Four sources of funding for rural broadband networks

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Some of the current sources of funding for rural telecommunications network infrastructure:

  • Federal programs which subsidize broadband deployment. According to an update in April from the National Telecommunications and Information Administration, there are 57 federal broadband programs, spread across 14 federal agencies, which encompass billions of dollars in grants, loans and other resources.
  • Federal “rip and replace” funding.  As part of the Secure and Trusted Telecommunications Networks Act passed in February, Congress allocated $1 billion in funding to help defray the so-called “rip-and-replace” costs of removing Chinese equipment for carriers with fewer than 2 million customers. 
  • State programs for broadband deployment. All 50 states have created a broadband-related authority, state office or task force, according to the National Conference of State Legislatures, although fewer than half have put them in place via legislation. 
  • Coronavirus relief bills may provide additional funding. In addition to the funds available to help small businesses survive the pandemic, there was $200 million allocated specifically for telehealth programs, and the FCC has already gone through multiple waves of approvals. Those funds are likely to benefit some rural providers, because connected devices and services are one of the eligible expenses as part of supporting telehealth expansion.

Four sources of funding for rural broadband networks