Chairman Wheeler Responses to Members of Congress Regarding Implementation of Phase II of the Connect America Fund

On December 23, 2014, Federal Communications Commission Chairman Tom Wheeler responded to letters from Sen John Hoeven (R-ND), Rep Jared Huffman (D-CA), and Rep Todd Rokita (R-IN) regarding the implementation of Phase II of the Connect America Fund.

Sen Hoeven wrote that increasing downstream speeds from 4 megabits per second to 10 should warrant an extension of Phase II's timeframe from 5 years to 10 years, and that providers must be given flexibility in high cost locations in order to efficiently use their available funds to reach the maximum amount of people. In response, Chairman Wheeler said that the "Connect America Fund Phase II Report and Order" extends the term of support for price cap carriers that accept the state-level commitment and gives those price cap carriers more flexibility in serving those areas.

Rep Huffman urged the FCC to create an inclusive process where all eligible providers, including electric cooperatives, have an opportunity to compete for support. Chairman Wheeler wrote that, "The FCC determined that we should adjust the offer of support for a Phase II state-level commitment based on the results of our rural broadband experiments. This approach will ensure that those areas where there is already a competitive provider willing to offer state-of-the-art broadband service will enjoy the benefits of competition as soon as possible."

Rep Rokita wrote the FCC, urging them to provide the necessary resources through Connect America Fund for providers to deliver faster speeds if the minimum broadband speed associated with CAF Phase II funding is increased. Chairman Wheeler responded, citing the "Connect America Fund Phase II Report and Order", the "Technology Transitions Order", and the "Connect American Fund Further Notice of Proposed Rulemaking" as steps the FCC has taken to show the FCC is determined that we should adjust the offer of support for a Phase II state-level commitment based on the results of our rural broadband experiments. He also said that the FNPRM sought comment on the proposal from rural carrier associations and other possible methods to establish a CAF for rate-of-return carriers within the current budget for the program, as well as how to provide rate-of-return carriers with a way to transition to new forms of support.