percent will have gigabit service available. And 711,389 locations—all but 0.25 percent—will have at least 25 Mbps service available, more than twice the 10 Mbps minimum standard for the Connect America Fund program. Winning bidders are required to build out fixed broadband over the next six years and voice services to locations in the census blocks for which they won support. 

Without the money, this type of broadband expansion and ongoing service would not be economically feasible, according to FCC Chairman Ajit Pai. He called the auction “the most appropriate and cost-effective way to allocate funding for broadband in these unserved communities.”  

With a total of 16, Minnesota had the most winning bidders, followed by Oklahoma with 12, and Missouri at 11. Missouri also received the most money, at $254,773,118 in total assigned support. California came in second moneywise at $149,026,913 and Virginia third at $108,923,613. See a map of winning bidders here.

August 29, 2018