Verizon, AT&T Decline Broadband Connect America Funding

July 24 was the deadline for the nation’s largest price cap carriers to advise the Federal Communications Commission whether they planned to accept funding offered to them to cover some of the costs of deploying broadband to high-cost rural areas where the service is not currently available. But as much as $185 million or more of the $300 million offered to the carriers in the first phase of the Connect America Fund program will not be accepted.

Just under $80 million of that amount was rejected outright, with carriers agreeing to accept an additional $106.3 million only if certain waivers are granted. Ten of the nation’s largest carriers were invited to participate in the program, which will pay carriers $775 per broadband line deployed to an unserved home within its territory up to a specific dollar level, which varies from one carrier to another. Seven of the 10 carriers were offered allotments exceeding $1 million.

Two of those carriers – AT&T and Verizon –declined all of the funding they had been offered. In a letter to the, AT&T — which was offered $47.8 million — said it is “optimistic” about its ability to get more broadband into rural areas, “particularly as the technology continues to advance.” But the company said it could not commit to participate in the program until it finalizes that strategy.

Verizon, which operates largely in the densely populated Northeast, was offered $19.7 million. The company’s letter to the FCC did not cite a specific reason for the decision, other than noting that the amount of money involved was “relatively small.” Verizon also said it “fully supports” Universal Service reforms.