TDS will use $60M in federal support to upgrade service in Maine

TDS Telecommunications is preparing to boost internet speeds across its entire Maine service footprint after opting in for Enhanced Alternative Connect America Cost Model (E-ACAM) support last month.

About $60 million in E-ACAM dollars will support Maine upgrades, with TDS providing additional funding for all service addresses not covered under the program, a spokesperson told Fierce. The Wisconsin-based operator provides service to over 30 communities in the state.

The Federal Communications Commission’s (FCC) E-ACAM program, which was enhanced to provide additional funding for rural broadband, requires operators to provide at least 100 Mbps download speeds and 20 Mbps upload speeds to consumers who currently lack that service.

The spokesperson said TDS currently offers a “range of speeds in Maine depending on location,” but through the E-ACAM program expects “many customers will have service well over 100/20 Mbps and be able to access multi-gig speeds.”

TDS has been tapped into the A-CAM program since its launch in 2016 as part of the FCC’s High Cost fund, which subsidizes broadband deployments in high-cost rural areas. In September, TDS elected to receive extended support from the program.

The FCC this summer adopted the A-CAM extension (or E-ACAM), raising the speed requirement from 25 Mbps downstream and 3 Mbps upstream to 100/20 Mbps for participating ISPs. The Commission is also extending program support by an additional 10 years – through 2038.

TDS was approved for $90 million per year in enhanced A-CAM support for 24 states – all but one of the states, Ohio, where it offers wireline services. The E-ACAM program requires upgrades to be completed by the end of 2028, with 50% of addresses 100/20 Mbps capable by the end of 2026, and 75% by the end of 2027.

Earlier this year, TDS CFO Michelle Brukwicki said the extended A-CAM support would allow the operator to get fiber to “almost all” of its 160,000 A-CAM addresses.

TDS has already been working to expand its fiber footprint in several Maine communities without the help of A-CAM. Last month it announced completed fiber builds in Athens, Embden Lake, Etna, Harmony, Weld, West Ripley, Hampden, Hartland, and Warren. Construction has also started in the state’s Somerset and Franklin counties.

The operator is funding upgrades to the roughly 40% of its service addresses nationwide that do not receive federal support, according to the TDS spokesperson.

As a participant in the federal Affordable Connectivity Program (ACP), TDS offers symmetrical speeds up to 200 Mbps at no cost for eligible subscribers.