FCC Pledges $300M USD for Carriers, Delivering 3G/4G to Uncovered Areas
May 3, 2012 8:06 PM
comment(s) - last by
Program will push expansion into uncovered, unprofitable regions, but is it worth the big sticker?
At a time when the federal government's spending is being increasingly scrutinized, the
U.S. Federal Communications Commission
has announced a new plan to pour almost a third of a billion dollars into the telecom industry. The handouts will be delivered to U.S. telecommunications firms which bring 3G service within 2 years or 4G service within 3 years to underserved/uncovered regions.
Technically the new funding isn't all that new. The creation of the "The Mobility Fund" marks the
long awaited, long overdue revamp
of the Universal Service Fund (USF), a Clinton-era program that was designed to
increase land line phone service to rural areas
of the U.S., which carriers refused to serve due to undesirable profit potential.
land lines going the way of the
, The Mobility Fund represents the USF's digital makeover.
The fund's targeted regions included large swatches of land in the American Rockies, including large parts of Idaho, Nevada and Washington state. Alaska is another target for wireless expansion. Under the FCC rules carriers will "bid" on the grant contracts in a
. The contract will be rewarded to the carrier who agrees to provide the lowest cost service to customers if multiple carriers submit proposals for a region.
Bidding will run from June 27 to July 11, with the FCC announcing winners at the end of the $300M USD in targeted Phase I funding grants. Winners must provide service to 75 percent road miles in the "census tract" for the region.
Just because the new plan doesn't create new government spending doesn't mean that its big sticker price won't provoke controversy and debate. Some question whether the government should use taxpayers money while "playing wireless Santa Claus".
The new FCC Mobility Fund will reallocate existing dollars to pay for mobile network expansion in neglected areas such as the picturesque highways of Alaska. [Image Source: Planetware]
FCC Chairman Julius Genachowski counters such criticisms, stating, "For too many, dead zones in mobile coverage are too common, and today's action will help close those gaps. By using market-based mechanisms, we'll ensure more gaps in mobile coverage are closed, and that every dollar is spent wisely and efficiently."
Under the plan, $500M USD will be provided each year in coming years to boost deployment and service speeds. The FCC has also promised $50M USD to provide low-cost wireless services to Native American reservations.
Wireless technology is a
key objective for President Obama
, who has sought to overhaul outdated funding programs and free up spectrum via
repurposing of government channels
FCC [press release]
This article is over a month old, voting and posting comments is disabled
5/3/2012 9:49:38 PM
I for one have chosen to live in the "middle of nowhere". But I also chose to pony up and help build a network that serves myself and neighbors 20+ Mb/subscriber of reliable internet via VDSL. It's not a matter of people not being able to get decent internet. It's a matter of them being willing to make it viable for a telecom to do it. I went to my regional telco and basically made a deal that if I got gauranteed customers they would build it. 6 months later.... great speeds for everyone.
5/3/2012 10:44:42 PM
All communities start from nothing,it may take years but eventually communities grow into themselves once amenities are made easily accessible. This stimulus if used for the correct purpose could also contribute to economic growth
5/4/2012 7:57:25 AM
This is the way its supposed to be done. Through the free market and ingenuity. Not from a government hand out at the expense of tax payers.
5/4/2012 1:18:55 PM
And yet the Telcos have taken the government handouts and promised to make the service available, yet never did it. All the while, they're making profits and paying executives bonuses from that money.
I'm all for free market, and I'm generally a conservative, yet this situation is known to me. These companies, Verizon, Formerly Qwest and now Century Link, etc, demanded the money, took the money, and still didn't deliver as they said they would. They're lying cheats, and business should not be done that way.
Business should be done honorably, delivering as you promise, when you promise, for the price you promise. These Telcos aren't doing that.
"The whole principle [of censorship] is wrong. It's like demanding that grown men live on skim milk because the baby can't have steak." -- Robert Heinlein
Ex-Congressman Boucher Warns of Potential FCC Auction Discrimination
April 9, 2012, 4:02 PM
Obama Admin. Aims to "Share" Combat Aircraft Training Spectrum
March 28, 2012, 3:51 PM
FCC Approves Obama Administration's Government-Run Rural Broadband Plan
October 28, 2011, 3:12 PM
Obama Reveals National Wi-Fi Plans, Claims it Will Cut Deficit by $10B USD
February 10, 2011, 4:06 PM
FCC Moves to Kill Support for Landlines in Rural Areas, Beef up Broadband
February 8, 2011, 11:04 AM
Samsung Announces Galaxy S5 Plus with Snapdragon 805 Processor, LTE-A
October 22, 2014, 3:40 PM
Motorola Further Increases Moto 360 Battery Life with New Update
October 22, 2014, 8:08 AM
Apple's iPad Air 2 Features Triple-core A8X Processor, 2GB of RAM
October 21, 2014, 8:32 PM
Toshiba Launches 11”, 2-in-1 Convertible PC for $329
October 21, 2014, 2:11 PM
Microsoft Begins Shifting Nokia Lumia Branding to "Microsoft Lumia"
October 21, 2014, 10:52 AM
Tim Cook Touts Apple’s Product Portfolio, Performance in Letter to Employees
October 21, 2014, 8:05 AM
Most Popular Articles
Cool Science Video of the Day: Carnivorous Leech Eats Giant Jungle Worm
October 16, 2014, 6:44 PM
Chinese Government Declares Digital War Against America's Top Tech Firms
October 20, 2014, 12:07 PM
PS4 "Masamune" Update 2.0 Will Bring New Music and Customization Features
October 17, 2014, 1:05 PM
HBO, CBS Lead Charge to Ditch Cable
October 16, 2014, 4:40 PM
Update: Motorola Droid Turbo Coming Oct 28, 48-hour Battery Life Confirmed
October 19, 2014, 9:19 PM
Latest Blog Posts
The Surface Mini That Was Never Released Gets "Hands On" Treatment
Sep 26, 2014, 8:22 AM
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
Space Terrorism is a Looming Threat For the United States
Apr 23, 2014, 7:47 PM
Facebook Aims to Provide Internet to "Every Person in the World" with Drones, Satellites
Apr 1, 2014, 10:20 AM
Retail Mobile Sites Experience Outages in Light of Simplexity's Bankruptcy
Mar 14, 2014, 8:48 AM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information