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CAF Phase II Model

Connect America Fund (CAF) Phase II Model, commonly called “CAF Phase II,” provides support to price- cap carriers based on a forward-looking model of the cost of constructing modern networks for deploying voice and broadband services in states with unserved areas.

This is a six -year fund that began in 2015 when the FCC awarded 10 telecommunications carriers over $1.5 billion in annual support to build voice- and broadband-capable infrastructure in their areas.

By the end of 2020, CAF Phase II rural broadband deployment will serve over 3.6 million homes and small businesses in 24 states and one U.S. territory. Learn more.

Deployment Requirements

In order to receive CAF II funding, carriers must offer at least one voice and one broadband service commercially. These services must meet the relevant service requirements and go to the required number of locations.

Carriers must complete:

  • 40 percent of deployments by the end of year 3
  • 60 percent of deployments by the end of year 4
  • 80 percent of deployments by the end of year 5
  • 100 percent of deployments by the end of year 6

For more information, see the FCC’s Price Cap Resources page.

Annual Filing Requirements

Carriers receiving CAF Phase II support must also complete the following filing and certification
requirements each year.

  • March 1: Submit geolocated broadband deployment data showing where the carrier built out broadband by latitude and longitude in the previous calendar year. Submit Locations in the HUBB. USAC will conduct verification reviews to confirm deployment to a random sample of locations reported in the HUBB following each deployment milestone. Carriers must notify the FCC and USAC, and relevant state, U.S. Territory or Tribal governments if applicable, within 10 business days after the applicable deadline if they have failed to meet a build-out milestone (see 47 CFR Section 54.320(d)).
  • July 1: Certify financial and operational data by filing FCC Form 481 (Carrier Data Annual Collection Form). File Online
  • July 1: Submit speed and latency test data from performance measures testing conducted in the previous calendar year at a random sample of locations with active subscribers reported in the HUBB. Submit speed and latency test data in the Performance Measures Module
  • October 1: Certify that the carrier has used High Cost funding correctly per program rules. Most carriers are certified by their states. If not subject to state jurisdiction, the carrier must file directly with USAC and the FCC. Learn more.

Related Orders

USF/ICC Transformation Order (FCC 11-161) – Order implementing CACM

FCC Executive Summary – Summary of the USF/Transformation Order

April 2014 Connect America Order (FCC 14-54) – Continued the implementation of the landmark reforms to modernize universal service for the 21st century

Connect America Phase II Model Order (FCC 14-190) – Finalized the decisions necessary to proceed with the offer of support to price cap carriers

Attachment C – State, County and Carrier Data on $9 Billion, Six-Year Connect America Fund Phase II Support for Rural Broadband Expansion

CAF Phase II Accepted Areas Map – Identifies the areas where some of the nation’s largest phone companies, also known as price cap carriers, accepted Phase II support

ACS Order (FCC 16-143) – Order adopting tailored service obligations for Alaska Communications Systems (ACS)