On April 12, 2019, Federal Communications Commission (FCC) Chairman Ajit Pai announced a new rural broadband initiative at the FCC dubbed the Rural Digital Opportunity Fund (RDOF). The new program will invest $2 billion annually in rural broadband deployment, and replace the Connect America Fund (CAF) as the Commission’s primary investment vehicle in rural broadband deployment.
The legal authorization for CAF is set to expire in 2020. RDOF will invest $2 billion annually in rural broadband deployment projects over a ten-year period for a total investment of $20 billion. RDOF will also raise the minimum speed threshold from 10 megabits per second (mbps) download and 1 mbps upload speeds to 25 mbps download and 3 mbps upload. Increasing the minimum speed threshold will require applicants to provide faster internet connections for rural customers, in order to be eligible for program funding.
The RDOF launch is a welcome announcement for rural communities that faced uncertainty for the future of the FCC’s investment in rural broadband deployment. Rural communities will continue to advocate for more funding for rural broadband, but the RDOF will carry on CAF’s legacy for broadband investments in underserved rural areas.