FCC Takes Next Step Toward $2 Billion Rural Broadband Expansion

The Federal Communications Commission took the next step toward launching an auction that will provide nearly $2 billion over ten years to expand high-speed Internet access to consumers and businesses in rural areas that are currently unserved by fixed broadband. This proceeding represents the first use of an auction by the FCC to allocate ongoing Connect America Fund support for fixed broadband and voice services in rural areas.

Use of this market-based “reverse auction” mechanism will enable the FCC to expand and support high-quality rural fixed broadband and voice services at a lower cost and to maximize the value of its investment. The auction will commence in 2018. The Public Notice seeks comment on the proposed application and bidding procedures for the auction, including how interested parties can qualify to participate in the auction, how bidders will submit their bids, and how the FCC will process bids to determine the winners and support amounts. This first-of-its-kind auction of support for fixed broadband and voice service is expected to attract parties that have never participated in an FCC auction. Recognizing that, the FCC’s Rural Broadband Auctions Task Force, along with the Wireline Competition Bureau and Wireless Telecommunications Bureau, plan to provide detailed educational materials and hands-on practice opportunities in advance of the auction.