All in A-CAM
The FCC has released a draft order that revises universal service fund rules that apply to rate-of-return incumbent local exchange carriers. In the order, the FCC offers model-based USF support to all rate-of-return carriers currently subject to “legacy” cost-based rules. The new model offer – A-CAM II –is similar to the original A-CAM offer but with several critical adjustments.
Federal Communications Commission Chairman Ajit Pai has released a draft rural broadband order that will be considered at the FCC’s December 2018 open meeting. Among other things, the draft order provides a new set of model support offers to rate-of-return carriers currently receiving Alternative Connect America Cost Model funding. The new offer provides support of up to $200 per location, per month, tied to an obligation to build out 25/3 Mbps broadband service to additional locations.
The FCC’s Wireline Competition Bureau has officially extended 217 revised offers of Alternative Connect America Cost Model support, along with revised deployment obligations, to A-CAM rate-of-return carriers. Each revised offer is based on support up to $146.10 per-location, meaning locations with costs above $52.50 will be funded up to a per-location fund cap of $146.10. Carriers have until June 21, 2017 to accept their revised offers.
On March 30, 2016, the Federal Communications Commission released a Report and Order, Order and Order on Reconsideration, and Further Notice of Proposed Rulemaking that make significant changes to the universal service rules governing rate-of-return incumbent local exchange carriers. One of the most significant changes in the order gives some, but not all, rate-of-return ILECs the option to move to cost model regulation.
