The Federal Communications Commission (FCC) is seeking comments on a proposal to retarget universal service funding for mobile broadband and voice to deploy 5G services to rural areas of the country by setting up the 5G Fund for rural America.
In a notice in the Federal Register, FCC said that while T-Mobile has committed to deploy 5G service to 99% of Americans within six years and cover 90% of those living in rural areas, FCC said it was “concerned” that some rural areas will still not be serviced due to “insufficient financial incentive” for mobile wireless carriers to invest in 5G-capable networks and potentially leave areas of the country excluded from 5G for years to come.
FCC noted that given issues that have been revealed with the deployment of 4G LTE networks in rural areas, it proposes to distribute up to $9 billion in two phases to support 5G service in rural areas.
The initial stage would target at least $8 billion for rural areas, targeting a 5G Fund Phase I auction in 2021. Phase II would target “harder to service and higher cost areas, such as farms and ranches,” with $1 billion in funds “specifically aimed at deployments that would facilitate precision agriculture.” Comments on the plan are due by June 25.
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