The Federal Communications Commission has decided to allow fixed wireless internet service providers--including those using 5G platforms--to compete for Rural Digital Opportunity Fund support intended to bring internet access to unserved areas.
The question of “who is eligible” always is an important issue for rural communications support, as the FCC always has favored support for local telcos in such instances. The latest program also includes consideration for “universal service” obligations.
“The principle of competitive neutrality also does not preclude us from addressing other reasonable regulatory objectives, including ensuring that an entity bidding in Auction 904 is expected to be reasonably capable of meeting the relevant public interest obligations if awarded support and that we are spending our universal service fund efficiently to serve as many consumers as possible.,” says the FCC.
Every applicant must be certified as an “eligible telecommunications carrier” in the state where applicant proposes to operate, for example.
In addition to financial qualifications and coverage commitments, and despite a generally technology-neutral approach, there are some barriers to specific deployments.
“We will prohibit service providers that intend to use any form of satellite technology from selecting the Gigabit performance tier,” the FCC says. ISPs proposing to use fixed wireless or DSL technologies to supply gigabit tiers of service will be evaluated on a case-by-case basis, but will face a “high burden” of proof.
Beyond the technical requirements, voice service is necessary and there are price guidelines as well. “Support recipients are permitted to offer a variety of broadband service offerings as long as they offer at least one standalone voice plan and one service plan that provides broadband at the relevant performance tier and latency requirements, and these plans must be offered at rates that are reasonably comparable to rates offered in urban areas,” the FCC says. “For voice service, a support recipient will be required to certify that the pricing of its service is no more than the applicable reasonably comparable rate benchmark that the Bureau releases each year.”
Past eligibility rules have restricted funding to a single entity in any service area as well, meaning support for both a mobile and fixed provider have been banned. Irt appears the expectation is that only a single entity will be funded in any area. At least, that is what I glean from an admittedly-cursory reading of the regulations.
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