the connect america fund phase ii and mobility funds phase ... · caf ii timing / next steps...
TRANSCRIPT
The Connect America Fund Phase II and
Mobility Funds Phase II Auctions
National League of Cities
March 11, 2018
Overview of the CAF II Auction
oWill award up to $1.98 billion over 10
years
oSupport for broadband and voice
oReverse auction
oWinning bidders must become ETCs
and submit a Letter of Credit after the
auction
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CAF II Timing / Next Steps
Procedures PN – January 2018
Final eligible areas – February 2018
Bidder education Application workshop – March 14, 2018
Application filing window: March 19-30 Initial Review & Status PN
Resubmission Window
Qualified Bidders PN
Mock auction: Week of July 16
Bidding begins July 24
Closing PN
Long-Form filing window
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CAF II Auction Application Procedures
Two-step process: • Short-form application before auction
• Long-form application for winning bidders to receive support
Short-Form will collect:1. State(s), technology/ies and service tier(s) for which an
applicant intends to bid
2. Technical information (e.g., operational info, spectrum access)
3. Financial information (audited or unaudited)
• 5-point scale
• Low-scoring applicants subject to more in-depth review of
their finances
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CAF II Auction
Which areas will be
eligible for support?
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CAF II Eligible Areas
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Map and list on FCC website:
https://www.fcc.gov/maps/caf2-auction-final-areas/
• Eligible census blocks
grouped into census block
groups (CBGs) for bidding
• 30k CBGs, 210k blocks,
975k locations
• Where price cap carriers
declined model support and
other areas
• Each CBG has reserve price
and number of locations
CAF II Auction
How Much Support?
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CAF II Auction Reserve Prices
• Each CBG has a reserve price– Maximum amount of support that can be
awarded for an area
– Based on Connect America Cost Model
• Cap on Extremely High Cost blocks of
$146.10 per location
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CAF II Auction
What services can be
supported?
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CAF II Auction Service Tiers
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CAF II Auction
Bidding
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CAF II Auction Reserve Prices and Bidding
• Bids in the auction will be expressed as a
percentage of the reserve price for each area
• In each round, bidders are asked if they will
provide service to an area at a percentage of an
area’s reserve price, which will decrease in each
round
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CAF II Auction Reserve Prices and Bidding
• Areas winning support will be those where bidders
accept the lowest percentages of the area’s reserve
price
– Lowest bidder within each winning area will receive
support
• Different service tiers are not considered in
determining winners
– Bidders with different service tiers compete head-to-
head based on percentage of the reserve price
– Support amounts will be adjusted for service tier
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CAF II Auction Reserve Prices and Bidding
• No area will receive support exceeding its
reserve price
• No support will be awarded until total
implied support for all eligible areas is at or
below the auction’s budget (the auction has
“cleared”).
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CAF II Auction Close
• The auction ends after
– the budget has cleared and
– there is no area with more than one bid
at the base clock percentage
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CAF II Auction
Post-Auction
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CAF II Auction
• After Bidding Closes:
– Commission announces winners by CBG,
service tiers and latencies
– Winners file Long-Form Applications
• More detailed technical showing
– Commission processes LF Applications and
authorizes support
– Support begins
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Service Obligations
• Winners must deploy service to locations in
the CBG – 40% of the number of locations by year 3
– Additional 20% in each subsequent year
– 100% of locations by year 6
– Measured at state level
• Data on locations served filed with USAC
• Rates must be reasonably comparable to
rates for similar services in urban areas.
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Location Service Obligations
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Census Block Groups (CBGs) Won in
Michigan
Number of EligibleCensus Blocks
Locations Determined by
the Model
Actual Locations
On The Ground
261450101001 2 5 3
261450101002 4 32 35
261450101005 1 1 1
261450108003 1 3 5
261450111001 3 5 4
261450112002 1 29 27
TOTAL 12 75 75
SERVICE OBLIGATION = 75 locations across 12 blocks
• If actual is less than model, can use true-up process
• Guidance on what constitutes a “location” can be found in DA 16-1363
Example in Michigan…
CAF II - More Information
Additional information available at
www.fcc.gov/connect-america-fund-phase-ii-auction
Email questions to [email protected]
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Mobility Fund Phase II Auction
• Earlier in process than CAF II – MF II Auction
expected in 2019
• MF II will auction support for 4G LTE in eligible
areas
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Mobility Fund Phase II Auction
• MF II eligible areas are being determined
through a two-stage process:
– 4G LTE data collection
• Providers submit coverage data meeting
specification
• Completed January 2018 – Aggregate Map
Released February 2018
– Challenge process
• Five-month period in which providers, local
governments, others [with waiver], can challenge
the data in the initial map with speed-test data
• Commences March 29, 2018
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Mobility Fund Phase II Auction
MF II Auction Next Steps– Challenge Process – through August 27, 2018
– Commission adjudication of challenges
– Final eligible areas
– MF II Auction Procedures – comment cycle
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Mobility Fund Phase II Auction
More Information
MF II Webpage:
https://www.fcc.gov/mobility-fund-phase-2
Initial eligible areas map:
www.fcc.gov/maps/mobility-fund-ii-initial-eligible-areas-map
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National Broadband Map
The FCC has recently completed an update and
modernization of its National Broadband Map
– Based on FCC Form 477 fixed service deployment
data
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National Broadband Map
• Features in the National Broadband Map
include:
– Deployment summaries available for seven different
geographical types: nation, state, county, congressional district,
city or town (census place), Tribal area, and Core-based
Statistical Area (such as New York-Newark-Jersey City NY-NJ-
PA)
– Deployment comparisons between geographic areas
– Satellite imagery map overlay that shows buildings, roads, and
geography
– Graphs that show what fraction of an area’s population has
access to broadband at a given speed
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National Broadband Map
The map can be accessed at:
https://broadbandmap.fcc.gov
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Questions?
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