The FCC has decided to auction for its Connect America Fund. Almost 103 internet service providers will receive a total of $1.488B bn over the next ten years. The project seeks to connect around 713,176 enterprises and homes in 45 states.
The Chairman of FCC has claimed that this is the most cost-effective and suitable way of allocating the necessary funding for the expansion of broadband service. According to the terms and conditions of the funding, the ISP’s that will receive the funds must reach minimum 40% of the area in a state. The providers must also make sure to reach the location within the next three years of receiving the fund. Besides, the operators must ensure that their infrastructure must grow 20% each year. As per the FCC, gigabit service will be available in approximately 19% of the locations through this step.
However, the funding for the expansion of broadband in the rural area is just a small part of the cellular strategy of FCC. The auction Mobility Fund 2 will distribute 4.53 Bl dollars for the expansion of LTE service in the rural areas. Nearly, 6 Bl Dollars will be funded by the Connect America Fund over the next six years for this project.
Conversely, the FCC Commissioner has raised concern about the inaccurate data. She has also stated that the huge amount of fund will be dispersed based on the incorrect data if the commission isn’t careful enough.