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1 [1] (November 13, 2023)

handle is hein.crs/govenkm0001 and id is 1 raw text is: Congressional Research IService Informing the legislitive debate since 1914 Updated November 13, 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 5G Fund to expand fifth-generation (5G) wireless service. 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. The FCC decided to wait to initiate 5G Fund activities until it could collect more granular data to show 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. The FCC proceeded with its new data collection effort in early 2021, and released a mobile coverage map in August 2021 and a fixed (e.g., fiber) map in November 2022. The FCC accepted challenges to the coverage maps, refined the maps to ensure accuracy, and has continued to do so with each iteration. In May 2023, the FCC released a second, updated map (Ver. 2), and announced another update (Ver. 3) to be released in November 2023. The FCC adopted a Further Notice of Proposed Rulemaking (FNPRM) on September 21, 2023, stating that, with the new, granular, and improved mobile coverage data reflected in the new map, it would continue implementation of the 5G Fund. In the FNPRM, the FCC sought comment on several aspects of the 5G Fund, including eligible areas, funding levels, and use of funds. During the 118th Congress, some Members questioned whether 5G Fund amounts allocated by the FCC are sufficient to meet rural mobile coverage needs. Others raised questions concerning the FCC's discretion over USF funds-a fund that collects and redistributes fees from service providers to fulfill universal service goals. Still others proposed new (non-USF) programs to expand fixed and wireless service in rural areas (e.g., 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. The Telecommunications Act of 1996 (P.L. 104-104) directed the FCC to establish the USF to promote universal service, and led to the establishment of the Universal Service Administrative Company (USAC), an independent not-for-profit corporation, to be the USF administrator. The act required telecommunications providers to contribute a percentage (currently about 30%) of their interstate and international revenue to the USF-a cost they typically pass along to consumers. The USAC collects and manages these contributions as directed by the FCC. P.L. 104-104 also expanded universal service beyond telephone service to include 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 reasonably comparable to those in urban areas. Universal Service Fund (USF) Programs 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 through 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 services in unserved and underserved areas, and the Mobility Fund Phase II program, to provide recurring funding to providers in 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, expand mobile coverage, increase internet access, and enhance economic opportunities in rural areas. Eligible areas would be those not served by a subsidized 4G LTE or 5G provider. The FCC would hold a reverse auction, a process in which companies submit proposals to provide 5G services in eligible areas and funds go to the lowest bidder. Identifying Areas Eligible for SG Funds To identify unserved areas, the FCC considered using existing data, such as mobile coverage data submitted to the FCC by providers (e.g., Form 477). In its October 2020 Report and Order, however, the FCC stated that its existing mobile coverage data was inaccurate and opted to use data from the Digital Opportunity Data Collection-a 2019 FCC initiative to collect coverage data from providers, allow public challenges to the data, and map mobile service nationwide. The FCC stated that waiting for this initiative to be completed could add 18-24 months to the 5G Fund timeline, but reasoned that it would result in more accurate coverage data and reflect new 5G deployments. This includes deployments from T-Mobile, which committed as a condition of its 2020 merger with Sprint to cover 90% of households in U.S. rural areas within six years. Congress Mandates Data Collection and Mapping The FCC established the Digital Opportunity Data Collection in August 2019; however, the effort was not

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