[Federal Register Volume 78, Number 103 (Wednesday, May 29, 2013)]
[Proposed Rules]
[Pages 32224-32225]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-12757]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 54

[WC Docket No. 10-90; DA 13-1136]


Availability of Version 3.1.2 of the Connect America Fund Phase 
II Cost Model; Additional Discussion Topics in Connect America Cost 
Model Virtual Workshop

AGENCY: Federal Communications Commission.

ACTION: Proposed rule.

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SUMMARY: In this document, the Wireline Competition Bureau announces 
the next version of the Connect America Cost Model (CAM v3.1.2), which 
allows Commission staff and interested parties to calculate costs based 
on a series of inputs and assumptions for Connect America Phase II 
implementation. The Bureau also announces that it is seeking additional 
input on a number of issues in the ongoing virtual workshop.

DATES: Comments are due on or before June 18, 2013.
    If you anticipate that you will be submitting comments, but find it 
difficult to do so within the period of time allowed by this notice, 
you should advise the contact listed below as soon as possible.

ADDRESSES: You may submit comments, identified by WC Docket No. 10-90, 
by any of the following methods:
    [ssquf] Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
    [ssquf] Federal Communications Commission's Web site: http://fjallfoss.fcc.gov/ecfs2/. Follow the instructions for submitting 
comments.
    [ssquf] Virtual Workshop: In addition to the usual methods for 
filing electronic comments, the Commission is allowing comments, reply 
comments, and ex parte comments in this proceeding to be filed by 
posting comments at http://www.fcc.gov/blog/wcb-cost-model-virtual-workshop-2012.
    [ssquf] People with Disabilities: Contact the FCC to request 
reasonable accommodations (accessible format documents, sign language 
interpreters, CART, etc.) by email: [email protected] or phone: (202) 418-
0530 or TTY: (202) 418-0432.

For detailed instructions for submitting comments and additional 
information on the rulemaking process, see the SUPPLEMENTARY 
INFORMATION section of this document.

FOR FURTHER INFORMATION CONTACT: Katie King, Wireline Competition 
Bureau at (202) 418-7491 or TTY (202) 418-0484.

SUPPLEMENTARY INFORMATION: This is a synopsis of the Wireline 
Competition Bureau's Public Notice in WC Docket No. 10-90; DA 13-1136, 
released May 17, 2013, as well as information posted online in the 
Wireline Competition Bureau's Virtual Workshop. The complete text of 
the Public Notice is available for inspection and copying during normal 
business hours in the FCC Reference Information Center, Portals II, 445 
12th Street SW., Room CY-A257, Washington, DC 20554. These documents 
may also be purchased from the Commission's duplicating contractor, 
Best Copy and Printing, Inc. (BCPI), 445 12th Street SW., Room CY-B402, 
Washington, DC 20554, telephone (800) 378-3160 or (202) 863-2893, 
facsimile (202) 863-2898, or via the Internet at http://www.bcpiweb.com. In addition, the Virtual Workshop may be accessed via 
the Internet at http://www.fcc.gov/blog/wcb-cost-model-virtual-workshop-2012.
    1. The Wireline Competition Bureau (Bureau) announces the next 
version of the Connect America Cost Model (CAM v3.1.2), which allows 
Commission staff and interested parties to calculate costs based on a 
series of inputs and assumptions for Connect America Phase II 
implementation. CAM v3.1.2 builds on version 3.1 of the model (CAM 
v3.1) by modifying cable coverage to reflect census blocks served by 
cable providers (based on the National Broadband Map, data as of June 
2012) that have reported voice subscriptions on FCC Form 477 (data as 
of June 2012). Previous versions of the model only provided the 
capability to filter out cable providers shown on the National 
Broadband Map as providing broadband service meeting a specified 
speed--regardless of whether they also provide voice services--when 
identifying blocks eligible for funding. CAM v3.1.2 also makes minor 
adjustments to the fixed wireless voice coverage.
    2. The Bureau also announces that it is seeking additional input on 
a number of issues in the ongoing virtual workshop. The Bureau adds a 
discussion topic to the virtual workshop entitled ``Finalizing Input 
Values for Connect America Cost Model Cost Estimation Module'' to seek 
comment on whether the values used in the input collections for the 
cost estimation module in CAM v3.1.2 are reasonable values to use in 
the final version of the cost model that the Bureau will ultimately 
adopt.
    3. Among other things, the Bureau seeks focused public input on the

[[Page 32225]]

appropriate cost of capital to be utilized in the ACFs. The follow-up 
question, which appears in the comment section of the ``Setting the 
Rate of Return for the Connect America Cost Model'' topic, asks whether 
to assume a cost of capital of eight percent, calculated with a ratio 
of debt to equity of 45:55, when adopting final ACFs. CAM v3.1.2 
enables users to view the impact on cost estimates of using ACFs that 
assume a cost of capital of nine percent, calculated with a ratio of 
debt to equity of 25:75 and a cost of debt of seven percent, versus 
using ACFs that assume a cost of capital of eight percent, calculated 
with a ratio of debt to equity of 45:55 and a cost of debt of 6.19 
percent.
    4. The Bureau also adds two additional discussion topics to the 
virtual workshop relevant to finalizing support amounts entitled 
``Support Thresholds'' and ``Connect America Fund-Intercarrier 
Compensation Recovery Mechanism Set Aside Amount.'' Finally, the Bureau 
adds an additional follow-up question to the comment section of the 
``Determining the Fraction of Supported Locations That Will Receive 
Speeds of 6 Mbps/1.5 Mbps or Greater'' topic.
    5. To the extent the public believes that there are additional 
issues that should be addressed in the virtual workshop before 
finalizing the cost model, they are encouraged to notify the Bureau as 
quickly as possible.
    6. Responses should be submitted in the virtual workshop no later 
than June 18, 2013. Parties can participate in the virtual workshop by 
visiting the Connect America Fund Web page, http:[sol][sol]www.fcc.gov/
encyclopedia/connecting-america, and following the link to the virtual 
workshop.
    7. Comments from the virtual workshop will be included in the 
official public record of this proceeding. The Bureau will not rely on 
anonymous comments posted during the workshop in reaching decisions 
regarding the model. Participants should be aware that identifying 
information from parties that post material in the virtual workshop 
will be publicly available for inspection upon request, even though 
such information may not be posted in the workshop forums.

I. Procedural Matters

A. Initial Regulatory Flexibility Act Analysis

    8. As required by the Regulatory Flexibility Act of 1980, as 
amended (RFA), the Bureau prepared an Initial Regulatory Flexibility 
Analysis (IRFA), included as part of the Model Design PN, 77 FR 38804, 
June 29, 2012, of the possible significant economic impact on a 
substantial number of small entities by the policies and rules proposed 
in these Public Notices and the information posted online in the 
Virtual Workshops. We have reviewed the IRFA and have determined that 
is does not need to be supplemented.

B. Paperwork Reduction Act

    9. This document does not contain proposed information 
collection(s) subject to the Paperwork Reduction Act of 1995 (PRA), 
Public Law 104-13. In addition, therefore, it does not contain any new 
or modified information collection burden for small business concerns 
with fewer than 25 employees, pursuant to the Small Business Paperwork 
Relief Act of 2002, Public Law 107-198, see 44 U.S.C. 3506(c)(4).

 C. Filing Requirements

    10. Comments and Replies. Pursuant to sections 1.415 and 1.419 of 
the Commission's rules, 47 CFR 1.415 and 1.419, interested parties may 
file comments and reply comments on or before the dates indicated on 
the first page of this document. Comments may be filed using the 
Commission's Electronic Comment Filing System (ECFS). See Electronic 
Filing of Documents in Rulemaking Proceedings, 63 FR 24121, May 1, 
1998.
    [ssquf] Electronic Filers: Comments may be filed electronically 
using the Internet by accessing the ECFS: 
http:[sol][sol]fjallfoss.fcc.gov/ecfs2/.
    [ssquf] Paper Filers: Parties who choose to file by paper must file 
an original and one copy of each filing. If more than one docket or 
rulemaking number appears in the caption of this proceeding, filers 
must submit two additional copies for each additional docket or 
rulemaking number.
    Filings can be sent by hand or messenger delivery, by commercial 
overnight courier, or by first-class or overnight U.S. Postal Service 
mail. All filings must be addressed to the Commission's Secretary, 
Office of the Secretary, Federal Communications Commission.
    [ssquf] All hand-delivered or messenger-delivered paper filings for 
the Commission's Secretary must be delivered to FCC Headquarters at 445 
12th Street SW., Room TW-A325, Washington, DC 20554. The filing hours 
are 8:00 a.m. to 7:00 p.m. All hand deliveries must be held together 
with rubber bands or fasteners. Any envelopes and boxes must be 
disposed of before entering the building.
    [ssquf] Commercial overnight mail (other than U.S. Postal Service 
Express Mail and Priority Mail) must be sent to 9300 East Hampton 
Drive, Capitol Heights, MD 20743.
    [ssquf] U.S. Postal Service first-class, Express, and Priority mail 
must be addressed to 445 12th Street SW., Washington DC 20554.
    11. Virtual Workshop. In addition to the usual methods for filing 
electronic comments, the Commission is allowing comments in this 
proceeding to be filed by posting comments at 
http:[sol][sol]www.fcc.gov/blog/wcb-cost-model-virtual-workshop-2012. 
Persons wishing to examine the record in this proceeding are encouraged 
to examine the record on ECFS and the Virtual Workshop. Although 
Virtual Workshop commenters may choose to provide identifying 
information or may comment anonymously, anonymous comments will not be 
part of the record in this proceeding and accordingly will not be 
relied on by the Commission in reaching its conclusions in this 
rulemaking. The Commission will not rely on anonymous postings in 
reaching conclusions in this matter because of the difficulty in 
verifying the accuracy of information in anonymous postings. Should 
posters provide identifying information, they should be aware that 
although such information will not be posted on the blog, it will be 
publicly available for inspection upon request.
    12. People with Disabilities. To request materials in accessible 
formats for people with disabilities (braille, large print, electronic 
files, audio format), send an email to [email protected] or call the 
Consumer & Governmental Affairs Bureau at 202-418-0530 (voice), 202-
418-0432 (tty).
    Availability of Documents. Comments, reply comments, and ex parte 
submissions will be publicly available online via ECFS. These documents 
will also be available for public inspection during regular business 
hours in the FCC Reference Information Center, which is located in Room 
CY-A257 at FCC Headquarters, 445 12th Street SW., Washington, DC 20554. 
The Reference Information Center is open to the public Monday through 
Thursday from 8:00 a.m. to 4:30 p.m. and Friday from 8:00 a.m. to 11:30 
a.m.

Federal Communications Commission.
Kimberly A. Scardino,
Chief, Telecommunications Access Policy Division, Wireline Competition 
Bureau.
[FR Doc. 2013-12757 Filed 5-28-13; 8:45 am]
BILLING CODE 6712-01-P