Home / / FCC proposes $9bn fund to boost rural connectivity in the US

FCC proposes $9bn fund to boost rural connectivity in the US

The 5G Fund will be used to extend 5G connectivity into economically inviable areas of the US, particularly in rural and sparsely populated areas

FCC proposes $9bn fund to boost rural connectivity in the US

The US’ Federal Communications Commission has proposed the creation of a $9 billion fund to extend 5G networks into rural communities and hard to reach areas across the country.

The cash would be used to target rural and sparsely populated areas where timely deployment of 5G services would not normally be a commercial priority for telcos.

The FCC will vote on the Notice of Proposed Rulemaking at its forthcoming Open Meeting on the 23rd of April 2020.

“5G promises to be the next leap in broadband technology, offering significantly increased speeds and reduced latency,” said FCC chairman, Ajit Pai.

“The 5G Fund for Rural America focuses on building out 5G networks in areas that likely would otherwise go unserved.  It’s critical that Americans living in rural communities have the same opportunities as everybody else.”

As part of its recent merger with Sprint, T-Mobile has agreed to provide 99 per cent 5G coverage to Americans within 6 years and 90 per cent coverage for those living in rural areas. However, the FCC fears that those people living in economically unviable areas could be left to the back of the line when it comes to rolling out next generation mobile connectivity. The 5G Fund is intended to incentivise US telcos to provide connectivity in these areas. 

"The FCC is proposing to use Universal Service Fund support to make sure that rural Americans are not left behind.  Building on the success of the Connect America Fund Phase II auction and the upcoming Rural Digital Opportunity Fund Phase I auction, the FCC is proposing to award funding for 5G services through a reverse auction,” the FCC said in a statement to the press.

Follow us to get the most comprehensive technology news in UAE delivered fresh from our social media accounts on Facebook, Twitter, Youtube, and listen to our Weekly Podcast. Click here to sign up for our weekly newsletter on curated technology news in the Middle East and Worldwide.

REGISTER NOW | Webinar Event | Security you can bank on – Safeguarding the Middle East’s financial sector

Presented in partnership with security and network specialist Cybereason, the second in the three part webinar series will bring together a panel of experts to discuss how banks and financial institutions are evolving their service offering while simultaneously staying one step ahead of the cyber criminals who seek to bring their operations crashing to the ground.

CHANNEL AWARD 2018