Declaration Networks Group (DNG) plans to be a participant in the Federal Communications Commission’s (FCC) “IP Transition Order”, which includes an experiment designed to test the feasibility of directing Connect America Fund (CAF) subsidies to competitive providers that may present real opportunities (and/or challenges) for competitive cable, telco and wireless ISPs deploying broadband in unserved rural areas. Although much of the IP Transition Order is focused on the agency’s proposed IP network “service based” experiments and the transition to all-IP networks, the so-called “rural broadband experiment” will explore methods for distributing CAF subsidies to competitive providers deploying broadband in rural areas.

Later this year, the FCC will disburse up to $4.5 billion dollars to support the deployment of broadband to unserved and underserved rural areas under Phase II of the CAF program. Initially, that support will only be available to incumbent telecom providers. If the incumbent declines support in its service area, competitive providers (including cable operators, telcos and wireless ISPs) may seek CAF support through a competitive bidding process. The rural broadband experiment is designed to test how a competitive bidding process might be used to disburse subsidies to competitors under Phase II of the CAF program.

For more info, contact: Barry Toser – [email protected], 703-850-7172.