Alternative Connect America Cost Model

Federal Communications Commission, Universal Service Administrative Company

Program Type:

Subsidy

Eligible Geography:

Nationwide

Summary:

The Alternative Connect America Cost Model (ACAM) provides funding to rate-of-return carriers that voluntarily elected to transition to a new cost model for calculating High Cost support in exchange for meeting defined broadband build-out obligations. CAM models the forward-looking economic costs of deploying a high-speed network and delivering broadband service. Carriers that elected this option receive predictable monthly payments to provide voice and broadband service to all funded locations over the program’s 10-year support term (2017-2026).

Eligible Recipients:

Internet Service Provider

Eligible Recipients Detail:

Rate of Return Carrier; Internet Service Provider

Eligible Purpose:

Last Mile Connectivity

Eligible Purpose Detail:

Carriers must offer at least one commercial voice and one commercial broadband service that meet the relevant service requirements, and must meet the following broadband deployment milestones:

-40% of deployments at 10/1 Mbps service by the end of Year 4 (2020)
-50% of deployments at 10/1 Mbps service by the end of Year 5 (2021)
-60% of deployments at 10/1 Mbps service by the end of Year 6 (2022)
-70% of deployments at 10/1 Mbps service by the end of Year 7 (2023)
-80% of deployments at 10/1 Mbps service by the end of Year 8 (2024)
-90% of deployments at 10/1 Mbps service by the end of Year 9 (2025)
-100% of deployments at 10/1 Mbps service and obligations to deploy 25/3 Mbps and 4/1 Mbps by the end of Year 10 (2026)

Note/Additional Resources:

See Revised ACAM -https://www.usac.org/high-cost/funds/revised-acam/