The Federal Communications Commission (FCC) is seeking to update its Alternative Connect America Cost Model (A-CAM) program, which subsidizes broadband deployments in high-cost rural areas.
FCC Chairwoman Jessica Rosenworcel on Friday circulated an order to commissioners that, if passed, would require participating A-CAM providers to deploy broadband with speeds of at least 100 Mbps downstream and 20 Mbps upstream to all locations in their service areas.
The FCC in its release said the expanded A-CAM program would complement existing federal, state and local funding programs, including the $42.5 billion Broadband Equity, Access and Deployment (BEAD) program. Also, the order would “provide an opportunity for legacy rate-of-return carriers to bring 100/20 Mbps broadband to their customers in return for a term of stable support.”
Established in 2016, the first iteration of A-CAM required participating providers to deliver broadband speeds of at least 10 Mbps downstream and 1 Mbps upstream. That phase runs through 2026. The FCC in 2018 unveiled A-CAM II, which boosted the speed requirement to 25/3 Mbps but gave providers an additional two years of funding – through 2028.
In either case, A-CAM does not require providers to use a specific technology for deployment.
“The Commission’s universal service high-cost programs have a track record of supporting networks that connect remote communities across the country,” said Rosenworcel in a statement. “But to keep pace with the demand for reliable broadband and meet the needs of consumers today and into the future, we need to optimize these programs to bring higher speeds and greater bandwidth to consumers.”
In May 2022, the FCC released a Notice of Proposed Rulemaking requesting input on proposed changes to the A-CAM program. Aside from raising the speed requirement, the updated program would raise the cap of support from $200 to $300 per location as well as extend support by six years for most participants.
Advocates of these A-CAM changes include NTCA – The Rural Broadband Association, WTA – Advocates for Rural Broadband and TDS Telecom.
Last month, TDS CFO Michelle Brukwicki said the expanded program would help the operator deliver fiber to “almost all of our 160,000 A-CAM addresses.”
“We are grateful that the FCC is considering updates to these critical universal service programs, and we are hopeful that the changes under consideration will both enable network upgrades where still needed and sustain the affordability and availability of broadband where significant investments have already been made in rural areas,” said NTCA EVP Mike Romano in a statement provided to Fierce.
The FCC’s A-CAM order comes as the National Telecommunications and Information Administration (NTIA) prepares to announce BEAD allocations at the end of this month. Under the BEAD guidelines, unserved locations are those lacking access to 25/3 Mbps internet speeds, whereas underserved locations have speeds lower than 100/20 Mbps.