In what it described as its biggest step yet to close the digital divide, the Federal Communications Commission voted on Thursday to establish a “rural digital opportunity fund” to provide up to $20 billion over 10 years for high-speed internet networks in rural America. The first phase of the project will begin this year and will focus on census blocks lacking broadband service.
Up to $16 billion would be directed in the first phase to provide fixed broadband service of at least 25 megabits per second for downloads and 3 megabits per second for uploads. Funds would be allocated through a multi-round reverse auction. FCC staff estimated that about 6 million rural homes and businesses are located in areas without broadband service. The second phase of the program would make $4.4 billion available to partially served census blocks where some locations lack access to so-called 25/3 Mbps broadband.
Meanwhile, the USDA said it will accept applications beginning today for the second round of grants and loans to build broadband infrastructure in rural areas with insufficient service. Through the ReConnect Program, the USDA is offering approximately $200 million in grants, $200 million in low-interest loans, and $200 million in combined grants and loans for public-private broadband projects. For the USDA program, insufficient internet service is defined as download connections of less than 10 megabits per second and upload speeds of less than 1 megabit per second.