FCC Adopts Alaska Connect Fund Rules, Seeks Additional Comment
Rural and high-cost areas throughout Alaska remain "some of the hardest and most costly to serve in the country," the FCC acknowledged in a Monday order establishing the Alaska Connect Fund (ACF), complementing the 2016 Alaska Plan (see 2410150048). The order will take effect 30 days after Federal Register publication. Also adopted on Monday was a Further NPRM seeking comment on implementation of the fund.
The commission noted that about 21% of broadband serviceable locations in the state still lack access to speeds of at least 25/3 Mbps and 28% are without 100/20 Mbps speeds. The agency also found that about 51,000 Alaskans still use a 3G service or lower. Funding will support mobile and fixed carriers receiving Universal Service Fund high-cost support in Alaska through 2034 "with increased support amounts that reflect the transition to higher speed service goals," the order said. The commission established separate mechanisms for mobile and fixed providers, citing the varying support needs and landscape for each service throughout the state.
The order ties fixed service providers' support goals to NTIA's broadband, equity, access and deployment (BEAD) program with a transitional support period that will run through 2028, allowing "time for network deployments funded by these programs to be completed or nearly completed." Beginning Jan. 1, 2029, fixed providers will receive ACF support for "ongoing technology-neutral support through the end of 2034, focused on supporting the maintenance and operation of broadband and voice capable networks in Alaska."
In addition, "This two-phased approach will allow for continued and certain support for existing USF participants for a set period, while allowing the commission to develop a complete picture of how the BEAD program and other federal network deployment funding will be allocated in Alaska."
For mobile providers, the terms and goal speeds for support will be based on "whether an eligible area has a single or multiple subsidized providers." The commission also established a two-phase approach for mobile support, with support for current Alaska Plan providers extended until Dec. 31, 2029, during phase one. Funding during phase two will support a single provider in each area through the end of 2034. The FNPRM seeks comment on the implementation of and service level goals for ACF phase two.
The FCC anticipated it would likely consider a rulemaking on how to continue supporting Alaska's broadband needs once ACF ends, the order said. "Given the historic levels of investment in broadband deployment, by 2035, the landscape of voice and broadband service in Alaska will differ drastically from what it is today."
Also Monday, the commission denied the Alaska Remote Carrier Coalition's petition to adopt an Alaska Middle Mile Expense Support (AMMES) program to provide support in ultra-high cost areas throughout the state. The coalition's proposal is a "rate-of-return type mechanism" that "can lead to waste and inefficiency," the order said. The FCC "has made clear that additional rate-of-return regulation is not the preferred future direction of the high-cost program," but it will "continue to monitor the impact of middle mile transport rates on the availability of fixed and mobile service in Alaska."