High Cost: CAF BLS and HCLS / A-CAM, Revised A-CAM, A-CAM II

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In the May 21, 2026 edition of the ICORE Blog we reported that at its May 20, 2026 Open Meeting, the Commission adopted a Notice of Proposed Rulemaking (NPRM) seeking comments regarding updating the FCC’s High-Cost Program. Comments were sought on updating the legacy High-Cost mechanisms, namely, Connect America Broadband Loop Support (CAF BLS) and High-Cost Loop Support (HCLS). In addition, the NPRM requested comments on what steps, if any, should be taken regarding the sunsetting Alternative Connect America Cost Model (A-CAM), including ACAM I, Revised ACAM I, and ACAM II. The NPRM did not seek comment on the Enhanced A-CAM (EA-CAM) program. Regarding the A-CAM I program, the NPRM specifically sought comments regarding a short-term extension of the A-CAM I program through the end of 2028 to align the terms of the three sunsetting A-CAM programs.

 

In the August 19, 2026 edition of the ICORE Blog we reported that comments were filed in this proceeding. ICORE filed comments in this proceeding and proposed that as an initial step, the FCC should adopt a short-term extension of the A-CAM I program through the end of 2028. ICORE’s comments also recommended the development of a new, long term voluntary support mechanism, EA-CAM II, which would be offered to all legacy rate of return and A-CAM carriers. Numerous parties filed comments in this proceeding, many advocating for a short-term extension of A-CAM I as well as longer-term solutions.

 

On October 29, 2026, the FCC announced a tentative agenda for its November 19, 2026 Open Meeting. The agenda includes a Report and Order (R&O) that would adopt a limited two-year extension of A-CAM I support through December 31, 2028. The agenda states that A-CAM I currently provides predictable, model-based support to rural carriers in exchange for defined broadband deployment obligations. Further, the agenda states that adopting this extension would prevent a loss of support for nine carriers while the Commission considers broader reforms to its high-cost support mechanisms. The R&O would align the A-CAM I support term end-date with the end-dates for Revised A-CAM I and A-CAM II. A-CAM I recipients would be required to continue to maintain voice and broadband service and serve additional locations upon reasonable request during the extension period. We hope that the Commission adopts this R&O and also addresses, on a timely basis, the longer-term solutions recommended by ICORE and other industry advocates to ensure the sustainability of the USF.

 

In a related matter, representatives of the ACAM Broadband Coalition recently met with the FCC to discuss the Coalition’s request for a one-year extension of the EA-CAM program’s final deployment milestone which is currently year-end 2028. The Coalition addressed the EA-CAM Order’s mandate that the Commission determine if a one-year extension is warranted to account for possible unforeseen circumstances that have occurred since the date by which carriers had to elect to participate in the EA-CAM program. Regarding unforeseen circumstances, the Coalition addressed the decreasing availability and escalating price of fiber and described Coalition members’ increasing problems obtaining fiber in a timely manner. The Coalition stated that fiber scarcity is expected to continue due to investment in AI data centers and the fact that deployment under the BEAD program is just ramping up. In addition, the Coalition discussed how the process for obtaining state and local permits is becoming increasingly more time-consuming and expensive for EA-CAM carriers. The Coalition is seeking a one-year extension of the final deployment milestone due to these unanticipated and unforeseeable circumstances that are impacting many EA-CAM carriers’ ability to meet the 2028 deployment timetable. We believe that a one-year extension is warranted and hope that the Commission acts expeditiously and grants the requested one-year extension.

 

We will continue to monitor these issues and will provide updates as more information becomes available.

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