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FCC's Latest Broadband Cost Model for Rural Carrier USF Alters Boundary Lines

The FCC Wireline Bureau further revised its broadband cost model for rural telcos that could choose to rely on model-based USF support under possible revamping of rate-of-return carrier subsidy mechanisms (see 1510050062). The latest Alternative Connect America Cost Model (A-CAM…

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v2.0) incorporates various changes, including to rural carrier "study area" (service territory) boundary lines and node locations, based on updated data collection, said a public notice released Thursday. The bureau said because of the boundary line changes, "it will be difficult to draw meaningful comparisons" between results from ACAM v2.0 and prior versions, the most recent of which was released on Aug. 31 (see 1508310060). The model-based approach is one part of an overhaul envisioned by FCC Chairman Tom Wheeler, who recently said the reform effort was close to bearing fruit but could also still fall apart (see 1509210029).