FCC Proposes $9B for Rural 5G to Replace Mobility Fund Phase II Auctions
The FCC plans an NPRM early next year to take recommendations on a 10-year, $9 billion rural 5G Fund proposed Wednesday by Chairman Ajit Pai (see 1912040037). It would replace the Mobility Fund Phase II auction for which the FCC had planned $4.53 billion in USF spending over 10 years. Staff recommended the proposal because of mapping problems, and now seeks an audit of some carriers. One of those companies, Verizon, turned the focus back to the regulator.
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The money would be directed through a reverse auction to eligible wireless carriers that bid to provide 5G service in areas so unpopulated or with such rough terrain that they would otherwise be unlikely to receive it. One billion dollars of it would go to deployments facilitating precision agriculture. The Precision Agriculture Task Force, which first meets Monday (see 1911180009), will advise the FCC on how to best target the $1 billion.
A report Wednesday on a staff investigation of MF-II coverage maps from wireless carrier-supplied data determined, through challenge tests, the maps didn't match actual 4G LTE coverage "in many instances." Wireless providers were required to submit 4G LTE coverage data, but agency staff found the data "is not sufficiently reliable for the purpose of moving forward with Mobility Fund Phase II," the FCC said Wednesday. The report recommended analyzing the most recent such filings of T-Mobile, Verizon and U.S. Cellular "to determine if they complied with the Form 477 requirements."
Industry and state commission officials had concerns about mobile mapping data (see 1811270051).
The Rural Wireless Association commended the FCC staff report and said it had earlier sought an investigation of both Verizon and T-Mobile based on RWA members' drive tests that "resulted in abysmal coverage results." It said the report validated those challenges. RWA had also asked the FCC to "move on, jettison the disingenuous data, and target Mobility Fund Phase II funds for 5G deployment."
"Verizon understands the importance of accurate broadband maps and has worked with the FCC toward that goal," a spokesperson emailed Wednesday. "Our company is not responsible for the agency's Mobility Fund mapping problem. The industry told the FCC more than two years ago how to build a coverage map that better aligns with real-world experiences. For policy reasons, the FCC rejected the industry's consensus proposal in favor of a more expansive definition of coverage. Verizon simply followed the FCC's instructions."
T-Mobile didn't comment.
"We have said all along that the parameters adopted by the Commission for the submittal of broadband coverage maps would result in overstated coverage, so the conclusions in the staff report come as no surprise," emailed Grant Spellmeyer, U.S. Cellular vice president-federal affairs and public policy. The company "faithfully implemented the FCC's requirements in the development of the coverage maps that it submitted, but we recognize, as does the FCC, that better and more accurate maps are necessary for dispersing finite government funding for broadband deployment." He said the 5G Fund makes it "vitally important that we identify precisely the rural portion of America that will need this funding the most."
"Obtaining accurate maps for mobile wireless services has proven particularly vexing, and in just the past several months, the FCC adopted new provisions to develop better maps for fixed and mobile services alike through a combination of more precise technical standards for reporting and public stakeholder input and challenges," said NTCA CEO Shirley Bloomfield. She hopes "the availability of better coverage data and this shift in program objectives will ultimately promote increased investment in, and help sustain, robust rural wireless networks."
"Wireless providers are serving more consumers in more places than ever before, but reaching every American with increasingly essential wireless services, like 5G, will require a collective effort," said Scott Bergmann, CTIA senior vice president-regulatory affairs. "Chairman Pai's proposal for a 5G fund demonstrates the type of leadership and collaborative effort that is needed to ensure that all Americans can participate."
Rep. Cathy McMorris Rodgers, R-Wash., agrees "we need accurate maps of coverage data," she tweeted. Rep. Rick Crawford, R-Ark., tweeted, "This is an awesome announcement and one that rural America will celebrate!"
The fund is “great news” for tower contractors, said National Association of Tower Erectors Executive Director Todd Schlekeway. The FCC report “highlights several problems like inaccurate data reporting by some carriers and problematic speed testing,” and the fund “is an important step to ensure taxpayer resources are put to the best possible use,” said Citizens Against Government Waste President Tom Schatz.
The FCC in recent years has increased efforts to tackle the rural-urban digital divide. It also plans to spend $20 billion over 10 years in its Rural Digital Opportunity Fund (see 1908050030).