PUBLIC NOTICE Federal Communications Commission 445 12 th St., S.W. Washington, D.C. 20554 News Media Information 202 / 418-0500 Internet: https://www.fcc.gov TTY: 1-888-835-5322 DA 16-1246 Released: November 2, 2016 WIRELINE COMPETITION BUREAU ANNOUNCES RESULTS OF RATE-OF-RETURN CARRIERS THAT ACCEPTED OFFER OF MODEL SUPPORT WC Docket No. 10-90 Today, the Wireline Competition Bureau (Bureau) announces that 216 rate-of-return companies have submitted letters electing 274 separate offers of Alternative Connect America Cost Model (A-CAM) support in 43 states. 1 A list of all carriers that submitted a letter is attached to this Public Notice. 2 The Bureau has totaled the amount of model-based support for electing carriers and determined that model- based support and transition payments would exceed the overall 10-year budget set by the Commission by more than $160 million annually. 3 In the Rate-of-Return Order, the Commission indicated that if demand for the model exceeded the additional funding allocated to the voluntary path to the model, it may consider whether circumstances warrant an additional allocation of up to $50 million annually. 4 The Commission acknowledged, however, that “other measures may be necessary” if demand for the voluntary path to the model is so great that the funding per location cap would need to be set below $146.10 per location to remain within the available budget. 5 1 On August 3, 2016, the Bureau announced the offers of model-based support to rate-of-return carriers with a deadline of November 1, 2016 to indicate, on a state-by-state basis, whether they elect to receive model-based support. Wireline Competition Bureau Announces Support Amounts Offered to Rate-of-Return Carriers to Expand Rural Broadband, WC Docket No. 10-90, Public Notice, 31 FCC Rcd 8641 (WCB 2016) (A-CAM Offer PN); see also Wireline Competition Bureau Releases Report for Alternative Connect America Cost Model with Minor Corrections, WC Docket No. 10-90, Public Notice, 31 FCC Rcd 8959 (WCB 2016); Wireline Competition Bureau Announces Corrected Offers of Alternative Connect America Cost Model Support to Companies Affected by Technical Correction, WC Docket No. 10-90, DA 16-1241 (WCB rel. Oct. 31, 2016). 2 Carriers electing model-based support will not begin receiving such support until the Bureau issues a public notice authorizing the Universal Service Administrative Company to disburse the appropriate amounts. In the Alaska Plan Order, the Commission noted that those Alaska rate-of-return carriers that are unable to offer even 4/1 Mbps service would not be permitted to elect A-CAM support. See Connect America Fund et al., WC Docket No. 10-90 et al., Order, 31 FCC Rcd 10139, 10142, n.18 (2016). 3 The Commission provided that up to $150 million annually in additional funding would be available for carriers electing the model path. Connect America Fund et al., Report and Order, Order and Order on Reconsideration and Further Notice of Proposed Rulemaking, WC Docket No. 10-90 et al., 31 FCC Rcd 3087, 3112-13, para. 62 (2016) (Rate-of-Return Reform Order); see also Connect America Fund et al., WC Docket No. 10-90 et al., Order, 31 FCC Rcd 6856, 6857, para. 6 (WCB 2016) (clarifying that, for the purpose of determining whether the additional A-CAM support and transitional payments exceed the $150 million budget, the Bureau will consider the annualized amount that would be disbursed over the ten-year term). 4 Rate-of-Return Reform Order, 31 FCC at 3112-13, para. 62. 5 Id. at 3113, para. 62 n.136. 2As noted in the A-CAM Offer PN, measures to prioritize among electing carriers could, for instance, include selecting among electing carriers based on their level of deployment (either their percentage of locations lacking 10/1 Mbps or the absolute number of such locations) or the average cost per location. 6 Subsequently, parties have submitted several recommendations into the record. 7 Parties are encouraged to submit ex partes into the record no later thanMonday, November 14, 2016, on what measure or combination of measures should be considered to address the high level of interest in A-CAM model-based support. Ex parte filings may be filed on or before the date indicated above using the Commission’s Electronic Comment Filing System (ECFS). See Electronic Filing of Documents in Rulemaking Proceedings, 63 FR 24121 (1998). ? Electronic Filers: Comments and replies may be filed electronically using the Internet by accessing ECFS: http://apps.fcc.gov/ecfs/. ? Paper Filers: Parties who choose to file by paper must file an original and one copy of each filing. If more than one docket or rulemaking number appears in the caption of this proceeding, filers must submit two additional copies for each additional docket or rulemaking number. Filings can be sent by hand or messenger delivery, by commercial overnight courier, or by first- class or overnight U.S. Postal Service mail. All filings must be addressed to the Commission’s Secretary, Office of the Secretary, Federal Communications Commission. ? All hand-delivered or messenger-delivered paper filings for the Commission’s Secretary must be delivered to FCC Headquarters at 445 12th St., SW, Room TW-A325, Washington, DC 20554. The filing hours are 8:00 a.m. to 7:00 p.m. All hand deliveries must be held together with rubber bands or fasteners. Any envelopes and boxes must be disposed of before entering the building. ? Commercial overnight mail (other than U.S. Postal Service Express Mail and Priority Mail) must be sent to 9300 East Hampton Drive, Capitol Heights, MD 20743. ? U.S. Postal Service first-class, Express, and Priority mail must be addressed to 445 12th Street, SW, Washington DC 20554. 6 Because support would continue to be calculated based on a $200 per location funding cap, there would not be a second, revised offer. 7 See, e.g., Letter from Jason B. Williams, Chief Operating Officer, Blackfoot Telephone Cooperative, Inc., to Marlene H. Dortch, Secretary, Federal Communications Commission, WC Docket No. 10-90 (filed Oct. 20, 2016) (arguing that any budget controls for the A-CAM support methodology must be designed in such a way to ensure that as many RLECs as possible continue to have a choice to elect model-based support); Letter from Cheryl L. Parrino, Parrino Strategic Consulting Group, to Marlene H. Dortch, Secretary, Federal Communications Commission, WC Docket No. 10-90 (filed Oct. 15, 2016) (presenting options for meeting the budget if elections for the A-CAM exceed the budget); Letter from Keith Oliver, Home Telephone Company, to Marlene H. Dortch, Secretary, Federal Communications Commission, WC Docket No. 10-90 (filed Oct. 14, 2016) (urging the Commission not to eliminate carriers electing the A-CAM whose model-based support is less than legacy support from the A-CAM in any effort to resolve budget concerns); Letter from Gerard J. Duffy, Blooston, Mordkofsky, Dickens, Duffy & Prendergast, LLP, to Marlene H. Dortch, Secretary, Federal Communications Commission, WC Docket No. 10-90 (filed Sept. 26, 2016) (indicating a willingness by certain carriers to accept revised A-CAM offers where the proportionate support reductions would be greater than the proportionate build-out obligation reductions). 3People with Disabilities: To request materials in accessible formats for people with disabilities (braille, large print, electronic files, audio format), send an e-mail to fcc504@fcc.gov or call the Consumer and Governmental Affairs Bureau at 202-418-0530 (voice), 202-418-0432 (tty). This proceeding is a “permit-but-disclose” proceeding in accordance with the Commission’s ex parte rules. 8 Persons making ex parte presentations must file a copy of any written presentation or a memorandum summarizing any oral presentation within two business days after the presentation (unless a different deadline applicable to the Sunshine period applies). Persons making oral ex parte presentations are reminded that memoranda summarizing the presentation must (1) list all persons attending or otherwise participating in the meeting at which the ex parte presentation was made, and (2) summarize all data presented and arguments made during the presentation. If the presentation consisted in whole or in part of the presentation of data or arguments already reflected in the presenter’s written comments, memoranda or other filings in the proceeding, the presenter may provide citations to such data or arguments in his or her prior comments, memoranda, or other filings (specifying the relevant page and/or paragraph numbers where such data or arguments can be found) in lieu of summarizing them in the memorandum. Documents shown or given to Commission staff during ex parte meetings are deemed to be written ex parte presentations and must be filed consistent with rule 1.1206(b). In proceedings governed by rule 1.49(f) or for which the Commission has made available a method of electronic filing, written ex parte presentations and memoranda summarizing oral ex parte presentations, and all attachments thereto, must be filed through the electronic comment filing system available for that proceeding, and must be filed in their native format (e.g., .doc, .xml, .ppt, searchable .pdf). Participants in this proceeding should familiarize themselves with the Commission’s ex parte rules. Submissions will be publically available online via ECFS. 9 These documents will also be available for public inspection during regular business hours in the FCC Reference Information Center, which is located in Room CY-A257 at FCC Headquarters, 445 12 th Street, SW, Washington, DC 20554. For additional information on this proceeding, contact Katie King (Katie.King@fcc.gov) of the Wireline Competition Bureau, Telecommunications Access Policy Division, (202) 418-7400. - FCC - 8 47 CFR §§ 1.1200 et seq. 9 Documents will generally be available electronically in ASCII, Microsoft Word, and/or Adobe Acrobat. 4ATTACHMENT List of Carriers that Submitted A-CAM Acceptance Letter by November 1, 2016 State Shortname Holding Company ME OTLC Otelco Inc. ME TDS Telephone and Data Systems, Inc. MA CRNR CornerStone Telephone Company, LLC MA OTLC Otelco Inc. NH TDS Telephone and Data Systems, Inc. VT TDS Telephone and Data Systems, Inc. NY ALTV Alteva Inc. NY ARMS Armstrong Holdings, Inc. NY CHZY Chazy & Westport Telephone NY CTZN3 Citizens Telephone Company of Hammond NY, Inc. NY DLHT Delhi Telephone Company NY EMPR Empire Telephone Corporation/North Penn Telephone Company NY FSHR Fishers Island Telephone Company NY MRGR Margaretville Telephone Company, Inc. NY NCHL Nicholville Telephone Company, Inc. NY NWPR2 Newport Telephone Company, Inc. NY PTTR2 Pattersonville Telephone Company (NY) NY TDS Telephone and Data Systems, Inc. NY THMD The Middleburgh Telephone Company PA EMPR Empire Telephone Corporation/North Penn Telephone Company PA TDS Telephone and Data Systems, Inc. PA THNR The North-Eastern Pennsylvania Telephone Company PA TLTL TelAtlantic, Inc. PA TWNS Townes Telecommunications, Inc. PA VNST Venus Telephone Corporation VA BGGS2 Buggs Island Telephone Cooperative VA CTZN7 Citizens Telephone Cooperative (VA) VA HGHL Highland Telephone Cooperative (VA) VA MGWC MGW Communications, Inc. VA NTEL NTELOS, Inc. VA TDS Telephone and Data Systems, Inc. WV ARMS Armstrong Holdings, Inc. WV OTLC Otelco Inc. WV TLTL TelAtlantic, Inc. FL SMRT Smart City Finance, LLC FL TDS Telephone and Data Systems, Inc. GA ALMT Alma Telecom, Inc. 5State Shortname Holding Company GA CMST ComSouth Corporation GA CTZN6 Citizens Telephone Company, Inc. (GA) GA FLNC Fail, Inc. GA PLNT2 Plant Telephone Company GA PNLN Pineland Telephone Cooperative, Inc. GA TDS Telephone and Data Systems, Inc. SC HMTL Home Telephone Company, Inc. (SC) SC TDS Telephone and Data Systems, Inc. SC WSTC West Carolina Rural Telephone Cooperative, Inc. AL MLLR Millry Corporation AL OTLC Otelco Inc. AL TDS Telephone and Data Systems, Inc. AL TLPH2 Telephone Electronics Corporation KY TDS Telephone and Data Systems, Inc. LA CPTL CP-Tel Holdings, Inc. MS AMRC American Broadband Communications et al. MS FLNC Fail, Inc. MS TDS Telephone and Data Systems, Inc. MS TLPH2 Telephone Electronics Corporation MS TLPX Telapex, Inc. MS TRCR Traceroad, Inc. TN DKLB DeKalb Telephone Cooperative, Inc. TN SYNR Synergy Technology Partners, Inc. TN TDS Telephone and Data Systems, Inc. TN TLPH2 Telephone Electronics Corporation OH HNSN Hanson Communications, Inc. OH HRZN Horizon Telecom OH PTTR Pattersonville Telephone Company (OH) OH SYCM Sycamore Telephone Company OH TDS Telephone and Data Systems, Inc. OH THRD The Ridgeville Telephone Company OH VNCE VNC Enterprises, LLC MI CLNT Clinton County Telephone Company MI CRRC Carr Communications, Inc. MI HWTH Hiawatha Communications, Inc. MI KLTL KALTELCO, Inc. MI LCTC LICT Corporation MI SNDC Sand Creek Communications Company MI TDS Telephone and Data Systems, Inc. IN BLMN2 Bloomingdale Home Telephone Company 6State Shortname Holding Company IN TDS Telephone and Data Systems, Inc. WI AMRY Amery Telcom, Inc. WI BRCT Bruce Telephone Company, Inc. WI CLRL2 Clear Lake Telephone Company WI CNVL2 Coon Valley Farmers Telephone Company, Inc. WI FRMR4 Farmers Independent Telephone Company WI HLLS Hillsboro Telephone Company, Inc. WI MNTH Mount Horeb Telephone Company WI MNWT Manawa Telecommunications, Inc. WI TDS Telephone and Data Systems, Inc. WI UNNT Union Telephone Company WI WTNB Wittenberg Telephone Company IL ADMS Adams Telephone Co-Operative IL CRSS3 Crossville Telephone Company IL CSSC Cass Communications Management, Inc. IL EGYP Egyptian Telephone Cooperative Association IL FLTR Flat Rock Telephone Co-Op, Inc. IL GLSF Glasford Telephone Company IL GNSC Geneseo Communications, Inc. IL GRFT Grafton Communications, Inc. IL HMLT Hamilton County Telephone Co-Op IL HNRY Henry County Communications, Inc. IL MCNB McNabb Telephone Company IL MDCN Mid Century Telephone Co-operative IL RYNL Reynolds Telephone Company IL STLL Stelle Telephone Company IL TNCT Tonica Technologies, Inc. IA BCCT Barnes City Cooperative Telephone Company IA BRDT Breda Telephone Corp. IA BTLR Butler-Bremer Mutual Telephone Company IA CMBR2 Cumberland Telephone Company IA CNCR Coon Creek Telephone Company IA CNTR2 Center Junction Telephone Company, Inc. IA CNVL Coon Valley Cooperative Telephone Association, Inc. IA CPRT2 Cooperative Telephone Company IA CSYM Casey Mutual Telephone Company IA DNVL Danville Mutual Telephone Company IA ESTB East Buchanan Telephone Cooperative IA FNTN Fenton Cooperative Telephone Company IA FRMR Farmers Telephone Company-Essex 7State Shortname Holding Company IA FRMR6 Farmers Mutual Cooperative Telephone Company-Harlan IA FRMRJ Farmers Mutual Telephone Company-Jessup IA JFTC Jefferson Telephone Company IA LCTC LICT Corporation IA LMTT La Motte Telephone Company IA LNGL Long Lines IA LNRC Lone Rock Cooperative Telephone Company IA MBLC Mabel Cooperative Telephone Company IA MCHN Mechanicsville Telephone Company IA MDRN Modern Cooperative Telephone Company IA MRTL Martelle Cooperative Telephone Association IA MSSN Massena Telephone Company IA MTLT2 Mutual Telephone Company of Morning Sun IA NRTCT Northwest Telephone Cooperative IA NRTH Northeast Iowa Telephone Company IA NRTH3 North English Cooperative Telephone Company IA NWLM New Ulm Telecom, Inc. IA OLNT Olin Telephone Company, Inc. IA ONSL Onslow Cooperative Telephone Association IA ORNM Oran Mutual Telephone Company IA PRTN Partner Communications Cooperative IA RCKW Rockwell Cooperative Telephone Association IA SCCN Sac County Mutual Telephone Company IA SCHL Schaller Telephone Company IA SCRN Scranton Telephone Company IA SPRR Superior Telephone Cooperative IA TMPL Templeton Telephone Company IA TRRL2 Terril Telephone Cooperative IA TTNK Titonka Telephone Company IA VNBR Van Buren Telephone Co., Inc. IA WLST Woolstock Mutual Telephone Assoc. IA WSTR Western Iowa Telephone Association IA WYMN Wyoming Mutual Telephone Company MN ARVG Arvig Enterprises, Inc. MN CHRS Christensen Communications Company MN HNSN Hanson Communications, Inc. MN INTR4 Interstate Telecommunications Cooperative, Inc. MN LRSN Larson Utilities, Inc. MN MBLC Mabel Cooperative Telephone Company MN NRTH8 Northern Telephone Company/Wilderness Valley Telephone Company 8State Shortname Holding Company MN NWLM New Ulm Telecom, Inc. MN PRKR Park Region Mutual Telephone Company MN RRLC Rural Communications Holding Corporation MN RTHS Rothsay Telephone Co. Inc. MN TDS Telephone and Data Systems, Inc. MN VNCE VNC Enterprises, LLC MN WKST Wikstrom Telephone Company, Inc. NE AMRC American Broadband Communications et al. NE CNSL2 Consolidated Communications, Inc. (NE) NE GRTP Great Plains Communications, Inc. NE KMTL K & M Telephone Company, Inc. NE PRCT Pierce Telecommunications, Inc. NE THNB The Nebraska Central Telephone Co. NE USCH USConnect Holdings, Inc. NE WSTW2 West Iowa Telephone Company ND ABSR Absaraka Cooperative Telephone Co., Inc. ND ICTC ICTC Group, Inc. ND UTMA UTMA SD CLRT Clarity Telecom, LLC SD HNSN Hanson Communications, Inc. SD INTR4 Interstate Telecommunications Cooperative, Inc. SD JMSV James Valley Cooperative Telephone Company AR ARKN Arkansas Telephone Company, Inc. AR CYPB Cypress Break AR ERTT E. Ritter Communications Holdings, Inc. AR TWNS Townes Telecommunications, Inc. AR YLCT Yelcot Holding Group, Inc. KS LCTC LICT Corporation KS THMN The Moundridge Telephone Company KS TLTL TelAtlantic, Inc. KS TTHC Totah Communications, Inc. KS USCH USConnect Holdings, Inc. MO AMRC American Broadband Communications et al. MO ELLN Ellington Telephone Company MO GRND4 Grand River Mutual Telephone Corporation MO LRTL Le-Ru Telephone Company MO MRKT Mark Twain Rural Telephone Company MO MYBT May, Bott et al. MO OTLC Otelco Inc. MO PCVL Peace Valley Telephone Company 9State Shortname Holding Company OK CRNG Carnegie Telephone Company OK CRSS Cross Telephone Company LLC OK DWLH DWL Holding Company OK MBCR MBO Corporation OK OKLH Oklahoma Western Telephone Company OK PNRT2 Pioneer Telephone Cooperative (OK) OK SLNS Salina Spavinaw Telephone Co., Inc. OK STHW2 Southwest Oklahoma Telephone Company OK TDS Telephone and Data Systems, Inc. OK VLLN Valliant Telephone Company, Inc. TX BRZS Brazos Telephone Cooperative, Inc. TX CLRD Colorado Valley Telephone Cooperative, Inc. TX CNTR4 Central Texas Telephone Cooperative, Inc. TX ENMR ENMR Telephone Cooperative, Inc. TX ETXT Etex Telephone Cooperative, Inc. TX FVRT Five Area Telephone Cooperative, Inc. TX INDS Industry Telephone Company TX MDPL Mid-Plains Rural Telephone Cooperative, Inc. TX PKLM Poka Lambro Telephone Cooperative, Inc. TX RVRT Riviera Telephone Company, Inc. TX TTHL TOTE Holdings LLC TX TYLR Taylor Telephone Cooperative, Inc. TX WSTT West Texas Rural Telephone Coop., Inc. TX WSTX Wes-Tex Telephone Cooperative, Inc. AZ ACCP Accipiter Communications, Inc. AZ HPTL Hopi Telecommunications, Inc. AZ TDS Telephone and Data Systems, Inc. CO BJTL Bijou Telephone Co-Op Association, Inc. CO JDNT JED Enterprises, Inc. CO NCLN Nucla-Naturita Telephone Company CO RCTL Rico Telephone Company CO RGGN Roggen Telephone Cooperative Company CO TDS Telephone and Data Systems, Inc. CO TWNS Townes Telecommunications, Inc. ID BLCK Blackfoot Telephone Cooperative, Inc. ID CMBR Cambridge Telephone Company, Inc. ID MDLK Mud Lake Telephone Cooperative Assn., Inc. ID MRTL2 Martell Enterprises, Inc. ID PRJC Project Mutual Telephone Cooperative Association, Inc. ID TDS Telephone and Data Systems, Inc. 10 State Shortname Holding Company ID WSTR4 Western Elite Incorporated Services MT BLCK Blackfoot Telephone Cooperative, Inc. MT CMMN CommunityTel, Inc. MT HTSP Hot Springs Telephone Company MT LNCL3 Lincoln Telephone Company MT MDRV Mid-Rivers Telephone Cooperative, Inc. MT RNGT Range Telephone Cooperative, Inc. MT STHR Southern Montana Telephone Company NM ENMR ENMR Telephone Cooperative, Inc. NM LCTC LICT Corporation NM RSVL Roosevelt County Rural Telephone Cooperative, Inc. UT BHVT Beehive Telephone Companies UT GNNS Gunnison Telephone Company UT LCTC LICT Corporation UT UBTB UBTA-UBET Communications WY CHGW Chugwater Telephone Company WY UNNT Union Telephone Company WA MRTL2 Martell Enterprises, Inc. WA PNRT Pioneer Telephone Holding Company WA TDS Telephone and Data Systems, Inc. OR DAYM Day Management Corporation OR HLXT Helix Telephone Company OR MNRT Monroe Telephone Company OR PNRT3 Pioneer Telephone Cooperative (OR) OR RMTL Roome Telecommunications Inc. OR TDS Telephone and Data Systems, Inc. CA BRYN Bryan Family Inc. CA LCTC LICT Corporation CA TDS Telephone and Data Systems, Inc. NV BHVT Beehive Telephone Companies NV DAYM Day Management Corporation NV LNCL Lincoln Communications, Inc. NV MPVL Moapa Valley Telecommunications, Inc. NV MRTL2 Martell Enterprises, Inc. AK ADKG Adak Eagle Enterprises, LLC AK ALSK Alaska Power & Telephone, Inc. AK RMTC Remote Control, Inc.