The USD9bn fund is reserved for areas unlikely to see timely deployment of 5G, and supports adoption of new technologies in agriculture.
Background: The FCC has recently launched several initiatives to foster the development of 5G. These include opening up more mid-band spectrum during 2020, following the mmWave awards of 2019, and requiring T-Mobile and Sprint to deploy a nationwide 5G network to cover underserved areas, as part of the conditions for the merger of the two companies. More recently, the FCC has also authorised Ligado Networks to deploy a 5G network for IoT services in the L-band (1.5–1.6GHz). In December 2019, FCC chairman Ajit Pai announced his intention to establish a USD9bn fund for 5G in rural America.
The proposal is out: On 23 April 2020, the FCC adopted a Notice of Proposed Rulemaking (NPRM), seeking comment on establishing the 5G Fund for Rural America. The NPRM proposes to distribute up to USD9bn through the Universal Service Fund across rural America for 5G, and would include a special focus on deployments that support precision agriculture. The fund would use a competitive reverse auction format to award funding for wireless broadband services, similar to the recent Connect America Fund Phase II auction and the design for the upcoming Rural Digital Opportunity Fund Phase I auction.
The possible approaches: The NPRM seeks comment on two different approaches to identifying eligible areas for the Phase I reverse auction. One approach would see an auction held in 2021, by defining eligible areas based on current data sources that identify areas as particularly rural and thus in the greatest need of universal service support. An alternative option would delay the 5G Fund Phase I auction until at least 2023, after collecting and processing improved mobile broadband coverage data through the Commission’s new Digital Opportunity Data Collection. The proposed 5G Fund budget also includes USD680m reserved to support 5G networks serving Tribal lands as part of Phase I.
