FCC Sets Auction Details for Rural Broadband Deployment Funds

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Delving more into the Connect America mobile broadband deployment fund for rural areas (discussed in our top story), the FCC set rules for what it’s calling a competitive “reverse auction” to ultimately provide nearly $2 billion over the next decade. It aims to balance deployment of higher-quality services with cost efficiencies.

FCC Commissioner Mignon Clyburn applauded the effort during Thursday’s open meeting. “We will not solve the digital divide by hoping a provider” adheres to the philosophy from the 1989 Field of Dreams baseball movie. In that, the lead character hears a voice in his saying: “if you build it, they will come.” Mere deployment “is but a technology bridge to nowhere,” said Clyburn.

Thursday’s action focuses on census blocks unserved by broadband in 20 states where the nation’s largest carriers – known as “price cap” carriers – declined last year’s Connect America Fund offer of support. Also included in the auction are locations across the country with extremely high deployment costs.  

The Order establishes auction “weights” that credit bids by companies offering more robust service. The weights account for the value of higher speeds, higher usage allowances, and low latency. In 2015, price cap carriers accepted $9 billion over six years from Phase II of the Connect America Fund to expand broadband in their rural service areas. The agency will seek comments on auction mechanics. Here’s a preliminary map of areas eligible for the Phase II auction.

February 24, 2017

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