­The US telecoms regulator, the FCC has announced details of how it is to spend US$300 million of its Universal Service Program funds on boosting mobile phone coverage in rural areas.

As a result of an auction process, new mobile infrastructure deployment will begin in 31 states with areas that currently lack access to 3G or 4G mobile service. In total, up to 83,000 new U.S. road miles will gain access to mobile coverage.

As part of the auction rules, winning companies must complete projects within three years. They must also make their networks available to other providers for roaming so that as many consumers as possible can benefit from the new networks.

Thirty-eight companies and subsidiaries participated in the auction, submitting nearly 900 bids. Winners ranged from larger national carriers like T-Mobile and U.S. Cellular to smaller carriers like Pine Belt Cellular. in Alabama, and VTel Wireless in Vermont. The Commission expects millions more in private investment to complement the auction funding.

This auction is just the first step in the Commission's new effort to provide support to accelerate mobile deployment. The Commission will provide an additional $50 million in one-time support to Tribal Lands  and $500 million annually for ongoing support to mobile services in Phase II of Mobility Fund. This  funding all comes from savings from last year's Universal Service reforms.

FCC Chairman Julius Genachowski said, "For too many, dead zones in mobile Internet coverage are  too common - and today's winners will help the U.S. close those gaps."