MTC gets over $2.6M to expand broadband for NMI

WASHINGTON, D.C.—Micronesian Telecommunications Corp. has accepted $2,627,177 in annual, ongoing support from the Connect America Fund to expand and support broadband for nearly 23,000 of its rural customers.

The Connect America Fund support will enable Micronesian Telecom to deliver broadband at speeds of at least 10 Mbps for downloads and 1 Mbps uploads to over 11,100 homes and businesses in its rural service areas where the cost of broadband deployment might otherwise be prohibitive.

“Micronesia Telecom’s decision to accept support from the Connect America Fund will greatly benefit its rural customers by expanding robust broadband in their communities,” said FCC chair Tom Wheeler. “The Connect America Fund is delivering on its promise of ensuring that all Americans have access to the opportunities provided by modern broadband service, no matter where they live.”

Below is the amount of annual support provided and number of homes and businesses served by municipality:

Municipality Homes/Businesses Supported Total Support
Rota 852 $973,948
Saipan 9,268 $1,153,549
Tinian 1,023 $499,680

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.

Over the next six years, Phase II of Connect America will provide more than $10 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. (FCC)