Market Exclusive shared some wonky but interesting info on New Ulm Telecom. First the easy part, they are changing their name…
On May 24, 2018, the Company announced that it is changing its name to Nuvera Communications, Inc. The Company expects the name change to be effective on June 4, 2018.
Also they are going to be getting more A-CAM money than originally planned – they will be getting $7.6 million a year in Minnesota. (A-CAM is federal funding for Rate of Return carriers; it is akin to the CAF 2 funding for Price Cap carriers.)…
In its Form 10-Q for the quarter ended September 30, 2016, New Ulm Telecom, Inc. (the “Company”) disclosed that it had elected the Alternative Connect America Cost Model (“A-CAM”) support for its Minnesota and Iowa operations, replacing its former interstate common line support. The new A-CAM funding model became effective for the Company on January 1, 2017. Under the A-CAM program, the Company is entitled to receive A-CAM support payments for ten years in exchange for meeting defined broadband build-out requirements. At the time of the Company’s election, the Federal Communications Commission (“FCC”) had not yet determined the final award numbers.
Consistent with its Form 10-Q disclosure, the Company notified the FCC that it would participate in the A-CAM program. Under the Report that accompanied the FCC December 20, 2016 Public Notice, the Company was entitled to receive annually (i) $391,896 for its Iowa operations and (ii) $6,118,567 for its Minnesota operations. The Company will use the annual $6.5 million that it receives through the A-CAM program to meet its defined broadband build-out obligations.
On May 7, 2018, the FCC issued Public Notice DA 18-465, which contained revised offers of Alternative Connect America Cost Model (A-CAM) support and associated revised service deployment obligations.
On May 23, 2018, the Company’s Board of Directors authorized and directed the company to accept the FCC’s revised offer of A-CAM support and the revised associated service deployment obligations. Under the revised FCC offer Notice, the Company will be entitled to annually receive (i) $489,870 for its Iowa operations, which is a $97,974 increase per year and (ii) $7,648,208 for its Minnesota operations, which is a $1,529,641 increase per year. The Company will use the additional support that it receives through the A-CAM program to continue to meet its defined broadband build-out obligations. A letter of acceptance to elect the revised A-CAM support offer must be filed with the FCC by June 21, 2018. The revised A-CAM support offer payments are expected to begin in the third quarter of 2018.