Today: Open Internet Enhanced Transparency Rule, CAF II Auction, Mobility Fund Phase LL, FairPoint Communications/Consolidated Communications Merger
FCC Open Internet Enhanced Transparency Rule Exemption
At its February 23, 2017, meeting the FCC voted to relieve broadband providers with fewer than 250,000 connections from compliance with the Open Internet Enhanced Transparency Rule requirements. The waiver is both retroactive and prospective and will be in effect for five years, beginning from January 17, 2017 (the date the rule became effective). Smaller providers will still be required to provide consumers with the information that has been required since 2010 to assist them in making an informed choice of broadband providers.
FCC CAF II Auction
The FCC voted on an order setting additional rules for the Connect America Fund Phase II reverse auction that will provide nearly $2 billion for rural deployment over the next decade. The Order balances incentives for deployment of higher-quality services with cost efficiencies by establishing auction “weights” that credit bids by companies offering more robust service. The Order establishes bidding weights to compare bids across performance tiers set last year. These weights account for the value of higher speeds, higher usage allowances, and low latency. However, formula used to rank bidders balances these performance goals with the need to reach as many consumers as possible within the FCC’s budget for rural universal service support. The next steps for the Phase II auction include seeking comment on auction mechanics. After consideration of the record developed, the FCC will vote on final auction details and set specific deadlines and dates.
FCC Mobility Fund Phase II
The FCC voted to expand and preserve 4G LTE mobile coverage across rural American and in Tribal lands by providing $453 million in annual universal service support through the FCC’s Mobility Fund Phase II for a period of ten years. Eligible areas include any portion of a census block not fully covered by unsubsidized 4G LTE coverage with a minimum advertised download speed of 5 Mbps. Eligible areas to be identified using carrier-certified coverage data (FCC Form 477). A robust challenge process, the parameters of which will be determined after conclusion of an additional rulemaking proceeding, will give all interested parties the opportunity to bring additional data to the FCC before the eligible areas list is finalized. The Order addresses the phase-out of legacy CETC support from the FCC’s Universal Service Fund, commencing the first day of the month following the close of the auction, with unneeded CETC support ending after two years.
The item also sets service requirements (median data speeds of 10/1 Megabits per second (Mbps); latency of less than 100 milliseconds (ms); and rates that are reasonably comparable to urban rates) and establishes an auction framework.
Maine FairPoint/Consolidated Merger
The PUC extended the schedule to review the transaction between FairPoint Communications and Consolidated Communications Holdings, Inc. See the Regulatory Mix dated 1/16/17 and 1/10/17. Under the revised schedule, responses to data requests are due March 1st, testimony from intervenors is due March 14th, and the last day for discovery is March 21st. A technical conference will be held on April 3rd and April 24th. A hearing in the case is scheduled to be held on May 4th.
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The Regulatory Mix, TMI’s daily 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 a TMI Briefing.
