§ 54.311   Connect America Fund Alternative-Connect America Cost Model
Support.

   (a) Voluntary election of model-based support. A rate-of-return carrier
   (as that term is defined in § 54.5) receiving support pursuant to
   subparts K or M of this part shall have the opportunity to voluntarily
   elect, on a state-level basis, to receive Connect America
   Fund-Alternative Connect America Cost Model (CAF-ACAM) support as
   calculated by the Alternative-Connect America Cost Model (A-CAM)
   adopted by the Commission in lieu of support calculated pursuant to
   subparts K or M of this part. Any rate-of-return carrier not electing
   support pursuant to this section shall continue to receive support
   calculated pursuant to those mechanisms as specified in Commission
   rules for high-cost support.

   (1) For the purposes of this section, “A-CAM I” refers to carriers
   initially authorized to receive CAF-ACAM support as of January 24,
   2017, including any carriers that later elected revised offers, except
   for carriers described in paragraph (a)(2) of this section. For such
   carriers, the first program year of CAF-ACAM is 2017.

   (2) For the purposes of this section, “Revised A-CAM I” refers to
   carriers initially authorized to receive CAF-ACAM support as of January
   24, 2017, and were subsequently authorized to receive CAF-ACAM pursuant
   to a revised offer after January 1, 2019. For such carriers, the first
   program year of CAF-ACAM is 2017.

   (3) For the purposes of this section, “A-CAM II” refers to carriers
   first authorized to receive A-CAM support after January 1, 2019. For
   such carriers, the first program year of CAF-ACAM is 2019.

   (b) Geographic areas eligible for support. CAF-ACAM model-based support
   will be made available for a specific number of locations in census
   blocks identified as eligible for each carrier by public notice. The
   eligible areas and number of locations for each state identified by the
   public notice shall not change during the term of support identified in
   paragraph (c) of this section.

   (c) Term of support. CAF-ACAM model-based support shall be provided to
   A-CAM I carriers for a term that extends until December 31, 2026, and
   to Revised A-CAM I and A-CAM II carriers for a term that extends until
   December 31, 2028.

   (d) Interim deployment milestones. Recipients of CAF-ACAM model-based
   support must meet the following interim milestones with respect to
   their deployment obligations set forth in § 54.308(a)(1)(i) of this
   subpart. Compliance shall be determined based on the total number of
   fully funded locations in a state. Carriers that complete deployment to
   at least 95 percent of the requisite number of locations will be deemed
   to be in compliance with their deployment obligations. The remaining
   locations that receive capped support are subject to the standard
   specified in § 54.308(a)(1)(ii).

   (1) A-CAM I and Revised A-CAM I carriers must complete deployment of
   10/1 Mbps service to a number of eligible locations equal to 40 percent
   of fully funded locations by the end of 2020, to 50 percent of fully
   funded locations by the end of 2021, to 60 percent of fully funded
   locations by the end of 2022, to 70 percent of fully funded locations
   by the end of 2023, to 80 percent of fully funded locations by the end
   of 2024, to 90 percent of fully funded locations by the end of 2025,
   and to 100 percent of fully funded locations by the end of 2026. By the
   end of 2026, A-CAM I carriers must complete deployment of broadband
   meeting a standard of at least 25 Mbps downstream/3 Mbps upstream to
   the requisite number of locations specified in § 54.308(a)(1)(i). For
   Revised A-CAM I carriers, the deployment milestones for 10/1 Mbps
   service described in this paragraph shall be based on the number of
   locations that were fully funded pursuant to authorizations made prior
   to January 1, 2019.

   (2) Revised A-CAM I and A-CAM II carriers must complete deployment of
   25/3 Mbps service to a number of eligible locations equal to 40 percent
   of locations required by § 54.308(a)(1) of this subpart by the end of
   2022, 50 percent of requisite locations by the end of 2023, 60 percent
   of requisite locations by the end of 2024, 70 percent of requisite
   location by the end of 2025, 80 percent of requisite locations by the
   end of 2026, 90 percent of requisite locations by the end of 2027, and
   100 percent of requisite locations by the end of 2028.

   (e) Transition to CAF-ACAM Support. An A-CAM I, Revised A-CAM I, or
   A-CAM II carrier whose final model-based support is less than the
   carrier's legacy rate-of-return support in its base year as defined in
   paragraph (e)(4) of this section, will transition as follows:

   (1) If the difference between a carrier's model-based support and its
   base year support, as determined by paragraph (e)(4) of this section,
   is ten percent or less, it will receive, in addition to model-based
   support, 50 percent of that difference in program year one, and then
   will receive model support in program years two through ten.

   (2) If the difference between a carrier's model-based support and its
   base year support, as determined in paragraph (e)(4) of this section,
   is 25 percent or less, but more than 10 percent, it will receive, in
   addition to model-based support, an additional transition payment for
   up to four years, and then will receive model support in program years
   five through ten. The transition payments will be phased-down 20
   percent per year, provided that each phase-down amount is at least five
   percent of the total base year support amount. If 20 percent of the
   difference between a carrier's model-based support and base year
   support is less than five percent of the total base year support
   amount, the transition payments will be phased-down five percent of the
   total base year support amount each year.

   (3) If the difference between a carrier's model-based support and its
   base year support, as determined in paragraph (e)(4) of this section,
   is more than 25 percent, it will receive, in addition to model-based
   support, an additional transition payment for up to nine years, and
   then will receive model support in year ten. The transition payments
   will be phased-down ten percent per year, provided that each phase-down
   amount is at least five percent of the total base year support amount.
   If ten percent of the difference between a carrier's model-based
   support and its base year support is less than five percent of the
   total base year support amount, the transition payments will be
   phased-down five percent of the total base year support amount each
   year.

   (4) The carrier's base year support for purposes of the calculation of
   transition payments is:

   (i) For A-CAM I and Revised A-CAM I carriers, the amount of high-cost
   loop support and interstate common line support disbursed to the
   carrier for 2015 without regard to prior period adjustments related to
   years other than 2015, as determined by the Administrator as of January
   31, 2016 and publicly announced prior to the election period for the
   voluntary path to the model; and

   (ii) For A-CAM II carriers, the amount of high-cost loop support and
   Connect America Fund—Broadband Loop Support disbursed to the carrier
   for 2018 without regard to prior period adjustments related to years
   other than 2018, as determined by the Administrator as of January 31,
   2019 and publicly announced prior to the election period for the
   voluntary path to the model.

    81 FR 24340 , Apr. 25, 2016, as amended at  82 FR 14339 , Mar. 20, 2017;
    84 FR 4731 , Feb. 19, 2019]

   Effective Date Note: At  81 FR 24340 . Apr. 25, 2016, § 54.311 was added.
   Paragraph (a) contains information collection and recordkeeping
   requirements and will not become effective until approval has been
   given by the Office of Management and Budget.

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