Connect America Fund Offers Carriers Nearly $1.7 Billion to Expand Broadband to Rural Americans

Taking a major step to close the rural broadband gap, the Connect America Fund offered carriers nearly $1.7 billion to expand and support broadband services in rural areas where market forces alone cannot support deployment. The offer to rural operations of the largest telecommunications providers -- known as price cap carriers -- would provide ongoing support for networks that can deliver broadband at speed of at least 10 MBps for downloads and 1 Mbps uploads to nearly nine million rural residents nationwide. The funding represents a 71 percent increase from current funding for these areas, but is accomplished without increasing the size of the Universal Service Fund -- or increasing ratepayer fees.

"Today's offer of $1.67 billion for rural broadband deployment will connect millions of rural Americans who lack access to modern high-speed Internet service," said FCC Chairman Tom Wheeler. "The Connect America Fund is tackling the rural digital divide so that all Americans can have access to the jobs, education and opportunities provided by broadband, no matter where they live." Carriers now have 120 days to determine whether or not to accept the funding on a state-by-state basis. In states where carriers decline the offer, the subsidies will be offered to providers on a competitive basis.