Michigan State Lawmakers, Utilities Urge FCC To 'Future Proof' CAF II Reverse Auction
The FCC shouldn't simply award subsidies to the lowest bid in a reverse auction for broadband-oriented Connect America Fund Phase II support, said nine southwestern Michigan state legislators in a letter Tuesday in docket 10-90. The commission should encourage "prudent…
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investments that stand the test of time" not "investments in substandard technologies with a short shelf life," they said. A "tiered or weighted auction" is needed to help ensure the best technologies are advanced, they said. "By focusing on future proof technologies, the FCC could advance beyond ongoing subsidies and instead invest once in scalable networks. This would free up capital for projects across America that ensure speeds and capabilities that stretch far beyond the modest rural standard of 10 Mbps download and 1 Mbps upload." The legislators said CAF II could stimulate competition from rural electric cooperatives and other nontraditional providers, which are deploying gigabit-capable networks. Officials from Midwest Energy Cooperative, Ozarks Electric Cooperative and the Utilities Telecom Council suggested the FCC adopt certain auction criteria, according to a UTC filing on a meeting they had with an aide to Commissioner Mike O'Rielly. "We explained that we support minimum eligibility requirements and that the criteria for the reverse auction should set the bar high so that the Commission is funding future-proof broadband networks that would promote economic growth, better education and improved health care in rural unserved communities," said the filing. It also urged the FCC to fund broadband networks that promote E-rate school and library support, mobile wireless and other commission priorities. UTC, joined by the National Rural Electric Cooperative and NTCA, recently urged the FCC to adopt a minimum initial speed requirement of 25/3 Mbps (down/up), with networks capable of providing 100/25 Mbps, having no more than 100 milliseconds of latency and at least a 100 GB monthly usage allowance. They said they were concerned that criteria proposed by Hughes Network Systems and others "would water down the minimum requirements," leaving rural consumers with broadband access that's not reasonably comparable to urban broadband, a statutory mandate.