The Federal Communications Commission (FCC) issued an order late last week in response to several petitions for reconsideration involving Enhanced A-CAM — a portion of the Universal Service Fund (USF) program that covers some of the costs of deploying broadband to rural locations lacking high-speed service.
The commission rejected all five of the petitions, including one that would require funding recipients to deploy fiber broadband, a request to extend deadlines, and three others.
Program to Remain Technology Neutral
The Enhanced A-CAM program requires providers to deploy speeds of 100/20 Mbps, a speed increase from the previous 25/3 Mbps requirement. Small rural providers on the program commit to certain buildout requirements in exchange for receiving funding based on a cost model.
Program rules are technology-neutral, allowing providers to use various technologies to meet the minimum speed requirements. Several Michigan townships petitioned the FCC to require fiber broadband. The petitioners noted that an incumbent provider could use DSL to meet the minimum speed requirements and argued that the commission should not fund outmoded services.
The petitioners also noted that, when an incumbent provider deploys DSL to an eligible location, that location becomes ineligible for funding in the Broadband Equity, Access, and Deployment (BEAD) rural broadband program, which prioritizes fiber broadband.
The FCC’s counterargument was that requiring E-ACAM recipients to deploy fiber broadband would constrain the number of locations receiving E-ACAM, thereby requiring BEAD to reach more locations with a finite amount of available funding.
No Deadline Extension
The suggestion to extend E-ACAM deployment deadlines came from NTCA–The Rural Broadband Association and a coalition of A-CAM recipients.
The petitioners requested that the final deadline be extended from December 31, 2028 to December 31, 2030, with interim deadlines also extended. The extension would align the deadlines with deadlines for the BEAD program, the petition argued.
In the order, the FCC rejected the request on the ground that delaying Enhanced A-CAM would “significantly lessen the benefits for consumers in Enhanced A-CAM areas.”
More Enhanced A-CAM Changes Rejected
Other suggested changes to the E-ACAM program that were rejected include:
- A request from the coalition of Enhanced A-CAM recipients to impose a 60-day deadline on the FCC for adjudicating challenges to a provider’s claimed coverage for the purpose of E-ACAM support.
- A petition from NTCA to allow the provision of support to E-ACAM recipients for locations that were unserved when E-ACAM offers were made, but where an E-ACAM carrier has a separate enforceable commitment to provide service.
- A request from a coalition of Rural Digital Opportunity Fund (RDOF) winners to shift some E-ACAM funding to the RDOF program. The coalition has used a variety of approaches to try to obtain more funding for uncompleted RDOF builds, continually arguing that deployment costs rose dramatically since funds were allocated because of the unforeseen COVID pandemic.
