[Federal Register Volume 78, Number 154 (Friday, August 9, 2013)]
[Rules and Regulations]
[Pages 48622-48625]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-19233]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 54

[WC Docket No. 10-90; FCC 13-97]


Connect America Fund

AGENCY: Federal Communications Commission.

ACTION: Final rule.

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SUMMARY: In this document, the Federal Communications Commission 
(Commission) sua sponte reconsiders one aspect of the recent Phase I 
Order and provides a limited waiver of the Phase I election deadline. 
The Commission now requires carriers to report updates to planned Phase 
I deployments to the Commission, relevant state commissions, and 
relevant Tribal governments.

DATES: Effective August 9, 2013, except for Sec.  54.312(b)(3) and 
54.312(c)(4) which contain OMB requirements that have not been approved 
by OMB. The Federal Communications Commission will publish a document 
in the Federal Register announcing the effective date.

FOR FURTHER INFORMATION CONTACT: Ryan Yates, Wireline Competition 
Bureau, (202) 418-0886 or TTY: (202) 418-0484.

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Order 
on Reconsideration in WC Docket No. 10-90; FCC 13-97, adopted on July 
15, 2013 and released on July 16, 2013. The full text of this document 
is available for public inspection during regular business hours in the 
FCC Reference Center, Room CY-A257, 445 12th Street SW., Washington, DC 
20554. Or at the following Internet address: http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-13-97A1.pdf.

I. Introduction

    1. In the Order on Reconsideration, the Commission sua sponte 
reconsiders one aspect of the recent Phase I Order, 78 FR 38227, June 
26, 2013, and provides a limited waiver of the Phase I election 
deadline. First, the Commission now requires carriers to report updates 
to planned Phase I deployments to the Commission, relevant state 
commissions, and relevant Tribal governments. If the intended new 
deployment will occur in census blocks not previously identified, the 
updates must be submitted at least 90 days prior to commencing 
construction. Making this reporting mandatory will further transparency 
regarding the use of this funding, for the benefit of regulators and 
the general public. This will strengthen monitoring and oversight over 
Phase I recipients and will better ensure that Phase I support is not 
spent in areas that already receive service through another provider. 
Second, we provide a 15-day waiver of the deadline for carriers to 
accept second round Phase I support. This extension makes the second 
round election period 90 days, which is the same amount of time as was 
provided for first round Phase I elections.

II. Discussion

A. Reconsideration of Reporting Requirements

    2. Under Sec.  1.108 of our rules, the Commission may, on its own 
motion, reconsider any action made or taken within 30 days from the 
date of public notice of such action. In doing so, the Commission may 
take any action it could take in acting on a petition for 
reconsideration, including reversing or modifying the original order.

[[Page 48623]]

    3. We now reconsider the Commission's decision in the Phase I Order 
regarding optional reporting of changes to planned Phase I deployments. 
On further reflection, we conclude that it is appropriate to require 
Phase I recipients to report changes in deployment plans when those 
decisions are made, rather than at the completion of the Phase I 
deployment period as required under the current rules. If, in 
satisfying its Phase I buildout obligations, a recipient plans to 
deploy to locations in a census block not identified when it initially 
accepted Phase I support, the recipient must report that new census 
block to the Commission, relevant state commission, and relevant Tribal 
governments, at least 90 days prior to commencing construction in that 
new census block. Likewise, a recipient of Phase I support must submit 
updates indicating that it no longer plans to deploy to one or more 
census blocks it initially identified when accepting support, prior to 
making the certification required under Sec.  54.313(b)(2) of our 
rules. This reconsideration of reporting requirements applies to 
changes in deployment plans for either the first or second round of 
Phase I that occur after the effective date of this new rule.
    4. This minor change strengthens our ongoing ability to oversee use 
of this public funding and is consistent with our commitment to 
accountability and oversight, ensuring that universal service funding 
is used as efficiently as possible. When a recipient alters its Phase I 
deployment plans, the Commission, the relevant state commissions, 
relevant Tribal governments, if applicable, and the general public 
should be informed of that decision. By requiring Phase I recipients to 
identify new census blocks, Commission staff will be able to verify 
that the locations in those census blocks are, in fact, shown as 
unserved on the National Broadband Map. Additionally, as Phase I 
election and buildout information is publicly disclosed, the reporting 
of new census blocks will inform the public, including existing 
providers, of where the recipient now intends to meet its Phase I 
buildout obligations. To further ensure that the public is aware of 
changes in deployment plans, the Wireline Competition Bureau (Bureau) 
will issue a public notice announcing the updated deployment plans. 
This will give any existing provider the opportunity to notify the 
recipient that the provider already serves the census block in 
question, thereby furthering the Commission's objective of not 
supporting areas where there are unsubsidized competitors.
    5. We conclude that it is reasonable to provide potential existing 
providers 45 days from the Bureau giving public notice of the new 
planned census blocks to notify the Phase I recipient that they are 
currently providing service to the locations in question. No sooner 
than 46 days after the Bureau issues a public notice announcing the 
change and in any event no later than the commencement of construction 
in the new census blocks, we require the Phase I recipient to make all 
appropriate certifications that would have been required had the 
recipient initially identified the new census blocks at the time it 
accepted Phase I support. A Phase I recipient may disregard any notice 
from a potential existing provider received after the recipient makes 
its certifications. All certifications must be based on information 
available at the time the certifications are made.

B. Waiver of Election Deadline

    6. Carriers were initially provided 75 days from the release of the 
Phase I Order to elect to accept or decline Phase I support. One price 
cap carrier has requested a 15-day extension of time, noting that 
additional time is needed to analyze new deployment opportunities and 
to consult with the Commission on planned deployments. On our own 
motion, we grant a limited waiver of the Phase I election deadline, 
allowing all price cap carriers to submit their elections up to 15 days 
after the original deadline. We conclude that good cause exists to 
grant a limited waiver in this circumstance. While the Commission had 
originally predicted that 75 days would be a sufficient period of time 
for carriers to make second round elections, based on the record, we 
now determine that additional time is warranted. Because the Commission 
expanded the eligible areas in the second round of Phase I, carriers 
now must complete additional analyses that were not previously 
undertaken for the first round. We find that a brief extension of time 
will facilitate the ability of Phase I recipients to provide advance 
notice of Phase I elections to Commission staff before the election 
deadline. We note that the Commission provided 90 days to make an 
election in the first round of Phase I, and this action will harmonize 
the time provided for elections in the first and second rounds of Phase 
I. We conclude that providing a limited extension to all price cap 
carriers would be appropriate, and we now extend this deadline to 90 
days from the release of the Phase I Order. Therefore, Phase I 
elections are due August 20, 2013.

III. Procedural Matters

A. Paperwork Reduction Act

    7. This document contains new or modified information collection 
requirements subject to the PRA. It will be submitted to OMB for review 
under section 3507(d) of the PRA. OMB, the general public, and other 
Federal agencies are invited to comment on the new or modified 
information collection requirements contained in this proceeding. In 
addition, we note that pursuant to the Small Business Paperwork Relief 
Act of 2002, Public Law 107-198, we previously sought specific comment 
on how the Commission might further reduce the information collection 
burden for small business concerns with fewer than 25 employees.
    8. In this present document, we have assessed the effects of 
requiring carriers to report changes in planned Phase I deployment, and 
we find that the burden on companies with fewer than 25 employees will 
be minimal. Only price cap carriers or rate-of-return carriers 
affiliated with price cap carriers are eligible for Phase I support. 
All such entities have more than 25 employees. Other providers, 
including cable companies and wireless Internet service providers, have 
the option to file with the price cap carrier in question and/or on the 
Commission's ECFS a notice that they already provide service to a given 
location. These providers may be small businesses. However, the option 
to make this filing is designed to benefit such providers by reducing 
the likelihood that Connect America funds are used to subsidize the 
overbuilding of their existing networks.

B. Final Regulatory Flexibility Certification

    9. The Regulatory Flexibility Act (RFA) requires that agencies 
prepare a regulatory flexibility analysis for notice-and-comment 
rulemaking proceedings, unless the agency certifies that ``the rule 
will not have a significant economic impact on a substantial number of 
small entities.'' The RFA generally defines ``small entity'' as having 
the same meaning as the terms ``small business,'' ``small 
organization,'' and ``small governmental jurisdiction.'' In addition, 
the term ``small business'' has the same meaning as the term ``small 
business concern'' under the Small Business Act. A small business 
concern is one which: (1) Is independently owned and operated; (2) is 
not dominant in its field of operation; and (3) satisfies any 
additional criteria established by the SBA.

[[Page 48624]]

    10. This document modifies the reporting requirements contained in 
the Phase I Order. This modification does not create any burdens, 
benefits, or requirements that were not addressed by the Final 
Regulatory Flexibility Analysis attached to USF/ICC Transformation 
Order, 76 FR 73830, November 29, 2011. Therefore, we certify that the 
requirements adopted in this Order on Reconsideration will not have a 
significant economic impact on a substantial number of small entities. 
The Commission will send a copy of the Order on Reconsideration, 
including a copy of this final certification, in a report to Congress 
pursuant to SBREFA. In addition, the Order on Reconsideration and this 
certification will be sent to the Chief Counsel for Advocacy of the 
SBA, and will be published in the Federal Register.

C. Congressional Review Act

    11. The Commission will send a copy of the Order on Reconsideration 
to Congress and the Government Accountability Office pursuant to the 
Congressional Review Act.

IV. Ordering Clauses

    12. Accordingly, it is ordered, pursuant to the authority contained 
in sections 1, 4(i), 4(j), 5, 201(b), 214, 218-220, and 254 of the 
Communications Act of 1934, as amended, and section 706 of the 
Telecommunications Act of 1996, 47 U.S.C. 151, 154(i), 154(j), 155, 
201(b), 214, 218-220, 254, 1302, and Sec. Sec.  1.1 and 1.108 of the 
Commission's rules, 47 CFR 1.1, 1.108, that the Order on 
Reconsideration is adopted.
    13. It is further ordered, pursuant to Sec.  1.103(a) of the 
Commission's rules, 47 CFR 1.103(a), that the ``Reconsideration of 
Reporting Requirements'' section of the Order on Reconsideration 
involves Paperwork Reduction Act burdens, and shall be effective 
immediately upon announcement in the Federal Register of OMB approval 
of the information collection requirements and an effective date.
    14. It is further ordered, pursuant to Sec.  1.3 of the 
Commission's rules, 47 CFR 1.3, that the deadline for carriers to file 
Phase I second round elections is waived to the extent described above, 
and, pursuant to Sec.  1.103(a) of the Commission's rules, 47 CFR 
1.103(a), shall be effective immediately upon release of the Order on 
Reconsideration.

List of Subjects in 47 CFR Part 54

    Communications common carriers, Reporting and recordkeeping 
requirements, Telecommunications, Telephone.

Federal Comunications Commission.
Marlene H. Dortch,
Secretary.
    For the reasons discussed in the preamble, the Federal 
Communications Commission amends 47 CFR part 54 as follows:

PART 54--UNIVERSAL SERVICE

0
1. The authority citation for part 54 is revised to read as follows:

    Authority:  Sections 1, 4(i), 5, 201, 205, 214, 219, 220, 254, 
303(r), and 403 of the Communications Act of 1934, as amended, and 
section 706 of the Communications Act of 1996, as amended; 47 U.S.C. 
151, 154(i), 155, 201, 205, 214, 219, 220, 254, 303(r), 403, and 
1302 unless otherwise noted.

0
2. Amend Sec.  54.312 by revising paragraphs (b)(3) and (c)(4) to read 
as follows:


Sec.  54.312  Connect America Fund in Price Cap Territories--Phase I.

* * * * *
    (b) * * *
    (3) A carrier may elect to accept or decline incremental support. A 
holding company may do so on a holding-company basis on behalf of its 
operating companies that are eligible telecommunications carriers, 
whose eligibility for incremental support, for these purposes, shall be 
considered on an aggregated basis. A carrier must provide notice to the 
Commission, relevant state commissions, and any affected Tribal 
government, stating the amount of incremental support it wishes to 
accept and identifying the areas by wire center and census block in 
which the designated eligible telecommunications carrier will deploy 
broadband to meet its deployment obligation, or stating that it 
declines incremental support. Such notification must be made within 90 
days of being notified of any incremental support for which it would be 
eligible. Along with its notification, a carrier accepting incremental 
support must also submit a certification that the locations to be 
served to satisfy the deployment obligation are not shown as served by 
fixed broadband provided by any entity other than the certifying entity 
or its affiliate on the then-current version of the National Broadband 
Map; that, to the best of the carrier's knowledge, the locations are, 
in fact, unserved by fixed broadband; that the carrier's current 
capital improvement plan did not already include plans to complete 
broadband deployment within the next three years to the locations to be 
counted to satisfy the deployment obligation; and that incremental 
support will not be used to satisfy any merger commitment or similar 
regulatory obligation. If a carrier intends to deploy to census blocks 
not initially identified at the time of election, it must inform the 
Commission, the Administrator, relevant state commissions, and any 
affected Tribal government of the change at least 90 days prior to 
commencing deployment in the new census blocks. No sooner than 46 days 
after the Wireline Competition Bureau issues a public notice announcing 
the updated deployment plans but prior to commencing deployment, the 
carrier must make the certifications described in this paragraph with 
respect to the new census blocks. If a carrier no longer intends to 
deploy to a previously identified census block, it must inform the 
Commission, the Administrator, relevant state commission, and any 
affected Tribal government prior to filing its certification pursuant 
to Sec.  54.313(b)(2).
* * * * *
    (c) * * *
    (4) A carrier may elect to accept or decline incremental support. A 
holding company may do so on a holding-company basis on behalf of its 
operating companies that are eligible telecommunications carriers, 
whose eligibility for incremental support, for these purposes, shall be 
considered on an aggregated basis. A carrier must provide notice to the 
Commission, the Administrator, relevant state commissions, and any 
affected Tribal government, stating the amount of incremental support 
it wishes to accept, the number of locations at the $775 amount, and 
the number of locations at the $550 amount, and identifying the areas 
by wire center and census block in which the designated eligible 
telecommunications carrier will deploy broadband to meet its deployment 
obligation; or stating that it declines incremental support. Such 
notification must be made within 75 days of being notified of any 
incremental support for which it would be eligible. If a carrier 
intends to deploy to census blocks not initially identified at the time 
of election, it must inform the Commission, the Administrator, relevant 
state commissions, and any affected Tribal government of the change at 
least 90 days prior to commencing deployment in the new census blocks. 
No sooner than 46 days after the Wireline Competition Bureau issues a 
public notice announcing the updated deployment plans but prior to 
commencing deployment, the carrier must make the certifications 
described in paragraph (c)(5) of this section with respect to the new 
census blocks. If a

[[Page 48625]]

carrier no longer intends to deploy to a previously identified census 
block, it must inform the Commission, the Administrator, relevant state 
commission, and any affected Tribal government prior to filing its 
certification pursuant to Sec.  54.313(b)(2).
* * * * *
[FR Doc. 2013-19233 Filed 8-8-13; 8:45 am]
BILLING CODE 6712-01-P