High Cost
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High Cost Tools:
Legacy High Cost
On November 18, 2011, the FCC released the "Connect America Fund" (CAF) Order & FNPRM (FCC 11-161), reforming the Universal Service Fund by phasing out the legacy High Cost Program, eliminating identical support, and introducing the CAF, including an explicit Intercarrier Compensation (ICC) recovery mechanism. The size of the High Cost Program is frozen at $4.5B.
The Connect America Broadband Fund
Through new targeted funds, the CAF will transition the Program focus from supporting voice networks to supporting and expanding broadband availability. CAF for price cap carriers will occur in two phases: the first will be incremental support to reach unserved locations, and the second will be ongoing support to deploy and maintain broadband networks in high cost areas at rates comparable to urban areas.
The Connect America Mobility Fund
The CAF will also expand support for mobile services to include broadband in two phases. The first will be one-time support to expand mobile services to unserved areas, determined via reverse auction. The second will be ongoing support to deploy and maintain mobile voice and broadband services in high cost areas. Both funds include specific funding for Tribal areas.
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