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20141216 Connect Iowa Policy Presentation

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Federal Broadband Policy & Iowa Presentation

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20141216 Connect Iowa Policy Presentation

  1. 1. FEDERAL BROADBAND POLICY AND IOWA DECEMBER 16, 2014
  2. 2.  Connect America Fund: Phase II  Phase II: $1.75B/year to areas unserved by 3Mbps/768Kbps  FCC Votes on 12/11/2014 to Increase Broadband Target Speed to 10 Mbps/1 Mbps  http://www.connectednation.org/sites/default/files/bb_pp/policy_brief_on_caf_broadband_spe ed_target.pdf  Connect America Fund: Rural Broadband Experiments  FCC Announces 40 Provisional Winners  $100 million budget  http://www.connectednation.org/sites/default/files/bb_pp/policy_brief_on_rbe_provisional_wi nners_12052014.pdf  E-Rate Transformation  FCC Votes to Increase E-rate by $1.5 billion/year  http://www.connectednation.org/sites/default/files/bb_pp/e- rate_modernation__cap_increase_connected_nation_policy_brief.pdf ©2012 Connected Nation. All Rights Reserved. Do Not Copy Without Written Permission. 2 FCC: USF REFORM
  3. 3.  $100 million pilot project to underserved high-cost and extremely high- cost rural areas/10 years  Result of 1,024 expressions of interest where 60% proposed FTTP; 55 from Iowa  Per line subsidy range = $630 - $2494  $100 million -> 3 buckets  $75 million for unserved high-cost areas ≥ 25 Mbps down/5 Mbps up  $15 million for unserved high-cost areas ≥ 10 Mbps down/1 Mbps up  $10 million for extremely high-cost areas ≥ 10 Mbps down/1 Mbps up  Majority of funds intended for most robust projects  Applications due October 14, 2014 (extended to November 7, 2014) 3 CAF RURAL BROADBAND EXPERIMENTS
  4. 4.  Nearly 600 project applications to serve over 76,000 census blocks received by FCC  40 Provisional Winners from 25 States and Puerto Rico Announced on December 5, 2014  3 from Iowa  100 Mbps/25 Mbps  LTD Broadband, LLC in IA and MN – 10,122 Census Blocks - $20,000,000  Skybeam, LLC in IA, NE, IL, KS, and TX – 2,839 Census Blocks - $8,839,194  10 Mbps/1 Mbps  Allamakee-Clayton Electric Cooperative, Inc. - 209 Census Blocks - $1,453,593  Next Steps: Technical and Operational Review 4 CAF RURAL BROADBAND EXPERIMENTS
  5. 5.  Increase in National Broadband Target Speed to 10 Mbps/1 Mbps (first set by National Broadband Plan at 4 Mbps/1 Mbps)  FCC argues that 99% of urban U.S. households have access to 10 Mbps  Result: all CAF subsidy recipients must build networks capable of delivering new target speed  In Iowa, 80.62% of households can access broadband at 10 Mbps/1 Mbps  236,715 households unserved  Term of support increases from 5 years to six years w/ option for 7 years  Increase in flexibility in build-out requirements  Forbearance from certain USF obligations in areas where price cap providers do not receive CAF support  Voice service continuation in states where CAF subsidies are declined 5 CAF PHASE II CHANGES
  6. 6. 6 IOWA UNSERVED BY 3 MBPS/768 KBPS
  7. 7. 7 IOWA UNSERVED BY 10 MBPS/1.5 MBPS
  8. 8.  Cap on E-rate increased by $1.5 billion, from the current program size of $2.4 billion to $3.9 billion  First substantial increase since program’s inception in 1997 and will be 3rd largest federal source of funds to K-12 education  Is in addition to new dedicated funding of $1 billion for on campus Wi-Fi (temporary funds announced in July)  Designed to help FCC achieve goal of 100 Mbps per 1,000 students and staff w/ comparable capacity at libraries  Easing funding requirements (e.g. – allowing applicants to seek funds for large CAPEX in one year rather than over several) 8 E-RATE FUNDING INCREASE
  9. 9.  Equalizing support for dark fiber requests (e.g. – equipment to light up dark fiber now reimbursable)  Allows schools/libraries to build own networks in some cases  Incentivizes state support with E-rate match of 10%  USF High-Cost recipients required to offer “reasonably comparable” prices in subsidy areas  Funding for Category 2 services (i.e. – internal connections such as Wi-Fi) increased by $1 billion/year for 5 years  Also expands cap for Category 2 services in libraries from $2.3/sf to $5/sf 9 E-RATE FUNDING INCREASE
  10. 10. Phillip Brown Director of Federal/State Policy and Broadband Planning pbrown@connectednation.org 877-846-7710 10 QUESTIONS?

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