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Release of CAM v3.1.4, Illustrative Results, and Updated Methodology

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Released: June 25, 2013

PUBLIC NOTICE

Federal Communications Commission

News Media Information 202 / 418-0513

445 12th St., S.W.

Internet: http://www.fcc.gov

Washington, D.C. 20554

TTY: 1-888-835-5322

DA 13-1439

Released: June 25, 2013

WIRELINE COMPETITION BUREAU ANNOUNCES AVAILABILITY OF VERSION 3.1.4

OF THE CONNECT AMERICA FUND PHASE II COST MODEL, ILLUSTRATIVE

RESULTS, AND UPDATED METHODOLOGY DOCUMENTATION

WC Docket No. 10-90

Today, the Wireline Competition Bureau (Bureau) announces the availability of the next
version of the Connect America Cost Model (CAM v3.1.4), which allows Commission staff and
interested parties to calculate costs based on a series of inputs and assumptions for Connect America
Phase II implementation.1 The Bureau has also updated the methodology documentation for CAM
v3.1.4, to assist the public in understanding the current model architecture, processing steps, and
data sources.2 The methodology documentation is available at
http://transition.fcc.gov/Daily_Releases/Daily_Business/2013/db0624/DOC-321774A1.pdf.
CAM v3.1.4 updates the prior version (CAM v3.1.3) in a number of respects. First, this
version includes a code change to enable users to calculate costs associated with assumptions of very
heavy data usage.3 CAM v3.1.4 also modifies the OCNCoSize table to change the size
categorization for Fremont Telephone from Medium to Small.4 Further, CAM v3.1.4 modifies the


1 See Connect America Fund et al., WC Docket No. 10-90 et al., Report and Order and Further Notice of
Proposed Rulemaking, 26 FCC Rcd 17663, 17673, para. 23 (2011) (USF/ICC Transformation Order), pets. for
review pending sub nom. In re: FCC 11-161,
No. 11-9900 (10th Cir. filed Dec. 8, 2011). Including Version
3.1.4, the Bureau has now released seven versions of the model to date. See Wireline Competition Bureau
Announces Availability of Version One of the Connect America Fund Phase II Cost Model
, WC Docket Nos.
10-90, 05-337, Public Notice, 27 FCC Rcd 15356 (Wireline Comp. Bur. 2012); Wireline Competition Bureau
Announces Availability of Version Two of the Connect America Fund Phase II Cost Model
, WC Docket No.
10-90, Public Notice, 28 FCC Rcd 280 (Wireline Comp. Bur. 2013); Wireline Competition Bureau Announces
Availability of Version Three of the Connect America Fund Phase II Cost Model
, WC Docket No. 10-90,
Public Notice, 28 FCC Rcd 2316 (Wireline Comp. Bur. 2013); Wireline Competition Bureau Announces
Availability of Version 3.1 of the Connect America Fund Phase II Cost Model
, WC Docket No. 10-90, Public
Notice, 28 FCC Rcd 5707 (Wireline Comp. Bur. 2013); Wireline Competition Bureau Announces Availability
of Version 3.1.2 of the Connect America Fund Phase II Cost Model and Adds Additional Discussion Topics to
Connect America Cost Model Virtual Workshop
, WC Docket No. 10-90, Public Notice, DA 13-1136 (Wireline
Comp. Bur. rel. May 17, 2013); Wireline Competition Bureau Announces Availability of Version 3.1.3 of the
Connect America Fund Phase II Cost Model,
WC Docket No. 10-90, Public Notice, DA 13-1340 (Wireline
Comp. Bur. rel. June 7, 2013).
2 The methodology documentation has been, and will continue to be, revised to reflect any changes made in
the Connect America Cost Model. This documentation replaces the version 3.1.3 methodology documentation
that was posted recently. See Wireline Competition Bureau Releases Illustrative Results from Connect
America Cost Model Version 3.1.3, and Methodology Documentation for Version 3.1.3
, WC Docket No. 10-
90, Public Notice, DA 13-1394 (Wireline Comp. Bur. rel. June 17, 2013).
3 See CAM v3.1.4 Methodology at section 15, available at
http://transition.fcc.gov/Daily_Releases/Daily_Business/2013/db0624/DOC-321774A1.pdf.
4 The OCNCoSize input table can be found under the Model Inputs section of the Posted Data Sets tab.

support model interface to present users with illustrative values for the Target Benchmark and
Alternative Technology Cap (AltTechCap) by solution set, and modifies report headers for the
model output to show the Target Benchmark and AltTechCap to six decimal places of precision.
CAM v3.1.4 also removes the Override Company Size solution set toggle. Finally, CAM v3.1.4
makes several clean-up changes to the support model, model reports, input workbooks, and posted
data sets.5 These changes are reflected in two solution sets that can be accessed by accessing CAM
v3.1.4, visiting the Posted Data Sets page, and viewing the CAM314ACF8UnSubCompSBI6Voice
and CAM314ACF9UnSubCompSBI6Voice solution sets under Model Outputs.
Parties should follow the same procedures to access CAM v3.1.4 as announced for previous
versions. In particular, parties may access CAM v3.1.4 at http://www.fcc.gov/encyclopedia/caf-
phase-ii-models or https://cacm.usac.org.6 Additionally, authorized users who have signed the
attachments to the protective order will have access to a system evaluator package that provides a
test environment populated with a sample database, allowing users to view database structures,
observe the processing steps of CAM for a subset of the country, and see changes in the database.
In conjunction with the release of CAM v3.1.4, the Bureau releases illustrative model
outputs from running CAM v3.1.4 using different combinations of possible model inputs and
support assumptions, with an illustrative funding threshold of $52.7 The reports show potential
support amounts and number of supported locations, by carrier, by state, using the default input
values in CAM 3.1.4. The reports are available at http://www.fcc.gov/encyclopedia/connect-
america-cost-model-illustrative-results. The Bureau has not yet finalized and adopted a cost model.8
Accordingly, the illustrative results that we release today are not final support amounts.


5 CAM v3.1.4 removes references to previously removed report parameters from report output fields--
affecting the Contribution Margins, FCC Portion, Funding Approach, and Monthly Support Funding Cap
fields. Further, CAM v3.1.4 removes "Wireless" text labels, replacing them with "Fixed Wireless" text labels
throughout the application, which updates the support model parameters, reports, and Census Block group
detail and Census Block summary posted data sets. This version also updates the capital expenses, annual
charge factors, and operating expenses input workbooks to improve readability, removes stray notes, adds
informative labels, and removes inputs necessary only for fiber-to-the-DSLAM networks.
6 In order to access any version of the model, parties must execute the relevant acknowledgement of
confidentiality, licensing, and nondisclosure documents released as attachments to a Third Supplemental
Protective Order. See Connect America Fund, WC Docket No. 10-90, Third Supplemental Protective Order,
27 FCC Rcd 15277 (Wireline Comp. Bur. 2012).
7 The Bureau sought comment in the virtual workshop on setting the appropriate thresholds that will determine
which census blocks lacking an unsubsidized competitor are funded. See "Support Thresholds," WCB Cost
Model Virtual Workshop 2012
, http://www.fcc.gov/blog/wcb-cost-model-virtual-workshop-2012-support-
thresholds (last visited June 24, 2013). The illustrative funding threshold of $52 in CAM v3.1.4 was selected
to be consistent with the default assumptions in that version of the model regarding take rate (80 percent) and
assumed average revenue per user ($65).
8 The Bureau released an order adopting key engineering assumptions for the Connect America Cost Model
earlier this year. See Connect America Fund; High-Cost Universal Service Support, WC Docket Nos. 10-90,
05-337, Report and Order, 28 FCC Rcd 5301 (Wireline Comp. Bur. 2013). The Bureau currently is seeking
public comment on two questions in the virtual workshop. Wireline Competition Bureau Adds Two New
Discussion Topics to Connect America Cost Model Virtual Workshop
, WC Docket No. 10-90, Public Notice,
DA 13-1396 (Wireline Comp. Bur. rel. June 17, 2013). Comments are due July 15, 2013. See generally WCB
Cost Model Virtual Workshop 2012
, http://www.fcc.gov/blog/wcb-cost-model-virtual-workshop-2012 (last
visited June 24, 2013).
2

For further information, please contact Katie King in the Wireline Competition Bureau at
(202) 418-1500, or via e-mail at katie.king@fcc.gov.
- FCC -
3

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