FCC Exaggerated Broadband Benefits of CAF II Auction, CLEC/RLEC Consultant Says
The FCC hyped results of its Connect America Fund Phase II subsidy auction for broadband-oriented fixed services in areas traditionally served by large telcos, blogged CCG Consulting President Doug Dawson Tuesday, who has RLEC and CLEC clients. The overall results…
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were "positive," he said, but the claim 713,176 rural homes will get their first high-speed service (see 1808280035) is inflated by 190,595 through ViaSat's existing satellite broadband. He suggested $122 million in support for the company is a "huge government giveaway." Dawson is "scratching his head" at a claim that 53 percent of covered homes and businesses will be offered at least 100 Mbps. He assumes fiber will provide gigabit speed to 19 percent as claimed, but questioned wireless ISPs' ability to offer up to 100 Mbps ubiquitously: "The FCC exaggerated the results of the auction by claiming that any recipient capable of delivering 100 Mbps to a few customers will be delivering it to all customers." An FCC spokesman emailed: “CAF auction winners, including WISPs, are required to deliver the speeds that they have committed to deliver, and there are enforcement mechanisms in place to hold providers to this obligation, such as requiring the support to be returned." Regarding satellite providers, it's "important to note that CAF auction winners are also required to meet latency, price, and usage requirements to receive CAF funds," he said. "These requirements are in place to implement the statutory directive that rural consumers have access to reasonably comparable services at reasonably comparable rates.” Wireless ISP Association President Claude Aiken said in a statement: "I can’t address the specifics of any particular member’s proposal, but generally speaking, WISPA members go where nobody else will, and they bring new choices and competition everywhere. They know what rural America needs, and how to get it done. Fixed wireless is capable of providing up to gigabit broadband service and above, so I have no doubt that bidders who bid on the 100 Mbps service tier plan will live up to that promise." ViaSat didn't comment.