The Federal communications commission (FCC) released a Report and Order on July 24, 2023, that adopts a voluntary Enhanced Alternative Connect America Cost Model (A-CAM) support program.
The program aims to promote widespread deployment of 100/20 megabits per second (Mbps) broadband across areas served by rate-of-return incumbent local exchange carriers (ILECs).
Explore key highlights of the order below.
Overview
Deployment milestones under the Enhanced A-CAM program are designed to align with the Broadband Equity, Access, and Deployment (BEAD) program, requiring participating carriers to deploy at least 100/20 Mbps service to all required locations within their service areas by the end of 2028.
The order adopts a budget for the Enhanced A-CAM support offers of either no more than:
- $1.27 billion annually
- $1.33 billion annually if certain conditions are met
The program has a 15-year support term, beginning Jan. 1, 2024, and ending Dec. 31, 2038.
Enhanced A-CAM support offers will be extended to all current A-CAM support recipients and all current rate-of-return carriers eligible to receive legacy support.
Carriers will be required to make their elections by no later than Oct. 1, 2023.
Notice of proposed rulemaking (NPRM) and notice of inquiry (NOI)
The FCC also released an NPRM and an NOI.
The NPRM seeks comment on how to amend legacy rate-of-return support mechanisms in the near term to align them with the current broadband deployment and support environment.
The NOI takes a longer-term view and seeks to build a record on methods for modifying the Universal Service Fund (USF) high-cost program to promote affordable and available broadband services.


