FCC offers incentives to rural carriers for faster broadband

The FCC’s Wireline Competition Bureau extended offers of broadband subsidies to 516 rural “rate-of-return” companies in 46 states through a predictable cost model, rather than the current legacy system, which dates to the era of voice-only service. The action could result in over 1 million rural homes getting faster broadband service.

The FCC voted to make this offer in December.

To get the subsidies, the rural carriers would be required to deploy broadband on a defined schedule over the next decade at speeds of at least 25 Mbps download/3 Mbps upload to homes and businesses fully funded by the model.  If all carriers opt in to the offer, they will be required to deploy 25/3 Mbps broadband to at least 1,126,082 homes and businesses. 

The FCC also noted that its action will increase the obligation to deploy high-speed broadband even for those carriers that do not accept the offer of model-based support.  Under prior rules, legacy carriers were only required to deploy 10/1 Mbps broadband to 115,441 locations; they were not required to deploy 25/3 Mbps broadband to any locations.  As a result of the Commission’s December vote, the Bureau has increased those obligations so that legacy carriers will be required to deploy 25/3 Mbps broadband to at least 600,535 locations.

Rate-of-return carriers receive approximately $2.4 billion each year of the FCC’s $4.794 billion in universal service support for rural broadband, and of that, the 262 companies that have already elected A-CAM support get approximately $607 million per year.  Carriers currently receiving legacy support have 45 days to opt in to today’s A-CAM offer.

https://www.fcc.gov/document/fcc-incentivizes-faster-broadband-over-1-million-rural-locations