Billion Dollar-Plus FCC CAF II Auction Begins

The Federal Communications Commission July 24 began auctioning billions in broadband buildout subsidies to cable operators and other competitors to the incumbent telecommunication companies. The FCC gave incumbent telecommunication companies the first shot at its Connect America Fund (CAF) subsidies to deliver fixed broadband to rural communities. Now it is giving competitors a shot at those funds in round two (CAF II), though incumbents can jump back in as well. Round one of the Connect America Fund Phase II Auction (auction 903) began at 10 a.m. Rounds are six hours, and bidding is currently every other business day, which means the next round will be July 26, then July 30. The FCC could shorten rounds and increase the frequency to goose the bidding, as it did with the broadcast incentive auction, which was also a reverse auction. Ten price cap carriers got first crack at the subsidy money in 2015. What they left on the table is being offered to rural electric cooperatives, fixed wireless providers, cable companies, and satellite providers (the incumbent local exchange carriers who passed on it in 2015 can also bid). Cox, Altice USA, Verizon, Frontier and Cingular have all been approved to bid.