FCC proposes $500 million increase for Rural Broadband

According to Telecompetitor

FCC rural broadband funding could increase by over $500 million if the commission votes to adopt an order circulated by commission chairman Ajit Pai. According to an FCC spokesman, the funding would include about $180 million for the current funding year for the nation’s smaller rate-of-return (ROR) carriers who get their support through traditional legacy mechanisms and up to $360 million over the next 10 years to ROR carriers who receive support based on the A-CAM cost model.

In a statement Pai said he had heard “from community leaders, Congress and carriers that insufficient, unpredictable funding” has kept them from deploying broadband more extensively to close the digital divide. The funding, he said, will “boost broadband deployment in rural America and put our high-cost system on a more efficient path, helping to ensure that every American can benefit from the digital revolution.”

The $500 million would come, in part, from reserves, the spokesman said. In addition, the order seeks comment on the Universal Service Fund (USF) budget, he noted.

More funding is always good news. I would just like to see a current definition of broadband. I know this time last year (Jan 24, 2017), the FCC announced 182 rate of return companies that elected to received A-CAM support. Below is a chart of Minnesota companies in that list and their obligation to provide service as specified speeds. You’ll see not all of the speeds mentioned would meet the Minnesota speed goals for 2022 (25/3) and none of them meet the speed goals for 2026 (100/20).

(I know that table won’t translate well online – you can also download it in Word.)

State (RoR) Holding Company Annual ACAM Support Locations in Census Blocks Receiving Model-Based Funding Locations with Obligation at 25/3 Mbps Locations with Obligation at 10/1 Mbps Locations with Obligation at 4/1 Mbps Locations Remaining on Reasonable Request Standard
MN  ARVG  Arvig Enterprises, Inc.           21,559,568                    33,455                      20,993                        6,998                        2,732                        2,732
 MN  CHRS  Christensen Communications Company                536,263                        420                            83                            28                          154                          155
 MN  HNSN  Hanson Communications, Inc.             2,572,081                      2,466                       1,179                          393                          447                          447
 MN  INTR4  Interstate Telecommunications Cooperative, Inc.                994,999                        779                          155                          156                          117                          351
 MN  LRSN  Larson Utilities, Inc.             1,423,622                      1,160                          243                          244                          168                          505
 MN  MBLC  Mabel Cooperative Telephone Company                633,384                        518                          186                            63                          134                          135
 MN  NRTH8  Northern Telephone Company/Wilderness Valley Telephone Company                330,942                        231                            33                          101                            24                            73
 MN  NWLM  New Ulm Telecom, Inc.             6,118,567                      7,913                       3,414                        1,138                        1,680                        1,681
 MN  PRKR  Park Region Mutual Telephone Company             3,092,315                      4,351                       2,735                          912                          352                          352
 MN  RRLC  Rural Communications Holding Corporation             4,433,893                      6,035                       2,784                          928                        1,161                        1,162
 MN  RTHS  Rothsay Telephone Co. Inc.                448,181                        335                            24                            73                            59                          179
 MN  TDS  Telephone and Data Systems, Inc.             5,099,964                    10,788                       7,362                        2,454                          486                          486
 MN  VNCE  VNC Enterprises, LLC                274,969                        302                            36                          108                            39                          119
 MN  WKST  Wikstrom Telephone Company, Inc.             6,782,806                      6,587                          997                        2,992                          649                        1,949

I’ve abbreviated heading row above from : “Number of Locations in Eligible Census Blocks with Obligation to Offer” to “Locations with Obligation at”

This entry was posted in FCC, Funding, MN, Policy by Ann Treacy. Bookmark the permalink.

About Ann Treacy

I have a Master’s Degree in Library and Information Science. I have been interested or involved in providing access to information through the Internet since 1994, when I worked for Minnesota’s first Internet service provider. I am pleased to be a part of the Blandin on Broadband Team. I also work with MN Coalition on Government Information, Minnesota Rural Partners, and the American Society for Information Science and Technology.

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