Neb. PSC Seeks More Bids in Next USF Reverse Auction

Nebraska Public Service Commission staff recommend changes to state USF reverse auctions to “better incentive participation,” said Telecom Director Cullen Robbins at a partially virtual PSC hearing Wednesday (docket NUSF-131). The commission had a sound framework for conducting the first reverse auction in August 2022, said Robbins. But it makes sense to raise starting reserve prices next time, he said. “Afterall, it is a reverse auction [and] the main goal of the reserve price is to incentivize bidding -- ideally, by multiple parties -- so that the price can be lowered in successive rounds.” Staff recommends setting the reserve price two to three times higher than the model price, Robbins said. Also, the commission should reconfigure the units up for bid, said Robbins. “Since the bidding units in the last auction were census block groups, sometimes the blocks that made up the group were scattered and not contiguous,” which may have ballooned possible project costs, he said. Staff recommends allowing participation by the originally assigned price-cap carriers that returned USF funding or were withheld support, said Robbins: They might want to bid since they could get more money than they would have under the previous USF distribution mechanism, especially with the proposed higher reserve prices and smaller bidding units. Such companies are also likely to have the closest facilities and may be able to provide service for the least cost, he said. Also, staff recommends all participants have eligible telecom carrier designations to participate, which would allow carrier of last resort obligations and ongoing support to be transferred to the winning bidders, said Robbins: Bidders should commit to taking those obligations. Commissioner Tim Schram (R) suggested the Nebraska PSC at least ask applicants to say whether they will connect all the way to a customer’s location, such as in a situation where the customer has a half-mile-long driveway. Also, Schram wants to make sure winning bidders will connect customers to the state’s nearly complete next-generation 911 network. “We've spent millions ... to modernize that network and I just want to make sure that consumers have the ability to connect to it." Fixed wireless can participate if they can meet the program’s requirements for 100 Mbps symmetrical broadband, Robbins answered Commissioner Kevin Stocker (R). “I believe they can meet the speed requirements according to what I’ve seen them claim in the past.”