On August 14, 2024, the FCC’s Wireline Competition Bureau issued a Public Notice seeking comment on a filing made by Arvig Enterprises and Bevcomm claiming that their EA-CAM support amounts were incorrectly understated due to the classification of Midcontinent Communications as an unsubsidized competitor offering voice and broadband services in their service territories. The filing by Arvig and Bevcomm was made on July 12, 2024 consistent with the FCC’s August 30, 2024 Public Notice announcement of EA-CAM support offers and corresponding deployment obligations. In the August 30, 2024 Public Notice, the FCC specifically invited comments from interested parties that may have concerns regarding the assignment of locations as being served by unsubsidized competitors and their provision of voice services.
In its filing Arvig states that it, began operations as an RLEC in Minnesota and today is one the largest independent telecommunications companies in the country. In the July, 12.2024 filing, Arvig estimates that its EA-CAM offer was reduced by 1,765 locations and its annual EA-CAM support was reduced by approximately $1.3M due to the incorrect presumption that Midco offers voice and broadband services to those locations. Bevcomm is a brand name for Rural Communications Holding Corporation which owns and operates eight RLECs operating in Wisconsin and Minnesota. Bevcomm estimates that its EA-CAM offer was reduced by 1,753 locations and its EA-CAM support was reduced by approximately $1.5M due to the incorrect presumption that Midco offers voice and broadband services to those locations. Arvig and Bevcomm assert in their filing that they have conducted extensive research and have concluded that Midco does not offer the required voice service anywhere where Midco offers broadband services in the Companies’ service areas over its fixed wireless network and as such does not meet the definition of an unsubsidized competitor. Comments on the July 12, 2024 filing by Arvig and Bevcomm are due by September 13, 2024.
In a related and very similar matter, Midco was the subject of ex-parte discussions at the FCC by interested parties last month related to its designation as an unsubsidized competitor. Representatives of Interstate Telecommunications Coop., Red River Communications, Arvig, Bevcomm, and Vantage Point Solutions met with FCC staff regarding the designation of Midco as an unsubsidized competitor in multiple states. The representatives said they have identified approximately 8500 locations across three states that were incorrectly designated as served by an unsubsidized competitor (Midco) resulting in the reduction or elimination of EA-CAM support for their RLEC companies. They assert that Midco was incorrectly designated as an unsubsidized competitor for these locations because Midco’s provision of service is supported by CAF Phase II support and Midco does not provide required voice services to these locations.
We will continue to monitor these issues and will provide updates as more information becomes available.
