§ 54.312   Connect America Fund for Price Cap Territories—Phase I.

   (a) Frozen High-Cost Support. Beginning January 1, 2012, each price cap
   local exchange carrier and rate-of-return carrier affiliated with a price
   cap local exchange carrier will have a “baseline support amount” equal to
   its total 2011 support in a given study area, or an amount equal to $3,000
   times  the  number of reported lines for 2011, whichever is lower. For
   purposes  of  this section, price cap carriers are defined pursuant to
   § 61.3(aa)  of  this chapter and affiliated companies are determined by
   § 32.9000  of  this  chapter. Each price cap local exchange carrier and
   rate-of-return carrier affiliated with a price cap local exchange carrier
   will have a “monthly baseline support amount” equal to its baseline support
   amount divided by twelve. Beginning January 1, 2012, on a monthly basis,
   eligible carriers will receive their monthly baseline support amount.

   (1) “Total 2011 support” is the amount of support disbursed to a price cap
   local exchange carrier or rate-of-return carrier affiliated with a price cap
   local exchange carrier for 2011, without regard to prior period adjustments
   related to years other than 2011 and as determined by USAC on January 31,
   2012.

   (2) For the purpose of calculating the $3,000 per line limit, the average of
   lines reported by a price cap local exchange carrier or rate-of-return
   carrier affiliated with a price cap local exchange carrier pursuant to line
   count filings required for December 31, 2010, and December 31, 2011 shall be
   used.

   (3) A carrier receiving frozen high cost support under this rule shall be
   deemed to be receiving Interstate Access Support and Interstate Common Line
   Support equal to the amount of support the carrier to which the carrier was
   eligible under those mechanisms in 2011.

   (b) Incremental Support in 2012. From January 1, 2012, to December 31, 2012,
   support in addition to baseline support defined in paragraph (a) of this
   section will be available for certain price cap local exchange carriers and
   rate-of-return carriers affiliated with price cap local exchange carriers as
   follows.

   (1) For each carrier for which the Wireline Competition Bureau determines
   that it has appropriate data or for which it determines that it can make
   reasonable estimates, the Bureau will determine an average per-location cost
   for each wire center using a simplified cost-estimation function derived
   from the Commission's cost model. Incremental support will be based on the
   wire centers for which the estimated per-location cost exceeds the funding
   threshold. The funding threshold will be determined by calculating which
   funding threshold would allocate all available incremental support, if each
   carrier that would be offered incremental support were to accept it.

   (2) An eligible telecommunications carrier accepting incremental support
   must  deploy  broadband to a number of unserved locations, as shown as
   unserved by fixed broadband on the then-current version of the National
   Broadband Map, equal to the amount of incremental support it accepts divided
   by $775.

   (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 § 54.313(b)(2).

   (c) Incremental Support in 2013. From January 1, 2013, to December 31, 2013,
   support in addition to baseline support defined in paragraph (a) of this
   section will be available for certain price cap local exchange carriers and
   rate-of-return carriers affiliated with price cap local exchange carriers as
   follows:

   (1) For each carrier for which the Wireline Competition Bureau determines
   that it has appropriate data or for which it determines that it can make
   reasonable estimates, the Bureau will determine an average per-location cost
   for each wire center using a simplified cost-estimation function derived
   from the Commission's high-cost proxy model. Incremental support will be
   based on the wire centers for which the estimated per-location cost exceeds
   the  funding  threshold.  The  funding threshold will be determined by
   calculating which funding threshold would allocate all available incremental
   support, if each carrier that would be offered incremental support were to
   accept it.

   (2) An eligible telecommunications carrier accepting incremental support
   must deploy broadband to a number of unserved locations, shown as unserved
   by fixed Internet access with speeds of at least 768 kbps downstream and 200
   kbps upstream on the then-current version of the National Broadband Map,
   equal to the amount of incremental support it accepts divided by $775.

   (3) An eligible telecommunications carrier must accept funding pursuant to
   paragraph (c)(2) of this section before it may accept funding pursuant to
   paragraph (c)(3) of this section. If an eligible telecommunications carrier
   has  committed  to  deploy to all locations eligible for support under
   paragraph (c)(2) of this section on routes or projects that can economically
   be built with $775 in Connect America funding for each location unserved by
   768  kbps  downstream  and  200  kbps upstream plus an equal amount of
   non-Connect America carrier capital expenditure funding, but the carrier has
   not fully utilized its allotted funding, it may also count towards its
   deployment obligation locations shown as unserved by fixed Internet access
   with speeds of at least 3 Mbps downstream and 768 kbps upstream equal to the
   amount of remaining incremental support divided by $550.

   (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 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
   § 54.313(b)(2).

   (5) Along with its notification, an eligible telecommunications carrier
   accepting incremental support must submit the following certifications:

   (i) The locations to be served to satisfy the deployment obligation are not
   shown as served by fixed broadband at the speeds specified in paragraph
   (c)(2) or (c)(3) of this section provided by any entity other than the
   certifying  entity or its affiliate on the then-current version of the
   National Broadband Map or that it is challenging the National Broadband
   Map's  designation of that census block under the challenge process in
   paragraph (c)(7) of this section;

   (ii) To the best of the carrier's knowledge, the locations are, in fact,
   unserved by fixed Internet access with speeds of at least 3 Mbps downstream
   and 768 kbps upstream, or 768 kbps downstream and 200 kbps upstream, as
   appropriate;

   (iii) 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;

   (iv) Incremental support will not be used to satisfy any merger commitment
   or similar regulatory obligation; and

   (v) The carrier has undertaken due diligence to determine the locations in
   question are not within the service area of either Broadband Initiatives
   Program or the Broadband Technology Opportunities Program projects that will
   provide Internet access with speeds of at least 3 Mbps downstream and 768
   upstream.

   (6) An eligible telecommunications carrier deploying to locations unserved
   by 3 Mbps downstream and 768 kbps upstream under paragraph (c)(3) of this
   section must also certify that it has prioritized its planned projects or
   routes so as to maximize the deployment of broadband-capable infrastructure
   to locations lacking Internet access with speeds of 768 kbps downstream and
   200 kbps upstream.

   (7) A person may challenge the designation of a census block as served or
   unserved by a certain speed as shown on the National Broadband Map. When the
   Wireline Competition Bureau determines that the evidence presented makes it
   more likely than not that the census block should be designated as served by
   broadband with speeds of at least 3 Mbps downstream and 768 kbps upstream,
   that locations in that census block will be treated as served by broadband
   and therefore ineligible to be counted for the purposes of paragraph (c)(3)
   of this section. When the Wireline Competition Bureau determines that the
   evidence presented makes it more likely than not that the census block
   should be designated as served by Internet service with speeds of 768 kbps
   downstream and 200 kbps upstream, but unserved by broadband with speeds of
   at least 3 Mbps downstream and 768 kbps upstream, locations in that census
   block will be treated as served by Internet access with speeds of 768 kbps
   downstream and 200 kbps upstream and therefore eligible to be counted for
   the  purposes  of  paragraph (c)(3) of this section. When the Wireline
   Competition Bureau determines that the evidence presented makes it more
   likely than not that the census block should be designated as unserved by
   Internet service with speeds of 768 kbps downstream and 200 kbps upstream,
   locations in that census block will be treated as unserved by Internet
   access  with  speeds  of 768 kbps downstream and 200 kbps upstream and
   therefore eligible to be counted for the purposes of paragraph (c)(2) of
   this section.

   (8) If no entity other than the carrier or its affiliate provides Internet
   service with speeds of 3 Mbps downstream and 768 kbps upstream or greater as
   shown  on  the  National Broadband Map or as determined by the process
   described  in paragraph (c)(7), the carrier may satisfy its deployment
   obligations at a location shown by the National Broadband Map as being
   served by that carrier or its affiliate with such service by certifying that
   it is the only entity providing such service, that the location does not
   actually receive speeds of 3 Mbps downstream and 768 kbps upstream, and the
   location is served through a copper-fed digital subscriber line access
   multiplexer. The carrier must specifically identify such locations in its
   election.  Such  locations will be treated the same as locations under
   paragraph (c)(3) of this section.

   (9) An eligible telecommunications carrier must complete deployment of
   broadband-capable infrastructure to two-thirds of the required number of
   locations  within two years of providing notification of acceptance of
   funding, and must complete deployment to all required locations within three
   years. To satisfy its deployment obligation, the eligible telecommunications
   carrier must offer broadband service to such locations of at least 4 Mbps
   downstream and 1 Mbps upstream, with latency sufficiently low to enable the
   use of real-time communications, including Voice over Internet Protocol, and
   with usage allowances, if any, associated with a specified price for a
   service offering that are reasonably comparable to comparable offerings in
   urban areas.

   [ 76 FR 73872 , Nov. 29, 2011, as amended at  77 FR 31536 , May 29, 2012;  78 FR 38233 , June 26, 2013;  78 FR 48624 , Aug. 9, 2013]

   Effective Date Note: At  78 FR 48624 , Aug. 9, 2013, § 54.312 was amended by
   revising  paragraphs  and  (c)(4). These paragraph contain information
   collection and recordkeeping requirements and will not become effective
   until approval has been given by the Office of Management and Budget.

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