FCC Bureau OKs $454 Million in Model-Based Annual Support for 182 Rural Telcos
In one of the first actions under new Chairman Ajit Pai, FCC staff approved 182 rural telcos to receive $454 million in annual broadband-oriented USF subsidies through the Alternative Connect America Cost Model (A-CAM). Rural telcos called the action a boost for rural broadband, though some called for further funding efforts. Pai said he wants to ensure rural areas get fast web service. Meanwhile Tuesday, he named bureau chiefs and other key staff (see 1701240064).
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A total of 207 rate-of-return carriers in 43 states have now accepted A-CAM support, including 35 that agreed to more than $51 million annually in their initial elections, said a Wireline Bureau public notice Tuesday in docket 10-90. The PN noted that after 216 rate-of-return carriers accepted offers of A-CAM support that exceeded a 10-year budget by $160 million annually, the commission in December allocated an additional $50 million annual from a USF reserve (see 1612210022). The bureau made 228 revised offers of support to 191 carriers, and 182 of them accepted 217 offers. The PN authorized "appropriate transition payments" to 13 carriers whose "revised support amount is less than legacy support" in 2015.
The total amount of A-CAM support carriers will receive is $528.4 million annually, up $199.5 million from legacy 2015 amounts, the bureau said. All the recipients face tariff requirements, must exit from the National Exchange Carrier Association's "Common Line Pool" and are subject to defined deployment duties over the 10-year period.
The funding "will significantly increase broadband deployment by RoR carriers to unserved and underserved consumers in 39 states across rural America," emailed Genny Morelli, president of ITTA, which represents midsize carriers.
NTCA appreciates the actions and looks forward to "ongoing dialogue about how to address the remaining support shortfall and provide full and sufficient funding for both the model and nonmodel mechanisms" pursuant to a Further NPRM and the group's petition for reconsideration, emailed Senior Vice President Michael Romano. "Today's action is a very important step in a continuing a conversation about how to ensure consumers in all rural areas can get sustainable access to affordable broadband.”
USTelecom President Jonathan Spalter said the funding would improve rural access to broadband. WTA said it's "glad" the commission finalized the process: "Members who’ve selected ACAM are ready for some stability and predictability so they can get to work to build better broadband networks. We look forward to continuing to work with the Commission to fully fund the modified rate of return side so they too can do the same," emailed Vice President Derrick Owens.