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FCC's Pai Makes Statements on Charter Communications Overbuild and Rural Broadband

FCC Chairman Ajit Pai today made two statements regarding the commission's reversal of the Charter Communication's overbuild requirement and the formation of the Rural Broadband Auctions Task Force

Federal Communications Commission Chairman Ajit Pai released the following statement on the FCC’s recent decision to reverse the Charter Communications overbuild requirement:

“My top priority is making sure that any American who wants high-speed Internet access is able to get it.  Today, we take another step toward achieving that goal.

“Last year, Charter Communications agreed to build broadband out to two million new customers as part of its merger with Time Warner Cable and Bright House Networks.  Unfortunately, the FCC appended an ‘overbuild’ condition to the order, requiring that half of those new locations be already served by another provider.  Since these one million overbuilt deployments would be credited against the total, it would substantially reduce buildout to unserved areas.  This is like telling two people you will buy them lunch, ordering two entrées, and then sending both to just one of your companions.

“This condition was not and is not in the public interest, and it runs directly against the goal of promoting greater Internet access for all Americans.

“Following our decision today, Charter Communications is still obligated to build out to two million new locations.  The difference now is that the beneficiaries will be consumers currently on the wrong side of the digital divide.  That’s a major difference, and one that will go a long way toward helping deliver online opportunity to all Americans.”

In a separate statement, Pai announced the formation of the Rural Broadband Auctions Task Force to implement the upcoming Universal Service Fund-related auctions.

The Task Force will oversee both the Connect America Fund Phase II (CAF-II) and Mobility Fund II (MF-II) auctions.  The CAF-II auction will offer almost $2 billion to bidders to connect unserved and underserved locations over the next decade.  The MF-II auction will make available more than $4.5 billion in new funding over ten years for expanding 4G LTE mobile coverage across rural America and in Tribal lands.

Chairman Pai named Chelsea Fallon as Director of the Task Force, with Michael Janson and Kirk Burgee as Deputy Directors.  Thom Parisi will serve as the Chief of Staff of the Task Force.  Senior leaders from across the agency will also serve on the Task Force, including representatives from the Wireless Telecommunications Bureau, the Wireline Competition Bureau, the Office of Strategic Policy and Analysis, the Office of the Managing Director, and the Office of General Counsel.

Chairman Pai said, “I’m pleased that we continue to move forward aggressively to close the digital divide in the United States.  The Task Force I announce today will help ensure that taxpayer funds are allocated efficiently for rural broadband deployment and that all Americans who want Internet access are able to get it.”

Chairman Pai added, “Commencing these auctions as soon as possible is a top priority for the Commission as we seek to close the digital divide.  As with other proceedings, we believe we must engage with the public and be as transparent as possible throughout the duration of these two auctions, including identifying potential problems early on and fixing them ahead of time.  I thank in advance Chelsea, Michael, Kirk, Thom, and all of the FCC staff involved in this effort for all of their hard work.  I look forward to seeing their progress in the months ahead.”

Currently, Chelsea Fallon is Deputy Chief, Industry Analysis and Technology Division, Wireline Competition Bureau; Michael Janson is Assistant Bureau Chief, Wireless Telecommunications Bureau; Kirk Burgee is Associate Bureau Chief and Chief of Staff, Wireline Competition Bureau; and Thom Parisi is Legal Advisor, Wireline Competition Bureau.

Source: FCC media announcements



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