Rural Carriers Back Calls for Fully Funding Rate-of-Return USF Mechanisms

cover the more than $160 million in extra annual support needed to meet demand after 216 companies opted into the Alternative Connect America Cost Model (A-CAM) mechanism (see 1611030046). Reducing A-CAM support amounts to address the excess demand "will dangerously push the FCC toward making a move contrary to the Communications Act mandate to make Universal Service Support 'specific, predictable and sufficient,’” said a JSI filing posted Tuesday in docket 10-90. If the FCC can't fully meet model-based demand, it should allow carriers to switch to the revised, nonmodel support, it said. Among others calling for fully funding model-based support were nTelos (representing two Lumos telco subsidiaries), three RLECs represented by Fred Williamson & Associates, ENMR Telephone Cooperative, Project Mutual Telephone, Hot Springs Telephone, Accipiter Communications, Adak Eagle Enterprises and Etex Telephone Cooperative. Some also called for fully funding the nonmodel support, which NTCA says needs up to $100 million in further annual funding. If the FCC can't fully fund the A-CAM mechanism, some urged the FCC to take steps to fund as many carriers as possible, tap $50 million from a Connect America Fund reserve, and reduce broadband deployment obligations to account for the reduced support. A few carriers said the FCC should prioritize support for carriers that aren't as far along in their broadband deployment as others.