The US Federal Communications Commission (FCC) adopted new rules designed to spur targeted investments in 5G-based services in rural areas based on an improved national broadband coverage map.
In the first phase, the fund will distribute up to $9 billion for voice and broadband services across rural areas deemed unlikely to see unsubsidised deployments of 5G-capable networks.
Rules approved by FCC commissioners relaunch the 5G Fund for Rural America unveiled in 2019.
In 2020, the FCC agreed to allocate the $9 billion using a reverse auction process. The funds were to be taken from its Universal Service Fund, but the agency ultimately decided to wait until updated broadband maps were created.
“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,” FCC chair Jessica Rosenworcel stated.
The fund includes up $900 million in incentives for incorporating open RAN into the 5G networks.
Commissioners modified the definition of areas eligible for 5G Fund Phase I support, with other changes ensuring areas of Puerto Rico and the US Virgin Islands which meet the new rationale will be included.
The latest rules also require recipients of the funding to implement cybersecurity measures and supply risk management plans.
A public notice will be issued providing auction details.
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