The Federal Communications Commission (FCC or Commission) has announced that its first reverse auction to award Universal Service Funding (USF) support to wireless carriers building out into rural areas will take place on Sept. 27, 2012. “Auction 901” will distribute up to $300 million in one-time payments from Mobility Fund Phase I, the Commission’s new mechanism for incenting wireless providers to serve areas where no wireless service is available. The Commission also established Feb. 24, 2012 as the deadline for comments on Auction 901 procedures. Reply comments are due on or before March 9, 2012.

The complete Auction 901 procedures can be seen here.

In order to participate in Auction 901 and receive Mobility Fund Phase I support, an applicant must demonstrate for the areas on which it wishes to bid that it has been designated as an eligible telecommunications carrier (ETC), and has access to the spectrum necessary to satisfy the applicable performance requirements. Tribal entities may participate in Auction 901 so long as they have an ETC application on file and meet the other requirements noted above.

Parties seeking support will compete in Auction 901 by indicating the amount of support they need to meet the requirements of Mobility Fund Phase I in the eligible census blocks on which they bid. The Commission indicated that a single-round sealed bid auction format would be most appropriate for Mobility Fund Phase I.

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