Companies Should Know Full Extent of A-CAM II Funding and Whether or Not A-CAM II Can Benefit Them

Legacy companies are quickly facing the critical June 17th deadline by which they must either elect A-CAM II or decide to remain on Legacy support. Companies whose annual amount of A-CAM II funding is less than their 2018 Legacy support claims should be aware that the FCC has yet to provide the full amount of support these carriers will receive if they elect A-CAM II. JSI has reached out informally to FCC Wireline Bureau staff urging them to release this vital information as soon as possible.

According to Report 15.1 of the offer, for some companies, the annual amount of A-CAM II support is less than their 2018 Legacy support claims. What is not shown, however, is the amount of Legacy support these companies will continue to receive for a period of time as they “glide” down to model support if they elect A-CAM II. When this Legacy “glidepath” support plus model support is compared with a 10-year projection of potential legacy support, some of these companies may find that A-CAM II is the right choice for them. Even for those who remain on Legacy, conducting such an analysis provides assurance that the company reviewed all relevant data before making this monumental decision.

While we await the official release of the glidepath data, JSI can provide your company with an estimate of this “glidepath” funding so that you can know the full amount of funding were you to elect A-CAM II. We can also provide you with a comparison of projected Legacy support over the 10-year period and discuss other factors with you which may impact future Legacy support, such as potential increases in support due to deployment of standalone broadband (also known as CBOL) or reduction in support due to competitive overlap.

JSI also will be hosting a webinar on June 4th covering the various implementation items for ACAM II electors such as HUBB reporting, changes to tariffs and the option to elect incentive regulation for business data services.

Please contact John Kuykendall or Steve Meltzer, both of whom can be reached at 301-459-7590, if you would like our assistance with the A-CAM II analysis, would like to know more about the webinar, or have any questions about the upcoming election.