FCC Releases More Mobility Funding for 3G/4G Wireless Construction

The Federal Communications Commission announced authorization to release additional funds from the $300 million Mobility Fund Phase I auction, which is designed to support the build out of 3G and 4G networks in rural markets.

T-Mobile won approximately $23 million in funding and U.S. Cellular received approximately $34.5 million. One third of this funding was authorized for release by the FCC from the Universal Service Fund. The mobility auction, which was a reverse auction, pegged $300 million in funding for wireless network construction in both 3G and 4G variants. The reverse auction awarded funding to the carrier that offered to do the build-out with the smallest level of monetary support. This recent FCC action also awarded $1.8 million to Hardy Cellular of West Virginia and $1.4 million to Powertel/Memphis Inc. Winning bidders had to provide the FCC with a “letter of credit (LOC) and Bankruptcy Code opinion letter from [their] legal counsel,” to gain access to the funding. Construction of 3G networks must be complete within a two year window, with 4G networks gaining one additional year for a total of three to complete.