The Connect America Fund Phase II and Mobility Funds Phase II Auctions

Transcription

1 The Connect America Fund Phase II and Mobility Funds Phase II Auctions National League of Cities March 11, 2018

2 Overview of the CAF II Auction o Will award up to $1.98 billion over 10 years o Support for broadband and voice o Reverse auction o Winning bidders must become ETCs and submit a Letter of Credit after the auction 1

3 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 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 2

4 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 3

5 CAF II Auction Which areas will be eligible for support? 4

6 CAF II Eligible Areas Map and list on FCC website: 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 5

7 CAF II Auction How Much Support? 6

8 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 $ per location 7

9 CAF II Auction What services can be supported? 8

10 CAF II Auction Service Tiers 9

11 CAF II Auction Bidding 10

12 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 11

13 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-tohead based on percentage of the reserve price Support amounts will be adjusted for service tier 12

14 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 ). 13

15 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 14

16 CAF II Auction Post-Auction 15

17 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 16

18 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. 17

19 Location Service Obligations Example in Michigan Census Block Groups (CBGs) Won in Michigan Number of Eligible Census Blocks Locations Determined by the Model Actual Locations On The Ground TOTAL 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

20 CAF II - More Information Additional information available at questions to auction903@fcc.gov 19

21 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 20

22 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,

23 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 22

24 Mobility Fund Phase II Auction More Information MF II Webpage: Initial eligible areas map: 23

25 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 24

26 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 25

27 National Broadband Map The map can be accessed at: 26

28 . Questions? 27