Connect America Fund Implementation Report November 14, 2013 2 Agenda • Connect America Fund for Price Cap Areas • Connect America Phase I • Connect America Phase II • Reforms for Rate of Return Areas • Other Improvements to FCC Data • Tribal Mobility Fund Phase I • Tribal Engagement • Key Activities Ahead 3 Connect America Phase I Round 2 • Phase I incremental support intended to quickly expand broadband while Commission works on Phase II implementation • In August, price cap carriers submitted elections for build-out areas, requesting over $385 million to deliver new broadband service to over 600,000 locations 4 http://www.fcc.gov/maps/connect-america-fund-phase-i-round-two Round Two Authorizations to Date Puerto Rico 5 http://www.fcc.gov/maps/connect-america-fund-phase-i-round-two Round Two Elections 6 Progress on Phase II Implementation • Forward-Looking Cost Model • Current version of the model released in August • Illustrative model results posted on fcc.gov • Working on inputs for non-contiguous United States • Targeting release of next version in near future • Phase II Webinars • In September, conducted three separate webinars for NARUC members and their staffs, presenting an in-depth overview of Phase II implementation, the cost model, and the challenge process • All three staff presentations available on FCC website, and audio recordings available on USAC’s website 7 Phase II Service Obligations for Price Cap Carriers Making State-Level Commitment •Bureau Order released October 31, 2013 • Specifies how price cap carriers can demonstrate they meet requirements for “reasonably comparable” pricing of voice and broadband • Adopts 100 GB initial minimum usage allowance, to the extent carrier chooses to set usage allowances • Adopts round trip latency requirement of 100 ms or less and provides two options for how such latency can be demonstrated • Addresses how these metrics will applied to determine what areas we will consider served by an unsubsidized competitor 8 Other Reforms • July 2013 Bureau High Cost Loop Benchmarks Order • Maintained existing formula for 2014 • Waived application of rule in Alaska for remainder of 2013 and 2014 • Deferred further phase-down of support for those carriers subject to limits • Study Area Boundary Data Collection • Data collected in May and June from incumbent carriers and states • Since June, have been working to process the files submitted and compile information into a consolidated map • Next step: publish online study area boundary map to facilitate boundary reconciliation 9 Other Improvements to FCC Data • Survey of Urban Rates • Recently received OMB approval to conduct urban rate survey, which will be used to establish benchmarks for reasonably comparable voice and broadband rates • Will be conducting survey in near future • Annual Reporting • In October, eligible telecommunications carriers (ETCs) filed new annual reports • Bureau staff reviewing; state certifications due next month 10 Mobility Fund Phase I •Mobility Fund Phase I (Auction 901) • Substantial progress made in reviewing long-form applications received from the 33 winning bidders • Initial disbursements made to 27 winning bidders authorized to receive up to $219 million in winning bids • Tribal Mobility Fund Phase I (Auction 902) • Scheduled for Feb. 25, 2014 • Public Notice released on Aug. 7, 2013, announcing auction procedures • Filing window for applications to participate: Nov. 18 – Dec. 5, 2013 11 Tribal Government Engagement • ETCs required to demonstrate on an annual basis that they have meaningfully engaged with Tribal governments in their universal service supported areas • ETCs reported on Tribal engagement for first time in annual reports filed in October • In 2014, ONAP plans to take affirmative steps to facilitate field meetings on engagement and best practices between Tribal governments and ETCs 12 Key Activities Ahead • Complete authorizations of funding for Connect America Phase I Round 2 • Adopt Connect America Phase II cost model • Complete study area boundary reconciliation • Conduct rate survey • Tribal Mobility Fund I Auction