Media Contact:
Mark Wigfield, (202) 418-0253
mark.wigfield@fcc.gov
For Immediate Release
AT&T Accepts Nearly $428 Million in Annual Support from Connect America
Fund to Expand and Support Broadband for Over 2.2 Million Rural Consumers in
18 States
--
WASHINGTON, August 27, 2015 - AT&T, Inc. has accepted $427,706,650 in annual, ongoing
support from the Connect America Fund to expand and support broadband for over 2.2 million of
its rural customers.
The Connect America Fund support will enable AT&T to deliver broadband at speeds of at least
10 Mbps for downloads and 1 Mbps uploads to over 1.1 million homes and businesses in its rural
service areas where the cost of broadband deployment might otherwise be prohibitive.
AT&T's acceptance of close to one-half billion dollars annually from the Connect
America Fund represents a huge investment in broadband for its rural customers, said
FCC Chairman Tom Wheeler. This is one of the largest amounts accepted by any
company. The financial support provided by American ratepayers will bring significant
benefits to AT&T's rural communities, and we urge state and local leaders to help
communities realize these benefits by facilitating the broadband buildout.
Below is the amount of annual support provided by the offer and number of homes and
businesses served by state:
Total Homes and
Amount of Support
State
Businesses Reached
(in dollars)
AT&T Total
1,117,806
$427,706,650
AL
66,766
$23,161,780
AR
51,792
$21,350,835
CA
141,540
$60,240,434
FL
25,473
$8,485,813
GA
67,402
$25,345,199
IL
19,077
$8,932,507
IN
45,136
$17,576,788
KS
35,375
$18,942,367
KY
84,333
$30,962,548
LA
74,978
$27,907,591
MI
86,635
$29,750,677
MS
133,981
$49,772,592
NC
13,139
$3,498,889
OH
37,603
$14,802,500
SC
30,458
$9,689,453
TN
81,173
$26,137,862
TX
98,432
$42,078,424
WI
24,513
$9,070,392
Like telephone service in the 20th Century, broadband has become essential to life in the 21st
Century. But, according to the FCC's latest Broadband Progress Report, nearly one in three rural
Americans lack access to 10/1 broadband, compared to only one in 100 urban Americans. The
Connect America Fund is designed to close that rural-urban digital divide.
The FCC's traditional universal service program succeeded in ensuring telephone network
coverage in rural America by providing subsidies where the cost of service would otherwise be
prohibitive. In late 2011, the FCC modernized the program to support networks capable of
providing broadband and voice services, and created the Connect America Fund to efficiently and
effectively administer that support to expand broadband in rural areas where market forces alone
can't support expansion.
Over the next six years, Phase II of Connect America will provide more than $9 billion to expand
broadband-capable networks throughout rural America nationwide, all without increasing the cost
of the program to ratepayers. Overall, the FCC's Universal Service Fund allocates $4.5 billion
annually through various universal service programs for high-cost areas to support voice- and
broadband-capable networks in rural America.
Carriers receiving Connect America Fund support must build out broadband to 40 percent of
funded locations by the end 2017, 60 percent by the end of 2018, 80 percent by the end of 2019,
and 100 percent by the end of 2020.
###
Office of Media Relations: (202) 418-0500
TTY: (888) 835-5322
Twitter: @FCC
www.fcc.gov/office-media-relations
This is an unofficial announcement of Commission action. Release of the full text of a Commission order
constitutes official action. See MCI v. FCC, 515 F.2d 385 (D.C. Cir. 1974).
\
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