Goto Section: 54.1016 | 54.1018 | Table of Contents
FCC 54.1017
Revised as of October 5, 2017
Goto Year:2016 |
2018
§ 54.1017 Compliance for Mobility Fund Phase II.
(a) Mobile eligible telecommunications carriers subject to defined
build-out milestones in § 54.1015 must notify the Commission and USAC,
and the relevant state, U.S. Territory, or Tribal government, if
applicable, within ten (10) business days after the applicable deadline
if they have failed to meet a build-out milestone.
(1) Interim build-out milestones. Upon notification that a mobile
eligible telecommunications carrier has defaulted on an interim
build-out milestone after it has begun receiving Mobility Fund Phase II
support, the Wireline Competition Bureau or Wireless Telecommunications
Bureau will issue a letter evidencing the default. For purposes of
determining whether a default has occurred, any service a mobile
eligible telecommunications carrier offers must meet the performance
obligations in § 54.1015(a)(1) and (2). The issuance of this letter
shall initiate reporting obligations and withholding of a percentage of
the mobile eligible telecommunication carrier's total monthly Mobility
Fund Phase II support, if applicable, starting the month following the
issuance of the letter:
(i) Tier 1. If a mobile eligible telecommunications carrier has a
compliance gap of at least five (5) percent but less than 15 percent of
the eligible square miles that the mobile eligible telecommunications
carrier is required to have covered by the relevant interim milestone
at the state level, the Wireline Competition Bureau or Wireless
Telecommunications Bureau will issue a letter to that effect. Starting
three (3) months after the issuance of this letter, the mobile eligible
telecommunications carrier will be required to file a report every
three (3) months identifying the eligible square miles to which the
mobile eligible telecommunications carrier has newly deployed
facilities capable of meeting the requisite Mobility Fund Phase II
requirements at the state level in the previous quarter. Mobile
eligible telecommunications carriers that do not file these quarterly
reports on time will be subject to support reductions as specified in
§ 54.1019(f). The mobile eligible telecommunications carrier must
continue to file quarterly reports until the mobile eligible
telecommunications carrier reports that it has reduced the compliance
gap to less than five (5) percent of the eligible square miles for that
interim milestone at the state level and the Wireline Competition
Bureau or Wireless Telecommunications Bureau issues a letter to that
effect.
(ii) Tier 2. If a mobile eligible telecommunications carrier has a
compliance gap of at least 15 percent but less than 25 percent of the
eligible square miles that the mobile eligible telecommunications
carrier is required to have covered by the interim milestone at the
state level, USAC will withhold 15 percent of the mobile eligible
telecommunications carrier's monthly support for that state and the
mobile eligible telecommunications carrier will be required to file
quarterly reports. Once the mobile eligible telecommunications carrier
has reported that it has reduced the compliance gap to less than 15
percent of the eligible square miles for that interim milestone at the
state level, the Wireline Competition Bureau or Wireless
Telecommunications Bureau will issue a letter to that effect, and the
mobile eligible telecommunications carrier will then move to Tier 1
status.
(iii) Tier 3. If a mobile eligible telecommunications carrier has a
compliance gap of at least 25 percent but less than 50 percent of the
eligible square miles that the mobile eligible telecommunications
carrier is required to have covered by the interim milestone at the
state level, USAC will withhold 25 percent of the mobile eligible
telecommunications carrier's monthly support for that state and the
mobile eligible telecommunications carrier will be required to file
quarterly reports. Once the mobile eligible telecommunications carrier
has reported that it has reduced the compliance gap to less than 25
percent of the eligible square miles for that interim milestone at the
state level, the Wireline Competition Bureau or Wireless
Telecommunications Bureau will issue a letter to that effect, and the
mobile eligible telecommunications carrier will move to Tier 2 status.
(iv) Tier 4. If a mobile eligible telecommunications carrier has a
compliance gap of 50 percent or more of the eligible square miles that
the mobile eligible telecommunications carrier is required to have
covered by the interim milestone at the state level:
(A) USAC will withhold 50 percent of the mobile eligible
telecommunications carrier's monthly support for that state, and the
mobile eligible telecommunications carrier will be required to file
quarterly reports. As with the other tiers, as the mobile eligible
telecommunications carrier reports that it has lessened the extent of
its non-compliance, and the Wireline Competition Bureau or Wireless
Telecommunications Bureau issues a letter to that effect, it will move
down the tiers until it reaches Tier 1 (or no longer is out of
compliance with the relevant interim milestone).
(B) If, after having 50 percent of its support withheld for six (6)
months, the mobile eligible telecommunications carrier has not reported
that it has a compliance gap of less than 50 percent, USAC will
withhold 100 percent of the mobile eligible telecommunications
carrier's monthly support for the state and will commence a recovery
action for a percentage of support that is equal to the mobile eligible
telecommunications carrier's compliance gap plus 10 percent of the
mobile eligible telecommunications carrier's support that has been
disbursed to that date.
(v) Restoration of full support. If at any point during the support
term, the mobile eligible telecommunications carrier reports that it is
eligible for Tier 1 status, it will have its support fully restored,
USAC will repay any funds that were recovered or withheld, and it will
move to Tier 1 status.
(2) Final milestone. Upon notification that the mobile eligible
telecommunications carrier has not met a final milestone, the mobile
eligible telecommunications carrier will have twelve (12) months from
the date of the final milestone deadline to come into full compliance
with this milestone.
(i) If the mobile eligible telecommunications carrier does not report
that it has come into full compliance with this milestone within twelve
(12) months because it fails to meet the 85 percent benchmark (even if
it meets the 75 percent benchmark for some or all the census block
group(s) or census tract(s)), the Wireline Competition Bureau or the
Wireless Telecommunications Bureau will issue a letter, and USAC will
recover disbursement(s) in an amount of support that is equal to 1.89
multiplied by the average amount of support the mobile eligible
telecommunications carrier received per eligible square mile in the
state over the six year period multiplied by the number of square miles
unserved in the mobile eligible telecommunications carrier's winning
areas in the state that would be required to meet the 85 percent
benchmark, plus 10 percent of the mobile eligible telecommunications
carrier's total Mobility Fund Phase II support received in the state
over the six-year period for deployment. After the mobile eligible
telecommunications carrier has paid the calculated recovery amount for
failure to comply with the final deployment milestone, the Bureaus will
calculate a reduced support payment for the remaining support term
based on the percentage of deployment coverage completed. The reduced
ongoing annual support amount will be the total of the mobile eligible
telecommunications carrier's original winning bid amounts for annual
support in the state multiplied by the sum of the actual deployment
percentage plus 15 percent (i.e., the difference between 100 percent
coverage and the required 85 percent minimum coverage), or (annual
support) * (percentage covered + 0.15). If at the end of six months the
mobile eligible telecommunications carrier has not fully paid back the
support for missing the relevant 85 percent benchmark, the mobile
eligible telecommunications carrier shall be liable for repayment of
all the support that has been disbursed to the mobile eligible
telecommunications carrier for that state, the Wireline Competition
Bureau or the Wireless Telecommunications Bureau will issue a letter to
that effect, and USAC will draw on the letter(s) of credit to recover
all the support that has been disbursed to the mobile eligible
telecommunications carrier for that state.
(ii) If the mobile eligible telecommunications carrier does not report
that it has come into full compliance with this milestone within twelve
(12) months because it fails to meet the 75 percent benchmark(s) for
any census block group(s) or census tract(s) in the state at the final
milestone (even if it meets the 85 percent statewide benchmark), the
Wireline Competition Bureau or the Wireless Telecommunications Bureau
will issue a letter for any such census block group(s) or census
tract(s), and USAC will recover disbursement(s) in an amount of support
that is equal to 1.89 multiplied by the average amount of support the
mobile eligible telecommunications carrier received per eligible square
mile in the census block group(s) or census tract(s) in the state over
the six year period multiplied by the number of square miles unserved
in each of the mobile eligible telecommunications carrier's winning
census block group(s) or census tract(s) in the state that would be
required to meet their respective 75 percent benchmarks, plus 10
percent of the mobile eligible telecommunications carrier's total
Mobility Fund Phase II support received in the relevant census block
group(s) or census tract(s) over the six-year period for deployment.
The mobile eligible telecommunications carrier will have six months to
repay the support USAC seeks to recover. After the mobile eligible
telecommunications carrier has paid the calculated recovery amount, the
Bureaus will calculate a reduced support payment for the remaining
support term. The reduced ongoing annual support amount will be the
mobile eligible telecommunications carrier's original winning bid
amount for annual support in any such census block group or census
tract, multiplied by the sum of the actual deployment percentage plus
25 percent (i.e., the difference between 100 percent coverage and the
required 75 percent minimum coverage), or (annual support) *
(percentage covered + 0.25). If at the end of six months the mobile
eligible telecommunications carrier has not fully paid back the support
for missing the relevant 75 percent benchmark(s), the mobile eligible
telecommunications carrier shall be liable for repayment of all the
support that has been disbursed to the mobile eligible
telecommunications carrier for that state, the Wireline Competition
Bureau or the Wireless Telecommunications Bureau will issue a letter to
that effect, and USAC will draw on the letter(s) of credit to recover
all the support that has been disbursed to the mobile eligible
telecommunications carrier for that state. In the event that USAC draws
on a letter of credit to recover all the support that has been
disbursed to the mobile eligible telecommunications carrier for a
state, the mobile eligible telecommunications carrier's participation
in Mobility Fund Phase II in that state will immediately end and no
further support will be paid.
(3) Compliance reviews. If, subsequent to the mobile eligible
telecommunications carrier's final milestone but during the remaining
support term, USAC determines in the course of a compliance review that
the mobile eligible telecommunications carrier does not have sufficient
evidence to demonstrate that it is offering service to the required
percentage of square miles by census block group or census tract, or
state, USAC shall withhold support for a period not to exceed six
months until the mobile eligible telecommunications carrier
demonstrates that it is again providing the requisite service to the
required percentage of square miles. Once the mobile eligible
telecommunications carrier demonstrates that it is providing the
requisite service to the required percentage of square miles and USAC
has verified the demonstration, USAC will pay any withheld support and
resume ongoing disbursements. If the mobile eligible telecommunications
carrier does not provide a verifiable demonstration of coverage within
the permitted six-month period, USAC shall recover an amount of support
that is equal to 1.89 times the average amount of support per square
mile received in the winning bid area over the six-year deployment
period for the relevant number of square miles for which the mobile
eligible telecommunications carrier has failed to produce sufficient
evidence, plus 10 percent of the mobile eligible telecommunications
carrier's total support received in that winning bid area over the
six-year deployment time period, and will calculate a reduced ongoing
annual support amount as set out in paragraphs (a)(2)(i) and (ii) of
this section, as appropriate.
(b) [Reserved]
[ 82 FR 15450 , Mar. 28, 2017]
Effective Date Note: At 82 FR 15450 , Mar. 28, 2017, § 54.1017 was added.
This section contains information collection and recordkeeping
requirements and will not become effective until approval has been
given by the Office of Management and Budget.
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Goto Section: 54.1016 | 54.1018
Goto Year: 2016 |
2018
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