The Federal Communications Commission (FCC) announced the next step toward launching an auction that will provide nearly $2 billion over ten years to support the expansion of high-speed Internet access to consumers and businesses in rural areas that are currently unserved by fixed broadband service.
FCC noted that the process represents the first time it has held an auction to allocate ongoing Connect America Fund (CAF) support for fixed broadband and voice services in rural areas. The use of a market-based reverse auction mechanism is designed to enable the FCC to expand and support the provision of quality rural fixed broadband and voice services at a lower cost and to maximise its investment.
The auction is scheduled to commence in 2018. With the public announcement, the FCC is seeking comment on the proposed application and bidding procedures for the auction, including: how interested parties can qualify to participate in the auction; how bidders will submit their bids; and how the FCC will process bids to determine the winners and support amounts.This first-of-its-kind auction of support for fixed broadband and voice service is expected to attract parties that have not previously participated in an FCC auction. Therefore, the FCC's Rural Broadband Auctions Task Force, together with the Wireline Competition Bureau and Wireless Telecommunications Bureau, plan to provide detailed educational materials and hands-on practice opportunities in advance of the auction.
