FCC Record, Volume 26, No. 22, Pages 17663 to 18414, Supplement (November 18, 2011) Page: 17,725
iii, 17663-18414 p. ; 28 cm.View a full description of this book.
Extracted Text
The following text was automatically extracted from the image on this page using optical character recognition software:
a state. We therefore believe that the reforms we adopt today will achieve the relief Hawaiian Telcom
seeks in its waiver petition and that, to the extent they do not, Hawaiian Telcom may seek additional
targeted support through a request for waiver.
2. New Framework for Ongoing Support in Price Cap Territories
156. In this section, we adopt Phase II of the Connect America Fund: a framework for
extending broadband to millions of unserved locations over a five-year period, including households,
businesses, and community anchor institutions, while sustaining existing voice and broadband services.
CAF Phase II will have an annual budget of no more than $1.8 billion. To distribute this funding, we will
use a combination of competitive bidding and a new forward-looking model of the cost of constructing
modern multi-purpose networks. Using the model, we will estimate the support necessary to serve areas
where costs are above a specified benchmark, but below a second "extremely high-cost" benchmark. The
Commission will offer each price cap ETC a model-derived support amount in exchange for a
commitment to serve all locations in its service territory in a state that, based on the model, fall within the
high-cost range and are not served by a competing, unsubsidized provider. As part of this state-level
commitment, the ETC will be required to ensure that the service it offers meets specified voice and
broadband performance criteria. In areas where the price cap ETC refuses the state-level commitment,
support will be determined through a competitive bidding mechanism.
157. In order to expedite adoption of the model to determine statewide support amounts in
price cap areas, we delegate to the Wireline Competition Bureau the task of selecting a specific
engineering cost model and associated inputs that meet the criteria specified below. We anticipate
adoption of the selected model by the end of 2012 for purposes of providing support beginning January 1,
2013.
a. Budget for Price Cap Areas
158. Within the total $4.5 billion annual budget, we set the total annual CAF budget for areas
currently served by price cap carriers at no more than $1.8 billion for a five-year period.253 In 2010, the
most recent year for which complete disbursement data are available, price cap carriers and their rate-of-
return affiliates received approximately $1.076 billion in support.254 Collectively, more than 83 percent
of the unserved locations in the nation are in price cap areas,255 yet such areas currently receive
approximately 25 percent of high-cost support.256
159. We conclude that increased support to areas served by price cap carriers, coupled with
rigorous, enforceable deployment obligations, is warranted in the near term to meet our universal service
mandate to unserved consumers residing in these communities. At the same time, we seek to balance
many competing demands for universal service funds, including the need to extend advanced mobile
services and to preserve and advance universal service in areas currently served by rate-of-return
companies. Budgeting up to $1.8 billion for price cap territories, in our judgment, represents a reasonable
253 For purposes of CAF Phase II, consistent with our approach in CAF Phase I, we will treat as price cap carriers the
rate-of-return operating companies that are affiliated with holding companies for which the majority of access lines
are regulated under price caps. A "price cap territory" therefore includes a study area served by a rate-of-return
operating company affiliated with price cap companies.
254 See Federal Communications Commission, Staff Analysis of 2010 High-Cost D)isbursement Data, available at
http://www.fcc.gov/document/universal-service-high-cost-program-disbursements (2010 Disbursement Analysis).
Price cap study areas received approximately $1.036 billion. See id.
255 See supra para. 127. This figure does not include unserved locations in the service areas of rate-of-return carriers
affiliated with price cap carriers.
256 In 2010, high-cost USF disbursements totaled $4.268 billion. See 2010 Disbursement Analysis.17725
Federal Communications Commission
FCC 11-161
Upcoming Pages
Here’s what’s next.
Search Inside
This book can be searched. Note: Results may vary based on the legibility of text within the document.
Tools / Downloads
Get a copy of this page or view the extracted text.
Citing and Sharing
Basic information for referencing this web page. We also provide extended guidance on usage rights, references, copying or embedding.
Reference the current page of this Book.
United States. Federal Communications Commission. FCC Record, Volume 26, No. 22, Pages 17663 to 18414, Supplement (November 18, 2011), book, 2011; Washington D.C.. (https://digital.library.unt.edu/ark:/67531/metadc154713/m1/73/: accessed April 23, 2024), University of North Texas Libraries, UNT Digital Library, https://digital.library.unt.edu; crediting UNT Libraries Government Documents Department.