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1 1 (July 31, 2023)

handle is hein.crs/govemjd0001 and id is 1 raw text is: Con re &on flesedrch Service ~ niig Ieg~ I ive le a ~ ~ 'e 1914 0 July 31, 2023 5G Fund for Rural America: Current Status and Issues On October 27, 2020, the Federal Communications Commission (FCC) created the 5G Fund for Rural America (5G Fund). The FCC directed that $9 billion over the next 10 years from the Universal Service Fund (USF) be used for the new 5G Fund to expand fifth-generation wireless broadband connectivity. This included $8 billion to bring voice and high-speed mobile broadband services to rural areas unlikely to see 5G cellular deployments without subsidies and $1 billion for networks that can support precision agriculture. When the FCC created the 5G Fund, it decided to wait to initiate activity until it could collect more granular mobile coverage and service data and develop more accurate maps showing mobile broadband service availability in the United States. The FCC acknowledged that waiting for data will not be the fastest possible path to award funds, but would allow it to identify with greater precision those areas of the country where support is most needed. In August 2021, the FCC released a map showing mobile (e.g., cellular) coverage in the United States by the four largest providers. In November 2022, the FCC released the National Broadband Map showing fixed (e.g., fiber) and mobile coverage based on provider input, and allowed for public challenges to the data. In May 2023, the FCC released a second, updated map (Ver. 2), and announced Ver. 3 is to be released in November 2023; however, it has not announced plans to proceed with 5G Fund awards. During the 118th Congress, some Members have questioned whether 5G Fund amounts allocated by the FCC will be sufficient to meet rural mobile service coverage needs. Others have raised questions concerning the FCC's management of USF funds-a fund that collects and redistributes fees from service providers to fulfill universal service goals. Others have proposed new programs to expand fixed and wireless service in rural areas (S. 2542). Universal Service as a Concept The concept of universal service-that all Americans should have access to telecommunications services-was established as national policy in the Communications Act of 1934. A fund and programs to promote universal service were established in the Telecommunications Act of 1996. The act granted the FCC authority to establish the USF to promote universal service, and to establish the Universal Service Administrative Company (USAC), an independent not-for-profit corporation to serve as the USF administrator. Telecommunications providers are required to contribute a percentage (currently about 30%) of their interstate and international end-user revenue to the USF-a cost they typically pass along to consumers. The USAC collects and manages these contributions. The Telecommunications Act of 1996 expanded universal service beyond telephone service to ensure access to high- speed internet services (e.g., broadband). Section 254 provides that consumers across the nation, including in rural areas, should have access to telecommunications and information services at rates that are reasonably comparable to those in urban areas. U'nversaI Service Fund (USF) Programs To advance the universal service mandate, the FCC directs USF funding through four major programs-High-Cost, Lifeline, Rural Health Care, and Schools and Libraries. The FCC sets program rules and the USAC disburses USF funds through each program. USAC Annual Reports indicate that about $8 billion is made available from the USF annually. The FCC has changed USF programs to fulfill its universal service mandate. In 2011, the FCC reformed the High-Cost program to create the Connect America Fund (CAF), which provides about $4.5 billion annually to eligible providers to deploy high-speed internet in rural areas. The FCC also created the Mobility Fund, a program under the CAF that provided $300 million in one-time funding for mobile broadband and voice services in unserved and underserved areas, and the Mobility Fund Phase II program, to provide recurring funding to areas unlikely to receive unsubsidized 4G Long Term Evolution (LTE) services. In April 2020, the FCC proposed to replace the Mobility Fund Phase II with the 5G Fund to spur deployment of 5G networks, close the digital divide among areas with varying internet access, and enhance economic opportunities in rural regions. Under the final rules for the 5G Fund, the FCC would identify areas not served by a subsidized 4G LTE or 5G provider. The FCC would then hold a reverse auction, a process in which companies submit proposals to provide 5G services in those areas and the FCC awards funds to the lowest bidder for each area. Identifying Areas Eligible for SG Funds To determine eligibility for 5G Fund support, the FCC considered using existing data sources, such as broadband, telephone, and mobile service data collected from providers (e.g., Form 477 mobile coverage data submitted for the Mobility Fund). In its October 2020 Report and Order, the FCC stated the existing data was inaccurate, and decided to use data from the Digital Opportunity Data Collection-a 2019 FCC initiative to collect data on coverage from providers, allow public challenges to the data, and map mobile service availability nationwide. In the 2020 Report and Order, the FCC acknowledged that waiting for this data collection to be complete could add 18-24 months to the program's timeline. It reasoned that the extended time would enable it to distribute funds using accurate coverage data and take into account new 5G deployments, including deployments from T-Mobile, which committed as a

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