5G Fund FNPRM Appears Headed to Easy OK at FCC

The FCC seems likely to adopt the 5G Fund Further NPRM largely as proposed by FCC Chairwoman Jessica Rosenworcel (see 2308300062), industry officials said. Only the Rural Wireless Association raised questions at the FCC or asked for changes tied to preserving some legacy support (see 2309120044).

Commissioners approved a $9 billion 5G Fund in October 2020, under former Chairman Ajit Pai, with partial dissents by Rosenworcel and Commissioner Geoffrey Starks (see 2010270034). Rosenworcel complained then the proposed fund was passed before the FCC had “real-world data” or completed broadband maps. The draft FNPRM notes the current availability of maps and data for making decisions.

Lawyers who have been active in the proceeding said it’s unclear how many changes will be made to the draft, though they’re expecting relatively few, consistent with the agency's approach in approving similar notices.

RWA “remains cautiously optimistic that the FCC will seek further comment on ways to ensure that USF and reimbursement fund dollars that have already been spent by rural carriers to support 4G and 5G do not become stranded investment,” RWA General Counsel Carri Bennet told us. “Ideally, the FCC will offer these rural carriers cost-based support in exchange for building out 5G at levels above 35/3 Mbps as a way of showing commitment to continuing to be good stewards of USF.” Otherwise, a proposed reverse auction “could have a perverse effect causing a loss of 5G service rather than expanding it,” she said.

Bennet noted the FCC is currently offering support to wireline providers as part of its enhanced alternative connect America cost model (see 2307240064). “There are similarities that could be considered for the 5G Fund where the offer and acceptance of cost-based support in exchange for 5G commitments could allow the FCC to continue to ensure the advent of 5G and beyond without risking loss of service,” she said: “Areas where cost-based support is offered and accepted by a carrier would then be removed by the FCC from the reverse auction process. RWA supports using a cost model to determine the support that would be offered under these circumstances.”

The Competitive Carriers Association welcomes the FNPRM, a spokesperson emailed. “The establishment of a 5G Fund has been a top priority for CCA and represents a critical opportunity to build on the Commission’s longstanding work to bridge the digital divide,” the spokesperson said: “In the years since the original 5G Fund Order was adopted, developments in the wireless industry and new maps from the Broadband Data Collection require updates to the Fund to ensure support is targeted to preserve and expand mobile connectivity.”

CCA supports a proposal “to expand eligibility to areas without unsubsidized 5G service and the Commission’s inquiry into adjusting the size of the Fund,” the spokesperson said.

“With this narrowly tailored” FNPRM “we seek to refresh the record and reignite the Commission’s plan to expand the deployment of 5G service to those rural communities that remain trapped on the wrong side of the digital divide,” the draft says.