FCC Jumpstarts 5G Rural Fund with Modified Rules

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The FCC has adopted a Second Report and Order and Order on Reconsideration modifying the previous framework for the 5G Fund for Rural America that was adopted in 2020.  The numerous modifications to the 5G Rural Fund rules include: (1) commencing the disaggregation of mobile legacy high-cost support upon announcement of the authorization of 5G Rural Fund support; (2) permitting 5G Rural Fund support to fund deployment in eligible areas of Puerto Rico and the U.S. Virgin Islands; (3) raising the speed threshold for determining eligible areas to 7/1 Mbps from the previous 5/1 Mbps standard; (4) allowing eligibility for areas that may be partially covered with 5G service; (5) mandating maintenance of cybersecurity risk management plans by fund recipients; and (6) encouraging deployment of Open RAN through financial incentives.  The Commission has also decided that it will use outdoor stationary coverage data to determine eligible areas for the 5G Rural Fund auction.

Commissioner Brendan Carr issued a dissent to the 4-1 decision arguing that this decision “puts the cart before the horse” by moving forward with the 5G Rural Fund before BEAD Program awards are ascertained, ultimately concerned that it could lead to more overbuilding.

The FCC also adopted a Second Further Notice of Proposed Rulemaking seeking comment on various questions related to Tribal consent requirements for deploying network facilities on Tribal lands.

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