FCC CAF II Awards

The FCC announced it is ready to authorize Connect America Fund Phase II auction (Auction 903) support for the 1,122 Auction 903 winning bids identified on Attachment A.  To be authorized to receive the total 10-year support amounts listed the listed long-form applicants must submit acceptable irrevocable standby letter(s) of credit and Bankruptcy Code opinion letter(s) from their legal counsel for each state where they have winning bids that are ready to be authorized in accordance with the instructions provided by the FCC prior to 6:00 p.m. ET on Monday, August 5, 2019. FCC staff is reviewing information that is submitted with long-form applications on a rolling basis.  Accordingly, a long-form applicant that was not included in this Public Notice but that has submitted all of the required information will be included in a future Public Notice once staff finalizes its review of the long-form application.

The FCC also announced that Crocker Communications, Inc. had notified it that it does not intend to pursue any of its winning bids, which were both in Massachusetts.  Accordingly, support will not be authorized for Crocker’s relevant winning bids and Crocker has been deemed in default and subject to forfeiture.  The matter was referred to the FCC’s Enforcement Bureau.

The FCC reiterated that it expects all bidders to act in good faith and is taking voluntary defaults very seriously. In the event of an auction default, a base forfeiture per violation of $3,000 may be imposed.  So that this base forfeiture amount is not disproportionate to the amount of a winning bidder’s bid, the FCC has limited the total base forfeiture to five percent of the bidder’s total assigned support for the bid for the support term.  Notwithstanding this limitation, the total base forfeiture will also be subject to adjustment upward or downward based on the criteria set forth in the FCC’s forfeiture guidelines.  A violation is defined as any form of default with respect to the minimum geographic unit eligible for bidding, in this case each census block group assigned in a bid.  In addition, any applicant that failed to submit audited financial statements as required may also be subject to a base forfeiture of $50,000, which will be subject to adjustment upward or downward as appropriate based on criteria set forth in the FCC’s forfeiture guidelines.

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The Regulatory Mix Today: FCC CAF II Awards, FCC Process Modernization

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FCC Process Modernization

FCC Chairman Ajit Pai announced he has presented his colleagues with two new proposals to modernize and streamline the agency’s processes.  Under the first, the FCC would continue its move  toward electronic filing and correspondence by fully transitioning the Universal Licensing System from paper to electronic format. The second proposal would expedite the FCC’s hearing processes by expanding the use of written hearings (i.e. hearings conducted without live testimony).

“As the communications marketplace is being transformed by the digital revolution, we must continue to modernize our own operations.” said Chairman Pai. “That’s why I’m introducing two new proposals to update and streamline our processes for the digital age. By transitioning more records and communications from paper to electronic format, we can save money and increase our efficiency. And by streamlining our hearing rules, we can resolve disputes more quickly, which will benefit the private sector as well as the Commission. I hope that my colleagues will join me in supporting these good-government initiatives.”

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The Regulatory Mix, Inteserra’s blog of telecom related regulatory activities, is a snapshot of PUC, FCC, legislative, and occasionally court issues that our regulatory monitoring team uncovers each day. Depending on their significance, some items may be the subject of an Inteserra Briefing.