WASHINGTON, September 14, 2023 – Rural mobile providers are urging the Federal Communications Commission to consider an alternative to the reverse auction funding model the agency proposed for a future 5G fund.

The fund has been in limbo since 2020 due to mapping issues. It makes $9 billion available for 5G mobile broadband infrastructure in areas unlikely to be served without subsidies.

With access to newer, granular data on mobile broadband coverage in the U.S., the FCC released on August 31 a notice proposing updates to the program’s methodologies for defining areas eligible for funding and seeking comment on potential new provisions like extending support to Puerto Rico and the Virgin Islands. The proposal is slated to be discussed at the agency’s open meeting on September 21. 

Ahead of that discussion, the Rural Wireless Association has met with FCC officials five times in the last month to reiterate the same concerns over the program’s reverse auction model. Under this procedure, providers would compete to develop the cheapest cost structure for serving an area with the minimum required speeds – at least 35 Mbps upload and 3 Mbps download in the case of the 5G Fund.

Rural providers are concerned because some areas served by carriers receiving support from legacy funding programs like the Mobility Fund will be eligible for auction. If those carriers lose at auction, the RWA says, the reduction in federal funds might make them unable to continue operating their infrastructure and leave other areas covered by their networks without service.

“There is no ‘safety valve’ put in place that would protect these networks built with federal dollars and maintained by legacy support mobile carriers,” the association wrote in an ex parte filing on Wednesday.

The RWA has proposed the commission seek comment on allowing these providers to opt out of the reverse auction if they are an area’s sole mobile carrier. In such a scenario, the group also wants the FCC to consider subsidizing 5G upgrades based on predicted costs.

WASHINGTON, July 14, 2023 – A report by wireless trade association CTIA showed that the United States is making strides towards 5G development, and that the wireless standard is expected to add $1.5 trillion in GDP and 4.5 million of new jobs over the next decade.

Breaking the benefit down by geography, the study showed that 5G has contributed $139 billion to GDP growth in New York City, $65 billion to the Seattle area, $43 billion to Dallas, and $20 billion to San Diego.

The United States has emerged as a frontrunner among its global counterparts in terms of 5G availability, according to CTIA, with 54% coverage. This percentage appears to position it ahead of South Korea by nearly 20 percentage points, while surpassing China’s rate of 27% and more than three times the United Kingdom’s rate of 17%.

The report draws upon a 2021 study by BCG, 5G Promises Massive Job and GDP Growth in the U.S., February 2021, and supplements additional numbers sourced to prior CTIA reports. The trade group attributed the $275 billion of investment by service providers on infrastructure buildouts and enhancement. About $35 billion was spent in  2021.

5G’s faster deployment rate, increased consumer adoption, and superior performance compared to its 4G predecessor make it a key player in bridging the digital divide and mitigating climate change and strengthening national security, CTIA said.

Despite the progress made, the report reiterated the need to obtain more licensed mid-band spectrum to enable network expansion.

“This required a coordinated effort, starting with Congress re-establishing the Federal Communications Commission’s auction authority and auction pipeline,” urged the report.

The commission’s authority to license spectrum has expired in March and has not been renewed.

WASHINGTON, June 20, 2023 – A report by the Cellular Telephone Industries Association released Thursday said the expansion of 5G fixed wireless access could result in substantial cost savings of over $8.1 billion annually for American consumers.

The report, prepared by economic consultant Econ One, emphasizes the role of increased competition in the home broadband market and the importance of additional spectrum availability in driving these benefits.

The study included a consumer survey to estimate preferences and the potential effects of 5G fixed wireless on market share and consumer pricing. The findings indicated significant savings for consumers, particularly in areas where cable providers are the only high-speed broadband option, representing about 30 percent of households.

If fixed wireless 5G were to enter these markets at current prices, existing cable broadband prices would decrease by 37 percent, leading to annual consumer savings of $5.7 billion, the report said.

“With more 5G spectrum we can further expand this service and bring these benefits to even more Americans,” said Meredith Attwell Baker, president and CEO of the CTIA.

The CTIA said the growth of the technology is contingent on service providers having sufficient spectrum capacity.

The analysis highlights the significance of additional mid-band licensed spectrum to enable the scalability of 5G FWA offerings and maximize the economic benefits for consumers.

“FWA is bringing real benefits to consumers, but it’s a data-intensive product, and growth can only occur in areas where service providers have sufficient spectrum capacity,” said Hal Singer, managing director at Econ One.

The report further notes that 5G FWA accounted for 90 percent of new broadband subscriptions in 2022, with wireless companies offering 5G home broadband over exclusive-use licensed spectrum as being the fastest-growing home broadband providers.

The report emphasizes the need for the release of additional mid-band for 5G providers to foster increased competition in the home broadband market and drive consumer savings.

The Federal Communications Commission has yet to see its spectrum auction authority renewed after it lapsed in March.