Joan Engebretson

One of the most interesting aspects of the recently-completed Connect America Fund (CAF) II auction is the strong showing by smaller, non-traditional service providers. The second biggest winner, for example, was Wisper — a company little known outside southern Illinois and parts of neighboring states, where the company offers fixed wireless broadband, primarily in rural areas, including some areas the company has served for more than a decade.

The Federal Communications Commission will vote later in Oct on rule changes for the upcoming auction of spectrum in the Citizens Broadband Radio Service (CBRS) band. According to a draft order released Oct 2, the proposed CBRS auction rules call for licenses to be awarded by county for a period of 10 years with the option to renew. The FCC is proposing lengthening license terms in the CBRS (3.5 GHz) band, "modestly" increasing the size of those geographic licenses--the plan is to auction the licenses sometime in 2019-and allowing them to be renewed.

Four telecommunication groups have come together to urge the Federal Communications Commission to increase the Universal Service Fund (USF) budget to at least $2.4 billion for 2018 for the high-cost portion of the program. The request took the form of a letter from ITTA – The Voice of America’s Broadband Providers, USTelecom – The Broadband Association, NTCA – The Rural Broadband Association and WTA – Advocates for Rural Broadband.

With the Connect America Fund (CAF) Phase II auction completed, the Federal Communications Commission’s next CAF responsibility will be to establish plans for the CAF remote area auction, which aims to help bring broadband to remote areas not currently addressed through the CAF program. And FCC Commissioner Michael O'Rielly is questioning whether there is sufficient funding for that auction. He said at the Sept 26 FCC meeting that the CAF II auction results suggest that $5-7 billion dollars would be needed to bring broadband to locations that will remain unserved after the CAF II auction.

Just over 100 Connect America Fund II auction winners are getting set to deploy broadband service to unserved rural areas for which they won funding. Today we take a deeper dive into the auction results and consider the long-term impact that the CAF II winners may have on the communities that they’re moving into.

The proposed Universal Service contribution factor will exceed 20%. It will be 20.1% for the fourth quarter of 2018, according to a new Federal Communications Commission public notice. An FCC spokesperson confirmed that it is the highest ever. And it means that just over one-fifth of every dollar that users spend on interstate and international telecom services (essentially long-distance voice services) will go toward the Universal Service Fund (USF) program. The USF contribution factor has been creeping up for years. Back in 2012, the contribution factor had reached a then-whopping 17.4%.

An interview with Rise Broadband co-founder Jeff Kholer. Rise Broadband is the largest US wireless Internet service provider (ISP). 

Analytics and consulting firm GlobalData is recommending that telecommunication companies and webscale companies work together to develop communications services based on balloons and drones. Using atmospheric satellite balloons and drones in telecom could support emergency communications and could provide coverage in unserved areas, GlobalData said. Some US carriers, including AT&T, have used or are looking at using drones in telecom to act as cellsites during service outages when traditional cellsite infrastructure is damaged.

When 21 rural electric cooperatives decided to submit a joint bid to receive funding for gigabit broadband in the Connect America Fund (CAF) II auction, their reason was a simple one. Consultants helping with bids were only allowed to work with a single bidder — and submitting a joint bid as the Rural Electric Cooperative Consortium enabled multiple co-ops to work with consulting firm Conexon. Telecompetitor talked with Jonathan Chambers, one of two partners who created Conexon with the goal of seeing fiber brought to rural America.

Electric cooperative gigabit is becoming more commonplace, as news from Aug 28 about four electric cooperative gigabit deployments illustrates.