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Blog // Connect Ohio

FCC CAF Offer to Ohio Incumbent Local Exchange Carriers

By Tom Koutsky

In a public notice from the Federal Communications Commission (FCC), the final version of the Alternative Connect America Cost Model (A-CAM) was released. The FCC has offered 19 small, rural Ohio local telephone companies, including Horizon and TDS, $55 million in subsidies over 10 years to upgrade their broadband networks. This next phase of the Connect America Fund targets over 7,000 home and business locations in areas served by these rural companies that do not have 10 Mbps download/1 Mbps upload broadband service available today. The FCC’s offer would replace subsidies these companies receive to provide voice-grade service. The telephone companies have until November 1, 2016, to decide whether to accept or reject the offer.

Earlier Connect America Fund phases have focused on parts of Ohio served by Frontier, CenturyLink, FairPoint, Cincinnati Bell, Windstream, and AT&T. That phase of the program is now providing $58 million per year in subsidies over the next 6 years to support broadband networks that cover over 166,000 homes and businesses in Ohio.

More information on the FCC’s alternative subsidy offer can be found here.


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