FCC targets $9 billion fund at 5G in rural America

FCC Chairman Ajit Pai intends to establish the 5G Fund, which would make up to $9 billion in Universal Service Fund support available to carriers to deploy advanced 5G mobile wireless services in rural America. 

This major investment in rural America would be allocated through a reverse auction and would target hard-to-serve areas with sparse populations and/or rugged terrain.  The $9 billion Fund also would set aside at least $1 billion specifically for deployments facilitating precision agriculture needs. 

“5G has the potential to bring many benefits to American consumers and businesses, including wireless networks that are more responsive, more secure, and up to 100 times faster than today’s 4G LTE networks,” said Chairman Pai.  “We want to make sure that rural Americans enjoy these benefits, just as residents of large urban areas will.  In order to do that, the Universal Service Fund must be forward-looking and support the networks of tomorrow.”

The 5G Fund would replace the planned Mobility Fund Phase II, which would have provided federal support for 4G LTE service in unserved areas.  Pursuant to the Mobility Fund Phase II rules, wireless providers were required to submit 4G LTE coverage data in order to help the Commission target federal subsidies to unserved parts of the country.  The Mobility Fund Phase II challenge process gave stakeholders an opportunity to dispute these coverage maps by submitting speed tests to the Commission.  But in a report released today, Commission staff finds that the 4G LTE coverage data submitted by providers is not sufficiently reliable for the purpose of moving forward with Mobility Fund Phase II. 

https://www.fcc.gov/document/pai-announces-plan-launch-9-billion-5g-fund-rural-america