CCG Consulting

I've identified some concerns with the order for the new 5G Fund for Rural America that will provide $9 billion to improve rural cellular coverage.

The Federal Communications Commission announced it will move forward with the 5G Plan for Rural America. Since the FCC seems determined to move forward with the current maps and seems to be on a fast track to initiate the 5G plan, there should be a sense of urgency in any County that thinks it needs better cellular coverage.

The Federal Communications Commission recently released a short document that highlights the benefits that come from the Universal Service Fund. The FCC touts the following benefits from the Universal Service Fund:

Broadband subscriber additions from the first two quarters of 2024 give us an insight into some industry trends. Cable companies are starting to lose an increasing number of customers. Fixed wireless access (FWA) cellular carriers collectively added 933,000 customers in Q2. Telephone companies collectively showed a small gain for Q2, although all of the telephone companies reported significant fiber sales. 

There are a lot of folks who think there will be substantial Broadband Equity, Access, and Deployment (BEAD) spending in 2025. I don’t want to burst bubbles, but I just can’t see that happening. Like every other part of the BEAD process, there are delays coming that are going to drive folks crazy.

Nokia recently announced that it is introducing radios that will increase both the capabilities and performance of fixed wireless access (FWA) cellular broadband. The technology that probably will have the most impact on wireless performance is the use of MIMO (multiple-input, multiple-output) antenna arrays. Nokia recently announced that it will be deploying Massive-MIMO antennas that will allow for 16 layers of data transmission, up from 4 layers deployed in today’s cellular antennas. These coming improvements are going to mean better performance for FWA.

The results of a recent Technology Policy Institute study feed into the narrative that is rolled out every year by the lobbyists for the biggest internet service providers (ISPs)—that broadband prices are getting cheaper. The big ISPs mean that the price per megabit is getting cheaper—but the study says the absolute prices are getting cheaper. The easiest way to understand my objection is to consider the price of a 100 Mbps broadband product from 2013 to 2024. 

We’re finally seeing many consumer-friendly initiatives from the Biden administration coming to fruition. The White House recently announced a Time is Money initiative that would require corporations to implement customer-friendly practices to eliminate long hold times and excessive paperwork for customers. This is a follow-up to a proposed rule from the Federal Trade Commission in March that would require companies to make it as easy to cancel service as it is to subscribe.

Will a big flurry of Broadband Equity, Access, and Deployment (BEAD) grants encounter any big bottlenecks that will slow down the implementation of grant construction? My response is yes, but maybe not the bottlenecks most people expect. I expect some of the following:

Cable companies seem to have turned the corner from continually gaining customers to now losing customers. This is a consequence of increased competition from fiber overbuilders and FWA cellular wireless. In the first quarter of 2024, the sale of FWA cellular slowed down for T-Mobile and Verizon, from 929,000 to 759,000 in the first quarter. But FWA still counts for practically all of the net broadband gains for the quarter. Experts are predicting a much smaller number of total net customer additions for 2024, which is due to two issues.