Enhanced A-CAM to Provide $18.26 Billion Over 15 Years for Rural Broadband

Even as the states go forward to determine which areas will be eligible for Broadband Equity, Access, and Deployment (BEAD) funding for rural broadband services, the FCC has determined that 368 rural telephone companies will be eligible for a total of $18.26 billion through the universal service Enhanced Alternative Connect America Cost Model (Enhanced A-CAM).

“The authorizations specify support to the electing companies for a 15-year period beginning January 1, 2024, in exchange for these companies committing to deploy broadband service of at least 100/20 Mbps service to over 700,000 unserved locations across the United States, and maintain or improve existing 100/20 Mbps service to approximately 2 million locations,” the Commission said in a Public Notice.

The FCC adopted Enhanced A-CAM over this summer and opened a window for rural carriers to choose whether to enroll in the program. The Commission said this week that a total of 386 have agreed to participate. A top priority was to provide support for broadband networks that would not result in overbuilds or conflicts with the other broadband funding programs, especially BEAD funding.

With the authorization of Enhanced A-CAM funds, the FCC also provided information to help carriers and funding authorities to avoid any duplication. “This will allow states and other entities to review all of the information regarding deployment technologies provided by Enhanced A-CAM carriers,” according to the Public Notice. “To further aid coordination with other funding programs, we are adding Enhanced A-CAM carrier study areas to the Broadband Funding Map so that it will be clear which areas are included in this program.”