FCC Mobility Fund Auction Outlined, Furthers Wireless Access in Rural Areas

The Federal Communications Commission recently announced the competitive bidding procedures for Phase I of its Mobility Fund, which is meant to accelerate the delivery of mobile data service to tens of thousands of road miles currently lacking any 3G or 4G service. This unprecedented reverse auction for the FCC’s Universal Service support is just the first step in ensuring universal wireless access in the U.S.

Winning bidders at the auction have two options: deploy 3G services within two years or 4G services within three years of the award. The Mobility Fund will hand out up to $300 million, which was reserved out of savings from the FCC’s Universal Service Fund reforms.

Consumer demand aside, mobile broadband has become an essential part of the modern business world while the industry itself has created jobs and expanded economic opportunity while promoting new innovations in education, health and public safety. The FCC’s focus on universal mobile service reflects this and, since the reform and modernization of the Universal Service Fund, big steps are being taken toward the goal of closing the gaps in mobile wireless service, the Mobility Fund auction being the first tangible step.

Bidders in the reverse auction will indicate the amount of one-time financial support that they will need in order to deploy service, which must meet rigorous performance standards. Furthermore, bidders will compete not only with other carriers seeking to support the same areas, but also against carriers bidding for support in areas nationwide. The lowest bidders will be allowed to service the area or areas at the price they bid.

The Wireline and Wireless Bureaus have released a Public Notice detailing the procedures for the Mobility Fund Phase I auction which includes pre-auction and post-auction requirements, as well as an outline of the census blocks eligible for support and the time frame for parties to file applications to participate. The FCC, which detailed Phase I of the Mobility Fund at Catholic University’s 2012 Telecommunications Symposium, will offer an additional $50 million for Tribal lands support through a Tribal Mobility Fund Phase I.