On August 20, 2012, the FCC issued a Public Notice regarding the Connect America Fund Phase II (“CAF Phase II”).  The CAF Phase II process will make funds available for the construction of broadband facilities in price cap carriers’ service areas.  Broadband providers interested in obtaining funds should review two maps recently released by the FCC, available atwww.fcc.gov/maps/abc-coalition-fttp-cost-model and www.fcc.gov/maps/abc-coalition-fttd-cost-model.  These maps provide a preliminary cost estimate of constructing broadband facilities across the country.  The FCC will use these cost estimates, once finalized, to determine the amount of CAF Phase II support it will offer in eligible locations. 

While the maps are not final, they provide an important tool for analyzing the business case for bidding on CAF Phase II support.  During CAF Phase II, the FCC will make up to $1.8 billion available to price cap carriers to fund broadband construction in unserved portions of their service areas.  Where a price cap carrier does not accept the support, the FCC will use a reverse auction to distribute support to any certified eligible telecommunications carrier (“ETC”) willing to construct broadband facilities in these areas. 

For broadband service providers interested in learning more about the FCC’s CAF Phase II cost model development, the FCC is holding cost model workshops on September 13 and 14, 2012.  More information about these workshops is available in the Public Notice. 

If you have any questions regarding CAF Phase II, please contact James Moskowitz at (202) 872-6881 or jmoskowitz@cm-chi.com.