FCC Record, Volume 28, No. 4, Pages 2764 to 3699, March 18 - March 29, 2013 Page: 2,781
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Federal Communications Commission
assigned to the defaulted bid, consistent with the purposes of the universal service program.85 Thus, we
believe that the amount of a performance default payment should be higher than the amount of the auction
default payment. The Bureaus proposed, and adopted, a 10 percent performance default penalty for
Auction 901.86 We seek comment on our proposal for calculating the performance default payment. Will
a performance default payment of 10 percent of the total amount of support for which the winning bidder
defaults be effective in ensuring that those authorized to receive support will be capable of meeting their
obligations and protect against costs to the Commission and the USF, without unduly discouraging
auction participation? Are there any circumstances unique to provisioning service to Tribal lands that
should be considered in our analysis?
F. Reasonably Comparable Rates
54. Reasonably Comparable Rates. Tribal Mobility Fund Phase I recipients must certify that
they offer service in areas with support at consumer rates that are within a reasonable range of rates for
similar service plans offered by mobile wireless providers in urban areas."7 The Commission delegated
authority to the Bureaus to specify how support recipients could demonstrate compliance with this rate
certification."8 The Commission directed the Bureaus to develop surveys of voice and broadband rates
generally that should be completed before the later phases of the Connect America Fund and the Mobility
Fund.89 In order to offer Mobility Fund Phase I support at the earliest time feasible, however, the
Commission recognized that the Bureaus might have to implement an approach to the reasonably
comparable rates requirement without being able to rely upon the information that will be collected
through the surveys.90 We propose to do so in implementing Tribal Mobility Fund Phase I.
55. We propose that recipients of Tribal Mobility Fund Phase I support may demonstrate
compliance with the reasonably comparable rates requirement in the same manner as recipients of general
Mobility Fund Phase I support. We propose that a supported provider must demonstrate that its required
stand-alone voice plan, and one service plan that offers data services, if it offers such plans, are (1)
substantially similar to a service plan offered by at least one mobile wireless service provider in an urban
area, and (2) offered at or below the rate for the matching urban service plan.9' We seek comment on this
proposal and any alternatives. Commenters offering alternatives to our proposal should address the
feasibility of implementing their alternatives in advance of the deadlines for parties to participate in
competitive bidding for Tribal Mobility Fund Phase I support. In addition, we request that commenters
describe the costs and benefits associated with the position they advocate.
56. For purposes of Tribal Mobility Fund Phase I, any rate equal to or less than the highest rate
charged for a matching service in an urban area would be reasonably comparable to, i.e., within a
ss USF/ICC Transformation Order, 26 FCC Red at 17810-11, 17815, paras. 446, 462.
86 See Auction 901 Procedures Public Notice, 27 FCC Rcd at 4778, para. 192.
87 47 C.F.R. 54.1005(b)(2)(viii). Recipients will be subject to this requirement for five years after the date of
award of support. See USF/ICC Transformation Order, 26 FCC Red at 17797, para. 385. Recipients must offer
service plans in supported areas that meet the public interest obligations specified in the Commission's Mobility
Fund rules and that include a stand-alone voice service plan. See 47 C.F.R. 54.1006.
88 See USF/ICC Transformation Order, 26 FCC Red at 17797, para. 385.
89 See id. at 17694, 17708-09, paras. 85, 114.
90 See id. at 17797, para. 385.
91 See Auction 901 Procedures Public Notice, 27 FCC Red at 4774-75, para. 180. See below for a discussion of how
"urban areas" should be defined for this purpose. We note that any provider that itself offers the same service plan
for the same rate in a supported area and in an urban area would be able to meet this requirement.
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United States. Federal Communications Commission. FCC Record, Volume 28, No. 4, Pages 2764 to 3699, March 18 - March 29, 2013, book, March 2013; Washington D.C.. (digital.library.unt.edu/ark:/67531/metadc177414/m1/34/: accessed September 25, 2018), University of North Texas Libraries, Digital Library, digital.library.unt.edu; crediting UNT Libraries Government Documents Department.