The Chairman of the FCC, Jessica Rosenworcelhas outlined a reverse auction plan that could provide up to $9 billion in funds to help cover some of the expenses associated with deploying 5G mobile wireless coverage in rural areas.
Let’s read the news and find out more.
FCC plans to award $9 billion for rural 5G with reverse auction
According to a press release from the commission, these zones include 14 million residences and businesses.
The commission has been working on this initiative, officially called the 5G Fund, for several years.
However, the launch of the program was delayed because the commission needed precise data on the localities to be served.
From 2022, the FCC Broadband data collection (BDC) has integrated this data collection. BDC has provided more detailed information regarding the locations of available and unavailable fixed and mobile broadband services.
The 5G Fund’s proposed rules for integrating Open RAN into funded deployments include incentives of up to $900 million.
Since the US government attempted to ban equipment from certain Chinese suppliers on US networks, the commission has shown great interest in Open RAN and sees it as a way to encourage the development of low-cost networks. radio access network (RAN) to fill the void.
One of these vendors, Huawei, is the source of RAN equipment used in some rural providers’ networks.
The government has provided funds to replace this equipment, but some stakeholders say additional funds are needed.
The FCC’s five-member commission would need to approve the 5G Fund plan for it to become a reality.
The FCC press release did not reveal when the commission would rule on the plan or when it would be made public.
However, an earlier version of the fund concept called for limiting eligible areas to resolution 9 hexes with locations served by broadband and/or roads lacking unsubsidized 5G service.
Rosenworcel said the goal of the plan is “to expand 5G service in rural America where people live, work and travel, where it is needed most.” A second report and order will contain the proposed regulations.
The FCC will hold its first reverse auction since the 2020 Rural Digital Opportunity Fund (RDOF) if the rulemaking is approved.
The auction was controversial because many of the successful bidders did not develop the networks they were funded for or did not receive the funding itself, resulting in areas that were supposed to receive the highest flow rates have not been served.
The commission will likely take steps to improve 5G Fund auction results, such as pressuring applicants to provide full financial information before participating.
The commission likely learned valuable lessons from the RDOF auction.
The Competitive Carriers Association, the representative of the rural wireless industry, provided comments on the 5G Fund plan.
Tim Donovan, CEO of CCA, said in a prepared statement that “details such as eligibility, accurate mobile map data with a robust appeals process and the timing of a 5G Fund auction are essential to avoid harmful 5G gaps and ensure that more rural customers are able to share the benefits of 5G.
For more technology news, follow World-Wire.
Subscribe to email updates: