Liberty Broadband Corporation Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Subsequent Event

Subsequent Event	12 Months Ended
Dec. 31, 2011
Subsequent Event [Abstract]
Subsequent Event [Text Block]	(15) Subsequent Event On February 6, 2012, the FCC released its Report and Order and Further Notice of Proposed Rulemaking to comprehensively reform and modernize the USF's Lifeline program. The Lifeline program is administered by the USAC and is designed to ensure that quality telecommunications services are available to low-income customers at just, reasonable, and affordable rates. We participate in the Lifeline program and recognized $17.2 million in Lifeline program support revenue during the year ended December 31, 2011. Following are the significant reforms included in the order: The order adopted on an interim basis a flat rate of $9.25 to replace the support previously available under Tier I through Tier III support mechanisms. The replacement support reduces the wireless subscriber per line support $0.75 which we expect will result in a $300,000 reduction in our revenue for the year ended December 31, 2012. The FCC intends to further investigate whether this support amount is reasonable over the long term in the further rulemaking. The order adopted a requirement for annual recertification of all Lifeline subscribers enrolled as of June 1, 2012 to be completed by the end of 2012. We are evaluating this requirement and possible processes and cannot predict whether this new rule will have a material impact on our income statement, financial position or cash flows. The order adopted a “one per household” rule with “household” defined as an “economic unit.” We do not expect this new rule to have a material impact on our income statement, financial position or cash flows. The order adopted a requirement for biennial audits for all ETCs receiving more than $5.0 million annually from Lifeline. This reform applies to us and will require us to hire an independent audit firm to assess our overall compliance with the program's requirements. The order adopted several other reforms but they are expected to have an insignificant or no impact on our income statement, financial position or cash flows.

Subsequent Event

12 Months Ended

Dec. 31, 2011

(15) Subsequent Event

On February 6, 2012, the FCC released its Report and Order and Further Notice of Proposed Rulemaking to comprehensively reform and modernize the USF's Lifeline program. The Lifeline program is administered by the USAC and is designed to ensure that quality telecommunications services are available to low-income customers at just, reasonable, and affordable rates. We participate in the Lifeline program and recognized $17.2 million in Lifeline program support revenue during the year ended December 31, 2011. Following are the significant reforms included in the order:

The order adopted on an interim basis a flat rate of $9.25 to replace the support previously available under Tier I through Tier III support mechanisms. The replacement support reduces the wireless subscriber per line support $0.75 which we expect will result in a $300,000 reduction in our revenue for the year ended December 31, 2012. The FCC intends to further investigate whether this support amount is reasonable over the long term in the further rulemaking.
The order adopted a requirement for annual recertification of all Lifeline subscribers enrolled as of June 1, 2012 to be completed by the end of 2012. We are evaluating this requirement and possible processes and cannot predict whether this new rule will have a material impact on our income statement, financial position or cash flows.
The order adopted a “one per household” rule with “household” defined as an “economic unit.” We do not expect this new rule to have a material impact on our income statement, financial position or cash flows.
The order adopted a requirement for biennial audits for all ETCs receiving more than $5.0 million annually from Lifeline. This reform applies to us and will require us to hire an independent audit firm to assess our overall compliance with the program's requirements.

The order adopted several other reforms but they are expected to have an insignificant or no impact on our income statement, financial position or cash flows.