Enhanced ACAM

The Enhanced Alternative Connect America Cost Model (Enhanced ACAM) program will distribute roughly $18.28 billion over 15 years to carriers to deploy broadband service with speeds of at least 100 megabits per second downstream and 20 megabits per second upstream (100/20 Mbps) to more than 700,000 locations, and to improve or maintain 100/20 Mbps broadband service at approximately 2 million locations, in 44 states.

Established by the Federal Communications Commission (FCC) in 2023, Enhanced ACAM provides additional support to carriers that were participating in other Connect America Fund (CAF) programs to bring faster broadband to more locations, including locations in some of the most difficult-to-reach areas of the country.

Monthly Enhanced ACAM payments, which begin in 2024 and include transitional support for CAF BLS carriers, will total between $1.27 billion and $1.33 billion annually. Enhanced ACAM carriers have until Dec. 31, 2028, to complete deployment.

Please see the Rate-of-Return Reform webpage for more information about FCC orders targeting rate of return carriers.

Enhanced ACAM Program Requirements

Cybersecurity and Supply Chain Risk Management Plans

Enhanced ACAM carriers must implement operational cybersecurity and supply chain risk management plans by the start of the Enhanced ACAM support term on Jan. 1, 2024, and must file and certify those plans with USAC no later than Feb. 12, 2024. (See FCC DA 24-29). USAC will withhold 25 percent of monthly support from any carrier that fails to submit and certify its plans by the Feb. 12, 2024, deadline until the carrier comes into compliance with the rule.

This mandate requires Enhanced ACAM carriers to implement and submit to USAC:

Enhanced ACAM carriers must submit updated operational cybersecurity and supply chain risk management plans to USAC within 30 days if they make substantive modifications to their plans, such as a change in scope, risk mitigation strategies or organizational structure, and must certify in their annual Form 481 filings that they have maintained their plans and submitted any modifications.

USAC will withhold 25 percent of monthly support from any carrier that does not have plans that meet the FCC requirements in place at any point during the Enhanced ACAM support term until the carrier comes into compliance.

Participation in the Affordable Connectivity Program

Enhanced ACAM carriers must participate in the Affordable Connectivity Program (ACP), a federal benefit program that provides a monthly discount on Internet service for qualifying households, as a condition of receiving support and must certify annual compliance with this mandate through the FCC Form 481 filing. ACP, which is administered by USAC, provides a discount of up to $30 a month on Internet service for eligible households (and up to $75 a month for households on qualifying Tribal lands), as well as a one-time discount of up to $100 to purchase a laptop, desktop computer or tablet from participating providers. Enhanced ACAM carriers that elect not to participate in ACP, or that cease to participate, will be in default of their Enhanced ACAM program obligations. (See paragraphs 55-58 in FCC 23-60)

Tribal Government Engagement

Enhanced ACAM carriers must be prepared to serve all locations in their study areas, including locations on Tribal lands, and must act in good faith to provide Tribal governments that have jurisdiction over those lands with the opportunity to consent to network deployment. Enhanced ACAM carriers must also engage with Tribal governments annually on issues including compliance with local rights of way, land use permitting facilities siting, environmental and cultural preservation review processes and Tribal business and licensing requirements that must be met to deploy broadband.

Federal Funding Coordination Requirements

In order to avoid duplicative federal subsidies for the same networks, Enhanced ACAM carriers must coordinate with state broadband offices, Tribal governments and any other relevant entities to determine the eligibility of locations for support under other federal broadband funding programs (and related processes). This includes the Broadband Equity, Access and Deployment (BEAD) program, a Commerce Department program that will invest $42.45 billion in network infrastructure and broadband deployment across the U.S. (See DA 23-1115).

Specifically, Enhanced ACAM carriers must:

Deployment Requirements

Enhanced ACAM carriers must offer at least one commercial voice service and one commercial broadband service with speeds of at least 100/20 Mbps and latency of 100 milliseconds or less, and must meet the following broadband deployment milestones:

With the start of the Enhanced ACAM support term in 2024, Enhanced ACAM interim and final deployment milestones replace existing ACAM, Revised ACAM and ACAM II deployment milestones for carriers transitioning to the new fund. Carriers must meet the 2023 deployment milestones of their previous funds.

Annual Filing Requirements

Carriers receiving Enhanced ACAM support must comply with the following filing and certification requirements annually:

Related Orders