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Release of Version Two, Connect America Cost Model

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Released: January 17, 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 13-70

Released: January 17, 2013

WIRELINE COMPETITION BUREAU ANNOUNCES AVAILABILITY OF VERSION

TWO OF THE CONNECT AMERICA FUND PHASE II COST MODEL

WC Docket No. 10-90

Comment Date: February 15, 2013

Today, the Wireline Competition Bureau (Bureau) announces the availability of version two
of the Connect America Cost Model that allows Commission staff and interested parties to further
calculate costs based on a series of inputs and assumptions for Connect America Phase II
implementation. The version of the model ultimately adopted by the Bureau will determine support
amounts to be offered to price cap carriers in Connect America Phase II.
Connect America Fund Phase II will provide ongoing support for voice services and the
extension of broadband-capable networks to millions of unserved locations using “a combination of
a forward-looking cost model and competitive bidding.”1 On December 11, 2012, the Bureau
announced the release of version one of the Connect America Cost Model, which allowed it and
interested parties to examine various options for different network deployments to serve funded
locations and different assumptions about the amount of existing facilities assumed to exist and unit
costs for capital and operating expenses.2
Version two of the Connect America Cost Model builds on version one in a number of key
areas, specifically with regard to input data sets. For example, version two incorporates 2010 census
boundaries and December 2011 National Broadband Map data, as well as the latest available version
of GeoResults wire center boundaries. Version two also incorporates updated consumer location and
business location counts.
Parties should follow the same procedures to access version two of the model as previously
announced for version one. In particular, parties may access version two of the cost model at
http://www.fcc.gov/encyclopedia/caf-phase-ii-models.3


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 and
FNPRM
), pets. for review pending sub nom. In re: FCC 11-161, No. 11-9900 (10th Cir. filed Dec. 8, 2011).
2 Wireline Competition Bureau Announces Availability of Version One of the Connect America Fund Phase II
Cost Model
, WC Docket Nos. 10-90 and 05-337, Public Notice, DA 12-2011 (Wireline Comp. Bur. rel. Dec.
11, 2012).
3 Version two and subsequent versions will be hosted by the Universal Service Administrative Company
(USAC). Please note that it may take up to two days for the new IP address to be cascaded to all DNS. In
addition, user access may be limited on Saturday, January 19th by regularly scheduled USAC system
maintenance. 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 Protective Order, DA 12-1995
(Wireline Comp. Bur. rel. Dec. 11, 2012).

The Bureau emphasizes that this is not the final version of the Connect America Cost Model,
and the modifications in version two do not represent a preliminary finding about the approach that
the Bureau will ultimately adopt in this proceeding. The Bureau will continue to develop the cost
model platform and inputs before adopting a forward-looking cost model for Connect America
Phase II as directed in the USF/ICC Transformation Order and FNPRM.
The Bureau previously sought input, in a virtual workshop, on whether additional
functionalities or capabilities should be added to the Connect America Cost Model platform, with
those comments due on January 11, 2013.4 We now invite parties to update the record on whether
other functionalities, capabilities or data sets should be incorporated into the model, in light of
version two.5 Comments on this topic should be submitted in the virtual workshop no later than

February 15, 2013

.
After an opportunity for further public comment on additional issues, the Bureau will adopt
an order at a subsequent date in 2013 that adopts a final version of the Connect America Cost Model
that will be used for purposes of estimating support amounts in price cap areas. The Bureau
encourages interested parties to access the Connect America Cost Model to provide input on whether
it provides reasonable estimates of forward-looking efficient costs and what adjustments, if any,
should be made before the Bureau finalizes and adopts the Connect America Cost Model.
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 -


4 Wireline Competition Bureau Announces Commencement of Connect America Phase II Cost Model Virtual
Workshop
, WC Docket Nos. 10-90 and 05-337, Public Notice, 27 FCC Rcd 11977 (Wireline Comp. Bur.
2012).
5 Parties are not expected to resubmit previously filed comments.
2

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