FCC moves to relaunch $9 billion fund to expand 5G in rural America

Following a years-long delay, the Federal Communications Commission is ready to restart plans to spend $9 billion to expand 5G connectivity in rural America.

FCC Chair Jessica Rosenworcel today called on the commission to vote on revised rules to distribute the $9 billion. If adopted at a future meeting, the rules would essentially “relaunch” the 5G Fund for Rural America, which the FCC originally established in 2020. But the agency decided to delay the program, citing the need to update its official broadband maps, which can determine what areas lack access to high-speed cell and internet services.

The FCC has since revised those maps, which now show that “over 14 million homes and businesses lack mobile 5G coverage,” the commission said today. Specifically, these areas are failing to receive cellular speeds of at least 7Mbps in downloads and at least 1Mbps in uploads if the user is inside a vehicle. That’s an extremely low bar considering 5G networks usually deliver closer to 200Mbps when coverage is strong.

“For the first time in our history of supporting wireless networks through the universal service system, this agency has comprehensive data about where service is and is not all across the country,” Rosenworcel added.

The plan is to distribute the $9 billion to rural areas that otherwise wouldn’t receive unsubsidized 5G connectivity. Telecommunication companies will be able to bid through multi-round reverse auctions. Of that, $900 million will be used to incentivize the winning bidders to deploy Open RAN technology on the resulting networks.

The FCC adds: “To ensure that the Phase I auction reflects the most accurate data possible regarding areas in need of 5G service, parties are encouraged to promptly file challenges through the Broadband Data Collection mechanism where appropriate.”

The full text of the revised rules for the 5G Fund for Rural America hasn’t been released yet. But the FCC says they’ve been changed to require auction winners to “implement cybersecurity and supply chain risk management plans as a condition of receiving support.” The rules have also been amended to ensure some of the funds will support tribal communities. PCMag