Connect America Fund Phase II is part of the Commission’s reform and modernization of its high-cost universal service support program, which preserves and expands access to voice and broadband services. In high-cost areas served by larger telephone providers (called price cap carriers), the Connect America Phase II auction (Auction 903) employs competitive bidding to efficiently allocate up to $1.98 billion of support over 10 years. Auction 903 is the first Commission auction to award ongoing high-cost universal service support through competitive bidding. The Commission made eligible for Auction 903 high-cost census blocks in states where the price cap carriers declined an earlier offer of model-based support and other unserved areas nationwide (excluding NY, AK, PR, VI) that are not served by an unsubsidized service provider. Authorized winning bidders will be required to offer voice and broadband service at or above specific performance levels, and file annual reports on their deployment progress.
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