5G Fund for Rural America

The 5G Fund Supporters -- which includes the Multicultural Media, Telecom and Internet Council, Rainbow-PUSH and the NAACP -- asked the Federal Communications Commission to clarify how it plans to ensure that 1) the upcoming 5G mobile broadband subsidy program will accommodate needy areas other than rural, and better ensure 2) that diverse contractors have a chance at the money.

The next leadership team of the Federal Communications Commission must prioritize restoring the agency’s authority to protect consumers and competition in the broadband market. Under the next administration, FCC leadership should quickly commence a proceeding proposing to reclassify broadband as a “telecommunications service” under Title II of the Communications Act of 1934. This reclassification puts the FCC on the firmest legal ground to

Tuesday, November 3, is Election Day. And as you may well be trying to decipher the latest polls to predict who'll be running the federal government for the next four years, policymakers haven't taken a break. Here's a quick recap of the major news of the week.

On October 27, the Federal Communications Commission is expected to vote to create the 5G Fund for Rural America, a new program supported by the Universal Service Fund. The 5G Fund will replace the FCC's existing Mobility Fund which has been used to support deployment of 4G LTE networks in rural, insular, and high cost areas of the country. The FCC will distribute up to $9 billion in universal service support to bring mobile voice and 5G broadband service to rural areas of the country. The deployment of networks capable of providing this 5G service undoubtedly will be expensive.

Federal Communications Commission Chairman Ajit Pai announced that the items below are tentatively on the agenda for the October Open Commission Meeting scheduled for Tuesday, October 27, 2020:

The House Appropriations Committee approved the fiscal year 2021 Financial Services and General Government bill on a vote of 30 to 22. The legislation provides annual funding for the Department of the Treasury, the Judiciary, the Executive Office of the President, and other independent agencies, including the Federal Communications Commission. The bill includes $376.1 million for the FCC, an increase of $37.1 million above the FY 2020 enacted level. This includes funding to implement new broadband mapping legislation.

The Multicultural Media, Telecom and Internet Council -- joined by more than two dozen national organizations -- says the Federal Communications Commission should make sure that the initial tranche of its $9 billion in rural 5G subsidy funding goes to help those furthest from digital equality, which includes impoverished African American and Hispanic communities. The groups say that the FCC should prioritize funding according to poverty, not population density.

All five Federal Communications Commissioners testified at a Senate Commerce Committee oversight hearing. Commerce Committee Chairman Roger Wicker (R-MS) said the hearing was an opportunity for Commissioners to discuss what more can be done to expand broadband access and digital opportunity for all Americans.

On April 23, 2020, the Federal Communications Commission proposed to adopt rules and a framework for establishing the 5G Fund for Rural America. To account for the relative costs of serving areas that vary in terrain characteristics and potential business cases, the FCC proposed to apply an adjustment factor to make the most difficult areas to serve more attractive at auction in order to encourage more bidding for these areas. The adjustment factor also would be used to transition legacy high-cost support to 5G Fund support.

As the Senate returns, Commerce Committee Chairman Roger Wicker (R-MS) says he’s ready to dive in on broadband discussions, an especially prime topic as Congress mulls its next phase of coronavirus relief. Chairman Wicker specifically invoked interest in reviewing Federal Communications Commission plans to dole out billions of Rural Digital Opportunity Fund dollars this fall. Chairman Wicker said that the auction would bring broadband to rural America. “We’re going to try to speed that up. It’s scheduled for October of this year.