More ISPs Say Midco Misclassification Cost Them Subsidy Support

WASHINGTON, Sept. 26, 2024 – Seven more broadband providers are telling regulators they received less subsidy money than they should have because one midwest provider was misclassified.

The Federal Communications Commission’s Enhanced ACAM program subsidizes the construction and maintenance of rural broadband through the agency’s Universal Service Fund, to the tune of $18 billion over the next 15 years. It offered participants less annual support for locations in their service area that are already served by an unsubsidized competitor.

The companies say fixed wireless provider Midcontinent Communications, or Midco, was classified as an “unsubsidized competitor” when it shouldn’t have been. They say they lost out on a total of more than $800,000 in annual support between them for 1,782 locations Midco serves.