Pai Praises Pennsylvania CAF II Auction Matching Funds, Meets With NRECA; Co-ops Cite Concerns
FCC Chairman Ajit Pai applauded Pennsylvania funding tied to broadband subsidies that the commission is auctioning. He said the upcoming Connect America Fund Phase II reverse auction is structured so states can match the federal funds. "Pennsylvania's Broadband Investment Incentive…
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Program does just this, increasing the incentive for providers to invest in Pennsylvania and bring new service to those without -- likely increasing the quality of service as well as the federal funding for rural Pennsylvania," Pai responded to Sen. Robert Casey, D, Rep. Mike Doyle, D, and four other Pennsylvania representatives, in an exchange posted Friday in docket 18-5. Pai noted the FCC plans to follow up next year with a Remote Area Fund auction for areas still without high-speed service -- "and we will ensure that any funding originally intended for rural Pennsylvania will be available to build there." The lawmakers wrote Pai Jan. 19 voicing concern about draft denial of a Pennsylvania petition seeking dedicated funding, which the commission adopted Jan. 30 (see 1801300032). Pai March 14 suggested Pennsylvania match CAF II auction support (see 1803260009), and Gov. Tom Wolf (D) subsequently announced up to $35 million in matching funds (see 1803200011). The National Rural Electric Cooperative Association welcomed FCC broadening of CAF II eligibility beyond telecom incumbents, noting at least 25 electric cooperatives filed short-form applications for the auction scheduled to start July 24. "Electric co-op participation might have been even higher if more flexibility in the bidding areas were allowed," said a NRECA filing on a meeting with Pai and an aide, posted in docket 17-182. It also cited concerns about "potential incumbent overreporting of broadband coverage," FCC coordination with the Rural Utilities Service that might limit RUS fund use, and a Broadband Deployment Advisory Committee's state model code set for a July vote.