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USTelecom, ITTA Cite Concerns About 'Location Gap' in FCC CAF II Auction Draft

USTelecom and ITTA voiced concerns about an FCC Connect America Fund auction draft order on the tentative agenda for commissioners' Jan. 30 meeting (see 1801090050). USTelecom focused on a reconsideration issue raised by some about a potential gap between location…

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commitments identified by a broadband cost model "and the number of locations that may actually exist on the ground in the CAF Auction eligible CBGs [census block groups]," said a filing posted Monday in docket 10-90 on a meeting telco officials had with an aide to Commissioner Brendan Carr. "Our due diligence effort revealed approximately 18% fewer locations in these CBGs. Because paragraph 25 of the Draft Recon Order would require auction winners to build out to the number of locations identified in the model regardless of the actual number of locations, a location deficit of this size could significantly reduce participation." There's "concern with Section III.D.1. of the Draft Order, regarding how to address the 'locations gap' in the [CAF Phase II] auction context," said ITTA on meetings it, NTCA, WTA and Vantage Point had with aides to Commissioners Mignon Clyburn and Jessica Rosenworcel. "Vantage Point found an overestimation of model-identified locations in 85 percent of 144 exchanges, with an average discrepancy of approximately 22 percent between model-identified locations and 'real-world' locations." Adtran said the draft "inaccurately describes" relief it requested, asking the FCC to correct the record. Hughes Network Systems reported on a meeting last week it said should have been submitted earlier due to an "inadvertent error." Kansas and Oklahoma rural telcos asked for actions to address a USF "shortfall" affecting cost-based rate-of-return telcos.