The Federal Communications Commission (“FCC”) took a major step forward on closing the “digital divide” in mobile broadband at its February meeting by unanimously adopting an Order resolving the remaining challenges to the Mobility Fund Phase II (“MF-II”) auction.  The order eases the letter of credit requirements and clarifies the collocation obligations for funding recipients, but generally preserves the MF-II auction budget, disbursement, and performance rules announced last year.  After clearing away these challenges, the FCC will focus on identifying the areas eligible for funding and conducting the auction later this year.

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At its August 2017 Open Meeting, the Federal Communications Commission (“FCC”) unanimously adopted an Order on Reconsideration and Second Report and Order (“Order”) outlining a process to challenge the FCC’s determinations of which areas will receive financial support in the upcoming second phase of the Mobility Fund.  The Mobility Fund provides financial support to wireless service providers to maintain and extend mobile broadband and voice services in rural and other underserved areas.  As we previously reported, the FCC plans to give out over $4.5 billion in Mobility Fund Phase II financial support over the next ten years to expand 4G LTE coverage across the country.  The Order generally mirrors the discussion draft released last month, except that parties now have more time to submit challenges.  While the FCC plans to provide additional details about the challenge process over the next year, carriers interested in participating in the Mobility Fund Phase II should review the Order carefully and consider their challenge strategies.

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As part of its continued focus on accelerating broadband deployment, the Federal Communications Commission (FCC) eased restrictions on its universal service support for deployments by rate-of-return carriers in rural and other high-cost areas.  In a unanimous Order on Reconsideration issued at its April meeting, the FCC found that the restrictions drove providers to exclude high-cost areas from planned deployments, “stranding” communities without broadband.  Rate-of-return carriers will be able to receive support for broadband deployments up to certain thresholds, so long as they cover any additional expenses themselves.  Rate-of-return carriers should factor in this potential support when assessing broadband deployment plans or expanding existing buildouts.  As for providing support in areas served by price cap incumbent carriers, the FCC faces challenges to its recent order on instituting the Connect America Fund (CAF) Phase II auction, under which it will provide support to deploy broadband in unserved areas where the price cap carriers did not elect receive support.  Comments on the CAF challenges are due on May 18, 2017, with replies due on May 29, 2017.

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iStock_000006131068MediumOn February 23, 2017, during the second open meeting under Chairman Ajit Pai, the Federal Communications Commission (FCC or the Commission) unanimously approved an order launching the long-awaited second phase of the Mobility Fund.  The Mobility Fund offers financial support to service providers to preserve and extend mobile broadband and voice services in unserved and underserved areas.  The FCC’s order will provide up to $4.53 billion over the next decade to expand 4G LTE coverage to areas currently lacking that level of service, with $340 million reserved for Tribal areas.  This order is one component of Chairman Pai’s focus on bridging the digital divide.  The full text of the FCC’s order and further notice of proposed rulemaking has not been released.
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