Universal Service High-Cost program/ Connect America Fund II

RFP Summary provided by the agency

CAF is a multi-year program, comparable to extending electricity and phone service to rural America early in the twentieth century, and building the interstate highway system in the 1950s and ’60s. Through CAF Phase II, the FCC provides funding to local telephone companies to subsidize the cost of building new network infrastructure or performing network upgrades to provide voice and broadband service in areas where it is lacking. To ensure CAF support is used efficiently, the FCC has focused on areas that are clearly unserved or underserved by unsubsidized service providers.

What is the mission and focus of the program: research, social, economic or others?

Universal Service High-Cost program – is the FCC’s program to expand access to voice and broadband services for areas where they are unavailable. Through CAF Phase II, the FCC provides funding to local telephone companies to subsidize the cost of building new network infrastructure or performing network upgrades to provide voice and broadband service in areas where it is lacking.

How do you submit to this opportunity?

Short-Form Application — Entities seeking to participate in the auction must establish baseline financial and technical capabilities in order to be found eligible to bid. There are two pathways for establishing eligibility:
Demonstrate two years of experience providing a voice, broadband, and/or electric distribution or transmission service and submit one year of audited financials, or
Submit three years of audited financials with the short-form application and a letter of interest from an eligible bank willing to issue a letter of credit for a specified amount
Entities may wait until after they are announced as winning bidders to obtain eligible telecommunication carrier designations from the relevant states or the Commission, if applicable.

Long-Form Application — Winning bidders must:

Provide in their long-form applications additional information about qualifications, funding, and the network that they intend to use to meet their obligations
Within a specified number of days, submit a letter from an eligible bank committing to issue a letter of credit; upon notification that the entity is ready to be authorized, must obtain a letter of credit from an eligible bank that remains open and covers disbursements until build-out is complete and verified
Within 180 days of being announced as winning bidders, certify they are eligible telecommunications carriers in any areas for which they seek support and submit relevant documentation

Who are the target applicants: cities, universities, companies, small business, nonprofits, or others?

The Commission made eligible for the Phase II auction census blocks in states where price cap carriers declined the offer of model-based support, extremely high-cost census blocks nationwide (excluding NY, AK, PR, VI), and certain other census blocks that were removed from the offer of model-based support. To remain eligible, a census block cannot be served with voice and broadband of at least 10/1 Mbps (based on Form 477 data) by an unsubsidized competitor or price cap carrier.

Example project(s) summaries from past RFPs:

Wireline Competition Bureau authorises Frontier to receive over 48Million in Connect America Phase II support in Carlifornia and Texas.
Number of Funded Locations: 114,610, Total amount of Support: $48,554,986
State: California, Number of Locations:77,402, Total amount of Support: $31,978,057
State: Texas, Number of Locations: 37,208, Total amount of Support: $16,576,929
https://www.fcc.gov/reports-research/maps/caf-2-accepted-map/;