Daines: Connect America Fund needs enforcement, transparency measures

Sens. Steve Daines (R-MT), Angus King (I-ME) and Shelley Moore Capito (R-WV) called on the Federal Communications Commission (FCC) on Wednesday to consider strict enforcement measures and increase transparency for the recently announced Connect America Fund (CAF).

“CAF is designed to advance critical broadband deployment in our rural communities and improve rural access,” the senators wrote in a bipartisan letter to FCC Chairman Tom Wheeler. “In order to ensure the success of the CAF program, we respectfully request a list of accountability mechanisms currently in place to ensure that recipients are using the funds for their intended purpose, that build-out requirements are being met, and that locations reported as newly served are actually receiving service that meets CAF II standards.

“As you may be aware, the general public has an increasing interest in the outcomes of CAF investments, and we believe making these measures of accountability publicly available would be well received. We would also like to know what enforcement mechanisms will be implemented in cases where carriers fail to meet their obligations.”

As part of the second phase of the Connect America Fund, meant to expand and support rural broadband service, the FCC will provide more than $1.5 billion in annual funding. The primary purpose of the funds is to support investment in underserved communities. Ten telecommunications carriers have announced that they will accept the support, which is expected to direct more than $9 billion over the next six years to rural broadband development.

“The high cost to deploy networks in rural areas creates a heavy reliance on the federal funding provided by the FCC, and it is important that these funds are used efficiently,” the senators wrote.

The senators’ letter requested a publicly available list of accountability measures for the funds and sought insight on enforcement mechanisms if carriers do not meet their obligations under the program.

“We believe strict enforcement measures, coupled with transparency around how, where, and when the funds are used are necessary to ensure the integrity of the [Connect America Fund] program and the success of the FCC’s efforts to advance rural broadband,” the senators wrote. “We seek to maximize the success of the program and ensure that these limited funds are put to the best, appropriate use.”