Criticism is mounting against the 5G Fund, a long-gestating US government program that would distribute billions of dollars to wireless network operators, with the goal of funding the construction of 5G networks in rural areas.
Indeed, the issues are so lengthy and complex that T-Mobile has suggested just ending the program altogether.
“Given the unprecedented infusion of billions of dollars of federal and state funding as well as ongoing private investment in 5G Fund infrastructure, it is premature for the commission to proceed with the 5G Fund auction,” T-Mobile told the FCC in a recent filing. “Indeed, the auction may not be necessary at all.”
5G Fund money would likely be allocated through a reverse auction, where the lowest bid to cover a particular location with 5G wins.
T-Mobile isn’t alone…
T-Mobile isn’t the only company criticizing the FCC’s 5G Fund. However, most other companies argue for a delay in the program, not an end to it. And many are urging the FCC to ultimately expand the size of the 5G Fund from around $9 billion to about $36 billion.
“There are several significant objectives that should be completed before conducting the 5G Fund auction, to avoid wasting or improperly targeting 5G Fund support in rural America,” wrote the Coalition of Rural Wireless Carriers, which represents some small wireless network operators in the US.
The article talks about the option to delay…
The coalition argued that the FCC should wait to allocate 5G Fund cash until the BEAD program is well underway. That way, wireless network operators will know exactly where they can expect to obtain suitable backhaul connections for their rural cell towers.
Also, there’s satellite…
Finally, it’s worth noting that satellites may now play a huge role in the future of any discussion about 5G in rural areas.
Today, satellites are connecting to millions of regular smartphones all over the country, including in the rural areas targeted by the 5G Fund. Specifically, several generations of new Apple iPhones can connect to Globalstar satellites, while T-Mobile’s agreement with SpaceX could expand that kind of capability to millions more.