The Federal Communications Commission (FCC) launched the 5G Fund for Rural America, a $9 billion program designed to close the digital divide by extending wireless broadband connectivity and coverage to rural communities across the U.S.
The 5G Fund for Rural America will utilize a two phase, multi-round, reverse auction. In Phase I, the FCC will offer $8 billion to expand coverage in areas lacking unsubsidized 4G LTE or 5G mobile broadband. Of that $8 billion, $680 million is allocated for bidders offering to serve Tribal lands. For Phase II, the FCC will award an additional $1 billion, plus any leftover funds from Phase I, to bidders deploying innovative 5G networks that support precision agriculture. All bidders who are awarded auction funds must provide 5G mobile broadband at speeds of a least 35/3 Mbps and meet deployment milestones throughout the six-year deployment plan.
The auction will ensure all the hardest areas to reach, including places with scattered populations or locations with difficult or rocky terrain, are able to partake in the auction. The FCC also notes that when determining eligible locations for the auction, it will exclude the areas T-Mobile is committed to deploying its 5G network within. This is part of T-Mobile’s agreement to cover 90 percent of the rural-American population within six years of its merger with Sprint, which occurred in April of 2020. The FCC says this will help avoid wasting resources and prevent overbuilding.
For more information about the 5G Fund for Rural America, visit the FCC’s website and read the latest press release!