American Cable Association To FCC on CAF II Auction: Simplify

The American Cable Association says the Federal Communications Commission has to simplify its Connect America Fund II auction framework if it wants to get the most fiscal bang for the buck.

The largest incumbent price cap carriers--AT&T, Verizon, CenturyLink--declined about $2 billion in CAF II support for building out broadband to high-cost, generally rural, areas, in 20 states, so the FCC is opening that pot of money up to competitors, like cable broadband providers, via auction. All that money is coming from the Universal Service fund for high-cost, mostly rural, areas for which there is no business case for building out broadband absent that subsidy. ACA says the proposed auction design is "inordinately" complex, which will at best deter and at worst thwart, participation by many, including the "small town cable operators" FCC Chairman Ajit Pai has said he wanted to encourage to participate.