The nationwide scheme will boost connectivity in some of the US’ most remote communities

700,000 homes and businesses in the United States are to receive 100Mbps broadband, as part of the FCC’s Connect America initiative.

The second round of bidding for the Connect America broadband subsidy initiative closed last week, with the US government releasing $1.488 billion of funding.

“The successful conclusion of this first-of-its kind auction is great news for the residents of these rural communities, who will finally be able to share in the 21st-century digital opportunities that broadband provides,” said FCC chair Ajit Pai in a statement.

“By tapping the mechanisms of the marketplace, the Phase II auction served as the most appropriate and cost-effective way to allocate funding for broadband in these unserved communities, bringing the highest-quality broadband services to the most consumers at the lowest cost to the ratepayer.”

In addition to funding ultrafast connectivity to 700,000 homes and businesses in the US, the funding will also be used to deliver hyperfast, 1Gbps full fibre services to approximately 150,000 properties across the country.

Under the terms of the funding agreement, internet service providers must build out to at least 40 per cent of the assigned properties that fall under their remit, within three years. Buildout must then increase by 20 per cent in each subsequent year, meaning that 100 per cent of customers must be reached within 6 years. 

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