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Former AHCF administrator says Arkansas high‑cost fund remains vital to rural broadband deployment
Summary
Larry Frazier, representing the Arkansas Rural Broadband Association, told joint committees the Arkansas High Cost Fund (AHCF) helps small telcos secure loans and deploy fiber in rural areas, but statutory caps and mapping gaps limit coverage; lawmakers pressed for clearer data on who gets funding and where.
Larry Frazier, vice president of the Arkansas Rural Broadband Association and former administrator of the state—s high‑cost fund, told the joint Advanced Communication/Information Technology and Insurance & Commerce committees that the Arkansas High Cost Fund has been essential to rural broadband deployment but that the program faces limits and transparency challenges.
Frazier said the fund, historically a mechanism to mirror federal universal service support, now focuses on broadband deployment in high‑cost areas. "We couldn't do that unless we had the Arkansas high cost fund," he told the panel, describing how small carriers used state and federal support to secure long‑term loans for fiber projects.
The chair noted roughly $40 million a year flows through AHCF to broadband support. Frazier put that figure at about $39.8 million annually, and said the three largest recipients — AT&T, Windstream and CenturyLink — receive about $11 million of that total, leaving roughly $28 million for smaller rural companies. He pointed committee members to public records at the Public Service Commission and USAC for company‑level detail and location counts.
Lawmakers pressed on outcomes and accountability. Several members said FCC maps often overstate coverage in practice and asked how many households are being reached for the money spent. Frazier said company reports and the Universal Service Administrative Company—s HUB provide location counts, but acknowledged the FCC—s public maps can be misleading at the household level. “If you look at this map, I think that map shows the amount of support that the rural companies can get and I can tell you that, because of the Arkansas high cost fund, it's allowed companies to go out there and invest,” he said.
Committee members also asked about the transition to federal CAF (Connect America Fund) mechanisms and the FCC—s upcoming Rural Digital Opportunity Fund (often called CAF‑3), which Frazier said could bring substantial federal awards via reverse auctions and spur additional deployment in the next one to two years.
Frazier described the AHCF administrative process: carriers file audited cost data to NECA/USAC, the AHCF administrator calculates annual determinations that are published for a 30‑day objections period, and companies may contest those determinations. He said the administrator role is a contracted, rotating function that is rebid periodically.
Lawmakers asked for better, more up‑to‑date maps and for breakdowns that separate coverage funded by large price‑cap carriers from smaller rural telcos. Multiple members said they want the committee to obtain and distribute more precise maps and CAF‑2/CAF‑3 award detail to track whether federal and state dollars are reaching the most remote households.
Next steps: Frazier offered to provide carriers— location reports and to connect legislators with federal contacts about CAF‑3 rules. The committee did not take formal action on the briefing itself.
