Federal Communications Commission	DA 19-115



2
DA 19-115
Released:  February 25, 2019
WIRELINE COMPETITION BUREAU ANNOUNCES OFFERS OF REVISED A-CAM SUPPORT AMOUNTS AND DEPLOYMENT OBLIGATIONS TO AUTHORIZED A-CAM COMPANIES TO EXPAND RURAL BROADBAND
WC Docket No. 10-90
Consistent with the Commission’s December 2018 Rate-of-Return Reform Order, the Wireline Competition Bureau (Bureau) announces 262 revised offers of Alternative Connect America Cost Model (A-CAM) support and the associated revised deployment obligations. Connect America Fund et al., WC Docket Nos. 10-90 et al., Report and Order, Further Notice of Proposed Rulemaking, and Order on Reconsideration, FCC 18-176, at 6-11, paras. 14-30 (Dec. 13, 2018) (December 2018 Rate-of-Return Reform Order).
  The accompanying Report 14 released today shows the revised state-level offers of model-based support and revised deployment obligations for each carrier that has already been authorized by the Bureau to receive A-CAM, and is therefore eligible to elect a revised offer. The report is available at https://docs.fcc.gov/public/attachments/DOC-356316A1.xlsx.
  These carriers have until March 27, 2019, to notify the Bureau, on a state-by-state basis, whether they elect to receive the revised amount of model-based support. 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.

In the December 2018 Rate-of-Return Reform Order, the Commission directed the Bureau to offer additional support up to $200 per-location to all previously authorized carriers. December 2018 Rate-of-Return Reform Order, at 6-11, paras. 14-30.
  Under this revised offer, all locations with costs above $52.50 will be funded up to a per-location fund cap of $200.  The Commission also adopted additional obligations to provide 25/3 Mbps service and extended the term of the revised offer by two years. Id. The buildout obligations associated with the revised offer are in addition to the buildout obligations to which A-CAM carriers are subject pursuant to their prior elections.
  The Commission further directed the Bureau to release a public notice announcing the revised model-based support amounts and corresponding deployment obligations and to provide the carriers with 30 days to confirm that they are willing to accept the revised offer. Id. at 10-11, para. 30.

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 14 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 March 27, 2019 deadline, it will be deemed to have declined the revised offer and will continue to receive current support amounts and be subject to current deployment obligations.  Carriers submitting election letters will receive an e-mail confirming receipt and should contact the Bureau no later than 4 p.m. on March 27, 2019 if they do not receive such confirmation.  Confirmation of receipt does not constitute authorization to receive A-CAM support pursuant to the terms of the second revised offer.  Carriers electing the revised offer of 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.
Report 14.1 shows, for each holding company:
· The current authorized amount of state-level A-CAM support;
· The total number of fully funded locations pursuant to the current authorization, on which the interim milestones for the deployment of at least 10/1 Mbps service are based; Pursuant the current authorizations, carriers must meet interim deployment milestones of at least 10/1 Mbps service to a specified fraction of the number of fully funded locations.  47 CFR § 54.311(d).  Carriers will remain subject to these interim deployment milestones, even if they accept the revised offer.  December 2018 Rate-of-Return Reform Order, at 10, para. 29.

· The number of locations to which the carrier must deploy 25/3 Mbps, 10/1 Mbps, and 4/1 Mbps by the end of the 10-year term of the current authorization, as well as the number of locations to which the carrier must provide 4/1 Mbps service upon reasonable request;
· The revised amount of state-level A-CAM support pursuant to the revised offer;
· The total number of funded locations pursuant to the revised offer;
· The total number of eligible locations to which the carrier must deploy 25/3 Mbps service by the end of the revised 10-year term of the revised offer, and on which the interim milestones for the deployment of 25/3 Mbps service are based; 
· The number of locations to which the carrier must deploy 10/1 Mbps and 4/1 Mbps service by the end of the 10-year term of the revised offer, and the number of locations to which the carrier must deploy 4/1 Mbps service upon reasonable request.
In addition, Report 14.2 shows, for clarification purposes, the number of locations to which a carrier must provide service in order to meet interim deployment milestones pursuant to the current authorizations and the revised offers.  Pursuant to the current authorizations, a carrier must provide at least 10/1 Mbps service or faster to a number of eligible locations equal to 40 percent of fully funded locations by 2020, and an additional 10 percent of fully funded locations each year until 2026.  Pursuant to the revised offer, an electing carrier must provide 25/3 Mbps or faster service to 40 percent of its required 25/3 Mbps locations by 2022, and an additional 10 percent each year until 2028.  A company electing the revised offer must separately meet each set of milestones, but any location served with at least 25/3 Mbps service would satisfy both milestones.  For example, a carrier that must deploy 25/3 Mbps service to 100 locations by 2022 pursuant to the revised offer would be able to count those locations toward the milestones for the current authorization because, by definition, any location with 25 Mbps service has service of at least 10/1 Mbps.
For additional information on this proceeding, contact Ted Burmeister (Theodore.Burmeister@fcc.gov) of the Wireline Competition Bureau, Telecommunications Access Policy Division, (202) 418-7400.
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