Federal Communications Commission Announces $169 Million in Rural Broadband Funding

WASHINGTON, June 10, 2019 - The Federal Communications Commission on Monday authorized $166.8 million in funding over the next decade to expand broadband to 60,850 unserved rural homes and businesses in 22 states. Providers will begin receiving funding this month. A map of the winning bids is available here.

This funding represents the second wave of support from last year’s successful Connect America Fund Phase II auction. The FCC authorized the first wave of funding in May, providing $111.6 million in funding over the next decade to expand service to 37,148 unserved homes and businesses in 12 states.

To date, the first two rounds of authorizations are providing $278.4 million over the next decade to expand service to 97,998 new locations.  Over the coming months, the FCC will be authorizing additional funding as it approves the final applications of the winning bidders from the auction.

“I’m pleased to announce that the second round of funding starts now for buildout of high-speed Internet service to 60,850 rural homes and businesses, which will bring them to the right side of the digital divide and give them access to the 21st-century opportunities that broadband offers,” said FCC Chairman Ajit Pai.

“Providers will be deploying gigabit-speed connections to the majority of locations for which funding is being authorized today, while nearly 8,000 homes and small businesses on Tribal lands will be getting fixed broadband service for the first time,” he said.

Providers must build out to 40 percent of the assigned homes and businesses in the areas won in a state within three years.  Buildout must increase by 20 percent in each subsequent year, until complete buildout is reached at the end of the sixth year.

The Connect America Fund Phase II auction is part of a broader effort by the FCC to close the digital divide in rural America.

In addition to the funding that will be made available through this auction, the Commission recently provided 186 companies in 43 states $65.7 million in additional annual funding to upgrade broadband speeds in rural communities, and offered incentives for over 500 rural carriers to provide faster broadband to over 1 million rural homes and businesses.

Pai also announced his intention to create the Rural Digital Opportunity Fund, which will provide $20.4 billion over the next decade to connect approximately four million rural homes and businesses to high-speed broadband, representing the FCC’s single biggest step yet to close the digital divide.

(Photo by Jim Bradley used with permission.)