PUBLIC NOTICE
Federal Communications Commission
445 12
th
St., S.W.
Washington, D.C. 20554
News Media Information 202 / 418-0500
Internet: https://www.fcc.gov
TTY: 1-888-835-5322
DA 15-981
Released:  August 31, 2015
WIRELINE COMPETITON BUREAU ADDRESSES TRANSITION TO MODEL-BASED 
SUPPORT FOR CARRIERS THAT ACCEPTED THE OFFER OF PHASE II CONNECT 
AMERICA FUND SUPPORT 
WC Docket No. 10-90
By this Public Notice, the Wireline Competition Bureau (Bureau) provides direction to the 
Universal Service Administrative Company (USAC) regarding the calculation of the transition payments 
pursuant to section 54.310(f) of the Commission’s rules.
1
Section 54.310(f) of the Commission’s rules specifies that price cap carriers electing model-based 
support in states where that support is less than their Phase I frozen support will transition to model-based 
support over a multi-year period.  In particular, the rule specifies that in the first year, in addition to the 
Connect America Phase II support, carriers will receive 75 percent of the difference between Phase I 
frozen support and model-based support; in the second year, they will receive 50 percent of the difference 
between Phase I frozen support and model-based support; and in the third year, they will receive 25 
percent of the difference.  For administrative convenience, we direct USAC to calculate transition 
payments for all states where model-based support is lower than Phase II support on the same time 
schedule, regardless of when the electing carrier submitted its letter accepting the offer of support.  We 
direct USAC to treat August 1, 2015 through July 31, 2016 as the first year of the transition to the lower 
Phase II amount; August 1, 2016 through July 31, 2017 as the second year of the transition; and August 1, 
2017 through July 31, 2018 as the third year of the transition.
2
  USAC shall make any necessary 
adjustments to support amounts to implement this uniform time frame for the first year of the transition to 
Phase II payments for the two carriers that were authorized to begin receiving Phase II support prior to 
USAC’s processing deadline for August 2015 support payments.
3
For additional information on this proceeding, contact Heidi Lankau (Heidi.Lankau@fcc.gov) of 
the Wireline Competition Bureau, Telecommunications Access Policy Division, (202) 418-7400.
– FCC –
                                                     
1
47 C.F.R. § 54.310(f).  
2
This direction relates solely to the timing of transition payments for companies accepting reduced Phase II support 
and does not affect those companies’ Phase II build-out obligations or the timing of their build-out progress 
certifications for Phase II.
3
See Wireline Competition Bureau Authorizes Frontier Communications Corporation to Receive Over $283 Million 
in Connect America Phase II Support to Serve 1.3 Million Rural Americans in 28 States, WC Docket No. 10-90, 
Pubic Notice, 30 FCC Rcd 6310 (Wireline Comp. Bur. 2015); Wireline Competition Bureau Authorizes Windstream 
to Receive Over $174 Million in Connect America Phase II Support in 17 States, WC Docket No. 10-90, DA 15-888 
(Wireline Comp. Bur. rel. Aug. 5, 2015).