20210129Petition.pdf

Cynthla A. Melillo PLLC
8385 W. Emerald Street
Boise, ldaho 83704
,' 'l-. "".n l i 1. L J
(208)-577-s747
[e-mail]
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January 29,2021
WA El*tontc frail
Jan Noriyuki, Commission Secretary
ldaho Public UUlitiee Commission
11331 W. Chinden Bhd. Building 8, Suite 201-A
Boise, lD 83714
P.O. Box 83720
Boise, ,D 8372A4074
Ctg.T-2t-o1
Re Custer Telephone Broadband SeMces LLC Petition fur Expansion
of ETG Designated SeMce Area
Dear Ms. Noriyuki:
Enclosed for liling, please flnd a copy of Custer Telephone Broadband Services
LLC's Petition for Expansion of ETC Designated Service Area. I have not sent a hard
copy so please let me know if you will require that prlorto openlng the case.
lf you have any questions or need any dditional inbrmation, please feel free to
contact me.
Sincerely
(p+-arytt
Cynthla A. Melillo
CAI\4/
EnclosureCc: JD Bennetts (via electronlc maif
Sherry Maestas (via electronlc malt)
Cynthia A. Melillo ISB No. 58191
CYNTHIA A. MELILLO PLLC
8385 W. Emerald Street
Boise, lD 83704
Telephone: [phone]
[e-mail]
Attomeys for Petitioner Custer Telephone Broadband Services LLC
BEFORE THE IDAHO PUtsLIC UTILITIES COMMISSION
IN THE MATTER OF THE PETITION OF
CUSTER TELEPHONE BROADBAND
SERVICES LLC FOR EXPANSION OF ITS
ETC DESIGNATED SERVICE AREAS
GASE NO:(-T[\-T- I r-o I
PETITTON FOR EXPANSION OF ETC
DESIGNATED SERVIGE AREAS
Custer Telephone Cooperative, lnc., an ldaho non-profit mutual corporation ("Gustef)
was selected by the Federal Communications Commission ('FCC') as a winning bidder in the
Rural Digital Opportunity Fund ('RDOF") Auction 904 to provide broadband service in ldaho in
the census blocks noted on Exhibit 1 (the "RDOF Service Area"). On December 7, 2020, the
FCC issued a Public Notice closing Auction 904 and announcing the winning bidders.l On
December 22, 2020, pursuant to the procedures developed by the FCC, Custer assigned its
winning bids to its wholly-owned subsidiary Custer Telephone Broadband Services LLC
("CTBS' or'Applicant').
ln accordance with RDOF requirements, CTBS, by and through its attorneys, Cynthia A.
Melilto PLLC, submits this Petition for Expansion of ETC Designated Service Areas ("Petition")
seeking designation as an Eligible Telecommunications Canier ("ETC') for those portions of the
RDOF Service Area located outside of Applicant's cunent Existing Service Area (defined
below), pursuant to Section 214(el(1)-(2) of the Comrnunications Act of 1934, as amended (the
I Rural Digitat Opportunity Fund Phase t Auction (Auction 904) Closes, Winning Bldders Announced, FCC
Form 683 Due January 29,2021, AU Docket No.2S34, WC Docket 19-126, WC Docket No. 10-90,
Publ6 Notice DA 20-1422, December 7, 2020 (?uction Closing Public Notice'), attached hereto as
Exhibit 3
PEITTION OT CUSTERTELEPEOI\IE BROADBAND SERVICES. I
'Act'f, the Rules of the Federal Communications Commission ('FCC')3, and the ldaho Public
Utilities Commission's ('Commission") ETC designation requirements ('IPUC ETC
Requirements').4
CTBS was designated as a Lifeline-only ETC for the Salmon, Idaho Exchange fuea
("Existing Service Area') by the Commission by Order No, 33002, dated April 1 , 2A14 in Case
No. CTB-T-14-01 ("ETC Designation Ordef). CTBS requests approval to expand its low-
income/Lifeline-only ETC designation for purposes of receiving high cost RDOF support in those
areas located within its Existing Service Area and to expand its Existing Service Area to include
those areas of the RDOF Service Area located outside of its Existing Service Area for which it
has been awarded RDOF support via Auction 904. CTBS is obligated under the Auction
Closing Public Notice to obtain this ETC designation in the awarded areas by June 7,2021, and
therefore requests expditious action to meet this obligation.
As discussed below in more detail, the Commission has the ability to grant the ETC
designation and CTBS meets all statutory and regulatory prerequisites for the ETC designation.
Furthermore, designation of CTBS as an ETC for the purpose of receiving high cost RDOF
funds to provide broadband services in the RDOF Service Area would serve the public interest.
Accordingly, CTBS respectfully requests that the Commission grant the relief requested in this
Petition.
As demonstrated herein, CTBS continues to meet all statutory and regulatory
requirements for designation as an ETC. Granting Applicant's request would advance the
public interest by enabling the CTBS to provide broadband services and all supported services
in the RDOF Service Area.
2 47 U,S,c. $ 214(eX1 )-(2)3 47 C,F.R. S 54.101 - 54-207
a See /n the Matter of the Application of WWC Holding Co., lnc. dba CellularOne Seekiing Designation
as an Eltgtble Telacommunications Canier That May Receive Federal Universal Seryice Support,
Order No. 2984.1, Appendix pp. 1-3 (IPUC Case No. WST-T-05-1, seryed August 4, 2005) (hereinafier,
"IPUC ETC Requirements Odef).
PETITION OF CUSTER TELEPIIONE BROADBAND SERYICES . 2
All correspondence, communications, pleadings, notices, orders and decisions relating
to this Application should be addressed as follows:
Cynthia A. Melillo
Cynthia A. Melillo PLLC
8385 W. Emerald Street
Boise, ldaho 837A4
Telephone: [phone]
Email: [e-mail]
JD BenneftsGuster Telephone Broadband
Services, LLC
PO Box 324
1101 East Main Ave.
Challis, lD 83226
Telephone: [phone]
Emai!: id.bgnnetts@,custertel.com
I. BACKGROUND
A. Company Overview
CTBS is an ldaho limited liability company, with a principal place of business located at
1101 E. Main Avenue, Chaltis, ldaho 83226. CTBS is a wholly-owned subsidiary of Custer
Telephone Cooperative, lnc. ("Custefl). The Comrnission issued a Certificate of Public
Convenience and Necessity authorilng CTBS to provide local exchange and interexchange
services within the State of ldaho in Case No. CTB-T-11-0'1, Order No. 32383, dated October
14, 2A11, and granted ETC status in the ETC Designation Order. CTBS provides local
exchange services in its Existing Service Area using its own facilities.
B, ldentification of the Service Area
Sections 2lafulpl and 214(e)(5) of the Act provide that ETC designations shall be
made for a geographic service area designated by the state commission. CTBS is asking
for ETC designation in the RDOF SeMce Area as listed on Exhibit 1 and shown on Exhibit
2.
tI. CTBS MEETS THE STATUTORY AND REGULATORY RESUIREMENTS FOR
DESIGNATION AS AN ELIGIBLE TELECOMMUNICATIONS CARRIER.
On March 17, 2005, the FCC released its FCC ETC Requirements Ordef
establishing additional requirements for caniers seeking ETC designation before the FCC'
These additional requirements, however, are not binding on strate commissions. This
s ln the Matter of Federat-State Joint Board on lJnivorsal Service, Report and Oder,20 FCC Rcd 6371
(2005) fFCC ETC Requirements Ordef)
PETITION OF CUSTER' TELEPEONE BROAI'BAND SERVICES .3
Commission subsequently considered whether to adopt al! or some portion of the rules
promulgated by the FCC and, as previously noted, issued a set of ETC designation
requirements in the IPUC ETC Requirements Order. ln its ETC Application in Case No.
CTB-T-11-01, incorporated herein by reference, CTBS provided all of the information required
by the IPUC ETC Requirements Order. The Commission found in its ETC Designation Order
that CTBS met the requirements for designation as an ETC. CTBS has complied wilh the
conditions and service requirements of its ETG designation applicable to the support it receives
and willcontinue to do so in the expanded RDOF Service Area.
III. GRANT OF THIS PETITION SERVES THE PUBLIC INTEREST
CTBS requests ETC designation throughout the entirety of the RDOF Services Area
depicted on Exhibit 2. The area outlined in red shows CTBS's Existing Service Area and the
area in blue shows the RDOF Service Area. CenturyLink dba Century Tel of ldaho provides
services within the Salmon Exchange Area portion of the RDOF Service Area. CTBS is not
aware of any provider which provides services in the RDOF Service Area located outside of ffre
Salmon Exchange Area. The RDOF Service Area is not served by any rural telephone
company.
For areas served by rural telephone companies, Applicant must show that granting the
ETC designation would serve the public interest. For areas not served by rural telephone
companies, Congress requires that the Commission grant ETC Petitions without
requirement of a showing of public interest.6 Thus, the Act provides that the Commission
"shall" designate CTBS as an ETC upon finding that CTBS meets the requirements of
Section 54.101(a) and Section 54.202(a) of the FCC's Rules (47 C.F.R. $ 54.101(a) and 47
c.F.R. $ 54.202(a)).
Nevertheless, grant of CTBS's Petition for Expansion of ETC Designated Service
Areas for purposes of receiving RDOF support will serve the public interest. Granting ETC
status to CTBS would allow CTBS to obtain federal RDOF support, which it will use for
6 See 47 U.S.C. $ 2f 4{eX2).
PETITION OT CUSTER TELEPEONE BROADBA}ID SERVICES - 4
the deployment of advanced services to unserved and underserved areas of ldaho.
Grant of lhis Petition also will ensure that RDOF support is used efficiently and
effectively.
IV. CTBS WILL MEET ALL ANNUAL CERTIFICATION REOUIREMENTS AND COMPLY
WTH APPLICABLE LAWS
CTBS will fl1e all annual reports required by both this Commission and the FCC. ln
addition, CTBS will comply with applicable state and federal regulations and its payment of
applicable state and local regulatory fees.
V. LEGAL AUTHORITY
The Commission has the tegal authority to grant the relief requested by CTBS pursuant
to 47 U,S.C. $ 214(e)(2); 47 C.F.R. S 54.201; and the IPUC ETC Requiremenb Order.
VI. RELIEF REQUESTED
For the reasons set forth above, and pursuant to Section 214te)(2) of the Act, CTBS
requests that the Commission enter an Order designating CTBS as an ETC eligible for RDOF
support for the RDOF Service Areas, and that the Commission proceed under the
Comrnission's Rules 201 through 2O4to process this Application under Modified Procedure, and
that the Commission issue an order in this matter before June 7, 2021.
vI. coNclusloN
CTBS submits that the information contained herein, together with the information in the
CTBS's ETC Application, incorporated herein by reference, demonstralee that CTBS continues
to meet the requirernents for ETC designation and that expansion of CTBS's ETC service area
would promote the public interest.
PETITION OT CUSTER TELEPEONE BROADBAND SERVICES - 5
RESPECTFULLY SUBMITTED thls 29s day ol January 2021
A. Melillo
CYNTHLI A. MELILLO PLLC
Attomey for Cmter Telephone Broadband Services
PETIrION OT CUSTER TEI,EPEONE BNOADBANI} SERVICES . 6
CERTIFICATE OF SERVIGE
I hereby certfy that on the 29m day of January 2021, a true and conect copy of the
foregoing was served upon the following individuat(s) bythe means indicated:
Jan Noriyuki, Commission Secretary
ldaho Public Utllities Gommission
11331 W. Ghinden Bhrd. Building 8, Suite
201-A
Boise, lD 83714
U.S. Mail, postage prepaid
Express Mall
Hand Elelivery
Facsimile
Electronic Mail
P.O, Box 83720
Boise, lD 837204074
A. Melillo
PETITION OF CTISTERTELEPEONE BROADBAND SERVICES. 7
EXHIBIT 1
Designated Service Areas
Census Block Gtoup 160599702001 (South St. Charles) and 160599702003 (Kirtley Creek).
PETffiON OF CUSTER TELEPIIONE BROAITBAND SERVICDS - Erhtbit 1
EXHIBIT 2
Map of Declgnated Servlce Areas
lAttachedl
PETITION OF CUSTER TELEPUONE BRON)BAND SERVICAS - Exhtblt 2
EXHIBIT 3
Auction Gloeing Public Notlce
[attachedl
PETTTION OF CUSTER TELEPIIONT BROADBA}ID SERVICES _ Exhtbtt 3
,;Hbj PUBLIC NOTICE
Federal Communications Commission
45 L Street, NE
Washington, DC 205&t
News tedla lrformatlon: 2024tE{500
lntemet rur.fcc.gov
TTY:88&83&,tr322
DA20-142
December 712020
RURAL DIGITAL OPPORTUMTY FITND PHASE I AUCTION (AUCTION 904)
cLosEs
WIN}IING BIDDERS ANNOUNCEIT
FCC FORM 683IILIEJAIYUARY 29,2A2t
AU Docket No. 20-34
WC Docketl9-126
WC Docket No. 10-90
1. By this Public Notice, the Rural Broadband Auctions Task Force, Office of Economics
and Analytics (OBA), and Wireline Competition Bureau (WCB) announce that bidding in the Rural
Digital Opportunity Fund Phase I auction (Auction 904) concluded on November 25, 2020. There were
180 winning bidders in the auction, with the l0-year support amount totaling $9.23 billion and covering
5,220,833locationsin49statesandoneterritory, Ofthe5,295,77l locationsinthe6l,Tffeligible
census block groups, approximately 99o/o ofthe locations are covered by winning bids. While winning
bids are for a ratrge of performance tiers, winning bids for downstream speeds of at least 100 megabits per
second (Mbps) aover 99,7Yo of these locations, with over 85% of locations covered by winning bids for
Gigabit speed service.
2. Winning bidders are required to submit a post-auction application for support (FCC Form
683) no later than January 29,2021. Winning bidders that wish to assigr some or all of their winning
bids to related entities must do so by December 22,2020, using the Divide Winning Bids process
described below.
L WINNING BIDDIRS
3. This Public Notice summarizes the results of the auction and provides winning bidders
with important information, including FCC Form 683 filing requirements and support disbursement
maters. Key information appears in the following attachments:
Attachment A: "Winning Bidders Summary" lists for each bidder: the state, the l0-year assigned
support amount, and the number of locations assigned in winning bids.
Attachment B: "State Results Summary" lists for each state with eligible areas in Auction 904:
the total l0-year assigned support, the number of locations assigned, and the number of bidders
with winning bids.
Attachment C: "FCC Fonn 683: Application for Rural Digital Opportunity Fund Phase I Support
- Instructions."
4. A copy of this Public Notice will be sent to each qualified bidder via overnight delivery
to the contact person at the contact address listed in each qualified bidder's short-form application (FCC
Form 183).
Federal Communications Commission DA20-1422
tr. AUCTIONRESULTS
5. Concurrent with the release of this Public Notice, lhe Commission is making available
the detailed auction results and bidding information described below.
Online Map: An interactive visual representation of the auction results is available on
the Auction 904 web page (www.fcq.eovlauctiqn/90,1). On the
interactive map available at this webpage, there are options for
displaying all eligible areas and non-winning bids. Clicking on a state or
winning bid listed on the right-hand side of the map will zoom the map
to that area
Results Data: An online viewer of results dara and downloadable files that include the
identities of bidders and all their submitted bids are now available in the
FCC Auctions Public Reporting System (auctiondgta'fcc.eov), for which
there is a link on the Results tab on the Auction 904 web page
(www,fcc. gov/auction/90{. ). I
6. Additionally, the Commission will soon make available certain, previously withheld
information submitted in the applications to participate in the auction (FCC Forms 1E3). This
information includes the state(s) and performance tier and latency combination(s) for which each
applicant was found to be eligible.z The applications are viewable through the application search feature,
which can be accessed through the Application Search lab on the Auction 904 web page.
IIL POST-AUCTIONPROCEDT'RES
7. Under the competitive bidding rules adopted inthe Rural Digital Opportwity Fund
Order,Auction 904 winning bidders must file a post-auotion application for support also referred to as
FCC Form 683, consistent with all requirements of the long-form application process.3 FCC Form 683
has two discrete parts-the Divide Winning Bids portion and the long-form application portion. Each
winning bidder is required to file an FCC Form 683 to become authorized to receive support. Prior to
compleiing the long-form application portioq a winning bidder may divide its winning bids by assigning
them to related entities, as described below.a If a winning bidder assigns its winning bids to related
I Because bids in Auction 904 implied annual support amounts, the bids and results data in the FCC Auctions Public
Reporting System arc on an annual basis, in contast to the lO-year total support amounts reported in Attachments A
and B.
2 We will continue to withhold from rouline public inspection responses to the technioal questions in Appendix A of
the Auction 904 Prwedures Public Notice and any supporting information; financial information for which
confidential treatment was requested underthe section 0.a59(aXa) abbreviated confidential heafi:rent process; and
any other information zubject to a request for confidential treatrnent that has been granted or remains pending. See
Rural Digital Oppartunity Fund Phase I Auction Schediedfor October 29, 2020; Notice and Filing Requirements
and Othir Procei.dttresfor Auctton 904, AU Docket No. 20-34 et al., Public Notice,35 FCC Rcd 6077, 6129-30,
para. 141 {2020)(Arction 904 Procedures Public Nolice\. Further, to preYent possible public dissemination of
information related to bids or bidding strategies in Auction 107-an austion for flexible-use service licenses in the
3.7 GHzBand in which bidding is sohoduled to commence on December 8-+he data fields in which applicants
identified specific spectrum bands that they proposed to use and spcctrum access attachments will continue to be
withheld from routine public inspection until the prohibition of certain communications in Auction 107 concludes.
,9ee 47 CFR 1.2105 (cl;Auction of Flexible-IJse Service Licenses in the 3.7-3.98 GHz Bandfor Next-Generatian
Wireless Services; Notice and Filing Requirements, Minimum Opening Bids, Upfront Payments, and Olher
Proceduresfor Auetion 107; BiddinginAuction 107 Sche&rled to Begin December 8, 2020, AU Docket No. 20-25,
Public Notice, 35 FCC Rcd E404, 841E, para. 44 {2020).
3 47 CFR g 1.21004; Rurat Digital OpportuniP Furd et al.,WC Docket No. l9-I26 et al., Report and Order, 35
FCC Rcd 686, 696, para" 22 (2020) (Rural Digital Opportuntty Fmd Ordet).
4 Auetion 904 Procedures Public Notice,3s FCC Rcd at 6164'65, paras. 288-93.
2
X'ederal Communications Commission DA20-1422
entities, those entities will be required to file the long-form application portion of an FCC Form 683 for
those winning bids, as described below. A winning bidder will be responsible for completing the long-
form application portion of FCC Form 683 for any winning bids that it does not assign to a related entity.
L Winning bidders that intend to file a long-form applicadon coverlng all their
wirning bids are not requircd to participatc in the Dlvide Wlnning Bids process. Any winning
bidder that does not submit the Divide Winning Bids portion of FCC Form 683 prior to 6:00 p.m. ET on
December 22,2020, must file a long-form application that covers a// its winning bids. In such
circumstances, the winning bidder must file the long-form application in its own name, be designated as
the eligible telecommunications carrier (ETC) to serve the relevant areas, be named in the requisite
Iette(s) of credit, and fulfill the public interest obligations associated with receiving Rural Digital
Opportuniff Fund Phase I support.s
A. Divide Winning Bids Portion of FCC Form 683
9. Any winning bidder that intends to assign some or all its winning bids to related entities
must do so by submitting the Divide Winning Bids portion of the FCC Form 683 during the Divide
Winning Bids filing window. The Divlde Winning Bids fiting window will open at 10:00 a.m. Eastern
Time (ET) on Wednesday, December 9,2020, and close at 6:00 p.m. ET on Tuesday December 22,
2020. During this period, a winning bidder will be able to log into the Auction Application System using
the FCC Registration Number (FRN) that it used to file its short-form application and complete the
Divide Winning Bids portion of FCC Form 683. The instructions in Attachment C explain how a
winning bidder can assign its winning bids to related entities.
10. A winning bidder may only assigr its winning bids to a related entity that is named in its
short-fonn application or that was formed after the short-form application deadline (i.e., July 15,2020)!
The Auction Application System will not permit a winning bidder to assiglr its winning bids to another
winning bidder. A related entity is an entity that is controlled by the winning bidder or is a member of (or
an entity sontrolled by a member of) a consortium/joint venture of which the winning bidder is a
msmber.T Thus, if a holding company/parent company is a winning bidder in Auction 904, the winning
bidder may designate one or more operating companies that it controls to complete the long-form
application to receive Rural Digital Opportunity Fund support for some or all of the winning bids in a
state, If a consortium(oint venture is a winning bidder in Auction 904, the entity may designate one or
more members (or entities controlled by members of) the consortium{oint venture to complete the long-
form application to Rural Digital Opportunity Fund support for some or all of the wiming bids in a state.
I L A winning bidder may assigrr winning bids to more than one entity in a single state, but it
cannot assign a single winning bid to more than one entity.E Thus, a winning bidder may not split among
multiple entities either: l) eligible census blocks within a winning bid for an individual census block
group, or 2) separate census block groups within a winning package bid.e
s Subject to the limited exception described below for multiple operating oompanies operating in a state.
6 Auction 904 Procedures Publie Notice, 35 FCC Rcd at 6165, para.29l.
1 Id" at6164,para.289.
8 Id.al6164,pua.290.
e For example, assume a winning bidder has three winning bids-package bid A, package bid B, and single bid (i.e.,
one eensus block group) C. The winning bidder oould assign package bid A to one related entity, package bid B to
another related entity, and single bid C to a third entity. The winning bidder muld not assign some census block
groups from package bid A to one relatcd entity and then the remaining census blockgroups fiom package bid A to
another enlity. Tho entire package bid must be assigned to one related entity. Similarly, the winning bidder could
not assign some eligible census blocks frrom single bid C to one entity and then the remaining eligible census blocks
from single bid C to another relatod entity. The entire census block group covered by tre single winning bid must
be assigned to one related entity.
3
X'ederal Communications Commission D^20-1422
12. Erch entity that is assigned a winning bid through the Divide lYinning Bids process
is the entity that mugt lilelhe long-form application portion of FCC Form 6t3 in its own name'
Except for one limited exception, that long-form applicant must be designated as the eliglble
telecommunications carriei to ser"ve the relevant area(s), be named in the requisite letter(s) of
credit, and fullill the pubtic interest obligations associrted with receiving Rural Digital Opportunity
Fund support.lo
13. For administrative convenience, if a winning bidder is a holding/parent company that has
multiplo operating companies in a state and intends to assigr its winning bids to multiple operating
.orp'*i.r in a stite, it may choose one ofthose entities to be the lead operating company.rr In such
circumstances, the winning bids shoUa be assigrred to that lead operating company' the long-form
ujpii""tio, should be filed-in the name of the liad operating company, the letter of credit should be in the
name of the lead operating company, and payments will be made to the study area code associated with
the lead operating iompany. However, the long-form application must identiff which operating
companies will rieet ttre puUtic interest obligations for which census block groups and documentation
,nrri b. submitted that dimonstrates that each of the operating companies has an ETC designation
covering the relevant census block groups. As decided inthe Rurat Digital Opportwity Fund Order,
compliince with the service milestones will be determined on a statewide basis across all the relevant
operating companies. 12
14. A winning bidder that assigrrs some or all its winning bids to a related entity must make
several certifications in ttri oivide winnin[ Bids portion of FCC Form 683. In particular, it must oertify
and acknowledge that it:
o has assigned the winning bids to related entities that were named in the short-form application or
are newly formed,
r will inform each entity of its filing obligation and cause each entity to submit a timely FCC Form
68 3 long-form aPPlication,
. will be at risk for default if any of the related entities do not submit atimely FCC Form 583 long-
form aPPlication, and
o will submit a timely FCC Form 683 long-form apptication for any ofthe winning bids that it did
not assign to another entitY.
B. Obligation to Apply for Support - Long-Form Application Portion of FCC Form
6trt
I 5. A winning bidder that retains any of its bids, as well as all entities that are assigned
winning bids by a winninfbidder, must electonically submit the long-form application portion of FCC
form O-Sl "or"iing those bids priorto the close of the long-form applicalion filing window. The long-
form application fiting window will open at 10:00 a.m. ET on Thursday, January 14,202L, and will
close ai 3:00 p.m. ET 6n Friday, January 29,2Q21. Certain additional information may be submitted to
the Commission after this filing window closes, as described below. The Auction Application System
will open a filing window at 10:00 a.m. ET on Thursday, January l4'2021to permit applicants to
submit this additional information by the relevant deadlines.
1. Deadlines
16. Attachment C of this Public Notice provides instructions for completing the long-form
application portion of FCC Form 683. These insfiuctions are consistent with the Commission's
to Auction 9A4 Procedures Public Notice,3s FCC Rcd at 6165, para'291
tt Id. at 6165, para. 292.
tz Rural Digilal Opportunity Fund Order,35 FCC Rcd al7lZ,paru' 54'
4
Federal Communications Commission rll2g-1422
requirements fully described in section 54.S04O) & (c) ofthe Commission's rules and paragraphs 2g6 to322 of lhe Auction 904 Procedures Publie Notice, rs Below is a summary of the inforrrutioritt ut must besubmitted by the applicable application deadlines:ra
r Informrtlon due prlor to 6:00 p.m. ET on Friday, January 29,20212
o Applicrnt information, including legal classification (e.g., corporation, general
partnership, etc.), jurisdiction of formation, addressn contact information, and responsibleindividual
o whether the applicant has alreedy been designated as an etigibte
telecommunications carrier (ETC) for all the eligible census blocks in a winning
bialgts
Ifthe applicant has already obtained a high-cost ETC designation that covers a[
the relevant areas in a state, it should submit the required ETC dwumentation
and certification letter by this deadline so that commission staffcan
expeditiously veriS the applicant's ETC status in the state
Ifthe applicant has obtained a high-cost ETC desigration for only some of the
relevant areas in a state, commission staffwill not verify the applicant's ETC
status in a state until the applicant has submitted the required documenation and
o wh"rh":'rTl;;t:ilj:x1",1#ffiil,ffi;":il:::", statements during thelong-form application process and whether it seeks confidential treatnent ofthose
financial stalementsls
o Itrithl project overview(s) describing at a high-level the applicant's intended technologr
and system design for each state with a winning bid.r? An applicant should not include
any confidential tade secrets or commercial information in its overview(s), which will bemade publicly available.
o Proiect funding description(s) that explains how necessary construction wilt be funded
in each statel8
o Spectrum access description(s) demonstrating that the applicant has sufiicient access tospectrum in each statg if applicablere
t3 47 CFR $ 54.S04(b), (c);Auclion 904 Procedures Public Notice, 35 FCC Rcd at 6163-78, paras. 2t6-322; see alsoRural Digital Opportunity fitnd Order. 35 FCC P.lcd atTZS-735, paras. g6-113.
la As discussed in Attacknent C, certain applicant information may bc automatically hansferre.d from a winningbidder's short-form application (FCC Form 183) to its long-form application (FCC ionn 633).
Is By June 7,2021,the long-form applicant mu$t obtain from all the relevant states or the Commission a high-oostETC designation(s) that cover its winning bid areas and upload the required documentation and a certification letterto its FCC Form 683' 47 CFR $ 54.E04(b)(5\; Auction 904 Procedura Public Notice,35 FCC Rcd at 6126, para.316; Rural Digital Opportunity Fund Order,35 FCC Rcd at727-2g,para.92.
16 As noted below, the audited financial stat€mEnts are due by June 7 ,2021 . 47 CFR g 54.S04(bX4) ; Auction g04
Praeedures Public Notice,3s FCC Pied at 6177, para 318; Rural Digital Opportunity Funa Ordei,'ls FCC Rcd at722,paa.80.
t7 Aucrion 904 Procedures Public Notice,3s FCC Rcd at 6167, para.302.
fj 47 CIR $ 54.S04(bX2Xvi); Auction 904 Procedures Public Notice. 35 FCC Rcd at 6174-75, para. 3t2; RuralDigital Oppartunity Fund Order, 35 FCC Ftcd at 727, para 9 l.
te Auction 904 Procedwes Public Notice,35 FCC Rcd at 6175, paras. 313-14.
5
o Agreement lnformation, including information regarding ary agreements relating to the
applicant's partioipation in Auction 90420
o Ownership lnformation, including information regarding entities that have an
ownership or other interest in the applicant and associated Commission-regulated
businesses2l
o Various certifications, including certifications regarding the applicant's compliance
with statutory and regulatory requirements; financial and technical qualifications;
available funds; compliance with the relevant public interest obligations and ETC
requirements; and spectrum a@ess, if applicabldz
17. We adopt a deadline of 70 days from the release ofthis Public Notice for long-form
applicants to submit lettir of credit commitrnent letters, as well as detailed technolory and system desigr:
descriptions,23
r Information due prior to 6:00 p.m. ET on Monday, February l5r2o2lt
o Letter of credit commitment letter(s) for each applicable state from a qualified bank
committingto issue an irrevocable stand-by letter of cttdit to the long-form applicant in
the requirel form that covers the first year of support (at aminimum).24 A long'form
applicant with winning bids in multiple states may submit a single commitngnt letter that
covers all ofthe relevant states as long as it is clear that the letter is applicable to the
"":*;T::inimum,
rhe tetter musr provide rhe dolar amount of the letrer of credit
and the issuing bank's agreement to follow the terms and conditions of the
Commission'Jmodel letter of credit in Appendix C ofthe Rural Digital
Opportunity Rttd Order. 2s
The bank eligibility requirements are'described in detail in paragraph 107 of the
Rural Digital Opportunity Fund Order and section 54.804(c) of the
Commission's rules.26
o Detailed technolory and system desrgn description(s) forthe approvedtechnology for
cacnanffi lTl]:ff;l;ffi Jr#;::1".,:Tffi'ffifl :;:ff "
aetaifid guidance on how an applicant can successfully meet this requirement.2T
Federal Communications Commission DL20-1422
N Ida16l38,p*a. 173.
zr 47 CFR gg l.2l 12(a), 54.804(bX2Xi); Auction 904 Procedures Public Notice,3s FCC Rcd at 6165, paru.295;
nural Otgitil Opportunity Fund Order,35 FCC Rcd tt 726, pata- 87 '
n See, e.g.,4z CFR $ 54.S04(bX2Xii), (iii), (v),(vii);Auction904 Procedures Public Notice, 35 FCC Rcd at 6165-
67, 617 4-7 5, 617 5-7 6, paras. 296300, 3 12, 3 14 -
23 Auction g04 proce&tres Pubtic Notice, 35 FCC Rcd at 6167, 6176, paras. 303, 315 (stating that this information
would be due ,.[w]ithin the speci{ied number of days after the release of the Auction 904 closing public notice").
24 42 CFR g 54.S04(bX3) , {c)(2); Auction 904 Procedures Public Notice,35 FCC Rcd ait'l76, paru.315; Rutal
Digital Opportunity Fund Order,3s FCC Rcd at 732, para' 106'
25 Auction 904 proce&res Public Notice,35 FCC Rcd at 6176, para. 315; Rwal Digital Opportunity Fund Order,
35 FCC Rcd at 732, Para. 106.
26 47 CFR $ 5a.S0a(cX2); Rural Digint opportunity Fund order,35 Fcc Rcd at732,para. 107 '
27 47 cFRg 54.s04(bx2) (iv); luction 904 Procedures Public Notice. 35 FCC F(cd at 6167-74, paras. 301-ll: Rural
Digitat Opportunity Fund Order,3s FCC Rod at 726, para 90
6
a
f,'ederal Communications Commission DA20-1422
Further educational materials regarding this requirement will also be made
available on the Auotion 904 website, wfvw.{lc_Sp@qliadgg{.
r The professional engineer must certifo that he or she has reviewed each state
network diagram and that the network is capable of delivering, to at least 95vo of
the required number oflocations in each relevant state, voice and broadband
service that meets the requisite performance reguirements.2s For purposes of this
requirement, while it is not necessary that the professional engineir iertifying the
network diagram have a Professional Engineer licensq the certification sliouid
describe the pmfessional engineer's qualifications such that the certifier's
network desigt and performance expertise is apparent.
r Wireless coverage maps should be submitted in ESRI Shapefile format. The
component files (including the .sHp, .sHx, .DBF, and .pRJ files) should be
uploaded in a single compressed .ZIP archive. Recommended standards and data
fields will be made available on the Auction 904 website,
wtuw&ggor/+ucliqp/904. Long-form applicants will see an eror message when
they upload the .ZIP archive to the long-form application, but the error wlll not
prevent long-form applicants from submitting their applioations provided that the
submission occuts prior to the deadline and Commission staffshould still be able
to access the file. Commission staffwill contact a long-form applicant aser the
filing deadline if there ere any issues with the file. The FCC rorm og;
attaohment size limit is l0 MB_
Information due prior to 6:00 p.m. ET on Monday, JaneTr2D2lz
o Documentation of high-cost ETC designation(s) in all areas where the applicant will
receive support, as described in paragraphs 316-317 of theAuction 904 Proiedwes
Public Notice.ze An applicant should also upload a.csv file of the census blocks that are
covered by the ETC designation order.
o ETC certification letter(s) from an officer of the applicant certiSing that the long-form
applicant's ETC designation(s) covers all the areas where the applicant will receivi
support.30
o If not provided with the FCC Form 183 short-form application by the long-form applicant
or a related entity,3r frnancial statements from the prior liscal year (ler 2019) that
heve been audited by en independent certilied pubtic accountant, including the
balance sheets, statements of net income and cash flow, along with an opinion lefer from
an independent certified public accountant and the accompanying notes.f? An applicant
28 47 CFR $ 54,804OX2Xivl;Arction 9a4 Procedures Public Notice,35 FCC Rcd at 6167, para- 301; Rural DigitatOpporlunity Fmd Order, 35 PCC Rcd tt726, pra.90. Note that all performance requiremints for broadband andvoice services have to be met at peak periods. See Cormect America Fud, WC Docket No, 1G90, Order, 33 FCCRcd6509,6517'2l,pans.22'33 (WCBAilTB/OET20l8) (CAFPerformanceMeaswesOrder);tonnectAnuica
Fund,WC DocketNo. 10-90, OrderonReconsideratioa,34 FCC Rcd 10109, l0l16-10ll8, paru.ZO-ZS 1ZOle1(CAF Performance Measures Secand Recowideration Order).
2e 47 CFR $ 54.804OX5); Auction 904 Procedres Publie Notice,3s FCC Rcd at 6176, paras. 316-17; Rural DigitalOpportunity Fund Order,35 FCC Rcd at727-28,pua.92-
30 47 CFR $ 54-804(bX5); Auction 904 Procedares Public Notice,3s FCC Rcd at 6176, para. 316; Rurat Digitat
Opportunigt Fund Order, 35 FCC Rcd at 72?-28, pwa. 92.
3r In this context, a related entity means the long-form applicant's parenUholding company or, if the long-form
applicant is a member of a consortium orjoint venture, the mcmber of the consortium or joint venture that submittedfinancial statements with the short-form application.
7
Federal Communications Commission DA20-1422
can also submit fiscal year-end2O2O audited financial statements instead if they are
*"':o';n.
applicant must submit the audited financial statements of the entity that
submitied its unaudited financial statements in the relevant FCC Form 183 short-
form application or its own audited financial statements'33
Any applicant that fails to submit the audited financial statements as required by
tnis CeaOtine will be subject to a base forfeiture of $50,000, which will be subject
to adjustrnent upward oidownward as appropriate based on criteria set forth in
the Commission's forfeiture guidelines.3a
lg. Timely submitted applications will be reviewed by Commission stafffor completeness
and compliance with the Commission's rules and to determine if the long-form applicant has
demonstrated that it is technically and financially qualified to fulfill its Rural Digital Opportunity Fund
public interest obligations if authorized to receive support. Commission staffwill notify a long'form
ippticant if additioial information is required. We erpect long-fotm applicants to exPeditiously complete
ttrtir apptications and respond in a timely manner to staffrequists for additional or missing infonnation.3s
iittre ilipflcation and rheinformatio, *ith respect to each winning bid in a particular staleis_complete
*J *r. fong-fomr applicant has demonstrated that it is technically and financially qualified, WCB will
;;, , p,iUti. noticl iaentirying the applicant and the winning bids for which the Commission is ready
to authorize Rural Digital Opiorirnity iund support.36 If a lgng-fo.n1 applicant ultimately_fails to provide
all the required informationii d"rnonrttut ttrai it is technically and financially qualified, WCB will
release a public notice identifying the applicant and the winning bids that are considered in default'3?
r The applicant will have l0 business days from the release of the public notice indicating that the
Commission is ready to authorize support to submit:
o Irrevocable standby leffer of credit for each state where the long-form applicant will be
agthorized to receivi support. Long-form applicants should carefully review the letter of
(Continued from Previous Page)
-
;ttaiR$s4.804(bx4);,eicttong04ProeeduresPublicNotice,3sFCCRcdst6lTT,para.3lE; ktralDigital
Opporaniry FundOrder,35 FCC Rcdat722, para- 80'
33 Accordingly, if the long-fonn applicant is a member of a consortium, it should submit the audited financial
statements o-ttir. conrorti-um member that submitted its unaudited financial statements in FCC Form lt3' If the
il;-fr; "pplicant is an operating company of a holding company thatliled an FCC Form 183 on behalf of the
iooi-fo* afirlicant, rhe tong-fonn'applicant should submit the audited financial statements of the holding oompany'
A f"r,g-f"*i applicant also h'as the oifron of submitting its own audited financia! statements instsad'
3a Auction 9A4 procedures public Notiee,3s FCC Rcd at 6177, para. 318; Rural Digital Opportuni.ty^Fund Order,
35 FCC I(cdatl22,para. 80; 47 U.S.C. $ SO:IIXZXA); a7 CFR $ l.S0(bXS), note to paragraph ft)(8)'
3s See 47 CFR $ 1.21004(b) (..The commission may dismiss a winning bidder's application with prejudice for
faiiure of the winning UiO'alr to pros€out€, failure oithe winning bidder to respond sulltartiaLl{ within the time
p"rioA rp""in.d in ofucial correspondence or rcquests for additiona! information, or failure of the wiuning bidder to
iomply with requirements for becoming authorizid to receive suppo( A winning bidder whose applioation is
dismissed for failure to prosecute purrr-art to this paragraph has defaulted on its bid(s)-"); Rural Digilal.Opporlunity
Fud Order,3s FCC nca at OSO, para.Z2(noting-"the Commission will apply as appropriate any modifications to
[the general competitive bidding rules] that it may adopf)'
36 47 CFR $ 5a.80aGX6Xv).
37 A long-form applicant that defaults on a winning bid in a stale may still be authorized to receive supporr for its
remaining winning bids in that state'
8
credit requirements in section 54.804(c) of the Commission's rules and inthe Rural
Digital Oppornmiry FundArction Ordcr,3E which are summarized below:
r The initial letter of credit must cover the first year of support for the state, at a
minimum.3e
r The lette(s) of qedit must be issued in substantially the same form as set forttr in
the model letter of oedit provided in Appendix C ofthe Rwal Digitol
Opportunity Fund Order.ao
' The long-form applicant must be the entity that is named in the letter{s) of
credit.4l
' The lette(s) of credit must be issued by a qualified bank. The issuing bank
eligibility requirements me described in section 54.804(c)(2) of the
commission's rules and in paragraph I07 of the ktral Digital opporttnity Fund
Order.az
' Before a support recipient can receive its next year's support and eaoh year's
support thereafter, it must modif, renerry, or obtain a new letter of credit to
ensure that its value is oonsistent with the Commission's rules. The value of the
letter ofcredit must increase each year until it has been verified that the support
recipient has met certain service milestones as described in more detail in section
54.80a(o)(l) of the Commission's rules,a3
' The letter of credit must remain open until the support recipient has certified that
it offers the required service to 100% ofthe connect America cost Model
(cAM)-determined location total in the state by the end of year six (or wcB's
adjusted CAM location count if there are fewer locations) and the Universal
service Adminishative company (usAC) has verified that the build out
obligation has been fulfilled.aa
r A list of common letter of credit errors is available at
ht tps :{wwtU.fcc.gov/fi lell 8256/download.
38 47 CFR $ 54.80a(c); Rural Digilal Apportunity Fund Order,35 FCC Rcd at729-35,7?3-77, paras. 96-1 13, Appx.
C.
3e47CFRgsa.S0(cXl);RuralDigitalOpportunttyFundOrder,3SFCCRcd at732,pa:m. 107.
4 Rural Digital Opportunity Fund Or&r,35 FCC R:cilat773-77, Appx. C.
al Auctton 904 Proce&*es Public Notice, 35 FCC Rcd at 6164, pwa.29l .
42 47 CFR $ 5 .E0a(c)(2); Rural Digital Opportunity Fund Order,35 FCC Rcd at732-33,para. 107, WCB also
issued guidance announcing that a non-U.S. bank that has a branch office localed in New York City and that will
scoept a lcter of crcdit draw certificate fmm USAC via overnigtt courier, in addition to in-penon presen6lions,
will be considered qualified to issue letters of credit if the bank also meets the Commission's other non-U.S. bank
eligibility requirements. l{ireltrp Competition Bweau Prwides Guidance Regoding the Etigibtlity o{Non-United
States Banlcs Issuing Letters of Creditfor Universal Service Competitive Bidding Mechanisms, WC Docket No. l9-
126 et d., Public Notice, 35 FCC Rcd 2804 (WCB 2020).
4347CFR$sa.E0a(cXl)(iXvii); RuralDigitalOpportunityFundOrder,35FCCRcdat?29-3l,paras.98-104.
14 47 CFR $ 5a.80a(cXl); Rural Digital Opportunity Fund Order,35 FCC Rcd at 731, para. 103. See also Rural
Digital Opportunity Filndordea 35 FCC Rcd at 709-12, paras. 45-55 (describing the service milestones and WCB's
recalculation of location totals). More information about USAC's verification process is availabls at:
https://www.usac.orgihigh-c9st/;e:ouroes/fir4d-verification-reviews/.
9
Federal Communications Commission DA2U1422
o Letter of Credit Bankruptcy Opinion Letter(s) from outside legal eounselregarding
the treatment of the lette(ii of credit or its proceeds in a bankruptcy proceeding.a5 The
letter must clearly state, subject only to customary assumptions, limitations, and
qualifications, that, in a proceeding under the Bglffultcy Code, the bankruptcy court
would not treat the lettei of credit or proceeds of the lotter of credit as property of the
long-form applicant's bankruptcy estate, or the bankruptcy estate ofany other- bidder-
related entity-requesting issuance ofthe letter ofcredig under section 541 ofthe
BankruPtcY Code.tr
19. Once Commission staffhas determined that a long-form application is complete and the
long-form applicant is finmcially and technically qualified, and the letter(s) of credit and accompanying
opiiion tetterts) have been received and approved, WCB will issue a public notice announcing the
,utho.irution oirupport for the winning UiAG) anO directing USAC to begin disbursing support-47 USAC
will issue a new study area code to each long-form applicant for each state in which it is authorized to
receive support. Long-form applicants will be notified of the new study area code prior to the
authorization for supp-ort along with procedures for disbursing supPort. Monthly support disbursements
will begin shortly afur the authorization public notice has been released.
20. If an applicant is not authorized to receive support for a winning bid, it will be in default
and subject to forfeiture for that winning bid as described below'
2. Forfeiture in the Event of Default
21. As described ;16the Rural Digital Oryortunity Fuild Order,as winning bidders or long-
form applicants that have been assigned winning bids during the Divide Winning Bids stagewill be
subjeci io a forfeiture in the event ola default. A winning bidder or lo_ng-form applicant willte
considered in default and will be subject to forfeitwe if it fails to timely file a long-form application, fails
to mcet the document submission deadlines, is found ineligible or unqualified to receive Rural Digital
Opportunity Fund support, and/or othenvise defaults on its winning bids or is disqualified fol any reason
prior to the authorizaiion of support. Any such determination shall be final, and a winning bidder or long-
brm applicant shall have no opportunity to cure through additional submissions, negotiations, or
othenrise.
ZZ. A winning bidder or long-form applicant that defaults will be subject to a base forfeifure
per violation of $3,000.ae L violation is defined as any form of default with respect to the census block
group. ln other words, rhere shall be separate violations for each census block group assigrred in a bid'50
5o Ui"t this base forfeiture amount is not disproportionate to the amount of a winning bidder's bid, the
Commission has limited the total base forfeiture to llYo of the bidder's total assigned support for the bid
for the support term.sr Notwithstanding this limitation, the total base forfeiture will also be subject to
f,'ederal Communications Commission D.A20-1422
45 47 CFR g 54.804(cX3); Auction 904 Procedures Public Notice,3s FCC Rd at 6177'78, para' 320| Rural Digital
Opportunity Fund Order, 35 FCC Rcd at 735, para' 1 I 3'
16 I I U.S.C. g 541; a7 CFR g 54.304 (o)(3); Rural Digitat Opportuntty Fund Order, 35 FCC Rcd at 735, para. 1 13'
4? 47 CFR $ 54.804(bx6xvi).
aB Rural Digital Opportunity Fund Order,3s FCC Rcd at 735-36, parias' ll4'17; Auction 904 Procedutes Public
Notice,3s FCC Rcd at 6178, patas.321'22-
as Rural Digital opportuniry Fund Order,35 FCC Rcd at 735-36, pwa. ll5; Auction 904 Procedures Public Natice,
35 FCC Rcd at 6178, Para.322'
so Rwal Digital Opportanity Fund Order,35 FCC Rcd at 735, para. I l5; Auction 904 Proce&tes Public Notice,35
FCC Rcd at 6178, paru. 322.
5t Rural Digital Opporrunity Fund Order,3s FCC Rcd at 736, para. 117; Auction 904 Proce&tes Public Notice,35
FCC Rcd uiOf Zf, p"r". :Zi. ftis would occur in situations where the dollar amount associated with the bid is low.
fot r*r-pt", ur.o111" Bidder A bids to serve 100 census block groups for $100,000 over the support term. We
(continued....)l0
f,'ederel Communications Commission DA20-1422
adjustment upward or downward based on the criteria set forlh in the Commission's forfeiture
guidelines.s2
C. Generel FCC Form 683 Information
23. For both the Divide rffinning Bids and long-form application portions of FCC Form 683,
ttre application may be filed at any time after the relevant filing window opens until the filing window
closes. Applicants are strongly encouraged to file early and are responsible for allowing adequate time
for filing their applications. Applications can be updated or amended multiple times until the relevant
filing window closes.
24. A winning bidder and/or long-fom applicant must always click on the CERTIFY &
SUBITIIT button on the'€erti$ & Submit" screon to successfully submit its FCC f,'orm 683 rnd
nny modifications; otherwise, the application or changes to the application wilt not be received or
rwiewed by Commission staff. If a winning bidder or long-form applicant needs guidance or
encounters technical difficulties in filing FCC Form 683, it may contact FCC Auctions Technical Support
using the information in the Contact section, below.
D. Maintaining Accuracy of Information
25. Each long-form applicant must make all changes to its information in the Auction
Application System using FCC Form 683. With the release of this Public Notice, long-form applicants
are no longor required to maintain the accwacy and completeness of information fumished in their FCC
Form 183 applications.
26. A long-fonn applicant will be permitted to make minor modifications to its application
after the deadline for submitting applications.s3 Minor modifications include correcting typographical
errors and supplying non-material information that was inadvertently omited or not available at the time
the application was submitted.5a If a long-form applicant makes a major modification to its application,
the application will be denied.s5 In such an event, the long'form applicant will be subject to forfeiture.
Major modifications include, bul are not limited to, any changes in the ovmership of the long-form
applicant that constitute an assignment or transfer ofcontrol, any changes in the identity ofthe long-form
applicant, or any changes in the required certifications.56
E. Public Availability of FCC Form 68ii Infomation
27. Information submitted in FCC Form 683 will generally be publicly available after
Commission staffcompletes its review. Accordingly, a long-form applicant should take carc not to
include any unnecessary sensitive information, such as Taxpayer Identification Numbers or Social
Security Numbers, in its application. However, consistent with the Commission's limited information
procedures in place for Auction 904, ceftain information will be withheld from routine public inspoction
even after support is authorized. To ensure that the lnformatlon described below is afforded such
(Continued from previous page)
would impose a base forfeiture of $15,fi)0 (15% of $100,000) because othcrwise the base forfeiture would be
$300,000, three times the entire bid amount ($3,000 x 100 oensus block goups). In contrast, if Bidder B bids to
serve 50 census block groups for $1,fi)0,0fi) over the support term, we would impose a base forfeiture of $ 150,000
($3,000 x 50 census block groups), which is 15% ofthe totsl bid.
52 See 47 U.S.C. $ 503(bX2XB); 47 CFR $ l.t0(bx6), notE to paragraph (bX8); Rural Digital Oppartunity Fund
Order, 35 FCC Rcd at736, par* ll5; Auction 904 Procedures Public Notice, 35 FCC Rcd at 61 78, para. 322.
53 47 CFR $ s4.804(bx6xiii).
sl Id
55 /d $ s4.804(bX6Xiv).
56 Id.
1I
F'edoral Communicrtions Commission DAz$-t422
confidential treatment, a long-form applicant must upload the lnformrtion to FCC Form 6E3 using
the appropriate attrchment 6'type'as descrlbed ln the instructions in Attachment C.
Zg. Information related to along-form applicant's detailed technolory and system design
descriptior; its project funding description, and its letter of credit will be tealed as confidential and will
be withheld from fublic inspection.s? The Commission will treat long-form applicants that submit this
information as having made a request to treat this information as conlidential trade secrets and/or
commercial information. As such, a long-form applicant need not submit a separate section 0.459
confidentiality request for this information with its FCC Form 683.
Zg. Moreover, a long-form applicant may request confidential keatment of its audited
financial statements direcfly on FCC Form 583, using an abbreviated process under section 0.459(aXa) of
the Commission's rules. The applicant need not submit a separate section 0.459 confidentiality request
with its FCC Form 683.5E
30, Nevertheless, if a request for public inspection under section 0.461 is made for the long-
form applicant's audited financial statements, detailed technologl and system design description, project
funding description, or letter of credit, the long-form applicant will be notified and then mustjustify the
continued confidential treatment of the information if it objects to the disclosure.se
31. A long-forrn applicant may include with ia FCC Form 683 arequest that any other
information submitted in its application not be made routinely available for public inspection following
the procedutes set forth in seCtion 0.459 of the Commission's ru1es,60 Requests for confidential trealment
of information other than that discussed above will not be routinely granted.
IV. OTIIER IMPORTANT INT'ORMATION
A. Maintaining Prohibition on Certaln Communications
32. Section l.2lO02 of the Commission's rules provides tha! subject to specified exceptions,
after the deadline for filing a short-form application, an applicant "is prohibited from communicating with
any other applicant in any manner the substance of its own, or one another's, or any competing
applicant's bids or bidding strategies, until after the post-auotion deadline for winning bidders to submit
applications for support."6r As explained more fully in the Auction 904 Proce&tres Public Notice,lhis
prot ibitio, took effict as of the short-form application filing deadline, i.e., July 15,2020, at 5:ffi p.m.
bT, und extends until the deadline for filing the long-form application portion of FCC Form 683, i'e.,
January 29,2A21, at 6:00 P'm. ET.52
57 Id- 80.459;Auction904 Procedures Public Notice,35 FCC Rcd at 6130, 6168,6175, paras. 141 n.325' 303 n.516'
& 314 n.542. A long-form applioant's highJevel initial project ovenview will be made publicly available. Auctian
g04 procedres Pubtic Xotiii,35 FCC Rcd al 6167, paru. 302. For the Connect America Phase II auction, a
winning bidder's letter of sredit from a qualified bank was teated as confidential trade secrets and/or commercial
informition and thus withheld from routine public inspection. See Connecl America Fund Phase II Auction Supporl
for g62 Wirning Bids Ready to Be Authorized; Listed Auction 903 Long-Form .Applicants Must Sabmit Letters of
'Credit and Legal Counsel\s Opinion l*tters by March 13, 20I9,AU Docket No. 17-182 et al', Public Notice, 34
FCCRcd 955;1S6(WCB/OEA2019). Forthesamereasons,wewillwithholdanapplicant'sletterofcredit
commitment letter, letter of credit, and bankruptcy opinion letter.
sE 47 CFR $ 0.459(aX4).
5e Id $ 0.461
601d $ 0.459.
6r /d $ 1.21002(b).
62 See Auetion 904 Pracedures Public Notice, 35 FCC Rcd at 6132, para. 1 5l .
l2
Federal Communications Commission DA2A-M22
33. Thls prohibition applies to all short-form applicants regardless of whether such
appllcants became qualified bidders or actually bid.63 We also emphasiznthat" for purposes of this
prohibition, an "applicant" includes the entity filing the application, each entity capable of controlling the
applioan! and each entity that may be controlled by the applicant or by an entity capable of controlling
the applicant.n
34. With the release of this Public Notice, the Commission has made public auction-related
information which previously would have been subject to the prohibition on c.ertain communications.6s
Parties are reminded, however, that "bids or bidding stategies" encompasses more than information
about bids submitted during the bidding portion of the auction. How an applicant participates in an
auction is subject to the prohibition and includes, for example, a winning bidder filing a long-form
application for support.56 As noted lrl,the Arction 904 Procedures Public Notice, information within the
scope of the prohibition includes "subject matters that could convey cost or geographic infonnation
related to bidding strategies. Such subject areas include, but are not limited to, management, sales, looal
marketing agreements, and other transactional agreements,"6T We note that proxy bid instruotions, which
may reflect such information, remain non-public.
35. Moreover, the prohibition of "communicating in any manner" includes public
disclosures, private communications, and indireot or implicit communications, as well as express
statements of bids and bidding strategies.6s Consequently, an applicant must take carc to determine
whether its auction-related communic'ations may reach another applicant.
B. High-CostEligible TelecommunicetionsCarrierDesignations
36. As noted above, by Monday, June 7, 2027,the long-form applicant must have obtained
from either the relevant state authority or, where such authority lacks jurisdiction, from the Commission,
a high-cost ETC designation(s) that coverc its winning bid areas. The long-form applicant must submit
for each state the required documentation and a certification letter from an oflicer.6e Long-form
63 An entity that submils an application beoomes an "applicant" under the rule at the application filing deadline and
that status does not change based on subsequent developmenls. See, e.9,, Star Wireless, LLC v. FCC,522f 3d 469
(D.C. Cir. 2008) (section 1.2105(c) applies to applicants regardless of whetherthey are qualifrod to bid). Thus, an
auction applicanl that does not eon€ct deficicncies in its application, or does not otherwise become gualified,
remains an "applicanl" for purposes ofthe rule and remains subject to the prohibition on certain communications
until the long-form applicatioo filing deadline.
64 47 CFR $ 1.21002(a).
65 In addition, the combination of publicly available short-form application information and bidding information
made available today effeotively makes public the information that can be dcrived from such sources, hcluding the
potential assignee(s) of each winning bid. Accordingly, we clari! that the prohibition does not apply to informalion
sbout the selection of assignees for winning bids in the Divide Winning Bids process.
66 47 CER fi 1.21004;Auction 904 Procedures Public Notice,3s FCC Rcd at 6133, para. 155 ('communicating,
among other things, how an applicant will participate . . . would convey bids or bidding shategies and would thus be
prohibited").
61 Auction 904 Proce&nes Public Notice. 35 FCC Rcd at 6133, para- 156.
6E Id.: see generaily Updating Pwl I Competitive Bidding Rules, WT Docket No. 14-170 et al., Report and Order et
al., 30 FCC Rcd 7493, 7577,para. t99 (2015) (explaining that similar seotion 1.2105(c) language prohibiting
communicating bids or bidding strategies *in any manner" bars "communicating bids or bidding infonnation, either
directly orindirectly");Cascade Access, L.L.C' Forfeiture Order,28 FCC Rcd 141,144, para. 7 @B 2013)
(rejecting argumcnt that the communication was not prohibited because it did not revcal the "substance" of
Cascade's bids or bidding strategies).
6e 47 CFR g 54.804OX5);Auction904 Proce&nes Public Notice,35 FCC Rcd at 6176, para. 316.
l3
Federal Communications Commission IJ.A2A-M22
applicants subject to state jurisdiction must petition the relevant state commissions for ETC desigrration
and should follow state rules and requirements to apply for designation(s).70 Long-form applicants not
subject to state jurisdiction must petition the Commission for designation(s) as described rnthe ETC
Publie Notice.1l PetitionErs for FCC designation do not need to include a list of census blocks with their
ETC petition but should certiS they will serve all blocks for which the long-form applicant has or will
seek an award of support in that state,72
37. In the event a long-form applicant determines that it will be unable to obtain the
necessary ETC designations within 180 days, it should upload a petition for waiver of the deadline to its
FCC Form 683 and in AU Docket No, 20-34. The Commission has found that it would be appropriate to
waive the 180-day timeftame if the long-form applicanl is able to demonstrate that it has engaged in good
faith efforts to obtain an ETC designation, but the proceeding is not yet complete.T3 A waiver of the 180-
clay deadline would be appropriate if, for example, the applicant (or an associated entity) has an ETC
application pending with a state and the state's next scheduled meeting at which it would consider the
ETC application will occur after the 180-day window. When considering waivers of the 180-day deadline
for obtaining ETC designation, we will presume that an entity acted in good faith if the entity files its
ETC application within 30 days ofthe release of this Public Notice.?a
C. Public Interest Obligations and Annual Reporting Requiremenh
38. To ensure that Rural Digital Opportunity Fund support meets the Commission's public
interest objectives, a long-form applicant that has received notice from the Commission that it is
authorized to receive Rural Digital Opportunity Fund support will be subject to a variety of obligations,
including service requirements, service milestones, r€porting, and record retention requiremenfs.Ts This
includes the requirement that support recipients test and certi$, compliance with the relevant performance
requirements in accordance with the uniform framework that has been adopted for measuring and
reporting on the performance of high-cost support recipients' service.T5
70 47 U.S.C. $ 21a(eX2).
7t Id at $ 2l4(e)(6); WCB Reminds Connect America Fund Phase II Auctian Applic*tts of tlrc Processfor Obtaining
a Federal Designation as an Eligible Telecommunications Carrier,Public Notice, WC Docket No. 09-197 et al., 33
FCC Rcd 6696 (WCB 20lq (Erc Public Notbe). As described in this public notice, the Commission places the
burden of proof upon the petitioner sseking a Commission ETC dosignation to demonstrate that the Commission has
jurisdiotion. Id at 6696-97. We extend to Auction 904 winners the same waivers of section 54.202 of the
Commission's rules for the reasons described inthe EIC Publte l,lotice and the same presumplion that designation
will serve the public interest. See id. at.6699-6700;47 CFR $ 54.202.
72 Petitioners may, in addition to seeking a high-mst designation in winning bid areas, seek a Lifeline-only ETC
designation in areas not eligible for high-cost support for the limited purpos€ of becoming eligible to receive only
Lifeline support in such areas. When doing so, they must submit with their ETC application a map or other
information delineating these Lifeline-only areas, and other information specifically required by the Commission's
Lifeline rules. See, e.9., Telecommunicqtions Carriers Eligible for Universal Semice &rpport, Connect America
Fund,WC DocketNos. 09-197 &.10-90, Order, 34FCC Rcd 10533 (WCB 2019);47 CFR $ 5a202(aXa!(6).
71 Rural Digtal Opportunity l.'und Order,35 FCC Rcd at 723, para. 81.
74 Id.
1s See, e.g.,47CFR $$ 54.313, 54.314,54.316,54.320,54.802,54.E05, 54.8Q6;Auction904 Procedures Public
Nolice,3s FCC Rcd at 6082-86,6127-29, paras. l5-21, 135-39 (providing a high-lwel surnmary of the relevant
public interest obligations and high+ost ETC obligations).
7647CFRgsa.3l3(aX6). Seealso,CAFPetformanceMeasuresOrder,33FCCRcd65(D. Furthermodifioations
were made to the performance measures requirements in subsequent reconsideration orders. See Cormect America
Fund,WC Docket No. 10-90, Order on Reconsideration, 34 FCC Rcd 808I (WCBAilTBIOET 2019)(CAF
Performance Measures First Recowideration Order\; CAF Performanee Measures Second Reconsideration Order,
34 FCC Rcd 10109.
t4
Federel Communications Commission DA2bt422
39- An Auction 904 support recipient will be subject to non-compliance measures if it fails or
is unable to meet the service milestones or other service requirements, or fails to fi.rlfill any other terrn or
condition of Rural Digital Opportunity Fund support.T? As descibed in the Rural Digital Oppartwity
Fwd Order and the CAF Performance Measwes Order, these measures will scale with the extent of non-
compliance, and include additional reporting, wittrholding of support, support necovery, and drawing on
the support recipient's letter ofcredit ifthe support recipient cannot pay back the relevant support by the
applicable deadline.Ts A support recipient may also be subject to other sanctions for non-compliance with
the terms and conditions of Rural Digital Opportunity Fund support, 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.B
40. We also remind applioants that all Auction 904 support recipients will be subject to the
Commission's National Security Supply Chain proceeding including the rule that "no universal selvice
support may be used to purchase, obtain, maintain, improve, modiff, or otherwise support any equipment
or services produced or provided by any company posing a national security threat to the integrity of
communications networks orthe communications supply chain."e The prohibition on using universal
service funds applies "to upgrades and maintenance of exisling equipment and services."sr
D. Access to the Bidding System
41. The bidding system will remain accessible to Auction 9ga qualified bidden until 3:00
p.m. ET on Thursday, Deoember 10,2020. Bidders should download any files they wish to save from the
bidding system before that time.
E, Return of SecurII)@ Tokens
42. The SecurlDotokens distributed to qualified bidders are tailored to Auction 904 and will
not function in future auctions. The Commission will send each bidder, along with the copy of this Public
Notice, a pre-addressed, stamped envelope to return its SecurlDotokens. Each bidder should return its
SecurlDo token(s) to the Commission for recycling.
f. Contact Information
43. For further information, contact:
Technical Support F'CC Auctions Technical Support Eotline
Electronic Filing [phone], option nine; or Q02) 414-1250
Auction Application System and CAF II Bidding [phone] (TTY)
System (Hardware/Software Issues) Hours of service: 8:00 a.m. - 6:00 p.m. ET,
Monday through Friday
Press Information Anne Veigle, (202) 4 I 8-0500
77 47 CYR $$ 54.804(cXa),54.320,54.E06.
76 /d. $$ 54.804(c[4), 54.320, 54.806; CAF Performance Measures Order, 33 FCC Rcd at 653 l -33, paras. 60-67;
Rural Digital Opportunig Fund Order,3s fCC Rcd at 713-16, paras. 58-64.
?e 47 CFR g 5a.320(c), 5a.806(b); kral Digitol Opportunity Fund Order,3S FCC Rcd at 716, para. 63 .
60 47 CFR $ 5a.9(a).
8t Protecting Against Nattonal Security Threats to the Comnntnication Supply Chain tlrough FCC Programs et al.,
wc DocketNo. l8-E9 et al., Report and Order et al., 34 FCC Rcd I1423, I1453, para. 77 (2019').
t5
F ederal Communicrtions Commlssion DA 20-ta2
General Universal Service Information lYirelire Competition Bureau,
Telecommunications Access Poticy Division
Alex Minard
Heidi Lankau
Lauren Garry
Ian Forbes
QAzl. 4tE-7400
General Auction Information
General Auction Questions
Auction Process and Procedures
FCC Auctions Eotllne
[phone], option two; or
[phone]
Auction 904 Information
Post-Auction Rules, Policies, and Regulations
Rural Broadband Auctions Task Force
Michael Janson, QA\ 418-0627
Kirk Burgee, [phone]
Jonathan McCormack, (202, 4 I 8- I 065
Audra Hale-Maddox Q02) 4lE-0794
Office of Economics and Analytics
Auctions Division
Mark Montano
Daniel Habif
(202) 41E-0660
Smsll Businesses
Additional information for small and
di sadvantaged businesses
Offce of Communications Business
Opportunities
[phone]
www.fcc.sov/ocbo
Accesslble Formats
Braille, large print, electronic files, or
audio formal for people with disabilities
Consumer and Governmental Alfairs Bureau
(202) 418-0s30 or (2a\ 418-0432 CTn
foc,S04(dfw.sov
FCC Internet Sites www.fcq,goY
www. fcc. qovi auctior/904
-FCC-
r6
Attachmant A
$*J. USA'
FGC Rural DigitalOpportunity Fund Phase I Auction
Auctlon lD:904
tlUinning Bidder Summary
(8orbd by Bldder Name)
Date of Report:1A07n020 08:17Atl ET
Bidder FRN State
Asslgned
Suppoft over 10
Yeanr
Number of
Locations
Assigned
Continstal Divide Eleclric Coopenative
Com Belt Telephone
Cox Communlcations, lnc.
Cox Communications, lnc.
Cox Gommunications, lnc.
Cox Communications, lnc.
Cox Communications, lnc.
Cox Communications, lnc.
Cox Comrnunlcatlons, lnc.
Cox Communications, lnc.
Cox Communications, lnc.
Custer Telephone Cooperatilo, lnc.
Daktel Communicatbns, LLC
Daviess-Madn County Rural
Telephone Co:poratlon
Digital Connections lnc. dba PRODIGI
Direct Communications Rockland, lnc
DoCoMo Pacific, lnc.
DTC Cable, lnc.
0026618306
0002592517
0001834596
0001834696
0001834696
000183,1696
0001834696
0001834696
0001834696
0001834696
000't8346s6
0001623321
0007266703
0001828704
New Mexioo
lora
Arizona
Arkansas
Calitumia
Kansas
Louisiana
Nebnaska
Nevada
Oklahoma
Virginia
ldaho
North Dakota
lndiana
$ 38,004,786.20
$42,237.00
$175,042.20
$ 1,430,663.20
$ 2,386,243.70
$ 14,314.50
$ 686,075.00
$ 643,867.00
$ 280,903.30
$ 93,852.00
$ 919,559.60
$ 1,954,488.00
$ 531,894.00
$ 3,565,039.40
8,,t85
38
1,387
1,665
3,118
102
u2
185
812
142
359
313
66
1,371
0005&48759
000,t321790
00M242723
0005015607
West Mrginia
ldaho
Northern Mariana lslands
Neui York
$ 8,583,001.40
$ 15,745,252.7A
$ 3,706,235,00
$ 834,597.00
4,771
2,120
530
$1
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