USTelecom, NTCA Ask FCC for More A-CAM Universal Service Funding

Two key telecommunication associations – USTelecom and NTCA—The Rural Broadband Association – have asked the Federal Communications Commission for additional Universal Service funding. The requests come in the wake of the revelation that more rate-of-return carriers than anticipated had opted for A-CAM Universal Service funding based on a cost model, creating a budget shortfall of $1.6 billion over a 10-year period. At the time this news came to light, the FCC asked for input from stakeholders about how to address the shortfall.

A-CAM is an acronym for “alternative Connect America model.” Carriers opting to receive Universal Service funding based on that model also must commit to building out broadband to customers that cannot get broadband today in conformance with strict targets and deadlines that are more aggressive than those for carriers not opting for A-CAM funding. In separate filings, USTelecom and NTCA asked the FCC to make up the $160 million annual funding shortfall in A-CAM Universal Service support for the next 10 years.