Media Contact: 
Mark Wigfield (202) 418-0253
mark.wigfield@fcc.gov
For Immediate Release
FCC TAKES NEXT STEPS TOWARD EXPANDING RURAL 
BROADBAND ACCESS
Sets Details of Reverse Auction to Maximize Consumer Value
  --
WASHINGTON, February 23, 2017 – Continuing its push to expand access to broadband in rural 
America, the Federal Communications Commission today set key rules for a competitive “reverse 
auction” that will provide nearly $2 billion for rural deployment over the next decade.
In the upcoming Connect America Fund Phase II auction, providers will compete for support to 
expand broadband to unserved areas, along with voice service. The auction rules established 
today aim to maximize the value the American people will receive for the Connect America Fund 
dollars spent by balancing deployment of higher-quality services with cost efficiencies.
Broadband access is essential in the 21
st
Century for jobs, education, information and economic 
development. Since 2011, the FCC has been working to expand access in rural areas where 
deployment costs are high by providing support from the Connect America Fund. 
Today’s action focuses on census blocks unserved by broadband in 20 states where the nation’s 
largest carriers – known as “price cap” carriers – declined last year’s Connect America Fund offer
of support. Also included in the auction are locations across the country with extremely high 
deployment costs.
The Order balances incentives for deployment of higher-quality services with cost efficiencies by 
establishing auction “weights” that credit bids by companies offering more robust service. 
Specifically, the Order:
? Establishes bidding weights to compare bids across performance tiers set last year (see 
2016 press release at  https://apps.fcc.gov/edocs_public/attachmatch/DOC-
339550A1.docx)
? These weights account for the value of higher speeds, higher usage allowances, and low 
latency
? But the formula used to rank bidders balances these performance goals with the need to 
reach as many consumers as possible within the FCC’s budget for rural universal service 
support
The item builds on the substantial progress the FCC has made in recent years connecting rural 
America to broadband. In 2015, price cap carriers accepted $9 billion over six years from Phase II 
of the Connect America Fund to expand broadband in their rural service areas. And in March of 
2016, the FCC reformed its broadband support for the nation’s smallest carriers, known as “rate-
of-return” carriers, providing $20 billion over the next decade.
Next steps for the Phase II auction include seeking comment on auction mechanics. After 
consideration of the record developed, the FCC will vote on final auction details and set specific 
deadlines and dates.
Other resources:
Preliminary map of areas eligible for the Phase II auction.
https://www.fcc.gov/reports-research/maps/caf-2-auction-preliminary-areas/
Action by the Commission February 23, 2017 by Report and Order and Order on Reconsideration 
(FCC 17-12). Chairman Pai, Commissioner Clyburn approving. Commissioner O’Rielly 
approving in part and dissenting in part. Chairman Pai, Commissioners Clyburn and O’Rielly 
issuing separate statements.
WC Docket No. 10-90; WC Docket No. 14-58
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This is an unofficial announcement of Commission action.  Release of the full text of a Commission order 
constitutes official action.  See MCI v. FCC, 515 F.2d 385 (D.C. Cir. 1974).