• July 2, 2020

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Senator John Thune (R-South Dakota) recently introduced the Rural Connectivity Advancement Program (RCAP) Act of 2020, legislation that would be funded by 10 percent of the net proceeds from wireless spectrum auctions held through September 30, 2022. The proceeds would be utilized by the FCC to assess, accelerate, and improve broadband deployment in rural areas.

The Act comes at a time when the need for reliable, quality connectivity in all corners of the U.S. has never been more apparent. With the impacts of COVID-19, many Americans have been operating under stay-at-home orders, and for those in many rural areas that means they’re unconnected and without high-speed access. Things like remote education and online access to healthcare through telehealth are just a few of the essential resources currently unavailable in many rural communities. The lack of reliable, if at all, broadband connectivity has been an ongoing pain point for rural areas and well before COVID-19 brought greater attention to the service gap. According to Thune, who is chairman of the Subcommittee on Communications, Technology, Innovation, and the Internet, the Act is a step toward closing the digital divide that exists today.

While specific auctions were not named, the C-band auction scheduled for later this year is expected to yield big returns aside from the many other auctions planned. Over the next two years, 10 percent of the combined proceeds could be in the billions. A significant bolster in the much-needed resources for the buildout of broadband networks.

When managing and allocating the proceeds, the bill would require the FCC to:

• Use the funds to address gaps in broadband internet access service coverage in high-cost rural areas despite the operations of the high-cost programs
• Address shortfalls in sufficient funding of the high-cost programs that could adversely affect the sustainability of services or reasonable comparability of rates that are supported by those programs
• Consider the service needs of residents in tribal lands when distributing funds
• Provide an annual report on the distribution of funds that identifies, at a minimum, the nature of the service provided in each area where funding is provided

Additionally, the FCC may use the Fund to establish programs that are separate from, but compliment, its high-cost programs such as the Rural Digital Opportunity Fund, the Rural Broadband Experiments program, and the High Cost Loop Support for Rate-of-Return Carriers program.

According to Todd Schlekeway, President & CEO of NATE, The Communications Infrastructure Contractors Association, “Closing the digital divide has been a top NATE priority for several years. The Association and our member companies have been honored to collaborate with Sen. Thune and his staff on important initiatives to improve communications services in rural, underserved, and unserved areas of the United States. The bill he is introducing today will accelerate development of critical communications infrastructure and the deployment of broadband in rural America. This legislation also represents an enormous economic and employment opportunity for the communications industry.”

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Sources:

https://www.thune.senate.gov/public/_cache/files/16fd6e4d-deef-4470-be57-7e404087a647/30D1621EB21D451E743163E045A80114.oll20568.pdf

thune.senate.gov/public/index.cfm/press-releases?ID=1D209884-1F6F-49E9-8B54-4F715F326642

telecompetitor.com/rcap-act-would-direct-10-of-auction-proceeds-to-rural-broadband-could-equate-to-billions-in-new-funding/

natehome.com/2020/06/18/nate-statement-on-introduction-of-rural-connectivity-advancement-program-act-of-2020-in-the-u-s-senate/