The US Federal Communications Commission (FCC) has green-lighted $9 billion in subsidies to accelerate the deployment of 5G services in rural areas across the nation. This initiative, known as the 5G Fund for Rural America, targets regions where advanced mobile connectivity is economically unviable without support, aiming to close the widening digital divide.
The 5G Fund for Rural America, initially proposed in 2020, had faced significant delays due to outdated coverage maps. The FCC feared financial resources could be misallocated to areas already well-served, leaving underserved communities behind. With updated maps now ready, the program’s implementation is back on track.
The latest decision resulted from a bipartisan vote. FCC Chairwoman Jessica Rosenworcel emphasized the readiness to utilize every available tool to connect rural households and businesses to 5G services. “With the progress we’ve made in mapping broadband service availability, there is no reason to wait to put the 5G Fund to work connecting households and businesses in rural communities across the country,” Rosenworcel stated.
The first phase will disburse up to $9 billion through a reverse auction. However, the timeline for this process remains unspecified. Additionally, the FCC has earmarked up to $900 million in incentives for networks implementing Open RAN (Open Radio Access Network) technology. These moves aim to foster innovation and enhance network efficiency.
Eligibility for these subsidies has also been broadened, encompassing areas such as Puerto Rico and the US Virgin Islands.
