Goto Section: 54.1019 | 54.1021 | Table of Contents
FCC 54.1020
Revised as of September 1, 2021
Goto Year:2020 |
2022
§ 54.1020 Non-compliance measures for 5G Fund support recipients.
(a) General. A 5G Fund support recipient that has not deployed service
that meets the 5G Fund performance requirements specified in
§ 54.1015(c) to at least 20 percent of the total square kilometers
associated with the eligible areas for which it is authorized to
receive support in a state by the Year Three Interim Service Milestone
deadline must notify the Commission and the Administrator within ten
(10) business days after the Year Three Interim Service Milestone
deadline that it failed to meet this milestone. Upon such notification,
the support recipient will be deemed to be in default. The Wireline
Competition Bureau will issue a letter evidencing the default and the
support recipient will be subject to full support recovery. The
provisions of paragraph (b) of this section will not be applicable to
such a support recipient.
(b) Interim service milestones. A 5G Fund support recipient must notify
the Commission, the Administrator, and the relevant state, U.S.
Territory, or Tribal government, if applicable, within ten (10)
business days after the applicable interim service milestone deadline
if it has failed to meet an interim milestone. Upon notification that a
support recipient has defaulted on an interim service milestone, the
Wireline Competition Bureau will issue a letter evidencing the default.
For purposes of determining whether a default has occurred, the support
recipient must be offering service meeting the requisite performance
requirements specified in § 54.1015(c). The issuance of this letter
shall initiate reporting obligations and withholding of a percentage of
the 5G Fund support recipient's total monthly 5G Fund support, if
applicable, starting the month after issuance of the letter:
(1) Tier 1. If a support recipient has a compliance gap of at least
five percent but less than 15 percent of the total square kilometers
associated with the eligible areas in a state for which it is to have
deployed service that meets the 5G Fund performance requirements
specified in § 54.1015(c) by the interim service milestone, the Wireline
Competition Bureau will issue a letter to that effect. Starting three
months after the issuance of this letter, a support recipient will be
required to file a report with the Administrator every three months
that identifies the eligible square kilometers to which the support
recipient has newly deployed facilities capable of delivering service
that meets the requisite 5G Fund performance requirements in the
previous quarter. The support recipient must continue to file quarterly
reports until it has reported, and the Administrator has verified, that
it has reduced the compliance gap to less than five percent of the
total square kilometers associated with the eligible areas for which it
is authorized to receive support in a state by that interim service
milestone and the Wireline Competition Bureau issues a letter to that
effect. A support recipient that files a quarterly report late, but
within seven days after the due date established by the letter issued
by the Wireline Competition Bureau for filing the report, will have its
5G Fund support reduced by an amount equivalent to seven days of
support. If a support recipient does not file a report within seven
days after the report's due date, it will have its 5G Fund support
reduced on a pro-rata daily basis equivalent to the period of
non-compliance, plus the minimum seven-day reduction, until such time
as the quarterly report is filed.
(2) Tier 2. If a support recipient has a compliance gap of at least 15
percent but less than 25 percent of the total square kilometers
associated with the eligible areas in a state for which it is to have
deployed service that meets the 5G Fund performance requirements
specified in § 54.1015(c) by the interim service milestone, the
Administrator will withhold 15 percent of the support recipient's
monthly support for that state and the support recipient will be
required to file quarterly reports with the Administrator. Once the
support recipient has reported, and the Administrator has verified,
that it has reduced the compliance gap to less than 15 percent of the
required eligible square kilometers for that interim service milestone
for that state, the Wireline Competition Bureau will issue a letter to
that effect, the Administrator will stop withholding support, and the
support recipient will receive all of the support that had been
withheld. The support recipient will then move to Tier 1 status.
(3) Tier 3. If a support recipient has a compliance gap of at least 25
percent but less than 50 percent of the total square kilometers
associated with the eligible areas in a state for which it is to have
deployed service that meets the 5G Fund performance requirements
specified in § 54.1015(c) by the interim service milestone, the
Administrator will withhold 25 percent of the support recipient's
monthly support for that state and the support recipient will be
required to file quarterly reports with the Administrator. Once the
support recipient has reported, and the Administrator has verified,
that it has reduced the compliance gap to less than 25 percent of the
required eligible square kilometers for that interim service milestone
for that state, the Wireline Competition Bureau will issue a letter to
that effect, and the support recipient will move to Tier 2 or Tier 1
status, as applicable.
(4) Tier 4. If a support recipient has a compliance gap of 50 percent
or more of the total square kilometers associated with the eligible
areas in a state for which it is to have deployed service that meets
the 5G Fund performance requirements specified in § 54.1015(c) by the
interim service milestone:
(i) The Administrator will withhold 50 percent of the support
recipient's monthly support for that state and the support recipient
will then be required to file quarterly reports with the Administrator.
As with the other tiers, as the support recipient reports, and the
Administrator verifies, that it has lessened the extent of its
non-compliance, and the Wireline Competition Bureau issues a letter to
that effect, it will move through the tiers until it reaches Tier 1 (or
no longer is out of compliance with the applicable interim service
milestone).
(ii) If after having 50 percent of its support withheld for six months,
the support recipient has not reported that it is eligible for Tier 3
status (or one of the lower tiers), the Administrator will withhold 100
percent of the support recipient's forthcoming monthly support for that
state and will commence a recovery action for a percentage of support
that is equal to the support recipient's compliance gap plus 10 percent
of the support recipient's support in that state that has been
disbursed to that date.
(5) If at any point prior to the Year Six Final Service Milestone the
support recipient reports, and the Administrator verifies, that it is
eligible for Tier 1 status or that it is no longer out of compliance
with the 5G Fund performance requirements specified in § 54.1015(c), it
will have its support fully restored and the Administrator will repay
any funds that were recovered or withheld.
(c) Year six final service milestone. A 5G Fund support recipient must
notify the Commission, the Administrator, and the relevant state, U.S.
Territory, or Tribal government, if applicable, within 10 business days
if it has failed to meet the Year Six Final Milestone. Upon
notification that the support recipient has not met the Year Six Final
Service Milestone, the support recipient will have twelve months from
the date of the Year Six Final Milestone deadline to come into full
compliance with this milestone. If the support recipient does not
report that it has come into full compliance with the Year Six Final
Milestone within twelve months, as verified by the Administrator, the
Wireline Competition Bureau will issue a letter to this effect.
Recipients of 5G Fund support shall be subject to the following
non-compliance measures related to the recovery of support after this
grace period:
(1) If a support recipient has deployed service that meets the 5G Fund
performance requirements specified in § 54.1015(c) to at least 80
percent of the total eligible square kilometers in a state, but less
than the required 85 percent of the total eligible square kilometers in
that state, the Administrator will recover an amount of support that is
equal to 1.25 times the average amount of support per square kilometer
that the support recipient has received in the state times the number
of square kilometers unserved up to the 85 percent requirement;
(2) If a support recipient has deployed service that meets the 5G Fund
performance requirements specified in § 54.1015(c) to at least 75
percent, but less than 80 percent, of the total eligible square
kilometers in that state, the Administrator will recover an amount of
support that is equal to 1.5 times the average amount of support per
square kilometer that the support recipient has received in the state
times the number of square kilometers unserved up to the 85 percent
requirement, plus 5 percent of the support recipient's total 5G Fund
support for the 10 year support term for that state;
(3) If a support recipient has deployed service that meets the 5G Fund
performance requirements specified in § 54.1015(c) to less than 75
percent of the total eligible square kilometers in a state, the
Administrator will recover an amount of support that is equal to 1.75
times the average amount of support per square kilometer that the
support recipient has received in the state times the number of square
kilometers unserved up to the 85 percent requirement, plus 10 percent
of the support recipient's total 5G Fund support for the 10 year
support term for that state.
(d) Additional evidence required at year six final service milestone
deadline. At the Year Six Final Service Milestone deadline, a 5G Fund
support recipient is also required to provide evidence, which is
subject to verification by the Administrator, that it has provided
service that meets the 5G Fund performance requirements specified in
§ 54.1015(c) to at least 75 percent of the total square kilometers for
each census tract or census tract group in which it was authorized to
receive support. If after the grace period permitted in paragraph (c)
of this section the Administrator has not verified based on the
evidence provided that the support recipient has provided service that
meets the 5G Fund performance requirements specified in § 54.1015(c) to
at least 75 percent of the total square kilometers for each census
tract or census tract group in which it was authorized to receive
support, the Administrator will recover an amount of support that is
equal to 1.5 times the average amount of support per square kilometer
that the support recipient had received in the eligible area times the
number of square kilometers unserved within that eligible area, up to
the 75 percent requirement.
(e) Compliance reviews. If the Administrator determines subsequent to
the Year Six Final Service Milestone that a support recipient does not
have sufficient evidence to demonstrate that it continues to offer
service that meets the 5G Fund performance requirements specified in
§ 54.1015(c) to all of the eligible square kilometers in the state as
required by the Year Six Final Service Milestone, the Administrator
shall immediately recover a percentage of support from the support
recipient as specified in paragraphs (c)(1) through(c)(3) and (d) of
this section.
Effective Date Note: At 85 FR 75822 , Nov. 25, 2020, § 54.1020 was
revised, however, paragraphs (a), (b), and (c)(1) and (c)(2) have a
delayed effective date.
Goto Section: 54.1019 | 54.1021
Goto Year: 2020 |
2022
CiteFind - See documents on FCC website that
cite this rule
Want to support this service?
Thanks!
Report errors in
this rule. Since these rules are converted to HTML by machine, it's possible errors have been made. Please
help us improve these rules by clicking the Report FCC Rule Errors link to report an error.
hallikainen.com
Helping make public information public