FCC Publishes MF-II Second Order on Reconsideration in the Federal Register

Updated: May 4, 2018

On February 27, 2018, the Commission released the Second Order on Reconsideration (the “Order”) addressing the remaining issues raised by parties in Petitions for Reconsideration of the MF-II Report and Order. The Commission adopted the Order in the February Open Meeting. Specifically, the FCC takes the following actions:

  • Amends the rules to apply the collocation requirement for MF-II recipients to “all newly constructed” towers;
  • Affirms the decision to require that MF-II recipients obtain a letter of credit (“LOC”), but modifies the LOC requirements to align the MF-II rules with recent changes made in the CAF-II proceeding;
  • Denies petitions seeking reconsideration of the following FCC decisions:
    • Establish an MF-II budget of $4.53 billion over a term of ten years;
    • Disburse annual support on a monthly basis;
    • Adopt performance metrics for supported networks requiring a median data speed of 10/1 megabits per section (Mbps) and data latency of 100 milliseconds (ms) round trip;
    • Not adopt bidding credits for the Auction; and
    • Not prevent MF-II support recipients from entering into equipment exclusivity arrangements.
  • Declines to clarify or limit the role of USAC in testing winning bidders’ compliance with MF-II performance metrics, public interest obligations or other program requirements.

The Order was published in the Federal Register on April 25, 2018, thus establishing the following effective date:

The rules adopted in the Order are effective May 25, 2018, with the exception of the amendment to Section 54.1016(a)(1)(ii), which requires information collection requirements that have not yet been approved by OMB (letter of credit renewal requirement for 80 percent service milestone).

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