Rural communities will have access to increased government subsidies for the development of 5G mobile wireless broadband services after the reignition of the Federal Communications Commission’s (FCC) 5G Fund for Rural America.
The fund’s first phase will distribute up to $9 billion to rural communities “unlikely to otherwise see unsubsidized deployment of 5G-capable networks” according to an Aug. 29 announcement. A multi-round reverse auction will be used for targeted distribution – the expected start date for which will later be announced by public notice, according to the FCC.
“With the progress we’ve made in mapping broadband service availability, there is no reason to wait to put the 5G Fund to work connecting households and businesses in rural communities across the country,” said Jessica Rosenworcel, chair of the FCC. “We are ready to use every tool available to make sure that those who live, work, and travel in rural America have access to advanced, 5G mobile wireless broadband services.”
The fund, first announced in 2020, was proposed to ensure rural areas wouldn’t face 5G delays, with government subsidies – using repurposed funding from the failed Mobility Fund II program – supporting deployment. It faced delays so that the FCC could create more accurate broadband maps on which to base funding awards, resulting in the establishment of a task force in 2021 to support data gathering and mapping efforts.
According to the FCC, the new rules include raising the first phase’s initially proposed $8 billion in funding to $9 billion with proportional increases for the Tribal reserve budget – a portion of the fund designated to help connect Tribal communities – which was originally $680 million.
Puerto Rico and the U.S. Virgin Islands are also now eligible to receive funding according to updated rules.
Mobile coverage data pulled from the FCC’s broadband data collection including the FCC’s mobile speed test app and the National Broadband Map will be used for the auction.
Open Radio Access Network (Open RAN) technology is also receiving funding to promote its deployment through an additional $900 million in incentives for the incorporation of Open RAN in networks supported by the fund.
The latest announcement also now requires that 5G Fund recipients implement cybersecurity and supply chain risk management plans.
