FCC launches new mobile broadband subsidy

The FCC has announced a new programme that will allow broadband carriers to bid for mobile broadband subsidies designed to bring 3G or 4G service to areas in the country that do not have it.

The funding comes from the USD 300 million Mobility Fund, created from reforms of the universal service subsidy programme. All the bidders will have to take part in a reverse auction, and the lowest-priced provider to bring service to an area will get the award. Winning bidders must deploy either 3G service within two years or 4G service within three years of the award.

FCC's chariman, Julius Genachowski said in a statement:

"For too many, dead zones in mobile coverage are too common, and today's action will help close those gaps.By using market-based mechanisms, we'll ensure more gaps in mobile coverage are closed, and that every dollar is spent wisely and efficiently."

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