FCC Mobility Fund Plans Call For Two Year CETC Support Phase-out

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Wireless carriers, known as competitive eligible telecommunications carriers (CETCs), who currently receive Universal Service funding in areas that will no longer be eligible for support will have that funding phased out over a two-year period beginning one month after completion of an upcoming mobility fund reverse auction. Details about the CETC support phase-out are included in an Federal Communications Commission order adopted Feb 23 and released to the public this week.

Areas are ineligible for funding if at least one company offers LTE service in the area at speeds of at least 5/1 Mbps without CETC support. The FCC estimates that about $300 million of the $483 million in USF funding that currently goes to wireless carriers, excluding Alaska, is for areas that will not be eligible for support. The FCC was not persuaded to extend the phase-out period to five years, despite concerns expressed by some wireless carriers that failure to do so could leave some areas without service, at least for some time. That would occur if the winning bidder does not currently offer service but instead must build a new network and if current carriers opt to pull out of the market when funding is cut back or cut off. The Rural Wireless Association also argued that, based on previous FCC documents, CETCs had expected to continue to receive funding for a longer period. Companies subject to the two-year CETC support phase-out will receive two-thirds of their traditional support level in the first year and one-third in the second year.


FCC Mobility Fund Plans Call For Two Year CETC Support Phase-out