FCC Proposes Fines for Entities in Default on CAF Phase II Auction Bids


The FCC’s Enforcement Bureau has issued Notices of Apparent Liability (NALs) proposing forfeitures to thirteen entities that have defaulted on bids in the Connect America Fund (CAF) Phase II Auction (Auction 903). The Auction was conducted to award financial support to service providers that committed to increasing broadband services in areas in need of service. The FCC’s auction procedures include penalties for default before a winning bidder is authorized to begin receiving support. A winning bidder is considered in default and subject to forfeiture if it fails to timely file a long-form application, to meet document submission deadlines, is found ineligible to receive CAF Phase II support, or otherwise defaults on its winning bids prior to the authorization of support. Further, any such determination is final, and a winning bidder has no opportunity to cure through additional submissions or negotiations. In short, agreeing to such payment in the event of a default was a condition for participating in the CAF Phase II Auction.

The thirteen entities received NALs for reasons that include notifying the FCC of default or failing to timely submit long-form applications or letters of credit. The entities receiving NALs and the amount of the proposed fines are: Total Highspeed, LLC ($30,000); Pine Cellular Phones, Inc. ($16,750); Workable Programs & Systems, Inc. ($16,200); Townes Wireless, Inc. ($9,504); Hanson Communications ($6,000); Crocker Communications, Inc. ($6,000); MGW Networks LLC ($6,000); NE Colorado Cellular, Inc. ($4,383); Fidelity Communications Co. ($3,641); LTD Broadband LLC ($3,563); Farmers Mutual Telephone Co. ($3,000); Johnson Telephone Co. ($3,000); and SyncWave LLC ($1,242).

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