Rural Broadband Gets Nearly $5B in Funds From the FCC

The FCC Thursday authorized over $4.9 billion in support over the next decade for maintaining, improving, and expanding affordable rural broadband. The carrier support includes tribal land, too (see separate story below).

The money will go towards 455,334 homes and businesses served by 171 carriers in 39 states and American Samoa. The funds are targeted to smaller rural carriers, traditionally known as “rate-of-return” carriers. These carriers agreed this year to accept subsidies based on the FCC’s Alternative Connect America Cost Model, or A-CAM, which provides predictability, rewards efficiency, and provides more value for each taxpayer dollar.

The homes and businesses are located in sparsely populated rural areas where the per-location price of deployment and ongoing costs of providing broadband service are high. They require support from the FCC’s Universal Service Fund to facilitate network improvements and keep rates reasonably comparable to those in urban areas. Continue Reading