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WCB Announces Commencement of Connect America Phase II

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Released: October 9, 2012


Federal Communications Commission

News Media Information 202 / 418-0513

445 12th St., S.W.


Washington, D.C. 20554

TTY: 1-888-835-5322

DA 12-1561

Released: October 9, 2012



WC Docket Nos. 10-90, 05-337

On September 12, 2012, the Wireline Competition Bureau (Bureau) announced that it would
hold a Connect America Phase II cost model virtual workshop.1 Today, the Bureau announces the
virtual workshop will begin on Tuesday, October 9, 2012. Parties can participate in the virtual
workshop by visiting the Connect America Fund webpage,, and following the link to the virtual
The virtual workshop is the next step in implementing Phase II of the Connect America
Fund established in the USF/ICC Transformation Order.2 The virtual workshop will solicit input on
a variety of topics related to the development and adoption of the forward-looking cost model,
starting with:
Determining Customer Locations
Capturing Variation by Geography
Inter-Office Transport Cost
Voice Capability
Wire Center Facilities
Sizing of Network Facilities

1 Wireline Competition Bureau Announces Connect America Phase II Cost Model Virtual Workshop, WC
Docket Nos. 10-90 and 05-337, Public Notice, DA 12-1487 (Wireline Comp. Bur. rel. Sept. 12, 2012).
2 The USF/ICC Transformation Order adopted a framework for providing ongoing support to areas served by
price cap carriers, including areas where broadband service is not currently provided, known as Connect
America Phase II. 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 (2011) (USF/ICC Transformation Order or Order), pets.
for review pending sub nom. In re: FCC,
No. 11-9900 (10th Cir. filed Dec. 18, 2011). The Commission will
provide ongoing support to these areas through “a combination of a forward-looking cost model and
competitive bidding.” USF/ICC Transformation Order, 26 FCC Rcd at 17673, para. 23. In June 2012, the
Wireline Competition Bureau sought comment on a number of cost model threshold issues. Wireline
Competition Bureau Seeks Comment on Model Design and Data Inputs for Phase II of the Connect America
, WC Docket Nos. 10-90, 05-337, Public Notice, 27 FCC Rcd 6147 (Wireline Comp. Bur. rel. June 8,
2012). In September 2012, the Wireline Competition Bureau held a two-day in-person workshop discussing
the design and mechanics of the models submitted into the record by the ABC Coalition and Alaska
Communications Systems. Wireline Competition Bureau Announces Agenda for Connect America Phase II
Cost Model Workshop
, WC Docket Nos. 10-90, 05-337, Public Notice, DA 12-1463 (Wireline Comp. Bur. rel.
Sept. 10, 2012). A recorded webcast of the first day of the workshop is available on the Commission’s website
at and the Commission’s YouTube
page at Workshop materials are available at

The Use of Company-Specific Values
Calculating Opex
Determining the Annualized Cost of Capital Investments
The Bureau anticipates adding additional discussion topics as the virtual workshop progresses,
which will be announced by Public Notice.
Discussions on these topics will be facilitated through various subject-matter-specific online
discussion forums hosted on the Commission website where members of the public can share
information and ideas with Bureau staff in near real-time, while weighing the advantages and
disadvantages of different approaches for meeting the goals established in the USF/ICC
Transformation Order
The virtual workshop will take place over a period of weeks sufficient to allow public input
on all material issues. Discussion of particular topics may start and end at specific times that will be
announced in advance.
Comments from the virtual workshop will be included in the official public record of this
proceeding. The Bureau will not rely on anonymous comments posted during the workshop in
reaching decisions regarding the model. Participants should be aware that identifying information
from parties that post material in the virtual workshop will be publicly available for inspection upon
request, even though such information may not be posted in the workshop forums.
Reasonable accommodations, including materials in accessible formats (Braille, large print,
electronic files, and audio format) for people with disabilities are available upon request. Please
include a description of the accommodation you will need, and tell us how to contact you if we need
more information. Please make your request as early as possible. Last minute requests will be
accepted but may be impossible to fill. Accommodation requests should be sent to Kelly Jones,, at 202-418-7078 (voice), 202-418-1169 (TTY), or 845-474-0054 (video).
For further information, please contact Katie King, 202-418-7491, or
Ted Burmeister, 202-418-7389,

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