FCC Gets Set to Adopt Legacy USF Phase-Out Plan for CAF II Auction Areas

The Federal Communications Commission will vote in Feb on proposed procedures for phasing out traditional Universal Service Fund (USF) support for areas served by price cap carriers in which the carrier did not accept funding through the Connect America Fund (CAF) to deploy broadband service. Those areas were subsequently made available for auction, with funding going to the network operator that offered to deploy broadband for the lowest level of support. The USF phase-out plan for CAF II auction areas also recommends how to phase out support for competitive eligible telecommunications carriers (CETCs) that have been receiving support for those areas. In determining how to allocate legacy support, also known as CAF Phase I frozen support, the FCC proposes to use the Connect America Cost Model (CAM) among those price cap carriers that declined CAF funding in the 2015 offer. Funding will be allocated based on the relative cost of serving each area served by those carriers.