FCC approves $9bn in subsidies for rural 5G expansion

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News According to the FCC’s most recent data , over 14 million households and businesses in the US lack 5G access The US Federal Communications Commission (FCC) has approved new rules to provide $9 billion in subsidies to help roll out 5G in rural areas across the US.

The decision finally progresses the 5G Fund for Rural America, a scheme was first devised in 2020 and aims to bring advanced mobile connectivity to regions less likely to receive 5G service without financial assistance, helping to bridge the US digital divide.

The 5G Fund for Rural America has faced significant delays, primarily related to outdated coverage maps. This, the FCC feared, could have led to funding being allocated to areas that did not need it, while underserved areas might have been overlooked. The FCC paused implementation until updated maps were curated.

In a bipartisan vote, the FCC has now agreed to move forward with targeted investments aimed at connecting households and businesses in rural areas.

“With the progress we’ve made in mapping broadband service availability, there is no reason to wait to put the 5G Fund to work connecting households and businesses in rural communities across the country,” said FCC Chairwoman Jessica Rosenworcel in a statement.

“We are ready to use every tool available to make sure that those who live, work, and travel in rural America have access to advanced, 5G mobile wireless broadband services,” she continued.

The first phase of the project will allocate up to $9 billion through a reverse auction process, but a date for this process has not yet been set. The FCC has also allocated up to $900 million in incentives for networks that use Open RAN (Open Radio Access Network) technology.

The new rules also broaden the criteria for areas eligible for support, including Puerto Rico and the US Virgin Islands.

Join the conversation around America’s broadband ecosystem at next year’s Connected America, 11-12 March in Dallas, Texas. Tickets are available here!

Also in the news: Coastguard’s emergency network gets an upgrade from Telent AT&T fined nearly $1m over 911 failings How will the CityFibre–Sky deal really affect BT?

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