LeRoy T. Carlson Jr., Chairman, U.S Cellular Corporation www.uscellular.com described the important need for mobile broadband in rural areas before the hearing held by the Senate Subcommittee on Communications, Technology, Innovation, and the Internet www.commerce.senate.gov on February 4th.
He described how U.S Cellular provides wireless service in nearly 200 markets across 24 states located in regional clusters across the country where most of the areas served are rural. The company has participated in the FCC’s universal service program for many years.
He told the Committee, “Based in his experience in rural America, the current and proposed Mobility Fund mechanism lacks the necessary size and focus to ensure that rural communities have timely access to high quality mobile broadband services needed to compete in the U.S.
Carlson urges the FCC www.fcc.gov to develop a more accurate picture of mobile coverage and mobile broadband availability in rural areas and to estimate how much it will cost to bring mobile broadband networks in rural America up to the reasonably comparable standard that Congress set.
He told the Committee how for years, the company has advocated for a robust federal universal service fund capable of providing rural consumers with access to both mobile and fixed networks.
He told the Committee, “The FCC’s historical allocation of support to wireless networks has been insufficient to close coverage gaps and deliver mobile broadband to many areas. He pointed out that between 1999 and 2014, the FCC allocated over $50 billion to support fixed networks and less than $12 billion to mobile networks.”
Over the next five years, fixed networks are projected to receive $22.5 billion in federal funding while mobile networks are projected to receive $2.5 billion. Wireless consumers now contribute nearly half of the total federal Universal Service Fund www.fcc.gov/general/universal-service of $9 billion which includes E-Rate, Lifeline, Connect America Fund, Mobility Fund, and Rural Health Care.
According to Carlson, “The proposed funding for mobile broadband does not accurately reflect consumer usage, preferences, and infrastructure needs in rural areas. There is a rapidly expanding demand for high quality coverage and fast broadband connections but the current level of funding shortchanges rural Americans who increasingly rely on mobile services.”
Carlson suggests that the FCC solicit new ideas on how to leverage existing federal funds in combination with state universal service mechanisms, along with private investment to provide an incentive for competitors to invest and improve services.
He also suggests that the FCC consider a grant program where combined federal and state support funds could be used in a targeted way to address those areas most in need of mobile broadband coverage.