FCC Releases Latest Version of Model for RLECs that Voluntarily Elect Model Support

On Friday, March 6, the FCC’s Wireline Competition Bureau issued a Public Notice announcing the latest version of its Alternative Connect America Cost Model (A-CAM). The A-CAM is a forward-looking cost model designed to calculate the cost of deploying a fiber-to-the-home network and distribute support based on a fixed budget. The FCC eventually wants to refine the A-CAM and use it for carriers that voluntarily elect to transition to a model-based support program.

As part of the Public Notice, the FCC released seven illustrative scenarios showing model results for each rate-of-return study area. The scenarios were developed using different assumptions in the model. These scenarios should be viewed with extreme caution, as many critical inputs have not been corrected for known errors. Further, these results are in no way reflective of what may ultimately occur with the A-CAM for carriers that voluntarily elect model-based support, nor does it reflect what the A-CAM might become if it were to be used for all rate-of-return carriers in the future.

If you have any questions regarding the A-CAM or would like to discuss the illustrative scenarios for your company, please contact Ryan Denzel in JSI’s Minnesota office at 651-452-2660.

Source: Source email