FCC Subsidies for Rural broadband Internet Access

FCC Subsidies for Rural broadband Internet Access

There are several programs and subsidies offered by the Federal Communications Commission (FCC ) to help improve rural broadband access. These include:
​
Enhanced ACAM
The Enhanced Alternative Connect America Cost Model was established by the Federal Communications Commission (FCC) in 2023 and it provides additional support to rural telephone companies (rate-of-return carriers) to facilitate the deployment of broadband services in underserved areas.
Eligibility:
Only certain rate-of-return carriers that elect to receive A-CAM support instead of legacy support mechanisms are eligible.

Other requirements include;
  • 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.
  • 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 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).
  • 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.
  • Deployment milestones: 
    • 50 percent of 100/20 Mbps deployments by December 31, 2026
    • 75 percent of 100/20 Mbps deployments by December 31, 2027
    • 100 percent of 100/20 Mbps deployments by December 31, 2028
 Rural Health Care Program (RHCP)
The Rural Digital Opportunity Fund (RDOF) is an FCC initiative aimed at bridging the digital divide by funding the deployment of high-speed broadband in rural areas that currently lack sufficient internet access. The auction phase for RDOF ended Nov. 25, 2020.

 E-Rate - Schools & Libraries USF Program
The Schools and Libraries Universal Service Support Program is an FCC initiative aimed at providing affordable telecommunications and internet access to schools and libraries. The Objective is to ensure that schools and libraries have access to affordable broadband and telecommunications services, thereby facilitating digital learning and public access to information.
 Eligible Entities are:
  1. K-12 public and private schools.
  2. Public libraries and library systems.

Subsidies range from 20% to 90% based on the level of poverty and the urban/rural status of the population served. 

 Connect America Fund (CAF)
The Connect America Fund (CAF) the provides funding in support of deployment of broadband services in rural, underserved areas. The CAF has the CAF Phase II Model aimed at expanding high-speed internet access to underserved rural areas in the United States. The purpose is to provide financial support to telecommunications providers to expand broadband infrastructure in high-cost rural areas that lack sufficient internet service.

 Requirements:

  • The area should be a high-cost rural area that does not have broadband speeds of at least 10 Mbps download and 1 Mbps upload.
Eligible providers should be Telecommunications providers, including incumbent local exchange carriers (ILECs) and other providers that commit to meeting service obligations.
  
Alternative Connect America Cost Model (ACAM)
The Alternative Connect America Cost Model (ACAM) is an FCC initiative designed to support broadband deployment in rural areas served by rate-of-return carriers. The purpose of this program is to provide financial support to rate-of-return carriers to deploy and maintain broadband services in high-cost rural areas, thereby improving internet access for residents in these areas. Eligible providers are rate-of-return carriers, which are smaller, rural telecommunications companies regulated based on their actual costs of providing service.
The Regulatory Obligations are:
  • Providers must offer stand-alone voice services in addition to broadband.
  • Rates for broadband and voice services must be reasonably comparable to urban rates.
  • Providers must adhere to consumer protection regulations and ensure high-quality service delivery.

i)                

The Rural Health Care Program (RHCP), overseen by the Federal Communications Commission (FCC), aims to improve healthcare access for rural communities by subsidizing telecommunications and broadband services.

The Eligible Entities are:

  1. Rural healthcare providers, including hospitals, clinics, and consortia of healthcare providers serving rural areas. RHCP provides subsidies that offset a portion of the costs incurred by healthcare providers for eligible services and infrastructure. Funding is typically provided through a discount mechanism based on the urban/rural rate difference. 

Other Programs:
 Lifeline Program

The Lifeline program provides a discount on phone and internet service for low-income households.

 Requirements:

  • Participants must have an income at or below 135% of the federal poverty guidelines or participate in certain federal assistance programs (e.g., Medicaid, SNAP). 
  • Service providers must offer broadband at speeds of at least 25 Mbps downstream and 3 Mbps upstream.at 3G speeds or higher
  • Providers must certify the eligibility of subscribers.

  Emergency Broadband Benefit (EBB)

 The EBB was established to help households struggling to afford internet service during the COVID-19 pandemic. It has been replaced by the Affordable Connectivity Program (ACP).

 Requirements:
  • Households must have an income at or below 200% of the federal poverty guidelines or participate in certain assistance programs (e.g., SNAP, Medicaid).
  • Eligible households receive a discount of up to $30 per month on broadband service, and up to $75 per month for households on qualifying Tribal lands.
  • Providers must verify household eligibility.
For more information, contact an Rfwel Signal Improvement and Coverage Enhancement team and for legal/regulatory questions on these programs, there are several wireless telecom firms (such as Kama Thuo, PLLC) that can be of help. 

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