CAF II Auction Undercuts AT&T Voice Case by Showing USF Transition Progress, FCC Tells Court
The FCC updated a court on its USF transition to broadband-oriented subsidies, saying the shift will "ultimately relieve" incumbent telcos "of the federal high-cost voice service obligations at issue" in litigation. The commission declined to relieve AT&T and others of…
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their duty to provide unsubsidized voice service during the transition, in part "because the obligation is temporary," said an agency letter (in Pacer) to the U.S. Court of Appeals for the D.C. Circuit Tuesday in AT&T v. FCC, No. 15-1038. It noted actions to begin July 24 a Connect America Fund Phase II auction of subsidies for fixed broadband and voice services in high-cost areas traditionally served by price-cap ILECs but where the incumbents declined initial CAF II support offers. In areas where another winning bidder is authorized to provide CAF-backed service, the incumbents will be relieved of their voice duties, it said. Some areas may not receive winnings bids, but they "will be a fraction of the already small fraction of carriers' service areas" at issue in this case, and they "may be eligible for funding in a second auction for 'Remote Areas,'" the letter said. "Although the July auction will not entirely moot this case, it shows that the transition is proceeding apace." AT&T didn't comment Wednesday. At Oct. 26 oral argument, judges questioned the telco's lawyer more extensively than the FCC's about the company's legal challenge (see 1710260054).