WASHINGTON, July 29, 2014 – In a webinar on Thursday, July 17, the Fiber to the Home Council hosted a webinar with Federal Communications Commission officials on a $100 million fund for expanding broadband capabilities to rural communities. FCC officials encouraged companies to apply for the funds, but also cautioning them of the heavy commitment.
The FCC voted at its July 11 monthly meeting to authorize the experiments, and applicants have until Oct. 14 to bid for funding. The $100 million will be split into three categories, said Jonathan Chambers, Chief of the FCC’s Office of Strategic Planning & Policy Analysis. About $75 million will be used for testing networks that service plans at 25 Megabit per second downloads and 5 Mbps uploads. Another $15 million will go to testing delivery service at 10 Mbps down/1 Mbps upload speeds in high cost areas. The remaining $10 million will go to 10 Mbps down/1 Mbps upload service in remote rural areas.
The experiment will allow the FCC to test its reverse auction mechanism for Phase II of the Connect America Fund, and to better see where interest for high-speed broadband is expressed and by whom.
As a rule, Chambers said the FCC will not discriminate between types of services: “In terms of the expression of interest we received, we got ranges of projects in the hundreds of thousands and hundreds of millions of dollars. We wanted to ensure we get some diversity in the projects.”
The key is cost effectiveness, he added.
“We’re just going to select the most cost-effective project first, and then the second-most cost effective, and keep selecting until we’ve used up the $75 million, and the [follow the] same process for the $15 [and $10] million,” Chambers said. “As long as people meet the performance criteria…there’s no beauty contest. There’s no, ‘we value one type of service more than another.’ It’s going to be run as a reverse auction. Low bid wins.”