A-CAM Elections Exceed 10-Year Budget by $1.6B; Suggested Solutions Sought by November 14

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The election of Alternative Connect America Cost Model (A-CAM) support by 216 rate-of-return companies in 43 states has amounted to a budget shortfall of $160 million annually (or $1.6 billion over the 10-year term), according to an FCC Wireline Competition Bureau (Bureau) announcement.  In its Rate-of-Return Order, the FCC provided that up to $150 million annually would be available for carriers electing the model path and that it would consider whether to additionally allocate up to $50 million annually.  Moreover, the FCC has reserved the right to implement “other measures,” which can include prioritizing among electing carriers based on deployment levels or average cost per location.  The Bureau is encouraging parties to submit ex parte comments by Monday, November 14, 2016 suggesting measures or combinations of measures to address the high level of A-CAM interest.

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