High Cost


Phase II

The Connect America Fund support is provided to carriers in two phases. The second phase provides ongoing support to deploy and maintain fixed-location broadband and voice services in high-cost areas at rates comparable to those offered in urban areas.

Phase II funds will be determined by the Connect America Cost Model (CAM), a forward-looking broadband cost projection tool. Support will not be given in areas where unsubsidized competitors are providing broadband that meets the FCC's definition. The FCC provides instructions for creating an account in CAM.

In Phase II, state-level support will be offered to carriers for constructing fixed-location voice and broadband capable networks. Funds will be calculated using CAM and distributed over a five-year period. Carriers accepting state-level support must meet rigorous broadband service requirements with interim build-out requirements within three years and final requirements in five years.

Carriers that do not accept state-level funding may receive support through a competitive bidding process.

Phase I support will continue to be available until Phase II is underway.

What else do I need to know?

Price cap carriers are eligible for Phase II support and there are a few important forms and deadlines to be aware of:

  • State or self-use certification letters are due annually on October 1, pursuant to Section 54.314. You may review information about certification letters on our Certification Requirements page.
  • The Carrier Annual Reporting Data Collection Form, the FCC Form 481, is due annually on July 1, pursuant to Section 54.313. For more information on the form and online submittal instructions, read the Online Filing Instructions and the official FCC form instructions on the High Cost Program Forms page.

For more information on the Connect America Fund or Phase II, visit the FCC Connect America Fund information page, the USF/ICC Transformation Order, and the FCC Executive Summary.