Monday, April 13, 2020

FCC Prepares 10-Year Plan to Provide Gigabit Service in Rural Areas

The Rural Digital Opportunity Fund is a $20.4 billion, ten-year program by the U.S. Federal Communications Commission to finance gigabit speed broadband networks in unserved rural areas the FCC believes represent 3.9 million consumer and small business locations


The program especially targets areas where the cost of supplying service exceeds $52.50 per-location per-month, up to $198.60 per month, and where internet access speeds do not reach  25 Mbps downstream on a cabled network. 


As much as $16 billion will  target wholly unserved census blocks, while  at least $4.4 billion will target partially served areas, census blocks where some locations lack access to 25 Mbps service.


Eligibility is expected to be the same as for the prior Eligible Telecommunications Carrier designations used for Connect America Fund Phase II program that replaced the older universal service support programs.  For all practical purposes, that means wireline service providers, not wireless or mobile. 


That approach has a long history, as traditionally only cabled networks--and virtually all telecom service providers--were funded. Some mobile service providers also have participated in rural programs at the state level. The FCC definition includes the obligation to provide “lifeline” service. Another way of describing an ETC is that it is the local “carrier of last resort” and receives universal service funds.  


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