The US Federal Communications Commission has approved plans for a new 5G Fund for Rural America, with up to USD 9 billion in subsidies available to boost 5G coverage in outlying areas. However, the fund will not be available immediately, as the FCC decided to first improve how it collects broadband map data on unserved areas.
The FCC first announced plans for the fund at the end of 2019. At the same time it admitted the data supplied by operators on broadband coverage was flawed, and the regulator started a programme to develop new maps. It will wait until this new method is in place before it awards the new subsidies.
FCC chairman Ajit Pai acknowledged that this means the auction will be delayed, but noted that most public comments supported first improving the coverage data. Furthermore, the regulator has ordered carriers receiving legacy support for rural broadband to start devoting a greater share of this to 5G coverage from next year.
The latest decision otherwise confirms the plan to award the subsidies in reverse auctions in two phases. Phase I of the 5G Fund will target up to USD 8 billion of support nationwide to areas lacking unsubsidized LTE or 5G mobile broadband, with USD 680 million specifically set aside for serving Tribal lands. Phase II will provide at least an additional USD 1 billion, along with any unawarded funds from Phase I, to specifically target the use of 5G networks in agriculture.
The auction will account for T-Mobile’s commitment as part of the Sprint merger to cover 90 percent of rural Americans with its 5G network within six years, making sure not to overlap with these areas. It will also employ an adjustment factor to ensure that the hardest-to-serve areas, such as those with rugged terrain or sparse populations, can compete in the auction.
The winning bidders will be required to deploy networks providing 5G mobile broadband at speeds of a least 35/3 Mbps. Coverage must be completed within six years of receiving the funding, with a three-year milestone target.
New TV White Space rules for rural areas
In another decision at its October meeting, the FCC approved new rules on access to the so-called TV White Spaces spectrum for unlicensed wireless broadband. This is expected to facilitate more rural ISPs using these frequencies, while protecting broadcasters in adjacent spectrum from interference. The new rules increase the maximum permissible power and antenna height for fixed white space devices operating in “less congested” areas (generally rural and unserved areas) in the TV bands.
