FCC Sets New CAF Price Benchmarks

The FCC's Wireline Competition Bureau has released its 2015 broadband pricing benchmarks for incumbent eligible telecommunications carriers receiving Universal Service Fund high-cost CAF (Connect America Fund) support.

The high-cost fund subsidizes incumbent telecommunications carrier phone, and increasingly broadband, service to hard-to-reach areas—rural, in particular—for which there is no business case.

The new benchmarks range from $72.40 for 10 Mbps downstream/1 Mbps upstream service with a 100 gig allowance, to $96.89 for 25/5 unlimited service. High-cost fund recipients that are subject to broadband performance obligations are required to offer service at or below the benchmark rates to qualify for the subsidies.

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Contributing editor John Eggerton has been an editor and/or writer on media regulation, legislation and policy for over four decades, including covering the FCC, FTC, Congress, the major media trade associations, and the federal courts. In addition to Multichannel News and Broadcasting + Cable, his work has appeared in Radio World, TV Technology, TV Fax, This Week in Consumer Electronics, Variety and the Encyclopedia Britannica.