February 2014

NEXT GENERATION
NETWORK EXPERIMENTS
IN RURAL AMERICA

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Overview: Next-Generation
Network Experiments
Adopted by FCC on January 30
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Based to a significant extent on the FTTH Councils
Gigabit Communities Race-to-the-Top Petition
Seeks to test how tailored economic incentives can
advance the deployment of next generation
networksin rural, high-cost areas
Proposed experiments involve building robust,
scalable last-mile broadband in incumbent price
cap and rate of return (RoR) telco areas lacking
Internet access at 3 Mbps/768 kbps
Funding will come from unallocated Connect
America funding
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Overview: Next-Generation
Network Experiments
Specific Purposes of Experiments
Can high-capacity, fiber-based networks be deployed
economically in areas with challenging geographic and
demographic characteristics?
Would rural customers accept wireless services as an
acceptable substitute for fiber-based broadband?
What will be required to bring next generation broadband to
community anchor institutions in these areas? What
services are important to these users?
How can states, localities, and Tribal governments become
involved to improve the business case for deployment?
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Overview: Next-Generation
Network Experiments
Next Steps
Expressions of Interest due on March 7
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FCC Workshop in March
Comments due in March/April on open issues
FCC will then issue rules, including criteria for
evaluating project proposals, and adopt budget
After FCC order, parties will have a short window
to submit project proposals
FCC expects to award funding later in 2014
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Next-Generation
Network Experiments
Connect America Phase II Experiments
Objective of Experiments
Test the use of an application-based
competitive bidding process to enable the
Commission to design a more effective
nationwide competitive bidding
mechanism that will be used if incumbent
price cap carriers do not elect cost model
based support
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Next-Generation
Network Experiments
Connect America Phase II Experiments
Application Process Two Stages
Non-Binding Expressions of Interest
Due March 7
th

Broad Outline of Project
Nature of Submitting Provider(s)
Proposed Service Area + Relevant Information on Service to
Schools, Libraries, and other Community Anchor Institutions
Technology to be Deployed and Proposed Services
Amount and Type of Funding (One-Time v. Recurring)
Formal Proposals
Due after FCC adopts rules
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Next-Generation
Network Experiments
Connect America Phase II Experiments
Eligible Areas
Includes eligible census blocks within a census
tract
Unserved by Internet access at speeds of 3
Mbps/768 kbps
High-Cost as determined on an average cost per
location basis using the likely funding threshold
in the FCCs Phase II cost model
Challenges to eligible areas will be entertained
after support is awarded

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Next-Generation
Network Experiments
Connect America Phase II Experiments
Other Rules
Support should not exceed the level of
support calculated by the cost-model
ETC designations may be obtained after
support is awarded
Support may be one-time or recurring;
duration of support may be up to 10 years
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Next-Generation
Network Experiments
Experiments in Rate-of-Return Carrier Areas
Will be used to help develop long term
reforms
Will not alter current support for incumbent
RoR carriers; only additive
Open to all potential providers
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Next-Generation
Network Experiments
Issues for Comment (Further Notice)
Budget for Rural Broadband Experiments
$50-$100 million or some other amount?
One-time v. recurring?
Allocation of funding between price cap and RoR areas?
Experiments in RoR Areas
Use same proposal process as in price cap areas?
Should RoR carriers have a preference?
Should eligible areas be census blocks not census tracts?
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Next-Generation
Network Experiments
Issues for Comment (Further Notice)
Criteria for Experiments
Cost effectiveness as primary criteria How should it be
measured?
Robust, scalable network How much weight should be given to
improved performance?
Innovative strategies to leverage non-Federal government
sources of funding How much weight should be given to this
factor?
High-capacity connectivity to Tribal lands How much weight
should be given to this factor?
How should the scoring system function?