How should we handle areas currently covered by FCC high cost programs in the context of the BEAD funding?
The Alternative Connect America Model (A-CAM) program is a monthly subsidy from the Federal Communications Commission’s Universal Service Fund (USF) that covers about 1.27 million Broadband Serviceable Locations. A-CAM's funding comes from a surcharge on phone bills. But the “contribution base” — the number of phone lines — is shrinking. That means to generate the same amount of money, the percentage of the total phone bill needs to go up. That’s been happening quarter-over-quarter for years. A contentious FCC proceeding mostly showed that there are two sides, and they’re far apart: a vague “tax Big Tech ad revenue” camp and a “expand the base by adding a small surcharge to all broadband plans” camp. If neither of those seems like a fun solution, one way to kick the can down the road is to shrink the amount of money committed to Universal Service Fund programs.
How should we handle areas currently covered by FCC high cost programs in the context of the BEAD funding?