FCC Taking Further Steps to Modernize and Increase Accountability in Its Universal Service Support Program for Rural Broadband

The Federal Communications Commission took steps that could result in over 1 million rural homes getting faster broadband service. Specifically, the FCC’s Wireline Competition Bureau extended offers of broadband subsidies to 516 rural “rate-of-return” companies in 46 states through a predictable cost model, rather than the current legacy system, which dates to the era of voice-only service. In return, these carriers would be required to deploy broadband on a defined schedule over the next decade at speeds of at least 25 Mbps download/3 Mbps upload to homes and businesses fully funded by the model. If all carriers opt in to the offer, they will be required to deploy 25/3 Mbps broadband to at least 1,126,082 homes and businesses -- by 2029.

The obligation to deploy high-speed broadband will increase even for those carriers that do not accept the offer of model-based support. Under prior rules, legacy carriers were only required to deploy 10/1 Mbps broadband to 115,441 locations; they were not required to deploy 25/3 Mbps broadband to any locations. The FCC has increased those obligations so that legacy carriers will be required to deploy 25/3 Mbps broadband to at least 600,535 locations.