FCC Releases Latest Connect America Fund Report and Order


At its December 2014 open meeting, the Federal Communications Commission (FCC) adopted a Report and Order that continues its efforts to implement the fundamental universal service reforms adopted in the landmark 2011 USF/ICC Transformation Order. The full text of that Report and Order is now available. For price cap carriers, the FCC has finalized the decisions necessary to proceed with the offer of Connect America Fund (CAF) Phase II model-based support in early 2015. For rate-of-return carriers, the Commission has modified the high-cost loop support (HCLS) system and clarified how the 100 percent overlap rule will be implemented. For both price cap and rate-of-return carriers, the Commission has raised the minimum broadband speed that high-cost universal service support recipients must offer, and has also clarified a number of certification and reporting requirements.

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