Rural operators cheer, cable companies jeer proposed A-CAM changes

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Charter Communications, Comcast, and Cox Communications all met with Federal Communications Commission officials earlier in March 2023 to discuss A-CAM issues. A-CAM refers to the FCC’s Alternative Connect America Model program, which supports broadband deployments in eligible high-cost areas. The program is divided into two award phases: support which was granted under the original program founded in 2016 (A-CAM I) and that allocated during a second round in 2018 (A-CAM II). Each phase has its own service and deployment requirements. A-CAM I mandates speeds of only 10 Mbps downstream and 1 Mbps upstream and runs through 2026. A-CAM II raises this bar to 25/3 Mbps in exchange for an additional two years of support. As of May 2022, the FCC said the total amount of support provided to A-CAM I and A-CAM II participants was $1.1 billion each year. Operators are so keen to talk about an old program already well underway because another extension is on the line, and a decision is expected soon. In May 2022, the FCC called for input on a Notice of Proposed Rulemaking to see whether it should adopt changes to the A-CAM program suggested by rural operators in the ACAM Broadband Coalition. The proposed changes would create an Enhanced A-CAM program by making three main changes:

  1. Providers would be required to deploy service with speeds of at least 100/20 Mbps to 90% of eligible locations. This would bring locations covered by the A-CAM program in line with the government’s definition of what counts as “served” under the $42.5 billion Broadband Equity, Access, and Deployment (BEAD) Program. 
  2. Raise the cap on support from $200 to $300 per location – a tweak that would raise the annual program cost to $1.49 billion per year.
  3. Extend the term of support by six years for most program participants.

However, in a recent filing, NCTA said it, as well as representatives from Comcast, Charter, and Cox, all recently met with the FCC  to push back against the proposal. The parties argued that operators “have made significant investments” in rural expansions in recent years and that “expanding the A-CAM programs by awarding incumbent LECs a sole-source contract, with no competitive bidding process, would be a poor policy choice.” It is unclear when exactly the FCC might take further action on the matter, but many are hoping for a decision soon.


Rural operators cheer, cable cos jeer proposed A-CAM changes