FCC Seeks Comment on Extending Waiver of Letter of Credit Rules for Connect America Fund Phase II Auction

Recognizing the impact of the coronavirus (COVID-19) pandemic on financial markets and on the ability of providers to successfully conduct their operations, the Federal Communications Commission's Wireline Competition Bureau (Bureau) waived the FCC’s letter of credit (LOC) rules for Connect America Fund Phase II auction (Auction 903) and Rural Broadband Experiments (RBE) support recipients in 2020 and 2021. Recipients of support from both programs were permitted to comply with the less extensive letter of credit rules established by the FCC for the Rural Digital Opportunity Fund (RDOF). In December 2022, the Bureau, while acknowledging the improving financial conditions that existed throughout the Nation, extended that waiver, on a limited basis, until the end of 2023. From June 2020 through December 2022, all Auction 903 support recipients were permitted to comply with the RDOF LOC rules. In 2023, however, because of the improvement in financial conditions, the Bureau concluded that a waiver of the Auction 903 LOC rules was only appropriate for Auction 903 support recipients that had met each of their previous program deadlines. Now the Bureau seeks comment on the merits of extending beyond December 31, 2023 the waiver of the letter of credit rules for Auction 903 support recipients that have met each of their deadlines and whether, and to what extent, the pandemic or other factors continue to affect the operations of telecommunications services providers and the condition of financial markets and supply chains. Are there still unique financial challenges that providers are facing that interfere with their ability to obtain the letters of credit required under the Auction 903 rules? Are there additional dynamics now that may not have been present when the FCC first granted the letter of credit waiver? If so, the FCC encourages commenters to provide specific details about the experiences they face and how these have or have not changed since the original waiver was granted.

Interested parties may file comments on or before September 11, 2023 and reply comments on or before September 26, 2023.9 All filings should refer to WC Docket Nos. 10-90, 14-58, and AU Docket No. 17-182.