Limited Relief Granted on Letter of Credit Requirements

0
124

The FCC has granted a limited waiver to all Auction 903 winners in connection with their letters of credit (LOCs) to secure Connect America Fund Phase II (CAF-II) support. The FCC will permit any recipient of Auction 903 CAF-II support or Rural Broadband Experiment support, allowing them to reduce LOC amounts to one year of support upon Universal Service Administrative Company (USAC) verification that the recipient has met an optional 20% buildout milestone by the end of its second year of support. This mirrors the LOC processes adopted by the FCC for Auction 904 for Rural Digital Opportunity Fund (RDOF) Phase I support. The petition was filed by a coalition of 21 Auction 903 winners, and the FCC extended the limited relief to all Auction 903 and Rural Broadband Experiment support recipients. The waiver is currently limited until December 31, 2021 and was granted in part to provide supporters with financial relief in light of the COVID-19 pandemic. The FCC will consider whether to extend this relief beyond 2021.

Share Button