According to recent information from NTCA, both those ILECs choosing the FCC’s A-CAM model, as well as those staying on traditional support, will experience reductions in their high cost settlements. Even with the addition of $150 million to A-CAM, the 216 electing carriers will still receive a total of $160 million less than the promised level of model support.
The good news is that any ILEC choosing A-CAM should now be able to opt out, if the FCC honors its commitment included in the plan. The bad news is that those small ILECs remaining on legacy support are facing, on average, a 9% reduction in their support in the first half of 2017, which equates to another $100 million in lost revenue. Thus, if your company has opted in to A-CAM, opting out may, or may not, be to your benefit.
ICORE stands ready to review your situation and help with your decision.
