Home » Broadband Speed »Competition »Consumer News »Public Policy & Gov't »Rural Broadband » Currently Reading:

USDA’s Rural Broadband Funding Protects Incumbents

Phillip Dampier September 5, 2018 Broadband Speed, Competition, Consumer News, Public Policy & Gov't, Rural Broadband No Comments

The U.S. Department of Agriculture is trumpeting the availability of hundreds of millions of taxpayer dollars to fund rural broadband programs around the country, but only in the most rural communities where an existing monopoly provider won’t be harmed.

“USDA has been investing in rural telecommunications infrastructure for decades, and our current programs offer more than $700 million per year for modern broadband e-Connectivity in rural communities,” the USDA writes on its new Broadband website. “In the coming months, USDA will almost double these longstanding programs with at least $600 million of additional funds for expanding rural broadband infrastructure in unserved rural areas and tribal lands.”

The funds will target unserved areas through a “pilot program” that goes to great lengths to keep funds away from underserved areas where an existing phone company offering slow speed DSL might suddenly face unwanted competition.

The Trump Administration’s budget language requires that funds be only spent in rural areas with a population of less than 20,000 residents, and only where there is insufficient access to broadband service with speeds of at least 10/1 Mbps — a drop from the FCC’s 25/3 Mbps standard. That lower speed threshold is widely seen as protecting incumbent phone companies and will keep broadband funds out of communities where DSL service predominates. The USDA will also notify all service providers in the general area about any application for funds, providing ample opportunity to object if a provider(s) report it already offers service to at least some of its customers at speeds of 10/1 Mbps or more.

If a dispute arises about service availability, the USDA will consult broadband availability maps that Sen. Jon Tester (D-Mont.) said “stink” or send USDA employees to the community to conduct an investigation.

For the moment, the USDA is asking rural Americans to share their stories about their broadband experiences:

To best bridge the e-Connectivity gap in rural America, USDA wants to hear the thoughts and needs of those individuals living and doing business in rural communities. Only through your participation can this program succeed in making rural America great again, so please share your user and service provider feedback, insights and ideas, on the many factors we’re considering, including:

  • How affordable and reliable should rural broadband service be?

  • What time-of-day (morning, afternoon or evening) do rural residents and businesses most need to use high-speed internet?

  • How fast of internet connectivity is needed for business management, e-commerce, farming, ranching, education, and medical/healthcare purposes in rural areas, especially for large data transfers and real-time communications?

Share your feedback with the USDA.

Search This Site:

Contributions:

Recent Comments:

Your Account:

Stop the Cap!