The FCC is likely to delay for up to two years a massive $9 billion subsidy program that will provide 5G wireless service in rural America because the agency’s broadband coverage maps are too flawed to credibly determine where the money is needed.

The delay is just the latest in a series of speed bumps that have slowed down rural wireless service expansion, hampered mostly by service coverage maps that typically over-promise service that just doesn’t exist in many areas.

A revised subsidy program would double the funds available for rural wireless service, but delay projects at least 18-24 months, with the first awards granted sometime in late 2022.

The wireless subsidy program is designed to enhance rural wireless/mobile coverage across the United States. The FCC estimates about 83% of rural America is currently covered by 4G LTE service providing an average of 10/3 Mbps. In urban and suburban communities, 97% of areas have 4G coverage and often at faster speeds. Small, independent wireless carriers have popped up to serve rural states and regions that have been ignored by AT&T, Verizon, and T-Mobile, but coverage gaps still remain far from well-traveled interstate highways or in mountainous regions. Carriers have typically considered those areas unprofitable to serve, failing Return On Investment formulas that expect investments to pay off within a certain number of years. Wireless subsidies cover a portion of the cost to build and operate unprofitable rural cell towers, coaxing wireless companies to be more willing to expand coverage.

The ongoing problem of wireless coverage accuracy has had a direct impact on rural funding programs that have rules forbidding spending in areas that already have coverage. Wireless companies with overeager marketing departments have routinely issued coverage maps claiming solid 4G LTE coverage in areas where many claim it doesn’t exist. The conflict over accurate coverage maps became so contentious, the FCC canceled plans to spend billions on wireless subsidies in late 2019 until more accurate coverage maps could be created.

Next week the FCC plans a vote to authorize the new $9 billion subsidy program, but funds will likely be held until wireless companies can prove their coverage claims and update coverage information so the FCC can pinpoint areas that can qualify for the funds.

“This approach won’t be the fastest possible path,” FCC Chairman Ajit Pai wrote. “But it will allow us to identify with greater precision those areas of the country where support is most needed.”

Nearly two-thirds of counties in the United States have real world wireless download speeds below the Federal Communications Commission’s minimum to be considered broadband — 25 Mbps. In rural counties, the number is even higher: 77% cannot get reliable speed at or above 25 Mbps.

That is the finding of a new report, “Understanding the True State of Connectivity in America,” produced by the National Association of Counties (NAC), and a handful of other rural-focused advocacy groups.

Unlike the Federal Communications Commission, which relies on providers voluntarily supplying the broadband speeds they claim to offer customers, NAC developed TestIT, an app allowing the public to test actual wireless broadband speeds and report back results. Since March 2019, users have conducted over 100,000 speed tests from 2,391 U.S. counties (representing 78% of all counties nationwide).

The results found widespread differences between the speeds advertised to customers and those experienced by them. Among fixed wireless broadband networks, almost 60% of counties lacked providers that consistently supplied service with speeds at or above 25 Mbps. Wireless speed was inconsistent everywhere, but particularly in rural areas, where 74% of rural counties had slow speed service.

“The TestIT app results show a disparity of broadband access across America,” said NAC executive director Matthew Chase. “Armed with this data, we will advocate for adequate funding for broadband infrastructure and better inform federal, state and local decision-making to help level the playing field.”

The app also identified a much larger section of rural America where there was no service at all, despite claims of coverage from wireless providers on coverage maps. The organization believes this disparity may be coming from taking providers at their word instead of independently verifying actual coverage is available.

“Accurate connectivity data is the foundation for investments in our nation’s broadband infrastructure,” the report found. “Unfortunately, connectivity data provided to the FCC is often inaccurate and inflated — leaving many communities overlooked and disconnected.”

Sen. Joe Manchin (D-W.V.) wants every West Virginian to test their internet speed and send his office the results to ferret out deceptive service maps and uncover more information about the state’s ongoing broadband problems.

“We’re urging everyone to do these speed tests,” Manchin told residents in Lewis County last Sunday. “We need to know, and people need to be involved in West Virginia, if they ever want to have broadband, high-speed internet and cell service. This is what we’re fighting for.”

Manchin is on a mission to debunk FCC Chairman Ajit Pai’s claims that rural broadband has grown under Pai’s leadership. Manchin believes the FCC’s broadband coverage maps are wildly inaccurate, advertised speeds are not met, and many rural residents in the state are left without internet access.

The senator intends to send the speed test results to Pai’s office, and he wants consumers to use the FCC’s own free speed test app (for Android and iOS) to “cover [Pai]” with piles of speed test results shining a light on the problem.

“There’s an FCC app that you can download on your phone,” Wes Kungel, legislative director for Manchin’s office told WVNews. “If you download that, you can hit a little button and it will tell you your speeds. If you email or mail that to our office, we will put it in a letter and send it personally to Chairmen Pai.”

Sen. Manchin

The ongoing problem with faulty broadband service maps have allowed a select group of telecom companies (many responsible for the data used by those maps) to receive federal funding to expand their own broadband businesses while preventing others from getting funding claiming the new providers would receive government funding to overlap their existing service areas.

“This is really where it all started,” he said. “[People] contacted us a few years back and basically they weren’t getting the coverage. They could not get coverage because [the FCC] said the maps showed that there was already coverage here. So we came out and did the speed tests.”

Manchin argues that West Virginia is among the most broadband-challenged states and inaccurate maps will result in the state not getting its fair share of the estimated $20 billion the FCC plans to distribute in rural America to improve broadband service.

“There’s no state that needs it more than rural West Virginia,” Manchin added. “A ‘urban’ community is 50,000 (people) or more. We don’t have one city in West Virginia with 50,000 so we have nothing to compare it to. We are all rural and we’re going to have to fight for every dollar that we can to get connected.”

West Virginians can submit their speed test results to Sen. Manchin’s office by following this link.

Verizon and T-Mobile are redlining their up and coming 5G wireless services to target wealthy neighborhoods and business districts while shunning the urban poor.

Dave Burstein examined the coverage maps of both carriers in cities like Manhattan and found a distinction in the service available in wealthy southern Manhattan and what upper Manhattan neighborhoods including Harlem and the mostly Latino Washington Heights are getting. For both companies, 5G is not much of a priority for Brooklyn either.

“I do not think T-Mobile specifically intended to exclude people of color, but that seems to be the practical effect,” Burstein wrote.

(Image: Dave Burstein)

Ronan Dunne, executive vice president & group CEO of Verizon Consumer confirmed that Verizon will be targeting 5G service to areas where it makes the most economic sense. He said that more than half of Verizon Wireless customers will continue to get 4G LTE-like speeds, with the rest eventually upgraded to 5G service.

“So we’ve taken a very clear view that we want to have both a coverage strategy and a capability strategy. And a very large majority of the volume of data that we carry on our networks goes to large, dense urban environments,” Dunne told investors recently. “So from a population point of view, it’ll be significantly less than half of the customers [getting 5G]. But from a data traffic point of view, it’s significantly more than half. So when it comes to the ability to use 5G as a significant capacity enhancement, there’s more of an opportunity to leverage that in the urban areas.”

In other words, Verizon plans to target population dense urban areas for 5G service the most, because that is where most of its data-loving customers live and where they network’s cost effectiveness may be the highest. Although the geographic coverage of 5G will seem relatively small, the population density of areas targeted for 5G service is not.

Dunne

Verizon has been touting its forthcoming nationwide 5G network, but Dunne has hinted to investors that the devil will be in the details. Not every customer will have access to Verizon’s super fast millimeter wave 5G service. In fact, at least half the country will be serviced by existing 4G LTE cell towers upgraded to provide 5G service on lower frequencies capable of reaching far beyond the coverage area offered by millimeter wave service. But that will also mean a much larger number of customers will share the same 5G network connection, potentially dramatically reducing speed and performance. Dunne said the performance of this type of 5G service “will approximate a good 4G service.”

Burstein notes in real terms, this will mean a significant difference in network speed. Verizon’s millimeter wave service will be capable of delivering 1-2 Gbps, while Verizon’s 5G upgrade of its existing 4G cell towers will deliver speeds in the low hundreds of megabits per second, potentially even slower on crowded cell sites.

A Verizon 5G small cell installed in Sacramento. (Image courtesy: ZoraQ)

Consumers hoping for the imminent arrival of a “cable killer” from Verizon’s new millimeter wave 5G fixed wireless broadband should not hold their breath.

Verizon executives have been paraded out to celebrate its debuting 5G service as “revolutionary/game changing/transformational” at the same time Qualcomm, which helped define the forthcoming 5G standard claims it will be “as transformative as the automobile and electricity.”

But the ‘Revolution of 5G’ will not be the next fall of the Berlin Wall or Arab Spring. Those revolutionary changes happened almost overnight. Instead, 5G will be quintessential American capitalism at work: overhyped promises to excite the public and attract investors, tempered by the reality that massive amounts of money and at least a decade of work will be needed to blanket only parts of the country with small cells and the newly ubiquitous fiber optic networks required to connect them together.

Verizon already offers hints of that reality, but only in the fine print where it acknowledges its wireless home broadband replacement service, set to launch on October 1, will be only available in parts of four U.S. cities. Verizon isn’t saying what percentage of Sacramento, Los Angeles, Houston, and Indianapolis will be covered, but enthusiastic would-be customers are crowdsourcing their own coverage maps, and the results are underwhelming.

The City of Sacramento released this map showing Verizon’s planned 5G coverage in the city, but customers dispute it. (Image: City of Sacramento)

“Lightning has hit more homes than Verizon 5G will in Sacramento,” reports Jack Del Vecchio, who spent an hour entering addresses on Verizon’s website looking for service. “The city of Sacramento, trying to placate homeowners worried about more cell equipment visually polluting the city, released a map where Verizon claimed it would be offering 5G service by the end of 2018. That clearly is not happening, at least not yet, because most of these neighborhoods do not have small cells installed yet.”

In Indianapolis, reddit user rycummin_IU scanned almost 17,000 addresses and found Verizon service available to just 179 homes and businesses. Only a fraction of customers in Houston and Los Angeles are qualified for service as well.

The vast unavailability of Verizon 5G service in Indianapolis. (Image courtesy: rycummin_IU)

“When they said Houston would be part of the rollout I didn’t think they meant one street,” commented another reddit user. In reality, Verizon 5G will debut in parts of low-income neighborhoods like Acres Home, Gulfton, Second Ward, Third Ward and Near Northside, at the behest of city officials, among a few others. But availability is very scattered, and based on search results, Verizon is only qualifying customers that live within approximately 500 feet of a small cell antenna.

This map shows the limited range of Verizon 5G small cells. In this case, this neighborhood is likely served by one or two small cells, probably in the vicinity of Sugar and Brady and/or Eastwood or Jenkins St. Notice coverage is often unavailable across streets. (Image courtesy: SmokeyTuna)

The most unlikely choice for limited range 5G is notoriously sprawling Los Angeles, and frustrated residents reported service was least likely to be found there.

“I spent 30 minutes plugging in random addresses all over Los Angeles and I finally found one that works,” reports reddit user chantasic. “It’s the big apartment building at 1108 7th Street, Los Angeles, CA, 90017 in [downtown Los Angeles]. If you go just one block west from there on Garland Ave, it’s not available. If you enter in ‘1127 Lucas Ave Los Angeles, CA 90017’ which is a high-rise, then it starts asking you what floor you live on and whether you have any windows that face 7th St. So one of the antennas must be on 7th St.”

“I put in my work address and it worked at 555 South Flower street, which is across from the library on West Fifth Street,” shared another user. A third reddit reader in Los Angeles managed to track down service at Medici Apartments, a complex next to the 110 freeway in the South Westlake area.

Those customers who are lucky enough to live in a qualified service area report the sign-up process to be orderly. A full credit check is done on prospective customers, and assuming one passes it, an appointment for “white glove” installation is scheduled. Verizon has confirmed no self-install option will be available for the time being. Verizon’s installers are trained to find the best possible place to install its 28GHz antenna, which does not perform well penetrating heavy foliage, certain building materials, and low-energy insulated window glass. Verizon plans to monitor the performance of these early 5G installations to gather more information about how the service is working and how to get the best performance from it.

Verizon has released terms and conditions for the service and provided more insight into the installation process, which takes several hours. Customers interested in more information can call this special Verizon 5G hotline — 1-866-217-2223 to order and schedule installation, or find out about 5G Home.

Verizon 5G Home Terms of Service

Two pieces of 5G Home equipment will be installed at your home:

• Indoor or outdoor 5G receiver
• 5G router

The type of receiver (indoor or outdoor) you get depends on the 5G signal strength. If needed, Wi-Fi extenders will be installed in the home, at no charge, to ensure adequate Wi-Fi coverage for the entire house.

What will happen during the 5G Home installation?

An Asurion (third party contractor) technician will complete the following installation process for your 5G Home service and connect your devices:

• Verify and explain the areas in your home where the 5G signal is received.
• Conduct a test to determine whether the 5G receiver can be installed inside or outside your home. The strength of the 5G signal can vary inside and outside your home.
• Conduct a test of the Wi-Fi signal strength of each device throughout the house that is connected to the 5G Home router. A Wi-Fi extender may also be installed at no charge to strengthen the Wi-Fi signal throughout your house or for devices that have a weak Wi-Fi signal.
• Install the receiver, with your approval, either inside or outside on the side of your house.
• Depending on the locations of the receiver and the router, the technician may need to run wires through walls, floors or ceilings.
• Ensure that all your previously Wi-Fi connected devices are now connected to your Verizon 5G Home router.
• Demonstrate how you can use the My Verizon app to manage your router, such as how to restart it when you are away from home, and check the signal strength of the devices connected to the router.

Service Availability. Unfortunately, we can’t guarantee that our 5G Home service will be available at your address, even if we accepted your order. The 5G Home service does not support static IP addresses.

Equipment. We’ll provide you with equipment, which may include an indoor or outdoor receiver, a router, a Wi-Fi extender, and other equipment, to use with your 5G Home service. That equipment will continue to be owned by us, and you can’t use it for any other purpose, move it to a different location or position, tamper with or intentionally damage it, or allow anyone else to service it. We will repair and maintain that equipment at our expense, unless we determine that you misused, abused or intentionally damaged the equipment, in which case, you will have to pay the replacement cost of it. If any of that equipment is stolen, please provide us with a copy of your police report, so that you are not charged for it.

Installation and Access to Your Premises. We will attempt to install the 5G Home service at the address that you provided to us at the time of sale. From time to time, we may access your outdoor receiver to service, inspect, upgrade and/or remove it. If 5G (or 4G LTE backup) coverage is not available at your address, or if we cannot perform installation for any reason, then we will cancel your order.

Changing Service Location. You may not move the 5G Home service to another address. If you are moving to a new address at which the 5G Home service is available and you wish to continue using it, then please contact us to install it at your new address.

Service Cancellation and Equipment Returns. Upon termination of your 5G Home service, you should return the equipment to us in an undamaged condition (subject only to reasonable wear and tear) within 21 days after service cancellation, or you may be charged an unreturned equipment fee, which may be substantial. If you don’t cancel your 5G Home service, then your service charges will continue to apply, even if you return the equipment. If we ask you to leave the outdoor receiver in place, you will not be charged an unreturned equipment fee.