In the United States, the Federal Communications Commission (FCC) distributes subsidies to broadband providers to offer high-speed broadband (Internet) in unserved areas.
Millions in rural and low-income areas lack high-speed Internet due to providers avoiding these regions, expecting low revenue. This absence can hinder economic growth and widen wage inequality, known as the “digital divide.” The FCC addresses this by subsidizing providers to bring Internet to underserved households.
This article published in Telecommunications Policy, by CRA’s Ignacio Nunez, examines the Rural Digital Opportunity Fund (RDOF), which allocated up to $16.4 billion in 2020 for expanding broadband in unprofitable areas.