The Federal Communications Commission is on a mission to slow down broadband in rural areas. Or at least protect incumbents who don’t invest in their networks in rural markets where competitive options are few to non-existent.
The latest move approved by commissioners sets a low bar for mobile broadband service. Similar to its Connect America Fund program that subsidises fixed, mostly wireline service in communities with sub-standard Internet service, the FCC administers the Mobility Fund for mobile carriers. In order for qualify for subsidies under the plan reaffirmed by the FCC earlier this month, existing mobile broadband speeds have to be below 5 Mbps download, with no standard at all set for upload performance.
That’s in contrast to the wireline subsidy program, which sets 10 Mbps down and 1 Mbps up as the minimum. Rural carriers wanted the FCC to use the same standard for mobile service, and in the process make more areas eligible for subsidies. But the FCC didn’t buy it, arguing that they have to establish service levels that are “reasonably comparable” to what’s available in urban areas and, contrary to what they advertise, the big mobile carriers say they don’t do all that well…
Although [the rural wireless carriers group] claims that the median download speed provided by nationwide carriers is approximately 12 Mbps, Verizon counters that, depending on demand, consumers in an urban market may see service slower than 5 Mbps. Furthermore, despite the fact that providers have used different standards and methodologies to report coverage…the nationwide carriers are all generally reporting minimum advertised download speeds of 5 Mbps for their 4G LTE network coverage.
Other national mobile carriers, including notably T-Mobile, made similar arguments. It’s funny how they try to sell customers on blazing fast performance, and then turn around and trash talk it when it’s time to protect their poorly served rural turf from subsidised competition.
The Trump administration’s FCC is also considering lowering the standard for advanced service from the current 25 Mbps down/3 Mbps up level to 10 down/1 up, at least for mobile broadband, another move that would please big incumbent telcos and cable companies and help protect their monopoly business models.
Making much of the rural U.S. a competition-free safe zone for incumbents is the wrong thing for the FCC to do, and sanctioning lower broadband speeds at a time when demand is skyrocketing is the wrong direction to take.