Tuesday, May 31, 2016

FCC Supports Competitive Platforms for Internet Access in Rural Areas

The U.S. Federal Communications Commission, preparing to disburse some $2 billion in support for rural high speed networks over the next decade, is using “technology-neutral” rules intended to allow a range of access platforms to gain support.

In part, that is to be ensured by a competitive bidding process for award of funds.

A minimum performance tier requires bidders to provide access speeds of at least 10 Mbps downstream and 1 Mbps upstream (10/1 Mbps) and offer at least 150 gigabytes (GB) of monthly usage.

A baseline performance tier requires bidders to commit to provide at least 25 Mbps downstream and 3 Mbps upstream (25/3 Mbps) and offer a minimum usage allowance of 150 GB per month, or that reflects the average usage of a majority of fixed broadband customers nationwide, using Measuring Broadband America data or a similar data source, whichever is higher.

An above-baseline performance tier requires bidders commit to provide at least 100 Mbps downstream and 20 Mbps upstream (100/20 Mbps) and offer an unlimited monthly usage allowance.

A gigabit performance tier that requires bidders commit to provide at least one gigabit per second (Gbps) downstream and 500 Mbps upstream and offer an unlimited monthly usage allowance.

It is possible that, as the decade unfolds, a wider range of platforms might be available to compete. In part, that is because new platforms are coming, ranging from 5G to fixed wireless (using a range of frequencies) to potentially more exotic platforms (balloons or unmanned aerial vehicles).

Earlier this year, the FCC also affirmed support for the smallest telcos, providing $20 billion in support over the next 10 years.

That might suggest an expectation that non-traditional suppliers will have a reasonable shot at funding under the new program.

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