EA-CAM Adjustments

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In recent weeks there has been a significant amount of activity related to the EA-CAM program and specifically concerning filings by EA-CAM carriers seeking adjustments to their EA-CAM offers that were accepted in 2023. In the ICORE Blog editions dated August 19, 2024 and September 19, 2024 we discussed this issue in detail describing a filling made by Arvig Communications and Bevcomm claiming that their EA-CAM offers were understated due the incorrect designation of Midcontinent Communications (Midco) as an unsubsidized competitor in their service territories. The Companies allege that Midco does not offer the required voice service in their territories and therefore does not meet the definition of an unsubsidized competitor. In response to the filing by Arvig and Bevcomm the FCC issued a Public Notice seeking comment from interested parties. Comments were initially required to be filed by September 13, 2024 but in a subsequent Public Notice the comment deadline was extended to September, 27, 2024.

In addition to the aforementioned, we reported that separate comments were filed by multiple carriers seeking specific adjustments to their EA-CAM offers. These filings also claimed that their EA-CAM offers were understated due to the incorrect designation of Midco as an unsubsidized competitor in their service territories and also claimed that Midco does not offer the required voice service over its fixed wireless network in their service territories.

In recent weeks, three additional EA-CAM carriers have made filings with the FCC seeking adjustments to their EA-CAM support. These filings were made by Venture Communications, the Albany Mutual Telephone Association, and the Alliance Communications Cooperative. In each case, the Companies claim that the incorrect designation of Midco as an unsubsidized competitor resulted in reduced EA-CAM support. These filings also cited Midco’s lack of voice services in support of their claims that Midco does not meet the definition of an unsubsidized competitor.

In addition to the above and in response to the FCC’s Public Notice seeking comment on the Arvig/Bevcomm filing, on September 27, 2024 comments were filed by the Albany Mutual Telephone Association (AMTA) representing itself and other similarly situated providers, and NTCA. In its comments the AMTA suggested that the FCC should remove Midco’s designation as an unsubsidized competitor within their and Arvig/Bevcomm’s service territory where Midco only offers broadband service but does not also offer stand alone voice service. Similarly, NTCA supported Arvig/Bevcomm’s position that Midco does not meet the definition of an unsubsidized competitor because of its lack of a stand alone voice service and therefore Arvig and Bevcomm’s EA-CAM support should be adjusted accordingly. In addition, citing its September, 2023 PFR to the EA-CAM Order, NCTA again requested that the FCC clarify that only those carriers that offer voice and broadband service on a stand alone basis without leveraging high-cost USF support will qualify as an unsubsidized competitor.

We will continue to monitor these issues and will provide updates as the situation evolves.

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