Groups Welcome Draft NPRM Expanding A-CAM

A draft FCC NPRM extending the alternative connect America cost model (A-CAM) program would make needed updates to the program and deliver higher speeds to a wider range of consumers if it's adopted during the agency’s May 19 meeting, industry experts told us. The item is based on a proposal from the A-CAM Broadband Coalition and would give participating providers more financial support to deliver speeds of at least 100/20 Mbps (see 2010300055).

A final order could be issued "before the end of the year” if adopted, said telecom consultant Genny Morelli, representing the coalition. The coalition first petitioned the FCC for an extension of the program in 2020 and amended its petition in December to include higher speed requirements and increased funding for participants (see 2201240049).

The coalition held separate meetings with an aide to FCC Chairwoman Jessica Rosenworcel and Wireline Bureau staff on the item last week, said an ex parte filing posted Monday in docket 10-90. The group discussed its proposal in the draft that would expand the number of eligible locations and the "appropriate level of support" in areas where an A-CAM provider has already deployed speeds of at least 100/20 Mbps.

The A-CAM program has been “pretty successful,” said NTCA Senior Vice President-Industry Affairs Mike Romano, and it’s the “right time to recalibrate these programs” so they’re “on par” with others on higher speeds: The NPRM’s proposals are “intended to update the mechanisms to deliver better services to consumers” and “recognizes that you’re going to need additional support over time to do that.” Romano noted many coalition members that petitioned the FCC are NTCA members.

Implementation of the coalition’s proposal would depend in part on the FCC’s new broadband maps. Eligible locations would be based on the broadband serviceable location fabrics, Morelli said, and speeds of at least 100/20 Mbps would need to be deployed to 90% of those locations. The remaining 10% of locations would receive at least 25/3 Mbps speeds.

The proposal would also make the enhanced program available to providers already participating in A-CAM, she said. The draft NPRM would seek comment on whether the proposed program should be "extended to include rate-of-return carriers that currently receive legacy support." It’s something the coalition will endorse if the item is adopted, Morelli said.

Some said the FCC should reconsider extending support for any high-cost programs amid the recent broadband investments funded by the Infrastructure Investment and Jobs Act. NCTA met with Wireline Bureau staff in early May about the FCC's forthcoming report to Congress on the USF's future and "urged the commission to reject the request for additional [A-CAM] support," said an ex parte filing posted Friday.

There's "simply no basis ... to increase the size of the fund” given the “success of competitive bidding and the unprecedented funding being distributed elsewhere,” NCTA told FCC staff. Romano said the FCC’s high-cost USF programs and the infrastructure law’s programs are “very different” because the high-cost programs “don’t fund deployment.” Morelli said the FCC and NTIA have “reassured” the coalition the agencies are “coordinating closely” to prevent any duplications of networks or overbuilding.

It’s “important to coordinate between these programs,” Romano said, and if a provider receives high-cost USF support to deliver 100/20Mbps speeds, “then no one else should be eligible” to receive support for that area through NTIA’s broadband, equity, access and deployment program.

NCTA declined to comment, but a spokesperson directed us to the group’s February comments on the USF report. The group argued then that the request "seems to be an attempt to lock in a sole source funding mechanism and avoid competing for support with other providers that may be more efficient, experienced, and effective.”