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FCC chairman Ajit Pai speaks at a rural connectivity forum in April 2018. Photo: Alex Wong/Getty Images.

The Federal Communications Commission intends to launch a new $9 billion 5G Fund to spur deployment of wireless service in hard-to-serve rural areas, scrapping an existing program meant to spur 4G LTE service.

Why it matters: Each new wave of wireless technology has rolled out quickly in urban centers but faced technical and financial hurdles in reaching rural customers. The FCC struggled to get the previous $4.53 billion 4G program off the ground over the last two years amid widespread criticism that coverage data submitted by the carriers did not accurately reflect where there already is 4G service.

Driving the news: A commission staff report released Wednesday found that data submitted by Verizon, U.S. Cellular and T-Mobile for the original funding program, Mobility Fund Phase II, did not reflect on-the-ground experiences measured by speed tests.

  • Staffers drove nearly 10,000 miles to conduct speed tests of carrier networks, FCC chairman Ajit Pai said. The staff report said only 62 percent of the drive tests showed the expected minimum download speeds.
  • "Mobile carriers must submit accurate broadband coverage data to the commission," Pai said in a statement. "Simply put, we need to make sure that federal funding goes to areas that need it the most."
  • FCC staff recommended in a report that the commission audit the coverage filings of carriers in other proceedings and take other steps to ensure coverage data is accurate.
  • But the FCC will not move to penalize the carriers because the staff investigation did not find a sufficiently clear rule violation that would warrant action, a senior FCC official told reporters on a call.

What they're saying: U.S. Cellular said it had warned that the FCC's directions for the coverage maps would result in overstated coverage, and said the staff report comes as "no surprise."

  • The company "faithfully implemented" the FCC’s requirements for the coverage maps it submitted but recognizes "better and more accurate maps are necessary," said Grant Spellmeyer, vice president of federal affairs and public policy for the carrier.

What's next: Pai's new proposal would have the FCC allocate $9 billion from the Universal Service Fund over 10 years through a reverse auction to subsidize 5G deployment in rural America.

  • The fund would also set aside at least $1 billion for precision agriculture deployments.
  • Pai intends to circulate his proposal to his colleagues early next year, and he will seek comment on where to target the funding and what speed metrics should be used.
  • "We must ensure that 5G narrows rather than widens the digital divide and that rural Americans receive the benefits that come from wireless innovation," Pai said in the statement.

Go deeper

Salesforce rolls the dice on Slack

Illustration: Sarah Grillo/Axios

Salesforce's likely acquisition of workplace messaging service Slack — not yet a done deal but widely anticipated to be announced Tuesday afternoon — represents a big gamble for everyone involved.

For Slack, challenged by competition from Microsoft, the bet is that a deeper-pocketed owner like Salesforce, with wide experience selling into large companies, will help the bottom line.

FBI stats show border cities are among the safest

Data: FBI, Kansas Bureau of Investigation; Note: This table includes the eight largest communities on the U.S.-Mexico border and eight other U.S. cities similar in population size and demographics; Chart: Naema Ahmed/Axios

U.S. communities along the Mexico border are among the safest in America, with some border cities holding crime rates well below the national average, FBI statistics show.

Why it matters: The latest crime data collected by the FBI from 2019 contradicts the narrative by President Trump and others that the U.S.-Mexico border is a "lawless" region suffering from violence and mayhem.

Miriam Kramer, author of Space
2 hours ago - Science

The rise of military space powers

Illustration: Aïda Amer/Axios

Nations around the world are shoring up their defensive and offensive capabilities in space — for today's wars and tomorrow's.

Why it matters: Using space as a warfighting domain opens up new avenues for technologically advanced nations to dominate their enemies. But it can also make those countries more vulnerable to attack in novel ways.

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