Press Release

PUC Approves ETC Designation for Velocity.Net Communications, Inc.; Enables Federal Funding to Expand Broadband Deployment in Erie County

Published on 1/16/2020

Filed under: Telecommunications

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today granted the petition of Velocity.Net Communications, Inc. (VNCI) for designation as an Eligible Telecommunications Carrier (ETC).  The ETC designation will promote efforts to provide voice and broadband services in underserved parts of northwestern Pennsylvania. 

The Commission voted 5-0 to approve the ETC designation, which is required under federal law before a company can receive federal universal service fund support to build voice and broadband networks and provide related services in high-cost areas of Pennsylvania.  It is the second ETC designation granted by the Commission in the past year.  VNCI joins Tri-Co Connections LLC, serving north-central Pennsylvania, as well as the Commonwealth’s incumbent local exchange carrier telephone companies (ILECs) as current ETCs.

On Aug. 28, 2018, the Federal Communications Commission (FCC) announced that VNCI had been awarded federal high-cost support funding in certain designated census blocks in Pennsylvania via the FCC’s Connect American Fund Phase II Auction.  VNCI had requested ETC designation in specific census blocks located in Erie County where it had successfully bid in the Auction.

VNCI plans to use the federal funds to extend its existing fiber optic network to provide telecommunications and broadband Internet access services with simultaneous download and upload speeds of up to 1 gigabit per second to customers residing only in the awarded census blocks.  As a condition of receiving an ETC designation to receive high-cost support, VNCI must also participate in the federal Lifeline program and is required to offer Lifeline service to qualified low-income eligible customers or households in those census blocks, in accordance with applicable federal and state law.

VNCI is a facilities-based carrier, owning and operating a 375-mile-long fiber ring in northwestern Pennsylvania along which it provides voice and high-speed broadband Internet access services to residential, small business and enterprise customers.  The company holds PUC certificates of public convenience to operate as a Competitive Access Provider in Pennsylvania and as a Competitive Local Exchange Carrier in the service territories of Verizon North LLC and Verizon Pennsylvania LLC. 

In recent years, the PUC has repeatedly taken action to avert the loss of federal high cost support in Pennsylvania.  The loss of federal high cost support, particularly for broadband, is fueling a growing economic divide between communities and businesses that have access to higher Internet speeds and those that do not. In addition to its most recent advocacy before the FCC, which controls the funding, the Commission has supported the launch of the Pennsylvania Broadband Investment Incentive Program, and recently finalized a rulemaking intended to more quickly resolve disputes over access to utility poles, which is a key issue for enhanced broadband deployment.

The Pennsylvania Public Utility Commission balances the needs of consumers and utilities; ensures safe and reliable utility service at reasonable rates; protects the public interest; educates consumers to make independent and informed utility choices; furthers economic development; and fosters new technologies and competitive markets in an environmentally sound manner.

For recent news releases and video of select Commission proceedings or more information about the PUC, visit our website at www.puc.pa.gov. Follow the PUC on Twitter – @PA_PUC for all things utility.  “Like” PAPowerSwitch on Facebook for easy access to information on electric shopping.

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Docket No.:  P-2018-3006180

Contact:

• David Hixson
  Deputy Press Secretary
  717-772-2766
  dhixson@pa.gov