Federal Communications Commission	DA 25-111



Before the
FEDERAL COMMUNICATIONS COMMISSION
WASHINGTON, D.C. 20554


In the Matter of

Telecommunications Carriers Eligible for Universal Service Support Connect America Fund 
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WC Docket No. 09-197

ORDER

Adopted:  February 6, 2025	Released:  February 6, 2025

By the Chief, Wireline Competition Bureau:

I. INTRODUCTION
1. In this Order, the Wireline Competition Bureau (Bureau) conditionally grants Central Virginia Services, Inc. (CVSI)’s petition to expand its Eligible Telecommunications Carrier (ETC) designation in Virginia The Commission has designated CVSI as an ETC where CVSI has been authorized to receive support awarded through the Connect America Fund (CAF) Phase II auction and the Rural Digital Opportunity Fund (RDOF) auction and where it has sought eligibility to receive only Lifeline support (for areas not eligible for receipt of high cost support.  Telecommunications Carriers Eligible for Universal Service Support, et al., WC Docket Nos. 09-197, 10-90, Order, 34 FCC Rcd 1966 (WCB 2019) (designating CVSI to receive CAF Phase II support in Virginia) (Initial CAF Phase II ETC Designation Order); Telecommunications Carriers Eligible for Universal Service Support, et al., WC Docket Nos. 09-197, 10-90, Order, 36 FCC Rcd 9384 (WCB 2021) (designating CVSI to receive RDOF support and to receive only Lifeline support in certain additional areas not eligible for high cost support (Lifeline only support)) (Initial RDOF ETC Designation Order).  Central Telephone Company of Virginia d/b/a CenturyLink changed its name to Brightspeed after it was acquired from Lumen Technologies, Inc. on October 1, 2022.  Lumen Technologies, Inc. and Connect Holding LLC Application for Consent to Transfer Control, WC Docket No. 21-350, Memorandum Opinion and Order and Declaratory Ruling, 37 FCC Rcd 9523 (WCB, IB, WTB 2022).  
 to include the following two areas: 1) Census Block Group (CGB) number 511139302003, a subpart of an original Rural Digital Opportunity Fund (RDOF) award authorized to Brightspeed of Virginia, LLC (Brightspeed), and 2) CBG number 511139301001, a subpart of an original RDOF award authorized to FiberLight of Virginia, LLC (FiberLight). See Petition of Central Virginia Services, Inc. for Expanded Eligible Telecommunications Carrier Designation, WC Docket No. 09-197 at 3 (filed Sept. 25, 2024) (ETC Petition); Letter to Marlene H. Dortch, Secretary, Federal Communications Commission, from Todd B. Lantor, Counsel to Central Virginia Services, Inc. (filed Nov. 6, 2024) (amending the petition to include expansion of its ETC designation to the FiberLight CBG) (December Supplement).  Letter from Todd B. Lantor, Counsel to Central Virginia Services, Inc., to Marlene H. Dortch, Secretary, FCC, WC Docket No. 09-197 (filed Dec. 23, 2024) (ex parte notice requesting clarification of facility ownership); Rural Digital Opportunity Fund Support Authorized for 1,605 Winning Bids, AU Docket No. 20-34 et al., 37 FCC Rcd 8331, Attach. A, Authorized Long-Form Applicants and Winning Bids at 1 (WCB/OEA 2022) (authorizing FiberLight to receive RDOF support); Rural Digital Opportunity Fund Support Authorized for 830 Winning Bids, AU Docket No. 20-34 et al., Public Notice, 37 FCC Rcd 6072, Attach. A, Authorized Long-Form Applicants and Winning Bids at 2-3 (WCB/OEA 2022) (authorizing Brightspeed sub nom. Central Telephone Company of Virginia to receive RDOF support).  
  This grant is conditioned upon, limited by, and effective upon CVSI’s authorization to receive support associated with each of these CBGs (Transferring CBGs). For the remainder of this public notice, we will refer to CBG 511139302003 as the “Brightspeed Transferring CBG” and CBG 511139301001 as the “FiberLight Transferring CBG.”
  In expanding CVSI’s ETC designation, the Bureau finds that CVSI meets the eligibility criteria to receive universal service support for the Transferring CBGs, as set forth in section 214(e)(6) of the Communications Act of 1934, as amended (Act), and related Federal Communications Commission (Commission) rules. 47 U.S.C. § 214(e)(6); 47 CFR § 54.202.

II. BACKGROUND
A. Section 214 Authorization
2. The Bureau takes this action in conjunction with its approval of two separate applications, pursuant to section 214 of the Act and sections 63.03-63.04 of the Commission’s rules, requesting consent to assign to CVSI the RDOF support associated with the Transferring CBGs in addition to all rights, obligations, and conditions associated with the receipt of this support. See Domestic Section 214 Application Granted for the Acquisition of Certain Assets of FiberLight of Virginia, LLC by Central Virginia Services, Inc., Conditional Authorization of Central Virginia Services, Inc. to Receive Support,, WC Docket. Nos. 24-688, 10-90, Public Notice, DA 25-99 (WCB Jan. 31, 2024) (FiberLight 214 Transfer Public Notice); Domestic Section 214 Application Granted for the Acquisition of Certain Assets of Brightspeed of Virginia, LLC by Central Virginia Services, Inc., WC Docket No. 24-311, Public Notice, DA 24-1270 (WCB Dec. 18, 2024) (Brightspeed 214 Transfer Public Notice) (collectively, 214 Transfer Public Notices).
  The Bureau has also conditionally authorized CVSI to receive the support associated with the Transferring CBGs conditioned upon and limited by CVSI’s fulfillment of all prerequisites for authorization, including this ETC designation. See FiberLight 214 Transfer Public Notice at 5-7; Brightspeed 214 Transfer Public Notice at 5-6.   
  Pursuant to the terms of the approved transactions and conditioned upon, and limited by, CVSI’s future authorizations to receive the support associated with the each of the Transferring CBGs, CVSI will receive $2,351,220.00 of the RDOF support awarded to Brightspeed in Virginia and must serve an estimated 679 locations within this Transferring CBG, and will receive $138,898.80 and must serve an estimated 463 locations in the FiberLight Transferring CBG. See FiberLight 214 Transfer Public Notice at 2 and n.8; Brightspeed 214 Transfer Public Notice at 1.  The Bureau has confirmed that the Applicants have correctly identified, for each of the Transferring CBGs, the support amount associated and the initial CAM-estimated number of locations to be served.  We note that the Commission has directed the Bureau to adopt revised location obligations no later than the end of program’s sixth year using a listing of all qualifying locations within eligible areas.  See Rural Digital Opportunity Fund et al., WC Dockets 19-126, 10-90, Order, 35 FCC Rcd 686, 709, para. 45 (2020).

B. ETC Designation Requirements
3. Section 254(e) of the Act provides that “only an eligible telecommunications carrier designated under section 214(e) shall be eligible to receive specific federal universal service support.” 47 U.S.C. § 214(e).  
 Accordingly, an ETC designation is a prerequisite to receiving universal service support available through the high cost and low income components (Lifeline) Id. § 254(e).  The Lifeline program provides support to reimburse providers for offering supported services at discounted prices to qualifying low income households, with more support available for households on Tribal lands.  See Lifeline and Link Up Reform and Modernization et al., WC Docket Nos. 11-42 et al., Report and Order and Further Notice of Proposed Rulemaking, 27 FCC Rcd 6656, 6663, para. 14 (2012).  Eligible services include voice and broadband Internet access service meeting certain requirements.  Lifeline and Link Up Reform and Modernization et al., WC Docket No. 11-42 et al., Third Report and Order, Further Report and Order, and Order on Reconsideration, 31 FCC Rcd 3962, 3972, paras. 30-32 (2016) (Lifeline Modernization Order). 
 of the Universal Service Fund (USF). 47 CFR § 54.201(a)(1) (“Only eligible telecommunications carriers designated under this subpart shall receive universal service support distributed pursuant to subparts D [universal service fund support for high cost areas] and E [universal service support for low-end consumers] of this part. Eligible telecommunications carriers designated under this subpart for purposes of receiving support only under subpart E of this part must provide Lifeline service directly to qualifying low-income consumers”); 47 CFR § 54.101(d) (providing that any ETC designated in high cost areas must comply with requirements in the Lifeline support rules).
  In a given geographic area, a carrier may be designated as an ETC and become eligible to receive support from both the high cost and low income components of the USF. See 47 U.S.C. § 214(e)(1)(A); 47 CFR § 54.101(a) (as amended by the Lifeline Modernization Order); Lifeline Modernization Order, 31 FCC Rcd at 3974, 4074-75, paras. 35, 311-12 (requiring all high cost support recipients to meet Lifeline obligations in all areas where they deploy a network pursuant to a broadband service obligation and are commercially offering qualifying service).  
  All ETCs must offer the Lifeline discount on all qualifying services, deploy a network capable of delivering service that meets the Lifeline program’s minimum service standards, and commercially offer such service pursuant to its high cost obligations. 47 CFR part 54, subparts D, K, L, M.  
  
4. Congress gives primary authority for ETC designations to state commissions. 47 U.S.C. § 214(e)(2) (providing, in relevant part, that a state commission “shall upon its own motion or upon request designate a common carrier that meets [certain requirements] as an eligible telecommunications carrier for a service area designated by the State commission”).
  The Commission has authority only when “a common carrier [is] providing telephone exchange service and exchange access that is not subject to the jurisdiction of a State commission.” Id. § 214(e)(6).
  The petitioner for ETC designation must demonstrate that the Commission has jurisdiction and may do so by submitting an “affirmative statement from the state commission or a court of competent jurisdiction that the carrier is not subject to the state commission’s jurisdiction.” Federal-State Joint Board on Universal Service et al., CC Docket No. 96-45, Twelfth Report and Order, Memorandum Opinion and Order, and Further Notice of Proposed Rulemaking, 15 FCC Rcd 12208, 12255, para. 93 (2000); see 47 U.S.C. § 214(e)(6).
  The Commission has delegated its authority to the Bureau to consider appropriate ETC designation requests. See Procedures for FCC Designation of Eligible Telecommunications Carriers Pursuant to Section 214(e)(6) of the Communications Act, CC Docket No. 96-45, Public Notice, 12 FCC Rcd 22947, 22948 (1997).
 
5. In its petition for Commission ETC designation in areas eligible for high cost support, a petitioner must: (1) certify that it offers or intends to offer all services designated for support by the Commission pursuant to section 254(c) of the Act; (2) certify that it offers or intends to offer the supported services either using its own facilities or a combination of its own facilities and resale of another carrier’s services; 47 U.S.C. § 214(e)(1); 47 CFR § 54.201(d)(1).
 (3) describe how it advertises or will advertise the availability of the supported services and the charges therefor using media of general distribution; 47 U.S.C. § 214(e)(1); 47 CFR § 54.201(d)(2).
 (4) describe the geographic service area within which the petitioner requests to be designated as an ETC; An ETC’s “service area” is set by the designating authority and is the geographic area within which an ETC has universal service obligations and may receive universal service support.  47 U.S.C. § 214(e)(5); 47 CFR § 54.207(a). Although section 214(e)(5) of the Act, 47 U.S.C. § 214(e)(5), requires conformance of a competitive ETC’s service area and that of an incumbent rural telephone company, the Commission has separately forborne from imposing this requirement on RDOF support recipients.  See RDOF Report & Order, 35 FCC Rcd at 728, paras. 93-94.
 and (5) certify that neither the petitioner, nor any party to the application, is subject to a denial of federal benefits pursuant to the Anti-Drug Abuse Act of 1988. 21 U.S.C. § 862; 47 CFR § 1.2002(a)-(b).
  A petitioner must also: (1) certify that it will comply with the service requirements applicable to the support that it receives; (2) demonstrate its ability to remain functional in emergency situations; and (3) demonstrate its ability to satisfy applicable consumer protection and service quality standards. See 47 CFR § 54.202(a).
  
6. Prior to designating a carrier as an ETC, the Commission must determine whether such designation is in the public interest. 47 U.S.C. § 214(e)(6); 47 CFR § 54.202(b).
  When making a public interest determination, the Commission historically has considered the benefits of increased consumer choice and the unique advantages and disadvantages of the petitioner’s service offering. See, e.g., Virgin Mobile ETC Designation Order in the States of Alabama, Connecticut, Delaware, New Hampshire and the District of Columbia, WC Docket 09-197, Order, 25 FCC Rcd 17797, 17799, para. 6 (WCB 2010).  
  The Commission has explained that, based on long-standing precedent, the ETC public interest inquiry is a cost-benefit analysis focusing on the petitioner’s efficiencies, the benefits of competition, the public benefits of service, and the fundamental principles of USF). Federal-State Joint Board on Universal Service, CC Docket No. 95-45, Report and Order, 20 FCC Rcd 6371, 6388-89, paras. 40-41 (2005).

C. CVSI Petition for ETC designation
7. In its ETC Petition, CVSI requests expansion of its ETC designation in Virginia where it is eligible to receive high cost support to include the Transferring CBGs. See generally ETC Petition.
  The Bureau has provided notice and an opportunity to comment on CVSI’s ETC Petition. See Wireline Competition Bureau Seeks Comment on Central Virginia Services, Inc.’s Petition for Expansion of its Eligible Telecommunications Carrier Designation, WC Docket No. 09-197, DA 24-1212 (WCB Dec. 3, 2024); Wireline Competition Bureau Seeks Comment on Central Virginia Services, Inc.’s Petition for Expansion of its Eligible Telecommunications Carrier Designation, WC Docket 09-197, DA 24-1284 (WCB Dec. 20, 2024).    
  The Bureau did not receive comments or petitions in opposition to the expansion of the ETC designation to include the Transferring CBGs.  In connection with its ETC Petition, CVSI reaffirms each of its commitments and certifications of compliance made in prior ETC petitions that were granted by the Bureau – which includes areas in Virginia for which it is eligible to receive CAF Phase II auction, Rural Digital Opportunity Fund, and Lifeline support – and incorporates them by reference into its current ETC petition. ETC Petition at 10.  See, e.g., Petition for Designation as an Eligible Telecommunications Carrier Pursuant to Section 214(e)(6) of the Communications Act of 1934, WC Docket No. 09-197 (filed Jan. 5, 2021); Supplement to Petition of Central Virginia Services, Inc. for Eligible Telecommunications Carrier Designation (filed June 2, 2021); Further Supplement to Petition of Central Virginia Services, Inc. for Eligible Telecommunications Carrier Designation (June 4, 2021) (petitioning for ETC designation in order to become eligible to receive RDOF support awarded through the RDOF auction and to receive Lifeline only support in certain additional areas not eligible for high cost support) (Initial RDOF ETC Petition); Petition for Eligible Telecommunications Carrier Status, WC Docket No. 09-197 (filed Sept. 27, 2019), as supplemented, Feb. 22, 2019 (petitioning for ETC designation in Phase II auction and Lifeline only eligible areas).
  
III. DISCUSSION
8. After considering CVSI’s certifications, commitments, and arguments in its ETC Petition with respect to the Transferring CBGs and in its earlier petitions for ETC designation, we find that CVSI has satisfied all requirements for ETC designation, and accordingly, we expand CVSI’s ETC service area in Virginia to include the Transferring CBGs described in its ETC Petition (expanded service area), conditioned upon, and limited by, CVSI’s designation to receive the RDOF support associated with this CBG.  
A. Satisfaction of ETC Requirements
9. CVSI has demonstrated that neither the Virginia State Corporation Commission (VSCC) nor the Virginia legislature has taken action inconsistent with the Commission’s prior exercises of jurisdiction to designate CVSI as an ETC in Virginia for purposes of becoming eligible to receive both high cost and Lifeline support. See ETC Petition at 3-4 (quoting a 2020 VSCC order stating that the VSCC “is of the opinion that the [VSCC] has not asserted jurisdiction over service providers such as CVSI, 47 U.S.C. § 214(e)(6) is applicable to the Company requesting ETC designation, and CVSI should make its request to the FCC to be designated as an ETC”) (citing  Application of PGEC Enterprises, LLC, for Designation as an Eligible Telecommunications Carrier, Order, Case No. PUR-2020-00281 (Dec. 15, 2020)); id. at Exhibit B (providing a copy of the cited 2020 VSCC order); id. at 4 (acknowledging recently adopted Virginia legislation exercising jurisdiction over commercial mobile radio or cellular telephone service providers for purposes of offering Lifeline service but observing that this legislation does not apply to CVSI as it is neither a mobile or cellular provider).
  Accordingly, the Bureau reaffirms such jurisdiction and exercises its delegated authority to expand CVSI’s ETC designation in Virginia consistent with its determinations and findings below.
10. We find that CVSI has satisfied requirements for ETC designation and the related Commission rules for the expanded service area.  CVSI has established that it will offer the service supported by the universal service support mechanism on a common carrier basis, See ETC Petition at 4 (stating that CVSI satisfies its ETC designation requirements “in its capacity as a facilities based, common carrier provider”); id. at 7-8 (committing to a voice service offering satisfying the requirements of section 54.101(a) of the Commission’s rules, 47 CFR 54.101(a)); Initial RDOF Petition at 4 (certifying that CVSI is a common carrier offering the requisite voice service); 47 U.S.C. § 214(e)(1), (6) (establishing that an ETC must offer telecommunications service on a common basis and must offer the supported service (as determined by the Commission)); 47 CFR § 54.101(a) (eligible voice telephony service must provide voice grade access to the public switched telephone network or its functional equivalent).
 will offer supported services using a combination of its own facilities and resale of another carrier’s services, December Supplement (detailing that CVSI owns a “portion of the fiber that makes up its multi-county, gigabit-tier fiber network in Central Virginia, which includes portions of its RDOF-funded service area”); Initial RDOF ETC Petition at 5 (stating that CVSI “will use its own facilities, as well as those of its [electric company parent], to provide the broadband and interconnected VoIP services”); CAF Phase II ETC Petition at 6 (stating that CVSI “will be a facilities-based broadband Internet access and VoIP services provider and that its [parent corporation] is in the process of constructing the first segment of its fiber optic network (for electric purposes) and will lease the excess capacity in those fiber facilities to CVSI”).  47 U.S.C. § 214(e)(1)(A); 47 CFR § 54.201(d)(1).  Facilities are the ETC’s “own” if the ETC has an exclusive right to use the facilities to provide the supported services or when service is provided by any affiliate within the same holding company structure.  See WCB Reminds Connect America Fund Phase II Auction Applicants of the Process for Obtaining a Federal Designation as an Eligible Telecommunications Carrier, WC Docket Nos. 09-197 and 10-90, Public Notice, 33 FCC Rcd 6696, 6698 (WCB 2018) (Phase II Auction ETC Guidance Public Notice); see also 47 U.S.C. § 153(2) (defining an affiliate as “a person that (directly or indirectly) owns or controls, is owned or controlled by, or is under common ownership or control with, another person”).  
 commits to advertising the availability of the supported services and related charges using media of general distribution, including the availability of its services and charges in a manner reasonably designed to reach Lifeline-eligible consumers, See ETC Petition at 5-6; Initial RDOF ETC Petition at 6; 47 U.S.C. § 214(e)(1)(B); 47 CFR §§ 54.201(d)(2), 54.405.
 and certifies that is not subject to a denial of support under the terms of the Anti-Drug Abuse Act of 1988. ETC Petition at 10; 47 CFR § 1.2002.
  
11. We also find that CVSI has established its commitment to meeting required service standards.  CVSI has demonstrated its capabilities to remain functional in emergency situations. See ETC Petition at 5; Initial RDOF ETC Petition at 7; 47 CFR § 54.202(a)(2) (requiring ETCs to commit to having sufficient back-up power to ensure functionality in the designated service area without an external power source, the capability of re-routing traffic around damaged facilities, and the capability to manage traffic spikes resulting from emergency situations).
  It also has demonstrated and certified its ability to comply with RDOF public interest requirements in the expanded service area. See ETC Petition at 6; Initial RDOF ETC Petition at 5; 47 CFR §§ 54.101(d), 54.202(a)(1)(i).  For RDOF support recipients, the Bureau waived certain requirements in section 54.202 of the Commission’s rules and adopted a presumption that designation will serve the public interest.  Rural Digital Opportunity Fund Phase I Auction (Auction 904) Closes; Winning Bidders Announced; FCC Form 683 Due January 29, 2021, Public Notice, 35 FCC Rcd 13888, 13901 n.71 (RBATF, OEA, WCB 2020) (extending to RDOF support recipients the same waivers of certain requirements in section 54.202 of the Commission’s rules and the same presumption that designation will serve the public interest as it had previously extended to CAF Phase II auction support recipients); Phase II Auction ETC Guidance Public Notice, 33 FCC Rcd at 6699-6700.  Because CVSI will stand in the shoes of the original authorized support recipient if it receives 214 approval for the transfer of the Transferring CBGs and is authorized to receive the support associated with this CBG, CVSI is in the same position as a RDOF support awardee with respect to its request for expanded ETC designation and is entitled to the same waivers and presumption that were extended to the RDOF support awardees.
  In evaluating such ability, the Bureau considers its prior determination that CVSI’s earlier certifications and commitments adequately demonstrated its ability to meet RDOF requirements. See Initial RDOF Designation Order, 36 FCC Rcd at 9390, para. 14 (finding that CVSI, among other petitioners, established its ability to comply with RDOF support requirements, taking into account certifications and demonstrations in the short- and long-form applications, including information supporting the technical and financial ability meet these requirements, a certification of commitment to meeting relevant public interest obligations, and certification of compliance with all statutory and regulatory requirements for receipt of universal service support); 47 CFR § 54.804(a),(b); Rural Digital Opportunity Fund et al., WC Docket No. 19-126 et al., Report and Order, 35 FCC Rcd 686,726, paras. 89-90 (2020) (requiring a long-form applicant to certify its ability to comply with public interest obligations and requiring submission of a description of the intended technology to be used to offer service and a description of the intended system design, including a network map, certified by a professional engineer).
  The Bureau also gives consideration to CVSI’s description of its technical, financial, and managerial capability to provide voice and broadband services meeting or exceeding RDOF standards in the Transferring CBGs in its related applications for 214 transfer approval. Domestic Section 214 Application for the Consent to Assign Rural Digital Opportunity Fund Support and Related Buildout and Service Obligations of FiberLight of Virginia, LLC to Central Virginia Services, Inc., WC Docket No. 24-688 at 6-8 (filed Dec. 5, 2024); Domestic Section 214 Application for Acquisition of Certain Assets of Brightspeed of Virginia, LLC by Central Virginia Services, Inc., WC Docket No. 24-311 at 6-7 (filed Sept. 24, 2024).
  
12. We further find that CVSI has established its commitment to complying with service requirements applicable to Lifeline support.  CVSI commits to offering Lifeline discounts to qualifying low-income consumers, consistent with the Commission’s rules, in all high cost areas where it is authorized to receive support. See ETC Petition at 7; 47 CFR § 54.400 et seq.
  CVSI has demonstrated the technical and financial ability to offer Lifeline-supported voice and broadband Internet access services in Lifeline-only eligible areas, See ETC Petition at 6; 47 CFR § 54.202(a)(4).
 and its commitment to abide by all applicable state and federal consumer protection and service quality standards. See ETC Petition at 8-9.
  
13. In making these findings, we emphasize that CVSI must remain legally responsible for, and managerially capable of, ensuring that the service meets consumer protection and service quality standards. 47 CFR § 54.202(a)(5), (6).
  In addition, as a condition of authorization, CVSI must satisfy certain reporting obligations to ensure that the support received is being used efficiently and appropriately and that service requirements are being met. Id. § 54.806 (providing that RDOF support recipients are subject to sections 54.313, 54.314, and 54.316 of the Commission’s rules); id. § 54.313 (requiring annual report including certifications as to rates, functionality, and deployment, among other things); id. § 54.314 (requiring annual certification stating that all federal high-cost support provided was used in the preceding calendar year and will be used in the coming calendar year only for the provision, maintenance, and upgrading of facilities and services for which the support is intended); id. § 54.316 (requiring build-out milestone reporting).
  Further, all ETCs receiving Lifeline support must report certain information to the Commission, the Universal Service Administrative Company (USAC), and the local regulatory authority, pursuant to section 54.422 of the Commission’s rules. 47 CFR § 54.422; see also id. § 54.410.

B. Public Interest Analysis
14. Based on the information, representations, and certifications in CVSI’s ETC Petition and consistent with the Bureau’s findings in the 214 Transfer Public Notices and CVSI’s prior ETC designations, we find that CVSI has demonstrated that the expansion of its ETC service areas serves the public interest and would provide numerous benefits to consumers. See ETC Petition at 11.  See Fiberlight 214 Transfer Public Notice at 3-5; Brightspeed 214 Transfer Public Notice at 3-5;  Initial CAF Phase II ETC Designation Order at 1973, paras. 24-26; Initial RDOF ETC Designation Order at 9392, paras. 23-25.
  By making CVSI eligible to receive RDOF support for the expanded service area, CVSI will bring to these areas social and economic benefits by accelerating access to advanced services meeting specific performance requirements. RDOF support recipients must test and certify compliance with the relevant performance requirements in accordance with the uniform framework that has been adopted for measuring and reporting on high cost performance requirements. See Rural Digital Opportunity Fund Phase I Auction Scheduled for October 29, 2020; Notice and Filing Requirements and Other Procedures for Auction 904, AU Docket No. 20-34 et al., Public Notice, 35 FCC Rcd 6077, 6083, para.15 (2020); Connect America Fund, WC Docket No. 10-90, Order, 33 FCC Rcd 6509, 6530-33, paras. 56-67 (WCB 2018); Connect America Fund, WC Docket No. 10-90, Order on Reconsideration, 34 FCC Rcd 10109, 10110, para. 4 (2019) (expanding performance measure testing requirements); see generally Connect America Fund, WC Docket No. 10-90, WC Docket No. 10-90, Order, 35 FCC Rcd 14658 (WCB 2020) (clarifying certain requirements).
  Because it will be subject to close oversight See RDOF Order, 35 FCC Rcd at 721, paras. 45-55 (adopting milestone requirements); id. at 712-713, paras. 56-57 (adopting reporting requirements); 47 §§ CFR 54.802, 805-806.
 and default consequences, including, potentially, forfeiture and other penalties for the failure to meet RDOF requirements, See RDOF Order, 35 FCC Rcd at 713-716, paras. 58-64 (adopting non-compliance measures); id. at 715-716, para. 63 (stating that in addition to default consequences, RDOF support recipients are subject to sanctions “including but not limited to the Commission's existing enforcement procedures and penalties, reductions in support amounts, potential revocation of ETC designations, and suspension or debarment”); 47 CFR §§ 54.320(c), 54.803(c), 54.804(c)(4), 54.806(c). 
 CVSI has increased incentives to provide ubiquitous service throughout its expanded service area at rates and on terms that are reasonably comparable to those associated with comparable service offerings in urban areas, consistent with its obligations under the RDOF program. Rural Digital Opportunity Fund Order, 35 FCC Rcd at 710-11, paras. 49-50 (requiring deployment to all locations in the supported area, subject to limited exception).  The Bureau has provided a summary of the various obligations of authorized RDOF support recipients in prior authorization public notices.  As stated in these public notices, the summary is not intended to be comprehensive, and all authorized parties are responsible for conducting the due diligence required to comply with universal service fund requirements and the Commission’s rules.  See, e.g., Rural Digital Opportunity Fund Support Authorized for 1,345 Winning Bids, AU Docket No. 20-34, WC Docket Nos. 19-126 and 10-90, Public Notice, 37 FCC Rcd 4897, 4898-4905 (WCB 2022).
  Pursuant to CVSI’s commitment to offer Lifeline-supported services and to meeting or exceeding Lifeline requirements, granting the ETC expansion will also help ensure increased consumer choice, affordability, and improved quality of service in the expanded area.
15. In conclusion, and based on the information, representations, and certifications in its 214 Transfer Petition, ETC Petition, and Initial RDOF Petitions, we find that CVSI has met all applicable conditions and prerequisites for ETC designation and that designation serves the public interest.  Accordingly, we designate CVSI as an ETC for purposes of becoming eligible to receive RDOF support associated with the expanded service area.
C. Regulatory Oversight
16. Under section 254(e) of the Act, an ETC must use universal service support “only for the provision, maintenance, and upgrading of facilities and services for which the support is intended.” 47 U.S.C. § 254(e).
  Under section 214(e) of the Act, an ETC must provide supported services throughout the designated service area for which it receives an ETC designation. Id. § 214(e).
  When and if the ETC is authorized to receive high cost support, it must file an annual certification for each state in which it receives support that all federal high cost support received was used in the preceding calendar year and will be used in the coming calendar year only for the provision, maintenance, and upgrading of facilities and services for which the support is intended. 47 CFR § 54.314(b).
  The Commission conditions future support awarded through the high cost program on the filing of such certification. Id.
  
17. An ETC receiving Lifeline support uses that support as intended when it reduces the price of its qualifying voice or broadband services by the amount of the support for the eligible consumer. See Petition of TracFone Wireless, Inc. for Forbearance from 47 U.S.C. § 214(e)(1)(A) and 47 C.F.R. § 54.201(i), CC Docket No. 96-45, Order, 20 FCC Rcd 15095, 15105-06, para. 26 (2005).
  In addition, it must file annual reports that include, among other things, a certification of compliance with applicable minimum service standards, service quality standards, and consumer protection rules. 47 CFR § 54.422(b)(3); see id. § 54.410 (requiring an officer of the company to certify that the ETC has policies and procedures in place to ensure that its Lifeline subscribers are eligible to receive Lifeline services and that it will comply with all federal Lifeline certification procedures).

18. We find that reliance on CVSI’s commitments to meet these and other regulatory requirements in its ETC Petition is reasonable and consistent with the public interest and the Act.  We conclude that fulfillment of these additional reporting requirements will further the Commission’s goal of ensuring that CVSI can and will commit to satisfying its obligation under section 214(e) of the Act to provide supported services throughout its designated service area, including the areas where CVSI seeks expansion.
19. The Commission may initiate an inquiry on its own motion to examine any ETC’s records and documentation to ensure that the universal service support received is being used “only for the provision, maintenance, and upgrading of facilities and services” in the areas for which the relevant ETC(s) have been designated. 47 U.S.C. §§ 220, 403.
  The ETC must provide such records and documentation to the Commission and USAC upon request. 47 CFR § 54.417.
  If CVSI fails to fulfill the requirements of the Act, the Commission’s rules, or the terms of this Order after it begins receiving universal service support, the Commission has authority to revoke its ETC designation. See id. § 54.320(c); Federal-State Joint Board on Universal Service; Western Wireless Corp. Petition for Preemption of an Order of the South Dakota Public Utilities Commission, CC Docket No. 96-45, Declaratory Ruling, 15 FCC Rcd 15168, 15174, para. 15 (2000).
  The Commission also may assess forfeitures for violations of Commission rules and orders. See 47 U.S.C. § 503(b). 
  We note that the Commission has announced that, as part of the Rural Broadband Accountability Plan (RBAP), it will increase audits, verifications, and transparency for USF high cost programs, including the CAF Phase II auction. Fact Sheet: Rural Broadband Accountability Plan (rel. Jan. 28, 2022).
  With the establishment of RBAP, RDOF support recipients, like other high cost recipients, will be subject to a high level of accountability as they work to meet applicable performance requirements and benchmarks. 
20. As the Bureau has previously explained, a carrier that cannot appropriately use universal service support must relinquish its ETC designation (in whole or in part, for those areas where it is no longer eligible to receive support and no longer intends to receive only Lifeline support) pursuant to section 214(e)(4) of the Act and section 54.205 of the Commission’s rules. 47 U.S.C. § 214(a); 47 CFR § 54.205.  See, e.g., Connect America Phase II Support Authorized for Six Winning Bids, AU Docket No. 17-182, WC Docket No. 10-90, Public Notice, 35 FCC Rcd 12869, 12874 (RBAFT, OEA, WCB 2020) (summarizing obligations relating to the relinquishment of ETC designations).
  For ETCs designated by the Commission, the ETC must file a notice of relinquishment in WC Docket No. 09-197, Telecommunications Carriers Eligible for Universal Service Support, using the Commission's Electronic Comment Filing System (ECFS). The Commission has adopted amendments, which effective date remains pending, which will require carriers to provide to the Commission certain notices relating to relinquishments by state-designated ETCs when such relinquishments are sought.  See Connect America Fund et al., WC Docket Nos. 10-90 et al., Notice of Proposed Rulemaking and Report and Order, 38 FCC Rcd 9982, 10060-61, para. 183 (2023) (2023) (amending section 54.205 of the Commission’s rules, 47 CFR § 54.205, to require carriers holding state-granted ETC designations to submit notice of any petition to relinquish such designation before the local state authority and notice of the local state authority’s decision).  
  The Bureau will release an order approving the relinquishment if the relinquishing ETC demonstrates that the affected area will continue to be served by at least one ETC. 47 U.S.C. § 214(e)(4).
  The ETC must then send a copy of its relinquishment notice and a copy of the relinquishment order (within one week of its release) to USAC at hcorders@usac.org. A carrier that intends to discontinue service must first seek authorization to discontinue service under section 63.71 of the Commission's rules. 47 CFR § 63.71.
  
IV. ORDERING CLAUSES
21. Accordingly, IT IS ORDERED, pursuant to the authority contained in section 214(e)(6) of the Communications Act of 1934, as amended, 47 U.S.C. § 214(e)(6), and the authority delegated in sections 0.91 and 0.291 of the Commission’s rules, 47 CFR §§ 0.91, 0.291, that Central Virginia Services, Inc. designation as an Eligible Telecommunications Carrier in Virginia is expanded to include Census Block Group numbers 511139302003 and 511139301001, conditioned upon, limited by, and effective upon its authorization to receive the associated support.  
22. IT IS FURTHER ORDERED that a copy of this Order SHALL BE TRANSMITTED to the Virginia State Corporation Commission and to the Universal Service Administrative Company.
23. IT IS FURTHER ORDERED that, pursuant to section 1.102(b)(1) of the Commission’s rules, 47 CFR § 1.102(b)(1), this order SHALL BE effective upon release.
	

FEDERAL COMMUNICATIONS COMMISSION




Trent Harkrader
Chief
Wireline Competition Bureau


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