The New FCC Rural Broadband Fund Would Move Funds From Existing Program

The rural broadband fund that Federal Communications Commission Chairman Ajit Pai proposed on April 12 would rely on funding from an existing broadband program slated to expire in 2020, while also setting higher standards for internet speeds. Around $2 billion has been available annually in recent years through the Connect America Fund and that same amount would be shifted to the new fund -- dubbed the Rural Digital Opportunity Fund --said Mark Wigfield, a spokesman for the FCC. The new program, as envisioned, would differ from the Connect America Fund in some key ways, Wigfield said. For one, it would also establish a minimum speed threshold of 25 megabits per second for downloads and 3 megabits per second for uploads, as opposed to 10 mbps and 1 mbps. And whereas the current “Phase II” of the Connect America Fund is six years, the Rural Digital Opportunity Fund would be a 10-year initiative. The roughly $2 billion annually spread across a decade reflects a $20 billion figure for the fund Chairman Pai referenced. The FCC spokesman also said the new program would be “technology neutral” and “open to all qualified providers,” but specifics about applicants that would be eligible would depend on rulemaking. Deb Socia, executive director of Next Century Cities, characterized the proposal as “more of a rebranding than a new project,” although she was careful to note that details about it are still unclear. “I don't think it's significantly different,” she said. “We're always happy when more money can go into rural communities,” Socia added. “And we're really pleased to see them upping the speed.”