FCC Commissioner O'Rielly Letter to USAC on Potential E-rate Overbuilding

Federal Communications Commission member Michael O’Rielly has a few questions for the Universal Service Administrative Company. He is seeking assistance in identifying and eradicating the use of E-rate funds to overbuild existing broadband networks. Commissioner O’Rielly asks USAC to answer 10 questions no later than Feb 17.

1. How many E-rate applicants have requested funding to self-construct networks?
2. How many of these requests are for overbuilds?
3. Do the providers who are being overbuilt receive Universal Service Fund support?
4. Do any of the applicants propose to overbuild their own networks?
5. How many self-construction requests were denied on cost-effectiveness grounds?
6. How many self-construction requests have been approved?
7. Please detail USAC’s procedures to determine if these requests are cost-effective.
8. Please provide USAC materials that explain the self-construct option.
9. Please provide USAC materials concerning back-up networks.
10. Is it USAC’s view that E-rate funds may be used to build backup networks? If so, please point to provisions in FCC orders.