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by: Wireline Competition Bureau

December 10, 2012

Please provide comments to the issue below as part of the 2012 WCB cost model virtual workshop for inclusion in the record. Comments are moderated for conformity to the workshop's guidelines.

Background

On December 11, 2012, WCB announced the availability of version one of the Connect America Cost Model. Version one of the model provides the ability to calculate costs using a variety of different inputs and assumptions, allowing the Bureau to choose among different network deployments to serve funded locations (e.g., fiber to the premises or fiber-fed digital subscriber line), different assumptions about the amount of existing facilities assumed to exist (e.g., green-field or brown-field deployments, the mix of aerial, buried or underground plant), as well as different assumptions about unit costs for capital and operating expenses.

While version one of the Connect America Cost Model is similar to the CQBAT model submitted into the record by the ABC Coalition, it contains a number of key differences, including an estimate of the cost of providing not only broadband services, but also voice services, and an updated calculation of brown-field costs to include replacement capital expenditures. The Bureau anticipates that a second version of the Connect America Cost Model will be available in the coming weeks and will include an update to 2010 census geographies and updated SBI data. The Bureau expects to adopt the final version of the Connect America Cost Model, with specific inputs, in 2013, which it will use to set Phase II support amounts to be offered to price cap carriers.

Questions for Comment

  1. Are there any functionalities or capabilities not included in version one of the Connect America Cost Model platform that should be addressed in or added to subsequent versions of the model?

Sources

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