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Release Date: February 6, 2012
WIRELINE COMPETITION BUREAU SEEKS COMMENT ON POTENTIAL DATA FOR
CONNECT AMERICA FUND PHASE ONE INCREMENTAL SUPPORT
WC Docket Nos. 10-90, 05-337
Comments: 130 days after publication in the Federal Register]
1. On November 18, 2011, the Commission released the USF/ICC Transformation Order
and FNPRM, which comprehensively reforms and modernizes the universal service and intercarrier
compensation systems. Among other things, the Commission established a transitional mechanism to
distribute high cost universal service support to price cap carriers, known as the Connect America Fund
Phase I ("CAF Phase I").' CAF Phase I incremental support is designed to provide an immediate boost to
broadband deployment in areas that are unserved by any broadband provider.
2. In particular, in CAF Phase I, the Commission allocated up to $300 million of additional,
incremental universal service support to price cap carriers to be distributed using cost estimates based on
the cost model the Commission used to determine High Cost Model Support previously.2 In adopting
CAF Phase I, the Commission specified the process by which such support would be distributed,3
including the equation to be used to generate cost estimates,4 and delegated to the Wireline Competition
Bureau (Bureau) the task of performing the calculations necessary to determine support amounts and
selecting the necessary data.5
3. In this Public Notice, the Bureau begins the process of implementing CAF Phase I by
seeking comment on potential data that can be used as inputs to the equation that will be used to
determine distribution of the $300 million, and on a proposed list of wire centers that would be eligible to
See Connect America Fund, WC Docket No. 10-90. et al., Report and Order and Further Notice of Proposed
Rulemaking, FCC 1 1-161, Section VII.C.1 (rel. Nov. 18, 201 1) (USF/ICC Transformation Order and FNPRM).
2 See id. at para. 133.
'See id. at paras. 134-38.
4 Id. at para. 134. The cost estimation function selected by the Commission requires, as input variables, the
following data for each wire center that will be included in the analysis: (I) distance to the nearest adjacent wire
center central office in feet: (2) number of households; (3) number of businesses; (4) total road feet; and (5) total
area in square miles. Id
5 1d. at para. 136.
United States. Federal Communications Commission. FCC Record, Volume 27, No. 2, Pages 937 to 1877, February 6-February 17, 2012. Washington D.C.. UNT Digital Library. http://digital.library.unt.edu/ark:/67531/metadc94251/. Accessed September 17, 2014.