Mobility Fund: We first reported in 2010 that the Commission was considering a new fund to distribute support for wireless infrastructure in under-served and unserved areas. The Commission now has adopted what it calls the “Mobility Fund Phase I,” which will use a reverse auction to distribute $300 million for 3G or better mobile broadband to areas where such services are completely unavailable. The Mobility Fund Phase I will work like this:

1. The FCC will establish a list of unserved areas eligible for infrastructure support.

2. The FCC will oversee a sealed-bid, single round reverse auction to allocate areas to different bidders.

3. Only designated wireless ETCs will be allowed to bid on unserved areas.

4. USAC will distribute funds incrementally, after build-out and coverage targets are met by successful bidders.

Parties interested in participating in the Mobility Fund Phase I auction should be aware of several significant FCC requirements and expectations, including QOS standards and penalties.

The new “Mobility Fund Phase I” will distribute $300 million starting in 2012 for 3G or better mobile broadband to areas where such services are unavailable. For purposes of the fund, 3G is defined as 200 kbps/50 kbps minimum at the cell edge, and 4G is defined as 768 kbps/200 kbps minimum at the cell edge.

Current ETC rules allow multiple wireless providers to draw from the USF to serve the same area. The Mobility Fund Phase I will support a single provider per area, unless overlapping proposals would increase coverage (measured by number of “units served” or “road miles”). Overlapping infrastructure proposals will face significant (if not insurmountable) obstacles to funding, as will providers claiming to need ongoing support.