Connect America Fund Phase II Auction Results Rural Broadband Auctions Task Force Federal Communications Commission Open Meeting September 26, 2018 Overview " First multiple-round, reverse auction to allocate ongoing, high-cost universal service support for fixed broadband service. " 974,223 locations eligible for support " Areas where price cap carriers declined model- based support and certain other areas " Lacking voice and broadband at 10/1 Mbps " $1.98 billion budget " Aggregate reserve price: $6.1 billion 2 Overview " Each bid was a commitment to offer broadband and voice services in a particular area for an amount of support. " The support amount associated with a bid depended on the speed, latency, usage levels of the broadband service. " Bids started high and went down. " Weighted tiers encouraged participation from a range of companies and technologies. 3 " 220 qualified bidders, 173 placed bids Results " Service to 713,176 homes and small businesses in 45 states " 99.75% at speeds of 25/3 Mbps or higher " $1.49 billion over 10 years won " Reserve price of areas won was $5 billion over 10 years (determined by Connect America Cost Model). " Inter-area competition brought price down to $1.98 billion, intra-area competition to $1.49 billion " 103 winning bidders " WISPs, electric co-ops, cable operators, local exchange carriers,4 satellite company Locations by Speed Tier 10/1 Mbps - 25/3 Mbps, 0.25% Gigabit (1000/500 Mbps) or Above, 19% 25/3 Mbps - 100/20 Mbps, 46.75% 100/20 Mbps - Gigabit, 34% 5 Areas with Winning Bids Performance Tier Gigabit Above Baseline Baseline 6 Minimum Buildout Milestones " Long-form applications due October 15 " Build out and offer service to " 40% of locations in state by year 3 " Additional 20% in each subsequent year " 100% by year 6 " Data on locations served must be filed with USAC " Performance measures requirements 7