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FCC?s Connect America II offers $1.7B to expand rural broadband service

30 Apr, 2015

The Federal Communications Commission (FCC)announced that it’s launching Phase II of the Connect America Fund by offering “carriers nearly $1.7 billion to expand and support broadband service in rural areas where market forces alone cannot support deployment.” The program aims to expand broadband to over 8.5 million rural Americans.

 

Telecom companies have four months -- until August 27 -- to decide whether to accept the funding on a state-by-state basis.

 

The FCC also announced the amount of support offered to each carrier and the number of locations served, which we summarize in this table:

 

Company

Number of Locations

Subsidy Offer

AT&T

1,265,036

$484 million

CenturyLink

1,190,016

$514.3 million

FairPoint

106,380

$38.2 million

Frontier

659,587

$283.4 million

Verizon

387,470

$143.9 million

Windstream

413,345

$178.8 million

Cincinnati Bell

7,084

$2.2 million

In the announcement, FCC Chairman Tom Wheeler explained what the offer means for rural Americans, one in three of which lacks access to broadband:

Today’s offer of $1.675 billion for rural broadband deployment will connect millions of rural Americans who lack access to modern high-speed Internet service. The Connect America Fund is tackling the rural digital divide so that all Americans can have access to the jobs, education and opportunities provided by broadband, no matter where they live.

Speed Matters hopes all carriers will participate fully in the CAF program to expand broadband access in rural areas.

Connect America Fund Offers Carriers Nearly $1.7 Billion to Expand Broadband to Over 8.5 Million Rural Americans(FCC, Apr. 29, 2015)

 

Wireline Competition Bureau Announces Connect America Phase II Support Amounts Offered to Price Cap Carriers to Expand Rural Broadband (FCC, Apr. 29, 2015)

 

Connect America II could push telecom revenues millions higher(Speed Matters, Mar. 28, 2015)

 

 

 

 

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