FCC chairman Ajit Pai announced plans to set up a 5G Fund, to give up to USD 9 billion from the Universal Service Fund to operators to deploy 5G in rural areas. The regulator also admitted that the previous maps used to award mobile coverage subsidies were flawed, and it would work on developing new data sources.
The 5G Fund would be distributed through a reverse auction to target hard-to-serve areas with sparse populations and difficult terrain. At least USD 1 billion of the financing would go to deployments supporting 'smart farming' applications.
The 5G Fund would replace the planned Mobility Fund Phase II, which would have provided federal support for LTE service in under-served areas. The awarding of that fund was held up by opposition to the maps used by the FCC to identify areas lacking coverage. Some claimed the maps were based on false data submitted by operators.
The FCC has now agreed that the maps on 4G coverage were not reliable. A new report based on drive tests by the regulator shows how the maps likely overstated each provider’s actual coverage and did not reflect on-the-ground experience in many instances. The report recommends that the Commission terminate the challenge process, audit the coverage filings of carriers in other proceedings before the Commission, and take additional steps to make sure that coverage data the Commission and the public rely on is accurate.
The rural carriers association CCA welcomed the news and called on Congress to pass the pending Broadband Data Act, which would set new standards for mapping broadband services.
