The FCC recently voted to tweak the rules for speed testing for ISPs who accept federal funding from the Universal Service Fund or from other federal funding sources. This would include all rate-of-return carriers including those taking ACAM funding, carriers that won the CAF II reverse auctions, recipients of the Rural Broadband Experiment (RBE) grants, Alaska Plan carriers, and likely carriers that took funding in the New York version of the CAF II award process. These new testing rules will also apply to carriers accepting the upcoming RDOF grants.
The FCC had originally released testing rules in July 2018 in Docket DA 18-710. Those rules applied to the carriers listed above as well as to all price cap carriers and recipients of the CAF II program. The big telcos will start testing in January of 2020 and the FCC should soon release a testing schedule for everybody else – the dates for testing were delayed until this revised order was issued.
The FCC made the following changes to the testing program:
- Modifies the schedule for commencing testing by basing it on the deployment obligations specific to each Connect America Fund support mechanism;
- Implements a new pre-testing period that will allow carriers to become familiar with testing procedures without facing a loss of support for failure to meet the requirements;
- Allows greater flexibility to carriers for identifying which customer locations should be tested and selecting the endpoints for testing broadband connections. This last requirement sounds to me like the FCC is letting the CAF II recipients off the hook by allowing them to only test customers they know meet the 10/1 Mbps speeds.
The final order should be released soon and will hopefully answer carrier questions. One of the areas of concern is that the FCC seems to want to test the maximum speeds that a carrier is obligated to deliver. That might mean having to give customers the fastest connection during the time of the tests even if they have subscribed to slower speeds.
Here are some of the key provisions of the testing program that were not changed by the recent order:
- ISPs can choose between three methods for testing. First, they may elect what the FCC calls the MBA program, which uses an external vendor, approved by the FCC, to perform the testing. This firm has been testing speeds for the network built by large telcos for many years. ISPs can also use existing network tools if they are built into the customer CPE that allows test pinging and other testing methodologies. Finally, an ISP can install ‘white boxes’ that provide the ability to perform the tests.
- Testing, at least for now is perpetual, and carriers need to recognize that this is a new cost they have to bear due to taking federal funding.
- The number of tests to be conducted will vary by the number of customers for which a recipient is getting support; With 50 or fewer households the test is for 5 customers; for 51-500 households the test is 10% of households. For 500 or more households the test is 50 households. ISPs declaring a high latency must test more locations with the maximum being 370.
- Tests for a given customer are for one solid week, including weekends in each quarter. Tests must be conducted in the evenings between 6:00 PM and 12:00 PM. Latency tests must be done every minute during the six-hour testing window. Speed tests – run separately for upload speeds and download speeds – must be done once per hour during the 6-hour testing window.
- ISPs are expected to meet latency standards 95% of the time. Speed tests must achieve 80% of the expected upland and download speed 80% of the time. An example of this requirement is that a carrier guaranteeing a gigabit of speed must achieve 800 Mbps 80% of the time. ISPs that meet the speeds and latencies for 100% of customers are excused from quarterly testing and only have to test once per year.
- There are financial penalties for ISPs that don’t meet these tests.
- ISPs that have between 85% and 100% of households that meet the test standards lose 5% of their FCC support.
- ISPs that have between 70% and 85% of households that meet the test standards lose 10% of their FCC support.
- ISPs that have between 55% and 75% of households that meet the test standards lose 15% of their FCC support.
- ISPs with less than 55% of compliant households lose 25% of their support.
- The penalties only apply to funds that haven’t yet been collected by an ISP.