The Rural Wireless Association wants some areas that are supported by the FCC’s Universal Service Fund (USF) to be excluded from the 5G Fund of Rural America’s upcoming reverse auction. The point is to free up funding for areas that are at high risk of losing that support, notes Broadband Breakfast.
RWA representatives told FCC officials that current 5G Fund rules would “disaggregate” high-cost USF support in certain areas, potentially leaving “legacy mobile carriers’ investments in their networks stranded.” RWA also calls for cost-based support for Competitive Eligible Telecommunications Carriers (CETC), saying their USF support has gradually decreased by 40 percent over time, and does not reflect CETCs actual expenses, but rather those of 2011 market levels.
CETCs are telecommunications companies eligible to receive support from the federal USF to provide affordable communications services in rural, high-cost, and underserved areas. Over several decades, RWA says its members and other legacy high-cost carriers have used USF funding to maintain and modernize their networks from analog to 2G, 3G, 4G, and now 5G, to serve public interest particularly where alternative options have been lacking for consumers. If these carriers lose USF support for their service areas as a result of the 5G Fund’s reverse auction, the significant investments in their network and the service to their communities will be placed in jeopardy, according to RWA.
RWA urged the FCC to consider modifications to the 5G Fund rules, saying the Commission should focus on providing offers of cost-based support for at least an eight-year period to CETCs with two million or fewer subscribers so that they can continue to serve communities, according to Broadband Breakfast.
Concerning the effects of NTIA’s BEAD program, RWA highlighted the importance of awaiting the allocation of BEAD projects by the states before proceeding with the 5G Fund’s reverse auction. Many RWA members are constructing or intend to build hybrid networks, comprising both fiber and fixed wireless, that might qualify for BEAD funding. If these projects are funded through BEAD, it could significantly reduce the financial requirements from the 5G Fund, notes the association.
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