FCC Proposed $20 Billion Fund for Rural Gigabit Broadband Connectivity

FCC Proposed $20 Billion Fund for Rural Gigabit Broadband Connectivity


Chairman of Federal Communications Commissions Mr Ajit Pai has proposed the $20.4 billion fund, for installing the gigabit broadband in rural areas. The proposed broadband line will help connect four million homes and small businesses in the rural areas in the next ten years. The FCC’s proposal is the part of Universal Service Fund (USF), which is pretty much similar to the plans from the Obama Administration. According to the Obamas plans, the government allotted $ billion for improving the rural broadband connectivity for the next six years and to connect 3.6 million homes and small businesses.

The proposed fund will be given to the network carriers for completing the deployment of high-speed broadband in rural areas. The companies will have to finish the work by the end of 2020 after receiving the funds for completing the operations. The Universal Service Fund will inject $2 billion each year for the next ten years to achieve the deployment of fibre line of high-speed gigabit level broadband service in every part of Rural America. Obama’s plan deployed the standard line which provided the connectivity at the speeds of 10 Mbps. In Trump and FCCs plan, the speed will touch the heights and can go up to 1gbps.

According to the data from FCC, nearly 20 million Americans have no access to 25Mbps downlink and 3Mbps uplink internet service. To fix the problems with Internet services, the FCC’s fund will help the government to provide high-speed internet services. As the government is giving nearly $2 billion each year for the next ten years, the prominent cellular and internet carriers will compete to receive the funding and ultimately, to complete the deployment. The funds will be provided by Reverse auction method, which is the part of competitive bidding at the auctions. The carriers with best bids will receive the funds for deploying wired and fixed broadband connectivity in rural areas.

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