Industry Argues Fate of Unclaimed Connect America Funds

Several Washington (DC) sources say the Federal Communications Commission is circulating a draft notice of proposed rulemaking about what to do with the $185 million in Connect America Phase 1 funding that has not been claimed, although none were familiar with the details in the proposed NPRM. According to widely circulating rumors, the NPRM includes a proposal that would direct the money toward incumbent carriers.

Those were the carriers toward whom the funding initially was directed, but several of them opted not to accept it under the terms initially specified. At least one wireless carrier association has argued against directing the unclaimed funding to the telcos. “Wireless carriers offer the best opportunity to bring much needed broadband services to unserved and underserved areas, and it only makes sense for the FCC to consider proposals from wireless carriers,” said Steven K. Berry, president and CEO of the Competitive Carriers Association, in a statement. “Many of our members are ready and willing to build out these networks, but depend on USF support in order to do so. Wireless remains underfunded, and this could be an opportunity for the FCC to provide significant support for the services consumers want most.”