CenturyLink Opposes Broadband Reverse Auctions Proposed in Arkansas

A state broadband fund proposed in Arkansas could jeopardize federal funding from the Connect America Fund Phase II, CenturyLink warned at a state House committee hearing Wednesday. The Arkansas House Advanced Communications and Information Technology Committee approved by voice vote a broadband bill (HB-2099) that would set up reverse auctions to provide support for unserved and underserved areas. The bill would require the Arkansas Economic Development Commission to establish technology-neutral rules for a broadband grant program using reverse auctions. ISPs bidding for unserved areas would have to provide at least 10 Mbps download and 1 Mbps upload speeds, and ISPs bidding for underserved areas would be required to meet the FCC definition of broadband, currently 25/3 Mbps. Funding would come from state surpluses or the governor’s quick action closing fund. State reverse auctions are “premature” and could jeopardize federal funding from CAF II, said CenturyLink Director-Government Relations Katie Burns at the hearing. “CenturyLink, along with AT&T and Windstream, have accepted those federal funds based on certain criteria. A reverse auction process would go against a lot of that criteria.” Phone companies oppose the bill because they’re receiving money from the federal government and the state USF high-cost fund, responded sponsor Rep. Stephen Meeks (R). “That helps to move the ball forward, but there are other internet service providers that don’t have access to any of those funds.” Small and medium-sized ISPs could benefit greatly from the proposed grants, he said. Meeks said the bill sets up a rulemaking process in which all providers may raise concerns, and the rules would need final sign off from the General Assembly. “Do not let fear of what might happen be the enemy of what good could happen,” he said.