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 16-1422 Released: December 20, 2016 WIRELINE COMPETITION BUREAU AUTHORIZES 35 RATE-OF-RETURN COMPANIES TO RECEIVE MORE THAN $51 MILLION ANNUALLY IN ALTERNATIVE CONNECT AMERICA COST MODEL SUPPORT AND ANNOUNCES OFFERS OF REVISED A-CAM SUPPORT AMOUNTS TO 191 RATE-OF-RETURN COMPANIES TO EXPAND RURAL BROADBAND WC Docket No. 10-90 Consistent with the Commission’s A-CAM Revised Offer Order being released today, the Wireline Competition Bureau (Bureau) authorizes 35 rate-of-return companies that elected 45 offers of Alternative Connect America Cost Model (A-CAM) support to receive model-based support pursuant to their existing elections. 1 In addition, for the remaining 191 companies that elected model-based support, the Bureau announces 228 revised offers of model-based support and the associated revised deployment obligations. The accompanying report released today shows the revised state-level offers of model-based support and revised deployment obligations for each carrier that is eligible to elect a second offer. 2 These carriers have until January 19, 2017 (30 days) to notify the Bureau, on a state-by-state basis, whether they elect to receive the revised amount of model-based support. 3 In the Rate-of-Return Reform Order, the Commission adopted a voluntary path for rate-of-return carriers to elect to receive model-based support for a 10-year term in exchange for extending broadband service to a pre-determined number of eligible locations. 4 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. 5 On November 2, 2016, the Bureau announced that 216 rate-of-return companies had submitted letters electing 274 separate offers of A-CAM support in 43 states, and that model-based support and transition payments would exceed the 1 Connect America Fund, Report and Order and Further Notice of Proposed Rulemaking, FCC 16-178 (rel. Dec. 20, 2016) (A-CAM Revised Offer Order). The list of carriers authorized to receive A-CAM support is attached to this Public Notice. 2 Available at https://transition.fcc.gov/wcb/ACAM_232_second_offer_report_10_1_2_122016_FINAL.xlsx. 3 Pursuant to Commission rules, the election will be considered timely if it is received by 5:30 p.m. Eastern Standard Time. 47 CFR §§ 0.403, 1.7. 4 Connect America Fund et al., WC Docket No. 10-90 et al., Report and Order et al., 31 FCC 3087, 3094-3117, paras. 17-79 (2016) (Rate-of-Return Reform Order). 5 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). 2overall 10-year budget set by the Commission by more than $160 million annually. 6 A-CAM Authorizations. In the A-CAM Revised Offer Order, the Commission directed the Bureau to issue a public notice authorizing the Universal Service Administrative Company (USAC) to disburse the appropriate amounts of A-CAM support to those carriers for whom the original offer of model-based support was less than the legacy high-cost support that they received in 2015. 7 Accordingly, we authorize and direct USAC to obligate and disburse the annual support amounts for each carrier that has accepted support in the states identified in the attachment, once USAC has confirmed that the carrier has notified the National Exchange Carrier Association (NECA) that it is withdrawing from the Common Line pool. 8 Consistent with the Rate-of-Return Reform Order, we also authorize and direct USAC to obligate and disburse the appropriate transition payments to these carriers. 9 These carriers authorized to receive model-based support are subject to defined deployment obligations that must be met over the 10-year period, with annual reporting of their progress. 10 We remind the carriers authorized to receive A-CAM support of their requirements related to tariffs. They must refile their special access tariffs removing the costs of Consumer Broadband-only Loops (CBOL) from the Special Access category, consistent with the 2016 Rate-of-Return Order. 11 They are permitted—but not required—to assess a wholesale CBOL charge that does not exceed $42 per line per month. Alternatively, they may detariff such a charge. Moreover, carriers receiving A-CAM support are not required to offer a separate transmission service, on either a tariffed or detariffed basis. A-CAM recipients must also exit the National Exchange Carrier Association (NECA) Common Line pool, while they have the option of continuing to use NECA to tariff their Common Line and CBOL charges. The carriers authorized today must coordinate with NECA on making any required tariff filings in order to ease the administrative burden associated with implementation of any changes. Once USAC confirms that a carrier has notified NECA of its intention to exit the Common Line pool, USAC may disburse A-CAM support. 12 A-CAM Revised Offers. In the A-CAM Revised Offer Order, the Commission also adopted a methodology to make revised offers to the remaining electing carriers and conditioned the acceptance of the second offer of A-CAM support upon a requirement that carriers electing that second offer agree to meet the terms of the original offer if additional high-cost support becomes available in 2017 to fund the original offers. 13 Report 10.1.2, released today, shows the revised state-level offer of model-based support for each carrier that is eligible to receive a second offer, including the amount of annual support 6 Wireline Competition Bureau Announces Results of Rate-of-Return Carriers that Accepted Offer of Model Support, WC Docket No. 10-90, DA 16-1246 (WCB rel. Nov. 2, 2016) (A-CAM Election Results PN). This figure included Adak. The Commission has directed the Bureau not to issue a revised offer to Adak. A-CAM Revised Offer Order, FCC 16-178, at para. 16. 7 A-CAM Revised Offer Order, FCC 16-178, at para. 7. 8 Rate-of-Return Reform Order, 31 FCC Rcd at 3159-60, paras. 194-96. 9 See id. at 3115-16, paras. 72-76. The transition payment amounts are available on USAC’s website at http://www.usac.org/_res/documents/hc/xls/tools/A-CAM-Transition-Support.xlsx. 10 These carriers must satisfy deployment obligations associated with the support amounts they accepted as set forth in the Public Notice announcing the offers of support. See supra note 5. 11 See Access Charge Tariff Filings Introducing Broadband-only Loop Service, Order, Docket No. 16-317, 31 FCC Rcd 11017 (WCB Oct. 6, 2016); see also Access Charge Tariff Filings Introducing Broadband-only Loop Service, Order on Reconsideration, Docket No. 16-317, 31 FCC Rcd 12007 (WCB Nov. 4, 2016). 12 Rate-of-Return Reform Order, 31 FCC Rcd at 3159-60, paras. 194-96. 13 A-CAM Revised Offer Order, FCC 16-178, at paras. 8, 12. 3that would be provided over the 10-year term; the total number of funded locations in census blocks that are eligible for support; the number of “fully funded” locations and the number of “capped locations;” and the specific number of locations where the recipient will be required to offer 25 Mbps downstream/3 Mbps upstream (25/3 Mbps), 10 Mbps downstream/1 Mbps upstream (10/1 Mbps), and 4 Mbps downstream/1 Mbps upstream (4/1 Mbps), as well as the number of remaining locations subject to the reasonable request standard. 14 Carriers should submit their election letters to the Bureau at ConnectAmerica@fcc.gov. To elect the revised support amount for a state or states, a carrier must submit a letter signed by an officer of the company confirming that the carrier elects the revised model-based support amount as specified in Report 10.1.2 released today and commits to satisfy the specific service obligations associated with that amount of model support. If a carrier fails to submit any final election letter by the January 19, 2017 deadline, it will be deemed to have declined model-based support. Carriers submitting election letters will receive an e-mail confirming receipt and should contact the Bureau no later than 4 p.m. on January 19, 2017 if they do not receive such confirmation. Confirmation of receipt does not constitute authorization to receive A- CAM support. Carriers electing the revised offer of model-based support will not begin receiving such support until the Bureau issues a public notice authorizing the USAC to disburse the appropriate amounts, once USAC confirms the carrier has notified NECA that it is exiting the Common Line pool. 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 - 14 As previously explained, for administrative ease, compliance with the broadband deployment obligations will be validated at the state-level, with locations counted toward the deployment obligation only if they are located in eligible census blocks. A carrier will be deemed in compliance with those obligations if the total number of reported locations in each required speed tier (25/3 Mbps, 10/1 Mbps, 4/1 Mbps) meets the total required number of locations for each tier in the state. These figures reflect the floor, not a limit on what carriers may accomplish with their support. Carriers are encouraged to exceed these minimums and to offer service to more locations where feasible. The locations may be in any funded census block, regardless of whether A-CAM identifies a block as “fully funded” or “capped”. A-CAM Offer PN, 31 FCC Rcd at 8642. 4ATTACHMENT Federal Communications Commission CAF - A-CAM 2.3.2 - Authorization Report 1.0 Authorized A-CAM Support & Obligations December 20, 2016 State Rate-of- Return Carrier Holding Company Annual Rate- of-Return Carrier Model- Based Support Total Number of Rate-of-Return Locations in Census Blocks Receiving Model- Based Funding Number of Locations in Eligible Census Blocks with Obligation to Offer 25/3 Mbps Number of Locations in Eligible Census Blocks with Obligation to Offer 10/1 Mbps Number of Locations in Eligible Census Blocks with Obligation to Offer 4/1 Mbps Number of Locations Remaining on Reasonable Request Standard ROR Sub TotalROR Sub TotalROR Sub Total 51,324,925 82,584 54,696 21,703 2,097 4,088 AL OTLC Otelco Inc. 1,898,802 7,766 5,812 1,938 8 8 AZ ACCP Accipiter Communications, Inc. 945,721 514 60 180 68 206 CA BRYN Bryan Family Inc. 435,246 182 3 10 42 127 CA LCTC LICT Corporation 1,192,277 872 144 432 74 222 FL SMRT Smart City Finance, LLC 204,405 215 144 48 11 12 FL TDS Telephone and Data Systems, Inc. 379,344 1,638 1,220 407 5 6 GA FLNC Fail, Inc. 11,820 41 30 11 - - GA PNLN Pineland Telephone Cooperative, Inc.1,392,004 2,030 1,458 487 42 43 GA TDS Telephone and Data Systems, Inc.1,983,266 5,417 3,981 1,328 54 54 IA FNTN Fenton Cooperative Telephone Company98,922 59 19 20 5 15 IA LCTC LICT Corporation 482,419 508 372 124 6 6 IA PRTN Partner Communications Cooperative1,351,206 1,150 740 247 81 82 IA SCRN Scranton Telephone Company 463,135 335 133 133 17 52 IL GNSC Geneseo Communications, Inc. 990,891 1,004 681 227 48 48 IN BLMN2 Bloomingdale Home Telephone Company612,965 439 316 106 8 9 KS TLTL TelAtlantic, Inc. 345,671 214 32 96 21 65 KS USCH USConnect Holdings, Inc. 674,524 480 93 282 26 79 MA CRNR CornerStone Telephone Company, LLC557 1 - 1 - - MA OTLC Otelco Inc. 3,243 15 11 4 - - ME OTLC Otelco Inc. 1,041,171 1,981 1,433 478 35 35 MS AMRC American Broadband Communications et al.160,938 328 158 159 2 9 MT STHR Southern Montana Telephone Company2,698,957 1,433 157 473 200 603 NE USCH USConnect Holdings, Inc. 650,679 313 23 71 54 165 NH TDS Telephone and Data Systems, Inc. 520,365 1,886 1,407 470 4 5 NV BHVT Beehive Telephone Companies 355,595 177 20 62 23 72 NV DAYM Day Management Corporation 447,998 671 444 149 39 39 NY ALTV Alteva Inc. 4,219 25 18 7 - - OH HNSN Hanson Communications, Inc. 428,162 482 354 119 4 5 OH HRZN Horizon Telecom 1,465,554 3,078 2,286 762 15 15 OH VNCE VNC Enterprises, LLC 88,186 195 144 49 1 1 OK CRSS Cross Telephone Company LLC 3,478,143 5,446 3,928 1,310 104 104 OK DWLH DWL Holding Company 3,784,420 3,573 1,329 1,330 228 686 OK MBCR MBO Corporation 3,635,531 3,949 2,590 864 247 248 PA TLTL TelAtlantic, Inc. 14,400 6 - - 3 3 PA TWNS Townes Telecommunications, Inc. 44,326 103 77 26 - - SC HMTL Home Telephone Company, Inc. (SC)1,367,830 3,254 2,357 786 55 56 SC WSTC West Carolina Rural Telephone Cooperative, Inc.1,008,846 1,354 947 316 45 46 TN TDS Telephone and Data Systems, Inc.7,176,061 16,409 12,129 4,043 118 119 TX ETXT Etex Telephone Cooperative, Inc.1,993,283 5,638 4,201 1,401 18 18 TX FVRT Five Area Telephone Cooperative, Inc.3,021,156 1,926 288 866 193 579 TX INDS Industry Telephone Company 2,102,230 2,310 1,596 533 90 91 TX RVRT Riviera Telephone Company, Inc. 361,692 334 59 180 23 72 VA NTEL NTELOS, Inc. 1,693,508 3,777 2,728 910 69 70 VT TDS Telephone and Data Systems, Inc. 263,655 1,013 756 252 2 3 WV OTLC Otelco Inc. 51,606 43 18 6 9 10 5