Rural Carriers Face a Big Decision as FCC Releases New E-ACAM Broadband Funding Offers

Small rural carriers have a big decision to make by September 29, 2023, now that the Federal Communication Commission has released new broadband funding offers. The new offers are contingent on a higher broadband speed, as mandated in the enhanced Alternative Connect America Model (E-ACAM) order. Carriers must advise the FCC by the September 2023 deadline, on a state-by-state basis, whether they want to participate in the E-ACAM program and accept the new offers. The initial program, established several years ago, covers some of the costs of deploying broadband to unserved areas based on a cost model. Traditionally, providers were required to deploy speeds of 25 Mbps downstream and 3 Mbps upstream, and deployment cost estimates were based on deploying that speed. The FCC E-ACAM program raises the deployment speed required to 100/20 Mbps and gives carriers additional time to deploy service. The offers made are based on a new cost model considering the higher deployment speed requirement. The new offers were made to small rural carriers that serve high-cost areas and receive support through the Universal Service high-cost program. This group includes those carriers that participate in the existing Alternative Connect America Model (ACAM) program, as well as those that receive funding based on embedded costs.