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Federal Register / Vol. 86, No. 166 / Tuesday, August 31, 2021 / Rules and Regulations Cloud Core Deployment CloudVirtual IMS cost category range of estimated costs is for equipment providing service to up to 100,000 subscribers. Widelity also proposed revising the description for AntennaLTE Long Term Evolution to represent costs for a typical 10-port antenna, instead of an 8port antenna, resulting in a decrease to the low-range of cost estimates from $2,087 to $1,479. Widelity also proposed adding additional cost subcategories to provide further specificity and guidance to applicants.
For example, Widelity proposed adding a Distribution Layer Equipment cost category for Hybrid Cable & Radio Jumpers, Tower Ancillary Components with a range of cost estimates. Widelity also proposed changes to the range of cost estimates proposed in the preliminary catalog to more accurately reflect reasonable costs typically incurred managing a network. For example, Widelity proposed increasing the high-end of the range of cost estimates for Tower/Installation Crews, Mobilization Less than or Equal to 250 Miles 24 Member Crew, from $3,000 to $6,000.
100. Because the Bureau finds that Widelitys proposed modifications and clarifications improve the accuracy and quality of the Catalog and will aid participants preparing their initial cost estimates, it revises the Catalog to include additional changes identified by Widelity. A complete listing of the changes to the preliminary catalog that are reflected in the final Catalog are included as an attachment to the Catalog in Appendix C of the PN.
101. Highly Variable Expenses. For certain expenses identified in the preliminary catalogsuch as costs associated with network security equipment, network automation, and network integrator servicesa range could not be quantified, most often due to the highly variable nature of the cost.
Taxes, for example, vary by state and locality and/or tax exemption and therefore could not be quantified for the Catalog. The same holds true for special access site costs which vary by site and region. For these expenses, while the Bureau recognizes they are potentially reimbursable, applicants will not be able to rely on the Catalog as there is no quantified range. Accordingly, for such expenses, applicants will need to provide an individual cost estimate with supporting documentation. The Bureau has moved those expense descriptions to the back of the Catalog merely as an acknowledgement that it has considered such costs and recognize they are potentially eligible for reimbursement
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even though a cost estimate range could not be quantified.
C. Final Replacement List 102. The Bureau adopts a final List of Categories of Suggested Replacement Equipment and Services Replacement List to guide providers removing, replacing, and disposing of covered communications equipment and services. Section 4d1 of the Secure Networks Act directs the Commission to develop a list of suggested replacements of both physical and virtual communications equipment, application and management software, and services or categories of replacements of both physical and virtual communications equipment, application and management software and services. The list must be technology neutral and may not advantage the use of reimbursement funds for capital expenditures over operational expenditures. Accordingly, in the 2020 Supply Chain Order, Commission mandated the development of a Replacement List that will identify the categories of suggested replacements of real and virtual hardware and software equipment and services to guide providers removing covered communications equipment from their networks. and directed the Bureau to issue a public notice announcing the Replacement List. The Bureau sought and received comment on a preliminary Replacement List prepared by Widelity in the Catalog PN. After considering the comments addressing the preliminary Replacement List received in response to the Catalog PN, the Bureau declines to make any changes to the preliminary Replacement List.
103. Santel Communications Cooperative, Inc. Santel asked the Bureau to add a statement in the Replacement List acknowledging that replacing covered equipment with other advanced communications services equipment, specifically including fiberto the-premises FTTP equipment, qualifies for reimbursement under the Supply Chain Reimbursement Program. In the 2021 Supply Chain Order, however, the Commission explained that it generally views fiber link replacements, including FTTP, as a technology upgrade and not a reasonable, comparable replacement for covered communications equipment and services. Participants may upgrade communications equipment and services under the Reimbursement Program but, as the Commission explained, will ultimately bear the difference in cost between the comparable replacement and the upgrade. Because cost determinations
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are very case-by-case specific, and FTTP
is generally considered an upgrade, not a reasonable, comparable replacement, the Bureau declines to adopt Santels proposed modification to the Replacement List.
104. ADTRAN seeks to incorporate a Buy American preference into the suggested Replacement Equipment.
However, when Congress created the Reimbursement Program it did not express a preference for providers to replace covered communications equipment and services with equipment and services provided by U.S.
companies. Similarly, and by ADTRANs own admission, Congress did not include a Buy American preference for the Reimbursement Program in sections 901 or 906 of the Secure Networks Act. Furthermore, in the 2020 Supply Chain Order the Commission explained that the Replacement List should provide carriers with the flexibility to select the equipment or services that fit their needs from categories of equipment and services. Consistent with the 2020
Supply Chain Order, the Bureau provides participants with the flexibility to select U.S. and non-U.S. equipment or services excluding, of course, Huawei and ZTE equipment or services that satisfy their obligations under the Reimbursement Program. Accordingly, the Bureau declines to adopt ADTRANs proposed modification to the Replacement List.
105. Accordingly, for the reasons stated herein, the Bureau adopts the preliminary replacement list proposed in the Catalog PN, without changes, as the final Replacement List for use in the Reimbursement Program. Consistent with the 2020 Supply Chain Order, the Bureau will publish the final Replacement List on the Commissions website and issue a public notice at least annually announcing any updates to the Replacement List, to the extent there are any updates, to ensure that the Replacement List remains current. The final Replacement List is attached as Appendix D of the PN.
D. Widelity Report 106. The Bureau also sought comment in the Catalog PN on the Supply Chain Reimbursement Program Study Report prepared by Widelity. The Report represents the views of Widelity, not the views of the Commission or the Bureau, and is not an official Commission document. While the Bureau appreciates comments received addressing and proposing changes to the Report, the Bureau did not intend for further revisions to the Report by Widelity and instead sought comment
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