FCC Rural Broadband Trials: Funding to Connect Rural America Panelist: Jonathan Chambers, Chief Office of Strategic Planning and Policy Analysis Federal Communications Commission Moderator: Edyael Casaperalta, coordinator Rural Broadband Policy Group Center for Rural Strategies

Rural Broadband Trials Webinar Edyael Casaperalta Center for Rural Strategies Edyael joined Rural Strategies after serving as a consultant for our efforts in the Gulf Coast in the fall and winter of She directs our telecommunications policy efforts and coordinates the Rural Broadband Policy Group, a national coalition of rural groups advocating for policies that increase access to fast, affordable, and reliable Internet service in rural areas. She also advices the Immigration and Rural Communities Working Group of the National Rural Assembly. Edyael received a B.A. from Occidental College in Los Angeles and a master's degree in Latin American Studies at Ohio University in Athens.

Rural Broadband Trials Webinar Jonathan Chambers Chief of the Office of Strategic Planning and Policy Analysis Mr. Chambers has been at the FCC since May 2012, first as senior adviser and then as acting chief of the Office of Strategic Planning and Policy Analysis (OSP). He previously served in government from 1987 to 1994, as the Republican staff director of the Senate Committee on Commerce, Science and Transportation, legislative director for Sen. John C. Danforth (R-Mo.) and as a professional staff member to the U.S. Senate Select Committee on Intelligence. Chambers’ private sector experience has involved roles in law, public policy and strategic planning working for wireless, cable, and Internet service providers in the United States and in Europe.

Connect America Fund: Rural Broadband Experiments 4

Background Adopted as part of Tech Transitions Order and Further Notice (FCC 14-5, released January 31, 2014) Invites proposals to bring advanced services to rural America with support from Connect America Fund Focus on building “robust last-mile broadband” in high-cost areas lacking Internet access at 3 Mbps/768 kbps – Both incumbent price cap and rate-of-return carrier areas Seeks further comment on implementation issues 5

Purpose of Rural Broadband Experiments Intended to gather information about – 1.Interest in extending fiber (where and for how much support) 2.Characteristics of areas where providers would prefer to deploy wireless, and what types of wireless offerings that residential consumers would find acceptable 3.Impact on community anchor institutions 4.How to work cooperatively with States, localities, and Tribal governments 6

Overview of Timeline Wireline Competition Bureau to publish list of census tracts potentially eligible for experiments Expressions of interest due on March 7 th Comments on open issues (likely March/April) After reviewing record, FCC will then adopt budget and criteria for selecting experiments After second FCC order, will solicit formal project proposals FCC expects to select small number of projects later in

Two-Stage Application Process 1.Non-Binding Expressions of Interest Letters due March 7 th – Filed electronically in WC Docket No Might include, but not limited to – – Submitting Entity – Proposed Service Area – Technology to be Deployed and Proposed Services – Amount and Type of Funding (One-Time or Recurring) 2.Formal Proposals Due shortly after FCC adopts budget and selection criteria in a future order, possibly within 60 days of that order Expression of interest not a precondition for submitting formal proposal 8

Eligible Areas for Phase II Experiments Proposals to serve census tracts Funding only for locations in eligible census blocks within census tract: – Census block unserved with 3/768 Internet access – Average cost per location is at or exceeds likely fund threshold in Connect America cost model Challenges to eligible areas will be entertained after tentative selection 9

Additional Rules for Phase II Experiments Provider Eligibility Requirements – Encourage participation from wide range of entities Identify who wants to build in rural America ETC designations may be obtained after tentative selection May be consortia, with lead ETC Term of support – Expect funding will not exceed amount of model-calculated support associated with that area Support may be one-time or recurring Recurring support may be up to 10 years 10

Areas Served by Rate-of-Return Carriers Expressions of interest also due March 7 Will not alter current support for incumbent carriers; any experiment funding would be additive Open to all potential providers Further Notice seeks additional comment: – Propose same two-stage application process as in price cap areas – Propose eligible areas limited to high-cost census blocks lacking broadband, subject to challenge process – Propose experiments be at census blocks not census tracts 11

Additional Issues for Comment (Further Notice) Budget for Rural Broadband Experiments – $50-$100 million or some other amount? – Allocation of funding between one-time and recurring support? – Allocation of funding between price cap and rate-of-return areas? Criteria for Experiments – Seek comment on potential selective criteria and how to implement: 1.Cost effectiveness of project – how to measure? 2.Whether applicant proposes to build robust, scalable networks 3.Whether applicant proposes innovative strategies to leverage non- Federal governmental sources of funding 4.Whether applicants propose to offer high-capacity connectivity to Tribal lands – How should mechanics of scoring system function? Whether to modify approach in rate-of-return areas 12

Further Information New “Rural Broadband Experiments” webpage: – Also linked to the Connect America home page: For further information, contact: – Carol Mattey, Deputy Chief, Wireline Competition Bureau (WCB) – Jonathan Chambers, Chief, Office of Strategic Planning and Policy Analysis (OSP) – Alexander Minard, Acting Deputy Division Chief, WCB, Telecommunications Access Policy Division 13

Expression of Interest DUE MARCH 7th Include: 1.Submitting Entity 2.Proposed Service Area 3.Technology to be Deployed and Proposed Services 4.Amount and Type of Funding (One-Time or Recurring) File electronically in WC Docket No

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