Connect America Fund, 38227-38234 [2013-15297]
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Federal Register / Vol. 78, No. 123 / Wednesday, June 26, 2013 / Rules and Regulations
to the Regulatory Flexibility Act (5
U.S.C. 601 et seq.) or sections 202 and
205 of the Unfunded Mandates Reform
Act of 1999 (UMRA) (Pub. L. 104–4). In
addition, this action does not
significantly or uniquely affect small
governments. This action does not
create new binding legal requirements
that substantially and directly affect
Tribes under Executive Order 13175 (63
FR 67249, November 9, 2000). This
action does not have significant
Federalism implications under
Executive Order 13132 (64 FR 43255,
August 10, 1999). Because this final rule
has been exempted from review under
Executive Order 12866, this final rule is
not subject to Executive Order 13211,
entitled Actions Concerning Regulations
That Significantly Affect Energy Supply,
Distribution, or Use (66 FR 28355, May
22, 2001) or Executive Order 13045,
entitled Protection of Children from
Environmental Health Risks and Safety
Risks (62 FR 19885, April 23, 1997).
This final rule does not contain any
information collections subject to OMB
approval under the Paperwork
Reduction Act (PRA), 44 U.S.C. 3501 et
seq., nor does it require any special
considerations under Executive Order
12898, entitled Federal Actions to
Address Environmental Justice in
Minority Populations and Low-Income
Populations (59 FR 7629, February 16,
1994). This action does not involve
technical standards; thus, the
requirements of section 12(d) of the
National Technology Transfer and
Advancement Act of 1995 (15 U.S.C.
272 note) do not apply. The
Congressional Review Act, 5 U.S.C. 801
et seq., generally provides that before
certain actions may take effect, the
agency promulgating the action must
submit a report, which includes a copy
of the action, to each House of the
Congress and to the Comptroller General
of the United States. Because this final
action does not contain legally binding
requirements, it is not subject to the
Congressional Review Act.
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List of Subjects in 40 CFR Part 180
Environmental protection,
Administrative practice and procedure,
Agricultural commodities, Pesticides
and pests, Reporting and recordkeeping
requirements.
Dated: June 20, 2013.
Lois Rossi,
Director, Registration Division, Office of
Pesticide Programs.
Therefore, 40 CFR part 180 is
corrected as follows:
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PART 180—[AMENDED]
Commodity
1. The authority citation for part 180
continues to read as follows:
■
Authority: 21 U.S.C. 321(q), 346a and 371.
2. Amend § 180.668 by adding
paragraph (a) and by removing and
reserving paragraph (b) to read as
follows:
■
§ 180.668 Sulfoxaflor; tolerances for
residues.
(a) General. Tolerances are
established for residues of the
insecticide sulfoxaflor, including its
metabolites and degradates, in or on the
commodities in the table. Compliance
with the tolerance levels specified is to
be determined by measuring only
sulfoxaflor (N-[methyloxido[1-[6(trifluoromethyl)-3-pyridinyl]ethyl]-g4sulfanylidene]cyanamide).
Commodity
Parts per million
Almond, hulls ......................
Barley, grain .......................
Barley, hay ..........................
Barley, straw .......................
Bean, dry seed ...................
Bean, succulent ..................
Beet, sugar, dried pulp .......
Beet, sugar, molasses ........
Berry, low growing, subgroup 13–7G ...................
Cattle, fat ............................
Cattle, meat ........................
Cattle, meat byproducts .....
Cauliflower ..........................
Citrus, dried pulp ................
Cotton, gin byproducts .......
Cotton, hulls ........................
Cottonseed subgroup 20C
Fruit, citrus, group 10–10 ...
Fruit, pome, group 11–10 ...
Fruit, small, vine climbing,
subgroup 13–07F, except
fuzzy kiwi fruit .................
Fruit, stone, group 12 .........
Goat, fat ..............................
Goat, meat ..........................
Goat, meat byproducts .......
Grain, aspirated fractions ...
Grape, raisin .......................
Hog, fat ...............................
Hog, meat ...........................
Hog, meat byproducts ........
Horse, fat ............................
Horse, meat ........................
Horse, meat byproducts .....
Leafy greens, subgroup 4A
Leafy petiole, subgroup 4B
Milk .....................................
Nuts, tree, group 14 ...........
Onion, bulb, subgroup 3–
07A ..................................
Onion, green, subgroup 3–
07B ..................................
Pistachio .............................
Poultry, eggs .......................
Poultry, fat ..........................
Poultry, meat ......................
Poultry, meat byproducts ....
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6.0
0.40
1.0
2.0
0.20
4.0
0.07
0.25
0.70
0.10
0.15
0.40
0.08
3.6
6.0
0.35
0.20
0.70
0.50
2.0
3.0
0.10
0.15
0.40
20.0
6.0
0.01
0.01
0.01
0.10
0.15
0.40
6.0
2.0
0.15
0.015
38227
Parts per million
Rapeseed, meal .................
Rapeseed subgroup 20A ....
Sheep, fat ...........................
Sheep, meat .......................
Sheep, meat byproducts ....
Soybean, seed ....................
Tomato, paste .....................
Tomato, puree ....................
Vegetable, brassica, leafy,
group 5, except cauliflower ...............................
Vegetable, cucurbit, group
9 ......................................
Vegetable, fruiting, group
8–10 ................................
Vegetable, leaves of root
and tuber, group 2 ..........
Vegetable, legume, foliage,
group 7 ............................
Vegetable, root and tuber,
group 1 ............................
Watercress ..........................
Wheat, forage .....................
Wheat, grain .......................
Wheat, hay .........................
Wheat, straw .......................
0.50
0.40
0.10
0.15
0.40
0.20
2.60
1.20
2.0
0.40
0.70
3.0
3.0
0.05
6.0
1.0
0.08
1.5
2.0
(b) Section 18 emergency exemptions.
[Reserved]
*
*
*
*
*
§ 180.670
■
[Removed]
3. Remove § 180.670.
[FR Doc. 2013–15306 Filed 6–25–13; 8:45 am]
BILLING CODE 6560–50–P
FEDERAL COMMUNICATIONS
COMMISSION
47 CFR Part 54
[WC Docket Nos. 10–90; FCC 13–73]
Connect America Fund
Federal Communications
Commission.
ACTION: Final rule.
AGENCY:
In this document, the Federal
Communications Commission
(Commission) provides for a second
round of Phase I funding to occur in
2013 and revises the rules for Phase I
going forward to further leverage private
investment in rural America and
accelerate the availability of broadband
to consumers who lack access.
DATES: Effective July 26, 2013, except
for §§ 54.312(c)(4) through (c)(6),
54.312(c)(8), and 54.313(b), which
contain new or modified information
0.01
collection requirements that will not be
effective until approved by the Office of
0.70
Management and Budget. The Federal
0.015
Communications Commission will
0.01
publish a document in the Federal
0.01
Register announcing the effective date
0.01
for those sections.
0.01
SUMMARY:
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Federal Register / Vol. 78, No. 123 / Wednesday, June 26, 2013 / Rules and Regulations
FOR FURTHER INFORMATION CONTACT:
Ryan Yates, Wireline Competition
Bureau, (202) 418–0886 or TTY: (202)
418–0484.
SUPPLEMENTARY INFORMATION: This is a
summary of the Commission’s Report
and Order in WC Docket No. 10–90;
FCC 13–73, adopted on May 21, 2013
and released on May 22, 2013. The full
text of this document is available for
public inspection during regular
business hours in the FCC Reference
Center, Room CY–A257, 445 12th Street
SW., Washington, DC 20554. Or at the
following Internet address: https://
hraunfoss.fcc.gov/edocs_public/
attachmatch/FCC–13–73A1.pdf
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I. Introduction
1. On November 18, 2011, the
Commission released the USF/ICC
Transformation Order, 76 FR 73830,
November 29, 2011, which
comprehensively reformed and
modernized the high-cost universal
service and intercarrier compensation
systems. Recognizing, among other
facts, that over 80 percent of the more
than 18 million Americans who were
unserved by broadband at that time
lived in price cap territories, the
Commission provided for two phases of
funding to make broadband-capable
networks available to as many unserved
locations as possible in those areas. In
Connect America Phase I, the
Commission froze existing high-cost
support for price cap carriers and
provided up to $300 million of
additional, incremental support in 2012
in order to advance deployment of
broadband-capable infrastructure
pending implementation of Phase II
subject to strict accountability and
efficiency measures. Approximately
$115 million was accepted, which will
deliver new broadband service to nearly
400,000 unserved Americans.
2. We now provide for a second round
of Connect America Phase I incremental
funding in 2013 to further leverage
private investment in rural America and
accelerate the availability of broadband
to consumers who lack access. We
allocate $300 million for this second
round. Price cap carriers will be able to
accept support to extend broadbandcapable networks under the rules for the
first round of Phase I. In addition, they
will have an opportunity to deploy into
newly eligible areas that are unserved
by broadband, so long as they comply
with additional requirements discussed
below. We also adopt a process to
challenge the eligibility of particular
census blocks, establish two different
per-location support amounts based on
the existing level of Internet access
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($550 for homes with low-speed Internet
access and $775, as in the first round,
for homes with only dial-up access), and
make certain other rule changes to
encourage participation and ensure
accountability and oversight. Especially
in light of several major carriers’
commitments to match new Connect
America funding with an equal new
investment of private capital, the
additional funding we make available
has the potential to expand broadband
access to hundreds of thousands of
additional, currently unserved
Americans. We expect this to be the last
round of Phase I funding, given the
significant progress to date on Phase II
implementation.
II. Discussion
3. Overview. In this Order, the
Commission provides for a second
round of Phase I funding to occur in
2013 and revises the rules for Phase I
going forward. We allocate a maximum
of $300 million for this second round of
Phase I incremental support. Price cap
carriers will be allocated funds through
the same system used in the first round
of Phase I. However, carriers will have
the option to accept above their
allocated support, so as to have an
opportunity to receive additional
funding if other carriers decline the
support. Additionally, Phase I eligibility
is expanded to any location currently
unserved by Internet service with
speeds of 3 Mbps downstream and 768
kbps upstream (3 Mbps/768 kbps) or
higher, though a lower dollar amount of
support is provided for locations that
already have some level of Internet
access. We adopt a process for
challenges to the eligibility of specific
areas where price cap carriers propose
to extend broadband-capable
infrastructure. We require information
regarding Phase I elections to be public
and for carriers to provide geocoded
location information when making
certifications regarding their buildout to
facilitate the Commission’s oversight.
4. Second Round of Connect America
Phase I. While the Bureau has made
significant progress in implementing
Phase II of Connect America, we
conclude that a second round of Phase
I is an appropriate way to promote the
rapid and efficient expansion of
broadband-capable infrastructure to
serve consumers lacking broadband that
meets the Commission’s definition. We
therefore instruct the Bureau to provide
a new round of Connect America Phase
I incremental support for 2013.
5. The budget for the new round of
Phase I is set at $300 million. The
Commission previously set the budget
for an additional round of Phase I
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support in 2013 at $300 million and
provided the Bureau discretion to pro
rate that amount if Phase II was
implemented during 2013. We now
conclude that $300 million would be an
appropriate amount for a second round
of Phase I incremental support to be
provided in 2013, given the remaining
funding from 2012 and the progress of
Phase II implementation. A $300
million budget should provide a
reasonable amount to accommodate
potential demand for funding that
leverages private investment to
accelerate deployment of broadbandcapable infrastructure to consumers
who can quickly be served in the nearterm. As with the first round of Phase
I, it is not our goal that all $300 million
will be accepted. Rather, we seek to use
these funds now to spur rapid
broadband deployment to ‘‘lower-cost
areas where there is no private sector
business case for deployment of
broadband.’’ Any Phase I support that
remain unclaimed at the end of the
second round of support will be added
to the budget for Phase II, pro-rated in
equal annual amounts over the Phase II
time period. This will have the effect of
increasing the yearly budget for Phase II
by an amount equal to one-fifth of the
unclaimed funds.
6. Price cap carriers will be allocated
Phase I incremental support using the
same allocations as in the first round of
Phase I. Carriers will have 75 days from
the release of this Order to make their
elections.
7. As with the first round of Phase I,
each carrier may elect to receive all,
none, or a portion of its allocated Phase
I incremental support. However, in
contrast to Phase I, a carrier may also
elect to receive an amount above its
allocated incremental support, up to the
total budget of $300 million for this
second round of Phase I. To the extent
other carriers decline to accept Phase I
incremental support, any remaining
funds will be redistributed to carriers
that are willing to commit to additional
deployment if they receive funding
above their initial allocations. If the
total demand of all carriers exceeds
$300 million, we authorize up to an
additional $185 million in funding.
Under this approach, each carrier is
assured of its allotted amount to expand
broadband-capable infrastructure to
unserved consumers, while at the same
time providing additional funds to those
carriers willing and able to expand to
more Phase I eligible locations.
8. We delegate authority to the Bureau
to set the specific deadlines, including
the deadlines for any certifications, for
a second round of Phase I support and
to take other steps to implement a
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Federal Register / Vol. 78, No. 123 / Wednesday, June 26, 2013 / Rules and Regulations
second round, subject to the
requirement that the amount of support
offered does not exceed the total budget
of $300 million.
9. With the exception of the rules we
explicitly change in this Order, all the
rules and requirements from the first
round of Phase I apply mutatis
mutandis to the second round of Phase
I.
10. Expanding Eligible Areas. To meet
its Phase I service obligations, a carrier
must deploy to locations unserved by
broadband. Under the USF/ICC
Transformation Order, however, only a
subset of unserved locations was
originally eligible for Phase I for
support: specifically, only those
locations that lacked Internet access
service with speeds of at least 768 kbps/
200 kbps (i.e. only dial-up Internet
access). In the Phase I FNPRM, 77 FR
76435, December 28, 2012, the
Commission sought comment on
whether to expand eligibility to a larger
pool of locations unserved by
broadband meeting the Commission’s 4
Mbps/1 Mbps standard.
11. In addition to areas lacking 768
kbps/200 kbps Internet access, we now
expand eligibility for Phase I support to
any location that lacks 3 Mbps/768 kbps
Internet access. We do so in recognition
that carriers evaluate the economics of
extending fiber to an area on a projectby-project basis, with each project
potentially containing some customers
lacking 768 kbps/200 kbps, some
lacking 1.5 Mbps/768 kbps, and others
lacking 3 Mbps/768 kbps. By providing
some support for those locations that
lack 1.5 Mbps/768 kbps or 3 Mbps/768
kbps, carriers should find it more
economical to extend fiber closer to
those locations that only have dial-up
Internet access. Thus, expanding
eligibility to include locations with
minimal non-dial-up Internet access,
but without broadband, should also
improve the economics of extending
service to those customers who lack
even 768 kbps/200 kbps Internet access.
Moreover, upgrading the most distant
locations to receive service meeting our
4 Mbps/1 Mbps standard should have
the added benefit of providing many
consumers currently lacking broadband
with access to speeds in excess of our
4 Mbps/1 Mbps standard.
12. At the same time, we remain
committed to prioritizing broadbandcapable infrastructure to those areas that
completely lack even 768 kbps/200 kbps
Internet access. Therefore, we place
certain strictures on carriers that seek to
avail themselves of the opportunity to
count towards their deployment
obligation locations in the expanded
areas of availability. First, price cap
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carriers must accept support for a
second round of Phase I under the rules
governing the first round, to the extent
they are able to do so, before they may
avail themselves of the expanded
eligibility of areas adopted in this Order.
Specifically, a carrier may not accept
funding for locations already served by
Internet access with speeds of 768 kbps/
200 kbps unless the carrier has already
accepted funding for all projects or
routes including locations unserved by
768 kbps/200 kbps that can
economically be built with $775 in
Connect America funding for each
location unserved by 768 kbps/200 kbps
plus an equal amount of non-Connect
America carrier capital expenditure
funding. For example, to the extent a
carrier analyzed its network under the
previous Phase I rules to identify
projects to extend broadband-capable
infrastructure to locations lacking 768
kbps/200 kbps service, and the
identified projects would be economic
to build with a one-to-one match of
Connect America and carrier resources,
the carrier must prioritize these projects
when it accepts funding, and may not
count toward satisfaction of its
deployment obligation locations already
served by Internet access with speeds of
768 kbps/200 kbps, regardless of the fact
that some locations served by 768 kbps/
200 kbps but not 3 Mbps/768 kbps will
be reached through these identified
projects.
13. Second, if a carrier has accepted
funding for all projects or routes to
locations unserved by 768/200 kbps that
can be economically reached as noted in
the preceding paragraph, it may also
accept funding for routes to locations
unserved by 3 Mbps/768 kbps that
would count toward satisfaction of its
deployment obligation. However, to the
extent that carrier has multiple projects
or routes for which it would be
economic to extend service with a onefor-one match of Connect America
funding, it must prioritize funded
projects or routes so as to maximize the
number of newly served locations that
are currently unserved by Internet
access with speeds of 768 kbps/200
kbps that will receive service as a result
of Phase I funding. To accept new Phase
I funding and count deployment to
locations served by 768 kbps/200 kbps
but unserved by 3 Mbps/768 kbps,
carriers will be required to certify that
they have met both conditions.
14. In conjunction with these rule
changes, we adopt a different metric for
the dollar amount of support for those
locations lacking 3 Mbps/768 kbps,
compared to the $775 available for
locations unserved by 768 kbps/200
kbps. We conclude that it is appropriate
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for carriers to be permitted to meet
buildout obligations by deploying
broadband-capable infrastructure to
locations that have service of 768 kbps/
200 kbps but not 3 Mbps/768 kbps for
$550 per location. Less fiber should be
needed to upgrade the locations with
some form of Internet access, as they are
likely to be closer to the central office
or remote terminal.
15. In addition to expanding eligible
locations to any location lacking 3
Mbps/768 kbps Internet access, we also
provide limited eligibility for locations
shown on the current version of the
National Broadband Map (data as of
June 2012) as served by 3 Mbps/768
Internet access. A carrier may satisfy its
Phase I obligations by deploying to
certain locations in its own service
territory that are shown on the National
Broadband Map as being served by 3
Mbps/768 kbps where it is likely that
such service is not in fact delivered, so
long as no other provider is offering
service at speeds of 3 Mbps/768 kbps to
those locations. The carrier must
identify those specific locations and
certify that the locations are currently
served from a copper-fed digital
subscriber line access multiplexer
(DSLAM) and are shown on the
National Broadband Map as receiving
speeds of 3 Mbps/768 kbps or less. It is
likely that while locations served by a
copper-fed DSLAM are shown as having
an advertised speed of 3 Mbps/768
kbps, actual speeds to such locations
fall below that. As noted in the record,
copper-fed DSLAMs have a maximum of
12 Mbps of backhaul available; as
consumers increasingly use bandwidthintensive applications, such as
streaming video, the aggregate demand
for bandwidth of all users on a DSLAM
exceeds the DSLAM’s backhaul
capacity, resulting in reduced speeds to
the end user.
16. We will also limit support for any
census block containing a project that
received funding under the Broadband
Initiatives Program (BIP) or the
Broadband Technology Opportunities
Program (BTOP), so long as the project
meets the speed requirement that would
disqualify the location from Phase I (i.e.,
the project will eventually provide
speeds of 3 Mbps/768 kbps or greater).
It would be an inefficient use of public
funds to provide government support to
two different projects aimed at serving
the same location. If a carrier wishes to
satisfy its Phase I deployment
obligations by building in census blocks
with BIP or BTOP projects, it must
certify that it has engaged in due
diligence and reviewed publicly
available data sources to ensure that the
particular locations it plans to serve do
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Federal Register / Vol. 78, No. 123 / Wednesday, June 26, 2013 / Rules and Regulations
not and will not receive funding under
BIP or BTOP for the construction of a
network meeting our broadband
standards. We direct the Bureau to work
with the Universal Service
Administrative Company (USAC), the
National Telecommunications and
Information Administration, and/or the
Rural Utilities Service, as appropriate,
to take steps necessary to ensure Phase
I support is not provided to areas
receiving BIP or BTOP support.
17. Also, in order to use Connect
America funds in the most efficient
manner possible and avoid providing
excess support to an area, we direct the
Bureau to ensure the funding is not
provided to the same census blocks
under both Phase I incremental support
and Phase II. No carrier should be
allowed to satisfy its Phase I obligations
in any census block where it receives
Phase II support. Carriers must be
prepared to deploy to an equivalent
number of locations that are unserved in
a census block where they are not
receiving Phase II support. If a carrier
accepts Phase II support in a census
block where it had initially planned to
deploy broadband-capable networks to
locations in order to meet its Phase I
obligations, it must identify and deploy
to the requisite number of locations in
another census block for which it did
not receive Phase II support.
18. Service Obligations. A carrier
electing to receive second round Phase
I support must deploy to a number of
unserved locations. The number of
locations varies depending on the speed
of service currently available to that
location. As noted above, deploying
broadband-capable infrastructure to an
area lacking Internet access with speeds
of 768 kbps/200 kbps will satisfy a
greater portion of a carrier’s public
service obligation than deploying to
areas with some level of non-broadband
Internet access (i.e., a location that is
served by Internet access at 768 kbps/
200 kbps but not 4 Mbps/1 Mbps).
Deploying to a location unserved by 768
kbps/200 kbps will satisfy $775 of a
carrier’s Phase I obligations. Deploying
to a location served by 768 kbps/200
kbps but unserved by 3 Mbps/768 kbps,
as specified above, will satisfy $550 of
a carrier’s Phase I obligation.
19. As in the first round of Phase I,
when electing to accept support, the
carrier must provide a list identifying
the census blocks and wire centers in
which it plans to use support. In
addition, the carrier must specify how
many $775 locations and how many
$550 locations it will deploy to. The
carrier must certify that that deployment
funded through Phase I incremental
support will occur in areas shown on
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the most current version of the National
Broadband Map (data as of June 2012)
as unserved by fixed Internet access
with a minimum speed of 3 Mbps/768
kbps or that the carrier is challenging
the National Broadband Map’s
designation, and that, to the best of the
carrier’s knowledge, the locations are, in
fact, unserved by fixed Internet access
with a minimum speed of 3 Mbps/768
kbps. The carrier must also certify that
its current capital improvement plan
did not already include plans to
complete broadband deployment to that
area within the next three years, and
that Phase I incremental support will
not be used to satisfy any merger
commitment or similar regulatory
obligations.
20. As a change from the first round
of Phase I, and as described above, the
carrier must additionally make the
following certifications regarding
locations that it seeks to count to satisfy
Phase I deployment obligations. The
carrier must certify to the best of its
knowledge that no locations are the
subject of funding under BIP or BTOP
for projects that will provide Internet
access with speeds of at least 3 Mbps/
768 kbps. If a carrier seeks to count
locations in its own service territory that
are shown on the current version of the
National Broadband Map (data as of
June 2012) as served 3 Mbps/768 kbps,
the carrier must certify that those
locations are served through a copperfed DSLAM. If the carrier seeks to
satisfy any of its obligations by
deploying to locations served by 768
kbps/200 kbps but not 3 Mbps/768 kbps
Internet service, it must certify that it
has committed to all projects or routes
to locations unserved by 768 kbps/200
kbps that can economically be built
with $775 in Connect America funds
plus an equal amount of non-Connect
America carrier capital expenditure
funding, and that it has prioritized
funded routes so as to maximize the
number of newly served locations that
are currently unserved by Internet
access with speeds of 768 kbps/200
kbps.
21. The buildout obligations mirror
those in the first round of Phase I. A
carrier accepting Phase I support must
complete deployment of broadbandcapable infrastructure to two-thirds of
the required number of locations within
two years and must complete
deployment to all required locations
within three years. As a condition of
this support, a carrier must offer
broadband service to such locations of
at least 4 Mbps downstream and 1 Mbps
upstream, with latency sufficiently low
to enable the use of real-time
communications, including Voice over
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Internet Protocol, and with usage
allowances, if any, associated with a
specified price for a service offering that
are reasonably comparable to
comparable offerings in urban areas.
22. Phase I funding recipients will
report that their networks meet the
above standards through a process of
self-certification. We note that the
Wireline Competition Bureau, the
Wireless Telecommunications Bureau,
and Office of Engineering & Technology
have not specified a methodology for
testing the performance of a funding
recipient’s broadband-capable network.
As Phase I incremental support is
designed to provide one-time support
for deployment to specific locations, we
now conclude that the potential effort to
implement a testing regime for Phase I
incremental support recipients would
exceed any marginal benefit that is
gained as compared to self-certification.
To the extent there are any issues with
broadband performance, the consumer
complaint process will help to inform
the Commission of such instances.
23. Confidentiality. The Commission
sought comment on whether Phase I
elections should be afforded
confidentiality. We now decide that
Phase I elections in the second round
should not be treated as confidential.
We strongly encourage Phase I
recipients to discuss their elections with
Commission staff at least 15 days prior
to the election deadline in order to
ensure facial compliance with the filing
requirements. While these discussions
and documents related to them may be
afforded confidentiality, the finalized
elections must be filed publicly. Public
disclosure is generally preferred,
especially when the use of public funds
is at issue. Furthermore, we find that the
competitive harm to carriers from this
disclosure is likely minimal. Indeed, not
all carriers requested confidentiality for
first round Phase I filings.
24. Challenge Process. In the Phase I
FNPRM, the Commission proposed
conducting a challenge process whereby
parties could challenge the status of
census blocks as shown on the National
Broadband Map. We conclude that such
a challenge process would improve the
accuracy and efficacy of a second round
of Phase I support, allowing support to
be appropriately targeted to unserved
areas consistent with our overarching
goals for Phase I. Consistent with the
guidance contained herein, we delegate
to the Bureau authority to implement
the challenge process.
25. Based on our review of the record,
we are persuaded that the appropriate
way to conduct a Phase I challenge
process is to require price cap carriers
first to identify the specific census
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blocks and wire centers where they
propose to deploy broadband-capable
infrastructure with second round Phase
I support. This will reduce the burden
on parties both making and responding
to challenges, and the administrative
burden of processing such challenges.
The price cap carriers should identify
where they intend to build based on the
current version of the National
Broadband Map (i.e., the map reflecting
data as of June 2012).
26. In the first round of Phase I,
several carriers initially sought to meet
their Phase I deployment commitments
in areas that were already served or
failed to identify enough census blocks
to account for the required number of
newly served locations. To ensure that
carriers properly identify the blocks that
will be subject to the challenge process,
we strongly encourage those electing
funding to submit their intended
elections and planned buildout
locations by census block to the Bureau
on a confidential basis at least 15 days
in advance of the acceptance deadline.
The Bureau will evaluate the
submissions to determine facial
compliance with our requirements and
will work with Phase I recipients to
resolve any possible inconsistencies
prior to the acceptance deadline. To the
extent carriers do not avail themselves
of this procedure, they run the risk of
having their respective commitment
amounts reduced, to the extent they fail
to identify enough census blocks to
account for the required number of new
locations; carriers will not be permitted
to amend their elections once the
challenge process has commenced to
add additional census blocks. Once the
Bureau completes its review of the
elections made on the deadline, it will
publicly announce the acceptance
amounts and census blocks for planned
buildout. The challenge process then
will be conducted, as described below.
27. When electing to receive second
round Phase I support, price cap carriers
must provide a list of census blocks
unserved by 3 Mbps/768 kbps Internet
access in which they intend to deploy
to meet their buildout obligations. In
submitting such a list, price cap carriers
may argue no providers in the area are
offering broadband, challenging the
National Broadband Map’s designation
of a census block as being served by 3
Mbps/768 kbps Internet access or as
being served by 768 kbps/200 kbps
Internet access. When making an
election to accept Phase I support, a
price cap carrier may condition all or a
portion of its acceptance on its
challenge being granted. To eliminate
the incentive to make blanket challenges
in areas where the carrier has little
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intent to serve, however, if a carrier
challenges the designation of a census
block as served on the National
Broadband Map and that challenge is
ultimately granted, it will be obligated
to deploy in that particular census
block, absent extraordinary
circumstances beyond its control.
28. Following the price cap carriers’
initial submissions identifying where
they intend to serve and which census
blocks they are challenging the National
Broadband Map classification as served,
the Bureau will publish a list of all
census blocks that carriers propose to
serve to meet their Phase I obligations.
Interested parties will have 30 days to
challenge this list by demonstrating that
the block is in fact served by fixed
Internet access with speeds of 3 Mbps/
768 kbps or higher. Carriers will then be
given an additional 30 days to respond
to these challenges. To the extent a more
recent National Broadband Map
becomes available in this time period,
interested parties are free to bring new
information regarding availability as
shown on the map to the Bureau’s
attention.
29. All filings in the challenge
process, whether from a price cap
carrier or another provider, must be
supported by some form of documented
evidence. The Bureau should not
consider conclusory assertions without
supporting evidence that a census
block’s designation as served or
unserved should be changed. In cases
where another provider contests the
price cap carrier’s intention to serve, the
Bureau may consider such evidence as
a signed certification from an officer of
the provider under penalty of perjury
that it offers 3 Mbps/768 kbps Internet
service to customers in that particular
census block. Such a certification could
be accompanied by current customer
billing records, appropriately redacted
to preserve customer privacy. In cases
where the price cap carrier seeks to
contest the classification of a census
block on the map as served by
broadband, the Bureau may consider
such evidence as statements from
residents of an area noting that they
have attempted and failed to receive
service from a putative unsubsidized
competitor. The Bureau may also
consider FCC Form 477 data in
evaluating whether a provider is
providing broadband in a particular
census block. Where the Bureau finds it
more likely than not that the status of
a census block should be treated
differently than the status shown on the
National Broadband Map, the Bureau
will deem that census block as served or
unserved, as appropriate, for the
purposes of Connect America Phase I.
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38231
30. Reporting Requirements. We adopt
our two proposals regarding the
reporting requirements for Phase I of
Connect America. These changes apply
both to support already accepted in the
first round of Phase I and support that
will be accepted in the second round of
Phase I. We also adopt measures to
ensure greater transparency for the
public about how Phase I funds are
being used, in response to a
commenter’s suggestions.
31. First, in their two- and three-year
milestone certifications, recipients of
Phase I support must provide geocoded
latitude and longitude location
information, along with census block
and wire center information, for each
location the carrier intends to count
toward its deployment requirement. As
recipients should know by that point in
time to which locations they are
deploying in order to satisfy their
buildout requirements, it is unlikely this
additional reporting requirement will
substantially burden Phase I recipients.
While the additional burden will be
minimal, requiring geocoded location
information will considerably improve
the Commission’s ability to ensure
accountability of Phase I funds. We
direct the Bureau to work with USAC to
publish a map indicating the location of
projects funded with Phase I
incremental support.
32. Second, in the event a recipient
intends to deploy to areas other than
those identified in its initial acceptance,
it is permitted (but not required) to
make a supplemental filing providing
updated deployment plans at any time.
Compliance with the deployment
requirements will be determined based
on the recipient’s final deployment
certification. As this interim reporting is
completely optional, it should not
unnecessarily burden any recipient that
decides to file such reports.
33. In addition, we require carriers
that elect to take Phase I funding under
these revised rules to report annually on
the dollar amount of investment they
have made in the prior calendar year,
using Phase I incremental support,
beginning with the annual report due
July 1, 2015. In their annual reports
required under section 54.313,
recipients should provide the total
amount of capital funding expended in
the previous year in meeting Connect
America Phase I deployment
obligations, accompanied by a list of
census blocks indicating where funding
was spent.
34. Alternative Proposals. We are not
persuaded by arguments we should
make more fundamental changes to
Phase I. The Commission is
implementing a multi-faceted strategy to
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expand the availability of broadband,
both fixed and mobile, throughout the
nation. We decline at this time to revisit
the relative allocation of funding among
the various programs designed to
achieve our broadband objectives for the
nation. Phase I was limited to price cap
carriers in order to address a specific
issue: over 80 percent of unserved
Americans live in price cap territories.
The most direct and expedient way to
address that issue is to provide a
discrete amount of support to price cap
carriers that will leverage their private
capital in exchange for a clearly defined
obligation to deploy to those unserved
locations in the near term. A second
round of Phase I can be quickly
implemented in the months ahead. In
contrast, other proposals, such as
developing an auction by which to
distribute Phase I funds, would take
longer to implement. Thus, Phase I as
refined today is a reasonable step
forward in achieving our goal of rapidly
deploying broadband-capable
infrastructure to unserved Americans
living in price cap territories.
III. Procedural Matters
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A. Paperwork Reduction Act
35. This document contains modified
information collection requirements
subject to the PRA. It will be submitted
to the Office of Management and Budget
(OMB) for review under section 3507(d)
of the PRA. OMB, the general public,
and other Federal agencies are invited to
comment on the new or modified
information collection requirements
contained in this proceeding. In
addition, we note that pursuant to the
Small Business Paperwork Relief Act of
2002, Public Law 107–198, we
previously sought specific comment on
how the Commission might further
reduce the information collection
burden for small business concerns with
fewer than 25 employees.
36. In this present document, we have
assessed the effects of requiring carriers
to submit new elections for the second
round of Connect America Phase I
support, as well as requiring geocoded
location information for all Phase I
certifications, and find that it will not
impact businesses with fewer than 25
employees. Only price cap carriers or
rate-of-return carriers affiliated with
price cap carriers are eligible for Phase
I support. All such entities have more
than 25 employees.
B. Final Regulatory Flexibility
Certification
37. The Regulatory Flexibility Act
(RFA) requires that agencies prepare a
regulatory flexibility analysis for notice-
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and-comment rulemaking proceedings,
unless the agency certifies that ‘‘the rule
will not have a significant economic
impact on a substantial number of small
entities.’’ The RFA generally defines
‘‘small entity’’ as having the same
meaning as the terms ‘‘small business,’’
‘‘small organization,’’ and ‘‘small
governmental jurisdiction.’’ In addition,
the term ‘‘small business’’ has the same
meaning as the term ‘‘small business
concern’’ under the Small Business Act.
A small business concern is one which:
(1) Is independently owned and
operated; (2) is not dominant in its field
of operation; and (3) satisfies any
additional criteria established by the
SBA.
38. This document modifies and
clarifies the Phase I rules adopted by the
Commission in USF/ICC
Transformation Order. These
modifications and clarifications do not
create any burdens, benefits, or
requirements that were not addressed by
the Final Regulatory Flexibility Analysis
attached to USF/ICC Transformation
Order. Therefore, we certify that the
requirements adopted in this Report and
Order will not have a significant
economic impact on a substantial
number of small entities. The
Commission will send a copy of the
Order, including a copy of this final
certification, in a report to Congress
pursuant to SBREFA. In addition, the
Report and Order and this certification
will be sent to the Chief Counsel for
Advocacy of the SBA, and will be
published in the Federal Register.
C. Congressional Review Act
39. The Commission will send a copy
of this Report and Order to Congress
and the Government Accountability
Office pursuant to the Congressional
Review Act.
IV. Ordering Clauses
40. Accordingly, it is ordered,
pursuant to the authority contained in
sections 1, 4(i), 4(j), 5, 201(b), 214, 218–
220, and 254 of the Communications
Act of 1934, as amended, and section
706 of the Telecommunications Act of
1996, 47 U.S.C. 151, 154(i), 154(j), 155,
201(b), 214, 218–220, 254, 1302, that
this Report and Order is adopted,
effective July 26, 2013, except for
§§ 54.312(c)(4) through (c)(6),
54.312(c)(8), and 54.313(b), which
contain new or modified information
collection requirements that will not be
effective until approved by the Office of
Management and Budget. The Federal
Communications Commission will
publish a document in the Federal
Register announcing the effective date
for those sections.
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41. It is further ordered that authority
to implement a Connect America Phase
I challenge process is delegated to the
Wireline Competition Bureau,
consistent with paragraphs 24–29 of this
Report and Order.
42. It is further ordered that authority
to set the timeline for a second round
of Phase I support, including
certifications related to the second
round of Connect America Phase I, is
delegated to the Wireline Competition
Bureau.
43. It is further ordered that part 54
of the Commission’s rules, 47 CFR part
54, is amended as set forth below, and
such rule amendments shall be effective
July 26, 2013, except for §§ 54.312(c)(4)
through (c)(6), 54.312(c)(8), and
54.313(b), which contain new or
modified information collection
requirements that will not be effective
until approved by the Office of
Management and Budget. The Federal
Communications Commission will
publish a document in the Federal
Register announcing the effective date
for those sections.
44. It is further ordered that the
Commission shall send a copy of this
Report and Order to Congress and the
Government Accountability Office
pursuant to the Congressional Review
Act, see 5 U.S.C. 801(a)(1)(A).
45. It is further ordered, that the
Commission’s Consumer and
Governmental Affairs Bureau, Reference
Information Center, shall send a copy of
this Order, including the Final
Regulatory Flexibility Certification, to
the Chief Counsel for Advocacy of the
Small Business Administration.
List of Subjects in 47 CFR Part 54
Communications common carriers,
Reporting and record keeping
requirements, Telecommunications,
Telephone.
Federal Communications Commission.
Marlene H. Dortch,
Secretary.
Final Rule
For the reasons discussed in the
preamble, the Federal Communications
Commission amends 47 CFR part 54 as
follows:
PART 54—UNIVERSAL SERVICE
1. The authority citation for part 54 is
revised to read as follows:
■
Authority: Sections 1, 4(i), 5, 201, 205, 214,
219, 220, 254, 303(r), and 403 of the
Communications Act of 1934, as amended,
and section 706 of the Communications Act
of 1996, as amended; 47 U.S.C. 151, 154(i),
155, 201, 205, 214, 219, 220, 254, 303(r), 403,
and 1302 unless otherwise noted.
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2. Amend § 54.312 by revising
paragraph (b) introductory text and
adding paragraph (c) to read as follows:
■
§ 54.312 Connect America Fund in Price
Cap Territories—Phase I.
*
*
*
*
(b) Incremental Support in 2012.
From January 1, 2012, to December 31,
2012, support in addition to baseline
support defined in paragraph (a) of this
section will be available for certain
price cap local exchange carriers and
rate-of-return carriers affiliated with
price cap local exchange carriers as
follows.
*
*
*
*
*
(c) Incremental Support in 2013. From
January 1, 2013, to December 31, 2013,
support in addition to baseline support
defined in paragraph (a) of this section
will be available for certain price cap
local exchange carriers and rate-ofreturn carriers affiliated with price cap
local exchange carriers as follows:
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*
(1) For each carrier for which the Wireline
Competition Bureau determines that it has
appropriate data or for which it determines
that it can make reasonable estimates, the
Bureau will determine an average perlocation cost for each wire center using a
simplified cost-estimation function derived
from the Commission’s high-cost proxy
model. Incremental support will be based on
the wire centers for which the estimated perlocation cost exceeds the funding threshold.
The funding threshold will be determined by
calculating which funding threshold would
allocate all available incremental support, if
each carrier that would be offered
incremental support were to accept it.
(2) An eligible telecommunications carrier
accepting incremental support must deploy
broadband to a number of unserved
locations, shown as unserved by fixed
Internet access with speeds of at least 768
kbps downstream and 200 kbps upstream on
the then-current version of the National
Broadband Map, equal to the amount of
incremental support it accepts divided by
$775.
(3) An eligible telecommunications carrier
must accept funding pursuant to paragraph
(c)(2) of this section before it may accept
funding pursuant to paragraph (c)(3) of this
section. If an eligible telecommunications
carrier has committed to deploy to all
locations eligible for support under
paragraph (c)(2) of this section on routes or
projects that can economically be built with
$775 in Connect America funding for each
location unserved by 768 kbps downstream
and 200 kbps upstream plus an equal amount
of non-Connect America carrier capital
expenditure funding, but the carrier has not
fully utilized its allotted funding, it may also
count towards its deployment obligation
locations shown as unserved by fixed
Internet access with speeds of at least 3 Mbps
downstream and 768 kbps upstream equal to
the amount of remaining incremental support
divided by $550.
(4) A carrier may elect to accept or decline
incremental support. A holding company
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may do so on a holding-company basis on
behalf of its operating companies that are
eligible telecommunications carriers, whose
eligibility for incremental support, for these
purposes, shall be considered on an
aggregated basis. A carrier must provide
notice to the Commission, the Administrator,
relevant state commissions, and any affected
Tribal government, stating the amount of
incremental support it wishes to accept, the
number of locations at the $775 amount, the
number of locations at the $550 amount, and
identifying the areas by wire center and
census block in which the designated eligible
telecommunications carrier will deploy
broadband to meet its deployment obligation,
or stating that it declines incremental
support. Such notification must be made
within 75 days of being notified of any
incremental support for which it would be
eligible.
(5) Along with its notification, an eligible
telecommunications carrier accepting
incremental support must submit the
following certifications:
(i) The locations to be served to satisfy the
deployment obligation are not shown as
served by fixed broadband at the speeds
specified in paragraph (c)(2) or (c)(3) of this
section provided by any entity other than the
certifying entity or its affiliate on the thencurrent version of the National Broadband
Map or that it is challenging the National
Broadband Map’s designation of that census
block under the challenge process in
paragraph (c)(7) of this section;
(ii) To the best of the carrier’s knowledge,
the locations are, in fact, unserved by fixed
Internet access with speeds of at least 3 Mbps
downstream and 768 kbps upstream, or 768
kbps downstream and 200 kbps upstream, as
appropriate;
(iii) The carrier’s current capital
improvement plan did not already include
plans to complete broadband deployment
within the next three years to the locations
to be counted to satisfy the deployment
obligation;
(iv) Incremental support will not be used
to satisfy any merger commitment or similar
regulatory obligation; and
(v) The carrier has undertaken due
diligence to determine the locations in
question are not within the service area of
either Broadband Initiatives Program or the
Broadband Technology Opportunities
Program projects that will provide Internet
access with speeds of at least 3 Mbps
downstream and 768 upstream.
(6) An eligible telecommunications carrier
deploying to locations unserved by 3 Mbps
downstream and 768 kbps upstream under
paragraph (c)(3) of this section must also
certify that it has prioritized its planned
projects or routes so as to maximize the
deployment of broadband-capable
infrastructure to locations lacking Internet
access with speeds of 768 kbps downstream
and 200 kbps upstream.
(7) A person may challenge the designation
of a census block as served or unserved by
a certain speed as shown on the National
Broadband Map. When the Wireline
Competition Bureau determines that the
evidence presented makes it more likely than
not that the census block should be
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38233
designated as served by broadband with
speeds of at least 3 Mbps downstream and
768 kbps upstream, that locations in that
census block will be treated as served by
broadband and therefore ineligible to be
counted for the purposes of paragraph (c)(3)
of this section. When the Wireline
Competition Bureau determines that the
evidence presented makes it more likely than
not that the census block should be
designated as served by Internet service with
speeds of 768 kbps downstream and 200 kbps
upstream, but unserved by broadband with
speeds of at least 3 Mbps downstream and
768 kbps upstream, locations in that census
block will be treated as served by Internet
access with speeds of 768 kbps downstream
and 200 kbps upstream and therefore eligible
to be counted for the purposes of paragraph
(c)(3) of this section. When the Wireline
Competition Bureau determines that the
evidence presented makes it more likely than
not that the census block should be
designated as unserved by Internet service
with speeds of 768 kbps downstream and 200
kbps upstream, locations in that census block
will be treated as unserved by Internet access
with speeds of 768 kbps downstream and 200
kbps upstream and therefore eligible to be
counted for the purposes of paragraph (c)(2)
of this section.
(8) If no entity other than the carrier or its
affiliate provides Internet service with speeds
of 3 Mbps downstream and 768 kbps
upstream or greater as shown on the National
Broadband Map or as determined by the
process described in paragraph (c)(7), the
carrier may satisfy its deployment obligations
at a location shown by the National
Broadband Map as being served by that
carrier or its affiliate with such service by
certifying that it is the only entity providing
such service, that the location does not
actually receive speeds of 3 Mbps
downstream and 768 kbps upstream, and the
location is served through a copper-fed
digital subscriber line access multiplexer.
The carrier must specifically identify such
locations in its election. Such locations will
be treated the same as locations under
paragraph (c)(3) of this section.
(9) An eligible telecommunications carrier
must complete deployment of broadbandcapable infrastructure to two-thirds of the
required number of locations within two
years of providing notification of acceptance
of funding, and must complete deployment
to all required locations within three years.
To satisfy its deployment obligation, the
eligible telecommunications carrier must
offer broadband service to such locations of
at least 4 Mbps downstream and 1 Mbps
upstream, with latency sufficiently low to
enable the use of real-time communications,
including Voice over Internet Protocol, and
with usage allowances, if any, associated
with a specified price for a service offering
that are reasonably comparable to
comparable offerings in urban areas.
3. Amend § 54.313 by revising
paragraph (b) to read as follows:
■
§ 54.313 Annual reporting requirements
for high-cost recipients.
*
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(b) In addition to the information and
certifications in paragraph (a) of this
section:
(1) Any recipient of incremental Connect
America Phase I support pursuant to
§ 54.312(b) and (c) shall provide:
(i) In its next annual report due after two
years after filing a notice of acceptance of
funding pursuant to § 54.312(b) and (c), a
certification that the company has deployed
to no fewer than two-thirds of the required
number of locations; and
(ii) In its next annual report due after three
years after filing a notice of acceptance of
funding pursuant to § 54.312(b) and (c), a
certification that the company has deployed
to all required locations and that it is offering
broadband service of at least 4 Mbps
downstream and 1 Mbps upstream, with
latency sufficiently low to enable the use of
real-time communications, including Voice
over Internet Protocol, and with usage
allowances, if any, associated with a
specified price for a service offering that are
reasonably comparable to comparable
offerings in urban areas.
(2) In addition to the information and
certifications required in paragraph (b)(1) of
this section, any recipient of incremental
Connect America Phase I support pursuant to
§ 54.312(c) shall provide:
(i) In its annual reports due after one, two,
and three years after filing a notice of
acceptance of funding pursuant to
§ 54.312(c), a certification that, to the best of
the recipient’s knowledge, the locations in
question are not receiving support under the
Broadband Initiatives Program or the
Broadband Technology Opportunities
Program for projects that will provide
broadband with speeds of at least 4 Mbps/1
Mbps; and
(ii) In its annual reports due after one, two,
and three years after filing a notice of
acceptance of funding pursuant to
§ 54.312(c), a statement of the total amount
of capital funding expended in the previous
year in meeting Connect America Phase I
deployment obligations, accompanied by a
list of census blocks indicating where
funding was spent.
*
*
*
*
*
[FR Doc. 2013–15297 Filed 6–25–13; 8:45 am]
BILLING CODE 6712–01–P
DEPARTMENT OF DEFENSE
Defense Acquisition Regulations
System
48 CFR Parts 208, 216, and 247
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RIN 0750–AH91
Defense Federal Acquisition
Regulation Supplement: Requirements
for Acquisitions Pursuant to Multiple
Award Contracts (DFARS Case 2012–
D047)
Defense Acquisition
Regulations System, Department of
Defense (DoD).
AGENCY:
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Jkt 229001
ACTION:
Final rule.
DoD is issuing a final rule
amending the Defense Federal
Acquisition Regulation Supplement
(DFARS) to implement section 863 of
the National Defense Authorization Act
(NDAA) for Fiscal Year (FY) 2009 (Pub.
L. 110–417). Section 863(f) repeals
redundant provisions of section 803 of
the NDAA for FY 2001, which was
implemented by a previous DFARS
case, 2001–D017.
DATES: Effective Date: June 26, 2013.
FOR FURTHER INFORMATION CONTACT: Mr.
Fernell Warren, telephone 571–372–
6089.
SUMMARY:
SUPPLEMENTARY INFORMATION:
I. Background
On October 25, 2002, a final DFARS
rule was published (67 FR 65505) which
implemented section 803 of the NDAA
for FY 2002 (Pub. L. 107–107; 10 U.S.C.
2304 note). The purpose of section 803
was to achieve savings in expenditures
through the use of competition in the
purchase of services pursuant to
multiple award contracts.
Increasing savings in expenditures
through competition is a continuing
goal of the Federal Government, and as
such, section 863 of the NDAA for FY
2009 required that the Federal
Acquisition Regulation (FAR) be
amended to require enhanced
competition in the purchase of property
and services by all executive agencies
pursuant to multiple-award contracts.
Final publication of FAR Case 2007–012
(March 2, 2012), Requirements for
Acquisitions Pursuant to MultipleAward Contracts, satisfied this
requirement of section 863.
The statute also repeals section 803 of
the NDAA for FY2002 as a redundant
provision. As such, this final rule
reconciles and removes from the DFARS
all obsolete references to section 803 of
the NDAA for FY2002 (Pub. L. 107–107;
10 U.S.C. 2304 note) now implemented
in the FAR.
This final rule makes the following
changes:
• Modify 208.404(a)(i) to delete the
reference to 208.405–70(c)(2) which is
redundant, and to change $150,000 to
the simplified acquisition threshold to
reconcile with the FAR.
• Relocate the reference to the
provisions prescribed at 215.371–6 and
215.408(4) from 208.405–70(d) to
208.404 in order to retain the cross
reference to the provisions that remain
applicable.
• Delete 208.405–70 because it is
redundant with FAR 8.405. Competitive
requirements when using Federal
PO 00000
Frm 00040
Fmt 4700
Sfmt 4700
Supply Schedules are now fully
implemented in the FAR.
• Modify 208.7400(d) to delete an
obsolete reference to 208.405–70.
• Renumber 216.501 to 216.501–2–70
to reconcile with FAR using the correct
numbering convention.
• Delete 216.501–1. Only ‘‘Multipleaward contract’’ was defined and it was
only used in 216.505–70 which is also
deleted in this rule.
• Renumber 216.501–2(a) to 216.501–
2–70(b) to reconcile with FAR.
• Delete 216.505–70(a), (b), (c), (d)(1),
(2), (4), and (5) which are redundant.
Competitive requirements for orders
under multiple-award contracts are now
fully implemented in the FAR at
16.500(d) and 16.505(b). Retain content
of 216.505–70(d)(3), renumbered as
216.505–70, which remains applicable
under the stated circumstances.
• Modify 247.271–3(f) to change the
reference from FAR 16.505(a)(4) to
16.504(a)(4)(vii) to reconcile with FAR
numbering. FAR 16.505(a)(4) was not
changed by FAR Case 2007–012, but no
longer discusses oral orders.
II. Publication of This Final Rule for
Public Comment Is Not Required by
Statute
Publication of proposed regulations,
41 U.S.C. 1707, is the statute which
applies to the publication of the Federal
Acquisition Regulation. Paragraph (a)(1)
of the statute requires that a
procurement policy, regulation,
procedure, or form (including an
amendment or modification thereof)
must be published for public comment
if it relates to the expenditure of
appropriated funds, and has either a
significant effect beyond the internal
operating procedures of the agency
issuing the policy, regulation,
procedure, or form, or has a significant
cost or administrative impact on
contractors or offerors. This final rule is
not required to be published for public
comment, because it simply reconciles
and removes all obsolete references to
section 803 of the National Defense
Authorization Act for Fiscal Year 2002
(Pub. L. 107–107; 10 U.S.C. 2304 note)
from the DFARS. These requirements
affect only the internal operating
procedures of the Government, and the
rule does not create a significant cost or
administrative impact on contractors or
offerors.
III. Executive Orders 12866 and 13563
Executive Orders (E.O.s) 12866 and
13563 direct agencies to assess all costs
and benefits of available regulatory
alternatives and, if regulation is
necessary, to select regulatory
approaches that maximize net benefits
E:\FR\FM\26JNR1.SGM
26JNR1
Agencies
[Federal Register Volume 78, Number 123 (Wednesday, June 26, 2013)]
[Rules and Regulations]
[Pages 38227-38234]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-15297]
=======================================================================
-----------------------------------------------------------------------
FEDERAL COMMUNICATIONS COMMISSION
47 CFR Part 54
[WC Docket Nos. 10-90; FCC 13-73]
Connect America Fund
AGENCY: Federal Communications Commission.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: In this document, the Federal Communications Commission
(Commission) provides for a second round of Phase I funding to occur in
2013 and revises the rules for Phase I going forward to further
leverage private investment in rural America and accelerate the
availability of broadband to consumers who lack access.
DATES: Effective July 26, 2013, except for Sec. Sec. 54.312(c)(4)
through (c)(6), 54.312(c)(8), and 54.313(b), which contain new or
modified information collection requirements that will not be effective
until approved by the Office of Management and Budget. The Federal
Communications Commission will publish a document in the Federal
Register announcing the effective date for those sections.
[[Page 38228]]
FOR FURTHER INFORMATION CONTACT: Ryan Yates, Wireline Competition
Bureau, (202) 418-0886 or TTY: (202) 418-0484.
SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Report
and Order in WC Docket No. 10-90; FCC 13-73, adopted on May 21, 2013
and released on May 22, 2013. The full text of this document is
available for public inspection during regular business hours in the
FCC Reference Center, Room CY-A257, 445 12th Street SW., Washington, DC
20554. Or at the following Internet address: https://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-13-73A1.pdf
I. Introduction
1. On November 18, 2011, the Commission released the USF/ICC
Transformation Order, 76 FR 73830, November 29, 2011, which
comprehensively reformed and modernized the high-cost universal service
and intercarrier compensation systems. Recognizing, among other facts,
that over 80 percent of the more than 18 million Americans who were
unserved by broadband at that time lived in price cap territories, the
Commission provided for two phases of funding to make broadband-capable
networks available to as many unserved locations as possible in those
areas. In Connect America Phase I, the Commission froze existing high-
cost support for price cap carriers and provided up to $300 million of
additional, incremental support in 2012 in order to advance deployment
of broadband-capable infrastructure pending implementation of Phase II
subject to strict accountability and efficiency measures. Approximately
$115 million was accepted, which will deliver new broadband service to
nearly 400,000 unserved Americans.
2. We now provide for a second round of Connect America Phase I
incremental funding in 2013 to further leverage private investment in
rural America and accelerate the availability of broadband to consumers
who lack access. We allocate $300 million for this second round. Price
cap carriers will be able to accept support to extend broadband-capable
networks under the rules for the first round of Phase I. In addition,
they will have an opportunity to deploy into newly eligible areas that
are unserved by broadband, so long as they comply with additional
requirements discussed below. We also adopt a process to challenge the
eligibility of particular census blocks, establish two different per-
location support amounts based on the existing level of Internet access
($550 for homes with low-speed Internet access and $775, as in the
first round, for homes with only dial-up access), and make certain
other rule changes to encourage participation and ensure accountability
and oversight. Especially in light of several major carriers'
commitments to match new Connect America funding with an equal new
investment of private capital, the additional funding we make available
has the potential to expand broadband access to hundreds of thousands
of additional, currently unserved Americans. We expect this to be the
last round of Phase I funding, given the significant progress to date
on Phase II implementation.
II. Discussion
3. Overview. In this Order, the Commission provides for a second
round of Phase I funding to occur in 2013 and revises the rules for
Phase I going forward. We allocate a maximum of $300 million for this
second round of Phase I incremental support. Price cap carriers will be
allocated funds through the same system used in the first round of
Phase I. However, carriers will have the option to accept above their
allocated support, so as to have an opportunity to receive additional
funding if other carriers decline the support. Additionally, Phase I
eligibility is expanded to any location currently unserved by Internet
service with speeds of 3 Mbps downstream and 768 kbps upstream (3 Mbps/
768 kbps) or higher, though a lower dollar amount of support is
provided for locations that already have some level of Internet access.
We adopt a process for challenges to the eligibility of specific areas
where price cap carriers propose to extend broadband-capable
infrastructure. We require information regarding Phase I elections to
be public and for carriers to provide geocoded location information
when making certifications regarding their buildout to facilitate the
Commission's oversight.
4. Second Round of Connect America Phase I. While the Bureau has
made significant progress in implementing Phase II of Connect America,
we conclude that a second round of Phase I is an appropriate way to
promote the rapid and efficient expansion of broadband-capable
infrastructure to serve consumers lacking broadband that meets the
Commission's definition. We therefore instruct the Bureau to provide a
new round of Connect America Phase I incremental support for 2013.
5. The budget for the new round of Phase I is set at $300 million.
The Commission previously set the budget for an additional round of
Phase I support in 2013 at $300 million and provided the Bureau
discretion to pro rate that amount if Phase II was implemented during
2013. We now conclude that $300 million would be an appropriate amount
for a second round of Phase I incremental support to be provided in
2013, given the remaining funding from 2012 and the progress of Phase
II implementation. A $300 million budget should provide a reasonable
amount to accommodate potential demand for funding that leverages
private investment to accelerate deployment of broadband-capable
infrastructure to consumers who can quickly be served in the near-term.
As with the first round of Phase I, it is not our goal that all $300
million will be accepted. Rather, we seek to use these funds now to
spur rapid broadband deployment to ``lower-cost areas where there is no
private sector business case for deployment of broadband.'' Any Phase I
support that remain unclaimed at the end of the second round of support
will be added to the budget for Phase II, pro-rated in equal annual
amounts over the Phase II time period. This will have the effect of
increasing the yearly budget for Phase II by an amount equal to one-
fifth of the unclaimed funds.
6. Price cap carriers will be allocated Phase I incremental support
using the same allocations as in the first round of Phase I. Carriers
will have 75 days from the release of this Order to make their
elections.
7. As with the first round of Phase I, each carrier may elect to
receive all, none, or a portion of its allocated Phase I incremental
support. However, in contrast to Phase I, a carrier may also elect to
receive an amount above its allocated incremental support, up to the
total budget of $300 million for this second round of Phase I. To the
extent other carriers decline to accept Phase I incremental support,
any remaining funds will be redistributed to carriers that are willing
to commit to additional deployment if they receive funding above their
initial allocations. If the total demand of all carriers exceeds $300
million, we authorize up to an additional $185 million in funding.
Under this approach, each carrier is assured of its allotted amount to
expand broadband-capable infrastructure to unserved consumers, while at
the same time providing additional funds to those carriers willing and
able to expand to more Phase I eligible locations.
8. We delegate authority to the Bureau to set the specific
deadlines, including the deadlines for any certifications, for a second
round of Phase I support and to take other steps to implement a
[[Page 38229]]
second round, subject to the requirement that the amount of support
offered does not exceed the total budget of $300 million.
9. With the exception of the rules we explicitly change in this
Order, all the rules and requirements from the first round of Phase I
apply mutatis mutandis to the second round of Phase I.
10. Expanding Eligible Areas. To meet its Phase I service
obligations, a carrier must deploy to locations unserved by broadband.
Under the USF/ICC Transformation Order, however, only a subset of
unserved locations was originally eligible for Phase I for support:
specifically, only those locations that lacked Internet access service
with speeds of at least 768 kbps/200 kbps (i.e. only dial-up Internet
access). In the Phase I FNPRM, 77 FR 76435, December 28, 2012, the
Commission sought comment on whether to expand eligibility to a larger
pool of locations unserved by broadband meeting the Commission's 4
Mbps/1 Mbps standard.
11. In addition to areas lacking 768 kbps/200 kbps Internet access,
we now expand eligibility for Phase I support to any location that
lacks 3 Mbps/768 kbps Internet access. We do so in recognition that
carriers evaluate the economics of extending fiber to an area on a
project-by-project basis, with each project potentially containing some
customers lacking 768 kbps/200 kbps, some lacking 1.5 Mbps/768 kbps,
and others lacking 3 Mbps/768 kbps. By providing some support for those
locations that lack 1.5 Mbps/768 kbps or 3 Mbps/768 kbps, carriers
should find it more economical to extend fiber closer to those
locations that only have dial-up Internet access. Thus, expanding
eligibility to include locations with minimal non-dial-up Internet
access, but without broadband, should also improve the economics of
extending service to those customers who lack even 768 kbps/200 kbps
Internet access. Moreover, upgrading the most distant locations to
receive service meeting our 4 Mbps/1 Mbps standard should have the
added benefit of providing many consumers currently lacking broadband
with access to speeds in excess of our 4 Mbps/1 Mbps standard.
12. At the same time, we remain committed to prioritizing
broadband-capable infrastructure to those areas that completely lack
even 768 kbps/200 kbps Internet access. Therefore, we place certain
strictures on carriers that seek to avail themselves of the opportunity
to count towards their deployment obligation locations in the expanded
areas of availability. First, price cap carriers must accept support
for a second round of Phase I under the rules governing the first
round, to the extent they are able to do so, before they may avail
themselves of the expanded eligibility of areas adopted in this Order.
Specifically, a carrier may not accept funding for locations already
served by Internet access with speeds of 768 kbps/200 kbps unless the
carrier has already accepted funding for all projects or routes
including locations unserved by 768 kbps/200 kbps that can economically
be built with $775 in Connect America funding for each location
unserved by 768 kbps/200 kbps plus an equal amount of non-Connect
America carrier capital expenditure funding. For example, to the extent
a carrier analyzed its network under the previous Phase I rules to
identify projects to extend broadband-capable infrastructure to
locations lacking 768 kbps/200 kbps service, and the identified
projects would be economic to build with a one-to-one match of Connect
America and carrier resources, the carrier must prioritize these
projects when it accepts funding, and may not count toward satisfaction
of its deployment obligation locations already served by Internet
access with speeds of 768 kbps/200 kbps, regardless of the fact that
some locations served by 768 kbps/200 kbps but not 3 Mbps/768 kbps will
be reached through these identified projects.
13. Second, if a carrier has accepted funding for all projects or
routes to locations unserved by 768/200 kbps that can be economically
reached as noted in the preceding paragraph, it may also accept funding
for routes to locations unserved by 3 Mbps/768 kbps that would count
toward satisfaction of its deployment obligation. However, to the
extent that carrier has multiple projects or routes for which it would
be economic to extend service with a one-for-one match of Connect
America funding, it must prioritize funded projects or routes so as to
maximize the number of newly served locations that are currently
unserved by Internet access with speeds of 768 kbps/200 kbps that will
receive service as a result of Phase I funding. To accept new Phase I
funding and count deployment to locations served by 768 kbps/200 kbps
but unserved by 3 Mbps/768 kbps, carriers will be required to certify
that they have met both conditions.
14. In conjunction with these rule changes, we adopt a different
metric for the dollar amount of support for those locations lacking 3
Mbps/768 kbps, compared to the $775 available for locations unserved by
768 kbps/200 kbps. We conclude that it is appropriate for carriers to
be permitted to meet buildout obligations by deploying broadband-
capable infrastructure to locations that have service of 768 kbps/200
kbps but not 3 Mbps/768 kbps for $550 per location. Less fiber should
be needed to upgrade the locations with some form of Internet access,
as they are likely to be closer to the central office or remote
terminal.
15. In addition to expanding eligible locations to any location
lacking 3 Mbps/768 kbps Internet access, we also provide limited
eligibility for locations shown on the current version of the National
Broadband Map (data as of June 2012) as served by 3 Mbps/768 Internet
access. A carrier may satisfy its Phase I obligations by deploying to
certain locations in its own service territory that are shown on the
National Broadband Map as being served by 3 Mbps/768 kbps where it is
likely that such service is not in fact delivered, so long as no other
provider is offering service at speeds of 3 Mbps/768 kbps to those
locations. The carrier must identify those specific locations and
certify that the locations are currently served from a copper-fed
digital subscriber line access multiplexer (DSLAM) and are shown on the
National Broadband Map as receiving speeds of 3 Mbps/768 kbps or less.
It is likely that while locations served by a copper-fed DSLAM are
shown as having an advertised speed of 3 Mbps/768 kbps, actual speeds
to such locations fall below that. As noted in the record, copper-fed
DSLAMs have a maximum of 12 Mbps of backhaul available; as consumers
increasingly use bandwidth-intensive applications, such as streaming
video, the aggregate demand for bandwidth of all users on a DSLAM
exceeds the DSLAM's backhaul capacity, resulting in reduced speeds to
the end user.
16. We will also limit support for any census block containing a
project that received funding under the Broadband Initiatives Program
(BIP) or the Broadband Technology Opportunities Program (BTOP), so long
as the project meets the speed requirement that would disqualify the
location from Phase I (i.e., the project will eventually provide speeds
of 3 Mbps/768 kbps or greater). It would be an inefficient use of
public funds to provide government support to two different projects
aimed at serving the same location. If a carrier wishes to satisfy its
Phase I deployment obligations by building in census blocks with BIP or
BTOP projects, it must certify that it has engaged in due diligence and
reviewed publicly available data sources to ensure that the particular
locations it plans to serve do
[[Page 38230]]
not and will not receive funding under BIP or BTOP for the construction
of a network meeting our broadband standards. We direct the Bureau to
work with the Universal Service Administrative Company (USAC), the
National Telecommunications and Information Administration, and/or the
Rural Utilities Service, as appropriate, to take steps necessary to
ensure Phase I support is not provided to areas receiving BIP or BTOP
support.
17. Also, in order to use Connect America funds in the most
efficient manner possible and avoid providing excess support to an
area, we direct the Bureau to ensure the funding is not provided to the
same census blocks under both Phase I incremental support and Phase II.
No carrier should be allowed to satisfy its Phase I obligations in any
census block where it receives Phase II support. Carriers must be
prepared to deploy to an equivalent number of locations that are
unserved in a census block where they are not receiving Phase II
support. If a carrier accepts Phase II support in a census block where
it had initially planned to deploy broadband-capable networks to
locations in order to meet its Phase I obligations, it must identify
and deploy to the requisite number of locations in another census block
for which it did not receive Phase II support.
18. Service Obligations. A carrier electing to receive second round
Phase I support must deploy to a number of unserved locations. The
number of locations varies depending on the speed of service currently
available to that location. As noted above, deploying broadband-capable
infrastructure to an area lacking Internet access with speeds of 768
kbps/200 kbps will satisfy a greater portion of a carrier's public
service obligation than deploying to areas with some level of non-
broadband Internet access (i.e., a location that is served by Internet
access at 768 kbps/200 kbps but not 4 Mbps/1 Mbps). Deploying to a
location unserved by 768 kbps/200 kbps will satisfy $775 of a carrier's
Phase I obligations. Deploying to a location served by 768 kbps/200
kbps but unserved by 3 Mbps/768 kbps, as specified above, will satisfy
$550 of a carrier's Phase I obligation.
19. As in the first round of Phase I, when electing to accept
support, the carrier must provide a list identifying the census blocks
and wire centers in which it plans to use support. In addition, the
carrier must specify how many $775 locations and how many $550
locations it will deploy to. The carrier must certify that that
deployment funded through Phase I incremental support will occur in
areas shown on the most current version of the National Broadband Map
(data as of June 2012) as unserved by fixed Internet access with a
minimum speed of 3 Mbps/768 kbps or that the carrier is challenging the
National Broadband Map's designation, and that, to the best of the
carrier's knowledge, the locations are, in fact, unserved by fixed
Internet access with a minimum speed of 3 Mbps/768 kbps. The carrier
must also certify that its current capital improvement plan did not
already include plans to complete broadband deployment to that area
within the next three years, and that Phase I incremental support will
not be used to satisfy any merger commitment or similar regulatory
obligations.
20. As a change from the first round of Phase I, and as described
above, the carrier must additionally make the following certifications
regarding locations that it seeks to count to satisfy Phase I
deployment obligations. The carrier must certify to the best of its
knowledge that no locations are the subject of funding under BIP or
BTOP for projects that will provide Internet access with speeds of at
least 3 Mbps/768 kbps. If a carrier seeks to count locations in its own
service territory that are shown on the current version of the National
Broadband Map (data as of June 2012) as served 3 Mbps/768 kbps, the
carrier must certify that those locations are served through a copper-
fed DSLAM. If the carrier seeks to satisfy any of its obligations by
deploying to locations served by 768 kbps/200 kbps but not 3 Mbps/768
kbps Internet service, it must certify that it has committed to all
projects or routes to locations unserved by 768 kbps/200 kbps that can
economically be built with $775 in Connect America funds plus an equal
amount of non-Connect America carrier capital expenditure funding, and
that it has prioritized funded routes so as to maximize the number of
newly served locations that are currently unserved by Internet access
with speeds of 768 kbps/200 kbps.
21. The buildout obligations mirror those in the first round of
Phase I. A carrier accepting Phase I support must complete deployment
of broadband-capable infrastructure to two-thirds of the required
number of locations within two years and must complete deployment to
all required locations within three years. As a condition of this
support, a carrier must offer broadband service to such locations of at
least 4 Mbps downstream and 1 Mbps upstream, with latency sufficiently
low to enable the use of real-time communications, including Voice over
Internet Protocol, and with usage allowances, if any, associated with a
specified price for a service offering that are reasonably comparable
to comparable offerings in urban areas.
22. Phase I funding recipients will report that their networks meet
the above standards through a process of self-certification. We note
that the Wireline Competition Bureau, the Wireless Telecommunications
Bureau, and Office of Engineering & Technology have not specified a
methodology for testing the performance of a funding recipient's
broadband-capable network. As Phase I incremental support is designed
to provide one-time support for deployment to specific locations, we
now conclude that the potential effort to implement a testing regime
for Phase I incremental support recipients would exceed any marginal
benefit that is gained as compared to self-certification. To the extent
there are any issues with broadband performance, the consumer complaint
process will help to inform the Commission of such instances.
23. Confidentiality. The Commission sought comment on whether Phase
I elections should be afforded confidentiality. We now decide that
Phase I elections in the second round should not be treated as
confidential. We strongly encourage Phase I recipients to discuss their
elections with Commission staff at least 15 days prior to the election
deadline in order to ensure facial compliance with the filing
requirements. While these discussions and documents related to them may
be afforded confidentiality, the finalized elections must be filed
publicly. Public disclosure is generally preferred, especially when the
use of public funds is at issue. Furthermore, we find that the
competitive harm to carriers from this disclosure is likely minimal.
Indeed, not all carriers requested confidentiality for first round
Phase I filings.
24. Challenge Process. In the Phase I FNPRM, the Commission
proposed conducting a challenge process whereby parties could challenge
the status of census blocks as shown on the National Broadband Map. We
conclude that such a challenge process would improve the accuracy and
efficacy of a second round of Phase I support, allowing support to be
appropriately targeted to unserved areas consistent with our
overarching goals for Phase I. Consistent with the guidance contained
herein, we delegate to the Bureau authority to implement the challenge
process.
25. Based on our review of the record, we are persuaded that the
appropriate way to conduct a Phase I challenge process is to require
price cap carriers first to identify the specific census
[[Page 38231]]
blocks and wire centers where they propose to deploy broadband-capable
infrastructure with second round Phase I support. This will reduce the
burden on parties both making and responding to challenges, and the
administrative burden of processing such challenges. The price cap
carriers should identify where they intend to build based on the
current version of the National Broadband Map (i.e., the map reflecting
data as of June 2012).
26. In the first round of Phase I, several carriers initially
sought to meet their Phase I deployment commitments in areas that were
already served or failed to identify enough census blocks to account
for the required number of newly served locations. To ensure that
carriers properly identify the blocks that will be subject to the
challenge process, we strongly encourage those electing funding to
submit their intended elections and planned buildout locations by
census block to the Bureau on a confidential basis at least 15 days in
advance of the acceptance deadline. The Bureau will evaluate the
submissions to determine facial compliance with our requirements and
will work with Phase I recipients to resolve any possible
inconsistencies prior to the acceptance deadline. To the extent
carriers do not avail themselves of this procedure, they run the risk
of having their respective commitment amounts reduced, to the extent
they fail to identify enough census blocks to account for the required
number of new locations; carriers will not be permitted to amend their
elections once the challenge process has commenced to add additional
census blocks. Once the Bureau completes its review of the elections
made on the deadline, it will publicly announce the acceptance amounts
and census blocks for planned buildout. The challenge process then will
be conducted, as described below.
27. When electing to receive second round Phase I support, price
cap carriers must provide a list of census blocks unserved by 3 Mbps/
768 kbps Internet access in which they intend to deploy to meet their
buildout obligations. In submitting such a list, price cap carriers may
argue no providers in the area are offering broadband, challenging the
National Broadband Map's designation of a census block as being served
by 3 Mbps/768 kbps Internet access or as being served by 768 kbps/200
kbps Internet access. When making an election to accept Phase I
support, a price cap carrier may condition all or a portion of its
acceptance on its challenge being granted. To eliminate the incentive
to make blanket challenges in areas where the carrier has little intent
to serve, however, if a carrier challenges the designation of a census
block as served on the National Broadband Map and that challenge is
ultimately granted, it will be obligated to deploy in that particular
census block, absent extraordinary circumstances beyond its control.
28. Following the price cap carriers' initial submissions
identifying where they intend to serve and which census blocks they are
challenging the National Broadband Map classification as served, the
Bureau will publish a list of all census blocks that carriers propose
to serve to meet their Phase I obligations. Interested parties will
have 30 days to challenge this list by demonstrating that the block is
in fact served by fixed Internet access with speeds of 3 Mbps/768 kbps
or higher. Carriers will then be given an additional 30 days to respond
to these challenges. To the extent a more recent National Broadband Map
becomes available in this time period, interested parties are free to
bring new information regarding availability as shown on the map to the
Bureau's attention.
29. All filings in the challenge process, whether from a price cap
carrier or another provider, must be supported by some form of
documented evidence. The Bureau should not consider conclusory
assertions without supporting evidence that a census block's
designation as served or unserved should be changed. In cases where
another provider contests the price cap carrier's intention to serve,
the Bureau may consider such evidence as a signed certification from an
officer of the provider under penalty of perjury that it offers 3 Mbps/
768 kbps Internet service to customers in that particular census block.
Such a certification could be accompanied by current customer billing
records, appropriately redacted to preserve customer privacy. In cases
where the price cap carrier seeks to contest the classification of a
census block on the map as served by broadband, the Bureau may consider
such evidence as statements from residents of an area noting that they
have attempted and failed to receive service from a putative
unsubsidized competitor. The Bureau may also consider FCC Form 477 data
in evaluating whether a provider is providing broadband in a particular
census block. Where the Bureau finds it more likely than not that the
status of a census block should be treated differently than the status
shown on the National Broadband Map, the Bureau will deem that census
block as served or unserved, as appropriate, for the purposes of
Connect America Phase I.
30. Reporting Requirements. We adopt our two proposals regarding
the reporting requirements for Phase I of Connect America. These
changes apply both to support already accepted in the first round of
Phase I and support that will be accepted in the second round of Phase
I. We also adopt measures to ensure greater transparency for the public
about how Phase I funds are being used, in response to a commenter's
suggestions.
31. First, in their two- and three-year milestone certifications,
recipients of Phase I support must provide geocoded latitude and
longitude location information, along with census block and wire center
information, for each location the carrier intends to count toward its
deployment requirement. As recipients should know by that point in time
to which locations they are deploying in order to satisfy their
buildout requirements, it is unlikely this additional reporting
requirement will substantially burden Phase I recipients. While the
additional burden will be minimal, requiring geocoded location
information will considerably improve the Commission's ability to
ensure accountability of Phase I funds. We direct the Bureau to work
with USAC to publish a map indicating the location of projects funded
with Phase I incremental support.
32. Second, in the event a recipient intends to deploy to areas
other than those identified in its initial acceptance, it is permitted
(but not required) to make a supplemental filing providing updated
deployment plans at any time. Compliance with the deployment
requirements will be determined based on the recipient's final
deployment certification. As this interim reporting is completely
optional, it should not unnecessarily burden any recipient that decides
to file such reports.
33. In addition, we require carriers that elect to take Phase I
funding under these revised rules to report annually on the dollar
amount of investment they have made in the prior calendar year, using
Phase I incremental support, beginning with the annual report due July
1, 2015. In their annual reports required under section 54.313,
recipients should provide the total amount of capital funding expended
in the previous year in meeting Connect America Phase I deployment
obligations, accompanied by a list of census blocks indicating where
funding was spent.
34. Alternative Proposals. We are not persuaded by arguments we
should make more fundamental changes to Phase I. The Commission is
implementing a multi-faceted strategy to
[[Page 38232]]
expand the availability of broadband, both fixed and mobile, throughout
the nation. We decline at this time to revisit the relative allocation
of funding among the various programs designed to achieve our broadband
objectives for the nation. Phase I was limited to price cap carriers in
order to address a specific issue: over 80 percent of unserved
Americans live in price cap territories. The most direct and expedient
way to address that issue is to provide a discrete amount of support to
price cap carriers that will leverage their private capital in exchange
for a clearly defined obligation to deploy to those unserved locations
in the near term. A second round of Phase I can be quickly implemented
in the months ahead. In contrast, other proposals, such as developing
an auction by which to distribute Phase I funds, would take longer to
implement. Thus, Phase I as refined today is a reasonable step forward
in achieving our goal of rapidly deploying broadband-capable
infrastructure to unserved Americans living in price cap territories.
III. Procedural Matters
A. Paperwork Reduction Act
35. This document contains modified information collection
requirements subject to the PRA. It will be submitted to the Office of
Management and Budget (OMB) for review under section 3507(d) of the
PRA. OMB, the general public, and other Federal agencies are invited to
comment on the new or modified information collection requirements
contained in this proceeding. In addition, we note that pursuant to the
Small Business Paperwork Relief Act of 2002, Public Law 107-198, we
previously sought specific comment on how the Commission might further
reduce the information collection burden for small business concerns
with fewer than 25 employees.
36. In this present document, we have assessed the effects of
requiring carriers to submit new elections for the second round of
Connect America Phase I support, as well as requiring geocoded location
information for all Phase I certifications, and find that it will not
impact businesses with fewer than 25 employees. Only price cap carriers
or rate-of-return carriers affiliated with price cap carriers are
eligible for Phase I support. All such entities have more than 25
employees.
B. Final Regulatory Flexibility Certification
37. The Regulatory Flexibility Act (RFA) requires that agencies
prepare a regulatory flexibility analysis for notice-and-comment
rulemaking proceedings, unless the agency certifies that ``the rule
will not have a significant economic impact on a substantial number of
small entities.'' The RFA generally defines ``small entity'' as having
the same meaning as the terms ``small business,'' ``small
organization,'' and ``small governmental jurisdiction.'' In addition,
the term ``small business'' has the same meaning as the term ``small
business concern'' under the Small Business Act. A small business
concern is one which: (1) Is independently owned and operated; (2) is
not dominant in its field of operation; and (3) satisfies any
additional criteria established by the SBA.
38. This document modifies and clarifies the Phase I rules adopted
by the Commission in USF/ICC Transformation Order. These modifications
and clarifications do not create any burdens, benefits, or requirements
that were not addressed by the Final Regulatory Flexibility Analysis
attached to USF/ICC Transformation Order. Therefore, we certify that
the requirements adopted in this Report and Order will not have a
significant economic impact on a substantial number of small entities.
The Commission will send a copy of the Order, including a copy of this
final certification, in a report to Congress pursuant to SBREFA. In
addition, the Report and Order and this certification will be sent to
the Chief Counsel for Advocacy of the SBA, and will be published in the
Federal Register.
C. Congressional Review Act
39. The Commission will send a copy of this Report and Order to
Congress and the Government Accountability Office pursuant to the
Congressional Review Act.
IV. Ordering Clauses
40. Accordingly, it is ordered, pursuant to the authority contained
in sections 1, 4(i), 4(j), 5, 201(b), 214, 218-220, and 254 of the
Communications Act of 1934, as amended, and section 706 of the
Telecommunications Act of 1996, 47 U.S.C. 151, 154(i), 154(j), 155,
201(b), 214, 218-220, 254, 1302, that this Report and Order is adopted,
effective July 26, 2013, except for Sec. Sec. 54.312(c)(4) through
(c)(6), 54.312(c)(8), and 54.313(b), which contain new or modified
information collection requirements that will not be effective until
approved by the Office of Management and Budget. The Federal
Communications Commission will publish a document in the Federal
Register announcing the effective date for those sections.
41. It is further ordered that authority to implement a Connect
America Phase I challenge process is delegated to the Wireline
Competition Bureau, consistent with paragraphs 24-29 of this Report and
Order.
42. It is further ordered that authority to set the timeline for a
second round of Phase I support, including certifications related to
the second round of Connect America Phase I, is delegated to the
Wireline Competition Bureau.
43. It is further ordered that part 54 of the Commission's rules,
47 CFR part 54, is amended as set forth below, and such rule amendments
shall be effective July 26, 2013, except for Sec. Sec. 54.312(c)(4)
through (c)(6), 54.312(c)(8), and 54.313(b), which contain new or
modified information collection requirements that will not be effective
until approved by the Office of Management and Budget. The Federal
Communications Commission will publish a document in the Federal
Register announcing the effective date for those sections.
44. It is further ordered that the Commission shall send a copy of
this Report and Order to Congress and the Government Accountability
Office pursuant to the Congressional Review Act, see 5 U.S.C.
801(a)(1)(A).
45. It is further ordered, that the Commission's Consumer and
Governmental Affairs Bureau, Reference Information Center, shall send a
copy of this Order, including the Final Regulatory Flexibility
Certification, to the Chief Counsel for Advocacy of the Small Business
Administration.
List of Subjects in 47 CFR Part 54
Communications common carriers, Reporting and record keeping
requirements, Telecommunications, Telephone.
Federal Communications Commission.
Marlene H. Dortch,
Secretary.
Final Rule
For the reasons discussed in the preamble, the Federal
Communications Commission amends 47 CFR part 54 as follows:
PART 54--UNIVERSAL SERVICE
0
1. The authority citation for part 54 is revised to read as follows:
Authority: Sections 1, 4(i), 5, 201, 205, 214, 219, 220, 254,
303(r), and 403 of the Communications Act of 1934, as amended, and
section 706 of the Communications Act of 1996, as amended; 47 U.S.C.
151, 154(i), 155, 201, 205, 214, 219, 220, 254, 303(r), 403, and
1302 unless otherwise noted.
[[Page 38233]]
0
2. Amend Sec. 54.312 by revising paragraph (b) introductory text and
adding paragraph (c) to read as follows:
Sec. 54.312 Connect America Fund in Price Cap Territories--Phase I.
* * * * *
(b) Incremental Support in 2012. From January 1, 2012, to December
31, 2012, support in addition to baseline support defined in paragraph
(a) of this section will be available for certain price cap local
exchange carriers and rate-of-return carriers affiliated with price cap
local exchange carriers as follows.
* * * * *
(c) Incremental Support in 2013. From January 1, 2013, to December
31, 2013, support in addition to baseline support defined in paragraph
(a) of this section will be available for certain price cap local
exchange carriers and rate-of-return carriers affiliated with price cap
local exchange carriers as follows:
(1) For each carrier for which the Wireline Competition Bureau
determines that it has appropriate data or for which it determines
that it can make reasonable estimates, the Bureau will determine an
average per-location cost for each wire center using a simplified
cost-estimation function derived from the Commission's high-cost
proxy model. Incremental support will be based on the wire centers
for which the estimated per-location cost exceeds the funding
threshold. The funding threshold will be determined by calculating
which funding threshold would allocate all available incremental
support, if each carrier that would be offered incremental support
were to accept it.
(2) An eligible telecommunications carrier accepting incremental
support must deploy broadband to a number of unserved locations,
shown as unserved by fixed Internet access with speeds of at least
768 kbps downstream and 200 kbps upstream on the then-current
version of the National Broadband Map, equal to the amount of
incremental support it accepts divided by $775.
(3) An eligible telecommunications carrier must accept funding
pursuant to paragraph (c)(2) of this section before it may accept
funding pursuant to paragraph (c)(3) of this section. If an eligible
telecommunications carrier has committed to deploy to all locations
eligible for support under paragraph (c)(2) of this section on
routes or projects that can economically be built with $775 in
Connect America funding for each location unserved by 768 kbps
downstream and 200 kbps upstream plus an equal amount of non-Connect
America carrier capital expenditure funding, but the carrier has not
fully utilized its allotted funding, it may also count towards its
deployment obligation locations shown as unserved by fixed Internet
access with speeds of at least 3 Mbps downstream and 768 kbps
upstream equal to the amount of remaining incremental support
divided by $550.
(4) A carrier may elect to accept or decline incremental
support. A holding company may do so on a holding-company basis on
behalf of its operating companies that are eligible
telecommunications carriers, whose eligibility for incremental
support, for these purposes, shall be considered on an aggregated
basis. A carrier must provide notice to the Commission, the
Administrator, relevant state commissions, and any affected Tribal
government, stating the amount of incremental support it wishes to
accept, the number of locations at the $775 amount, the number of
locations at the $550 amount, and identifying the areas by wire
center and census block in which the designated eligible
telecommunications carrier will deploy broadband to meet its
deployment obligation, or stating that it declines incremental
support. Such notification must be made within 75 days of being
notified of any incremental support for which it would be eligible.
(5) Along with its notification, an eligible telecommunications
carrier accepting incremental support must submit the following
certifications:
(i) The locations to be served to satisfy the deployment
obligation are not shown as served by fixed broadband at the speeds
specified in paragraph (c)(2) or (c)(3) of this section provided by
any entity other than the certifying entity or its affiliate on the
then-current version of the National Broadband Map or that it is
challenging the National Broadband Map's designation of that census
block under the challenge process in paragraph (c)(7) of this
section;
(ii) To the best of the carrier's knowledge, the locations are,
in fact, unserved by fixed Internet access with speeds of at least 3
Mbps downstream and 768 kbps upstream, or 768 kbps downstream and
200 kbps upstream, as appropriate;
(iii) The carrier's current capital improvement plan did not
already include plans to complete broadband deployment within the
next three years to the locations to be counted to satisfy the
deployment obligation;
(iv) Incremental support will not be used to satisfy any merger
commitment or similar regulatory obligation; and
(v) The carrier has undertaken due diligence to determine the
locations in question are not within the service area of either
Broadband Initiatives Program or the Broadband Technology
Opportunities Program projects that will provide Internet access
with speeds of at least 3 Mbps downstream and 768 upstream.
(6) An eligible telecommunications carrier deploying to
locations unserved by 3 Mbps downstream and 768 kbps upstream under
paragraph (c)(3) of this section must also certify that it has
prioritized its planned projects or routes so as to maximize the
deployment of broadband-capable infrastructure to locations lacking
Internet access with speeds of 768 kbps downstream and 200 kbps
upstream.
(7) A person may challenge the designation of a census block as
served or unserved by a certain speed as shown on the National
Broadband Map. When the Wireline Competition Bureau determines that
the evidence presented makes it more likely than not that the census
block should be designated as served by broadband with speeds of at
least 3 Mbps downstream and 768 kbps upstream, that locations in
that census block will be treated as served by broadband and
therefore ineligible to be counted for the purposes of paragraph
(c)(3) of this section. When the Wireline Competition Bureau
determines that the evidence presented makes it more likely than not
that the census block should be designated as served by Internet
service with speeds of 768 kbps downstream and 200 kbps upstream,
but unserved by broadband with speeds of at least 3 Mbps downstream
and 768 kbps upstream, locations in that census block will be
treated as served by Internet access with speeds of 768 kbps
downstream and 200 kbps upstream and therefore eligible to be
counted for the purposes of paragraph (c)(3) of this section. When
the Wireline Competition Bureau determines that the evidence
presented makes it more likely than not that the census block should
be designated as unserved by Internet service with speeds of 768
kbps downstream and 200 kbps upstream, locations in that census
block will be treated as unserved by Internet access with speeds of
768 kbps downstream and 200 kbps upstream and therefore eligible to
be counted for the purposes of paragraph (c)(2) of this section.
(8) If no entity other than the carrier or its affiliate
provides Internet service with speeds of 3 Mbps downstream and 768
kbps upstream or greater as shown on the National Broadband Map or
as determined by the process described in paragraph (c)(7), the
carrier may satisfy its deployment obligations at a location shown
by the National Broadband Map as being served by that carrier or its
affiliate with such service by certifying that it is the only entity
providing such service, that the location does not actually receive
speeds of 3 Mbps downstream and 768 kbps upstream, and the location
is served through a copper-fed digital subscriber line access
multiplexer. The carrier must specifically identify such locations
in its election. Such locations will be treated the same as
locations under paragraph (c)(3) of this section.
(9) An eligible telecommunications carrier must complete
deployment of broadband-capable infrastructure to two-thirds of the
required number of locations within two years of providing
notification of acceptance of funding, and must complete deployment
to all required locations within three years. To satisfy its
deployment obligation, the eligible telecommunications carrier must
offer broadband service to such locations of at least 4 Mbps
downstream and 1 Mbps upstream, with latency sufficiently low to
enable the use of real-time communications, including Voice over
Internet Protocol, and with usage allowances, if any, associated
with a specified price for a service offering that are reasonably
comparable to comparable offerings in urban areas.
0
3. Amend Sec. 54.313 by revising paragraph (b) to read as follows:
Sec. 54.313 Annual reporting requirements for high-cost recipients.
* * * * *
[[Page 38234]]
(b) In addition to the information and certifications in paragraph
(a) of this section:
(1) Any recipient of incremental Connect America Phase I support
pursuant to Sec. 54.312(b) and (c) shall provide:
(i) In its next annual report due after two years after filing a
notice of acceptance of funding pursuant to Sec. 54.312(b) and (c),
a certification that the company has deployed to no fewer than two-
thirds of the required number of locations; and
(ii) In its next annual report due after three years after
filing a notice of acceptance of funding pursuant to Sec. 54.312(b)
and (c), a certification that the company has deployed to all
required locations and that it is offering broadband service of at
least 4 Mbps downstream and 1 Mbps upstream, with latency
sufficiently low to enable the use of real-time communications,
including Voice over Internet Protocol, and with usage allowances,
if any, associated with a specified price for a service offering
that are reasonably comparable to comparable offerings in urban
areas.
(2) In addition to the information and certifications required
in paragraph (b)(1) of this section, any recipient of incremental
Connect America Phase I support pursuant to Sec. 54.312(c) shall
provide:
(i) In its annual reports due after one, two, and three years
after filing a notice of acceptance of funding pursuant to Sec.
54.312(c), a certification that, to the best of the recipient's
knowledge, the locations in question are not receiving support under
the Broadband Initiatives Program or the Broadband Technology
Opportunities Program for projects that will provide broadband with
speeds of at least 4 Mbps/1 Mbps; and
(ii) In its annual reports due after one, two, and three years
after filing a notice of acceptance of funding pursuant to Sec.
54.312(c), a statement of the total amount of capital funding
expended in the previous year in meeting Connect America Phase I
deployment obligations, accompanied by a list of census blocks
indicating where funding was spent.
* * * * *
[FR Doc. 2013-15297 Filed 6-25-13; 8:45 am]
BILLING CODE 6712-01-P