1. Federal Policy Update “Fins to the left, fins to the right...”
Illinois Telecommunications Association
Annual Convention
June 2018
Federal Policy Update
“Fins to the left, fins to the right...”
Eric Keber
Vice President of Government Affairs
WTA – Advocates for Rural Broadband

2. Universal Service Fund – High Cost Program
Order of December 2018 – Where are we now?
March 25 – FCC extended additional ACAM support to companies already receiving ACAM support.
May 2 - FCC extended offers of ACAM support to 516 companies.
FCC estimates if all carriers opt in to the offer, they will deploy 25/3 Mbps broadband to over 1.1 million homes and businesses.
Original deadline: June 17, but was extended to July 17 because the FCC found errors in 36 offers that it then had to recalculate
FNPRM Issues
Competitive areas – should USF be phased down in areas where a competitor provides voice and 25/3 broadband?
How to minimize BCM uncertainty due to CBOL conversions
Tribal areas served by companies that don’t select ACAM – should there be a tribal factor like there is for ACAM?

3. Universal Service Fund – High Cost Program
Broadband Network Performance Testing
Applies to all recipients of USF with CAF Phase II, ACAM, Rural Broadband Experiments, and Alaska Plan build-out obligations as well as cost-based RLECs with build-out requirements
RLECs must conduct speed and latency testing every quarter for a week (7 days) from 6pm to midnight.
RLECs must test up to 50 CAF-supported subscriber locations per broadband service tier per state, with lesser requirements for RLECs with fewer than 500 locations per state.
Testing was set to begin 3Q19 with first results submitted to USAC in July 2020.
Delayed to 1Q20

4. Universal Service Fund – High Cost Program
Broadband Network Performance Testing
WTA Application For Review – Filed Sept. 19
Delay rule for two years for small providers
No penalties for problems beyond control of the providers
Reduce testing frequency to once per year
Reduce number of testing locations to 10 to 15 per state
Provide a period of time for carriers to address problems in network before loss of USF

5. Universal Service Fund – High Cost Program
CAF Phase II Auction
Auction took place from July 24 to August 21
103 winning bidding in 24 states will receive $1.4 billion over ten years to connect 713,000 locations
Broadband network testing will ensure winners complete the job

6. Assigned Annual Support
Universal Service Fund – High Cost Program
CAF II Winners in Illinois
Winning Bidder
Assigned Annual Support
Assigned Locations
AMG Technology Investment Group LLC
$35 million
15,022
Wisper ISP
8,907
Benton Ridge Telephone Co.
$24 million
6,041
Illinois Electric Co-op
$2.2 million
804
Shawnee Communications
$1.7 million
567
Wabash Independent Networks
$669k
359
ClearSKY Systems
$127k
207
ArisWave Consortium
$147k 72
LDT Broadband
$19k
145

7. Universal Service Fund
Proposed Cap on Overall Fund
May 31 – FCC released NPRM that proposes to cap USF at $11.2 billion
“By explicitly linking the expenditures in multiple USF programs through the overall cap, we seek to promote a robust debate on the relative effectiveness of the program.” – NPRM
“[The FCC has increased funding all four programs] and it has done so without the constraints of a topline budget, and in turn, without considering the effect of spending decisions for the whole USF enterprise and how to fairly and efficiently allocate scarce funds among the four programs. The proposed budget of $11.42 billion is more than $3 billion above current program disbursements and would be indexed to keep pace with inflation.”
Commissioner Mike O’Reilly

8. Universal Service Fund
Proposed Cap on Overall Fund
“The cap is arbitrary because it has no relation to the actual nature of the internet inequality problem in this country. How can we cap the amount of money needed to support broadband when we don’t even know the number and locations of the Americans that still need to be connected?...Instead of imposing an arbitrary cap, the FCC should be improving its data collection and analysis capabilities so it can understand the true nature of the problem and measure its progress.”
- Commissioner Geoffrey Starks
“I do not support an approach that fosters the universal service hunger games.” - Commissioner Jessica Rosenworcel

9. Universal Service Fund
Contributions Factor

10. USF High Cost Fund
Assessable Revenues

11. Other Issues Mapping Broadband Infrastructure/LIFT Act
House Democrats introduced legislation to provide $40 billion for national reverse auctions
Any area with less than 25/3Mbps is “unserved”; more than 25Mbps and less than 100Mbps is “underserved”
Rural Broadband Network Advancement Act
H.R – assess large edge providers to help pay for rural networks
RUS Re-Connect Pilot Program
E-Rate Overbuilding
Supply Chain Security
Video Policy Reform

12. Questions?
Contact: