The FCC on Wednesday announced bidding procedures for the first phase of its new Mobility Fund and for Mobility Fund service. The map includes large areas if the U.S. Mountain West, including large parts of Idaho, Nevada and Washington state, as well as large parts of Alaska. But several areas in the eastern U.S. are also eligible, including large chunks of West Virginia, northern New York and Maine.

The Mobility Fund, created in 2011 as part if the FCC's revamp of telephone subsidies under the Universal Service Fund, will award up to US$300 million to mobile providers that bring service to new areas. Winning bidders must deploy either 3G service within two years or 4G service within three years of the award.

With the launch of the Mobility Fund, the FCC has recognized mobile service as a universal service priority for the first time, said FCC Chairman Julius Genachowski.

"For too many, dead zones in mobile coverage are too common, and today's action will help close those gaps," Genachowski said in a statement,. "By using market-based mechanisms, we'll ensure more gaps in mobile coverage are closed, and that every dollar is spent wisely and efficiently."

The FCC will award the funds , in which mobile providers will compete to be the lowest-priced provider to bring service to an area. Bidders will compete both with others that may be seeking support in the same area, but also with carriers bidding for support in other areas.