§ 54.309   Connect America Fund Phase II Public Interest Obligations.

   (a) Recipients of Connect America Phase II model-based support are required
   to offer broadband service at actual speeds of at least 10 Mbps downstream/1
   Mbps upstream, with latency suitable for real-time applications, including
   Voice  over  Internet  Protocol, and usage capacity that is reasonably
   comparable  to  comparable offerings in urban areas, at rates that are
   reasonably comparable to rates for comparable offerings in urban areas. For
   purposes of determining reasonable comparability of rates, recipients are
   presumed  to meet this requirement if they offer rates at or below the
   applicable benchmark to be announced annually by public notice issued by the
   Wireline Competition Bureau, or no more than the non-promotional prices
   charged for a comparable fixed wireline service in urban areas in the state
   or U.S. Territory where the eligible telecommunications carrier receives
   support.

   (b) Recipients of Connect America Phase II model-based support, recipients
   of Phase II Connect America support awarded through a competitive bidding
   process, and non-contiguous price cap carriers receiving Phase II frozen
   support in lieu of model-based support are required to bid on category one
   telecommunications and Internet access services in response to a posted FCC
   Form 470 seeking broadband service that meets the connectivity targets for
   the schools and libraries universal service support program for eligible
   schools and libraries (as described in § 54.501) located within any area in a
   census block where the carrier is receiving Phase II model-based support.
   Such  bids  must be at rates reasonably comparable to rates charged to
   eligible schools and libraries in urban areas for comparable offerings.

   [ 80 FR 4477 , Jan. 27, 2015, as amended at  80 FR 5987 , Feb. 4, 2015]

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