Internet service providers that use government subsidies to build rural broadband networks must provide speeds of least 10Mbps for downloads and 1Mbps for upload, the Federal Communications Commission (FCC) decided today.

"That is an increase reflecting marketplace and technological changes that have occurred since the FCC set its previous requirement of 4Mbps/1Mbps speeds in 2011," the FCC said.

This action affects only broadband networks paid for by the Connect America Fund, which comes from surcharges paid by phone customers. The FCC's official definition of broadband remains at 4Mbps/1Mbps for now, but the commission is likely to change that as well.

AT&T, Verizon, and the National Cable & Telecommunications Association have all argued that the FCC should not change the broadband definition, saying 4Mbps is good enough for customers. FCC Chairman Tom Wheeler disagreed, saying, "When 60 percent of the Internet’s traffic at prime time is video, and it takes 4 or 5Mbps to deliver video, a 4Mbps connection isn’t exactly what’s necessary in the 21st century." Wheeler has also said that 25Mbps "is fast becoming ‘table stakes’ in 21st century communications."

Rural Americans should not be left behind those who live in big cities, the FCC announcement today said. "According to recent data, 99 percent of Americans living in urban areas have access to fixed broadband speeds of 10/1, which can accommodate more modern applications and uses. Moreover, the vast majority of urban households are able to subscribe to even faster service," the FCC said.

The FCC plans to offer nearly $1.8 billion a year to carriers willing to expand service to 5 million rural Americans. Carriers will also receive six years of support instead of five. Commissioner Ajit Pai dissented in part, agreeing with the 10Mbps benchmark but saying that carriers should get 10 years of funding to account for the increased speed requirement.

Also today, the FCC raised the annual spending cap on its E-rate program from $2.4 billion to $3.9 billion a year to improve broadband at schools and libraries. Phone customers will pay an average of 16 cents more per month to fund this increase, which was opposed by Republican commissioners Pai and Michael O'Rielly.