FCC Prepares To Issue $311M In RDOF funds
The U.S. Federal Communications Commission (FCC) dealt LTD Broadband a blow as it announced an initial batch of $311 million in support for winners of the Rural Digital Opportunity Fund Phase (RDOF) I auction, denying the operator’s request for more time to prove its funding eligibility in three states.
The Funding was authorized to a total of 48 providers, with the FCC noting in a press release the money will help fuel gigabit-speed deployments to nearly 200,000 homes and businesses across 36 states over the next decade. Cincinnati Bell Telephone Company, Consolidated Communications, Cox and NTS Communications were among those approved to receive funding, according to a public notice.
Acting FCC Chairwoman Jessica Rosenworcel said the support authorizations represent “a significant down payment on broadband deployment,” adding “today’s announcement means that help is on the way for hundreds of thousands of Americans without access to broadband.”
The $311 million approved by the FCC is just a fraction of the $9.2 billion awarded in the Phase I auction. However, additional funding appears imminent, with the public notice stating FCC “staff are reviewing information that is submitted with long-form applications on a rolling basis.”
Its move comes after a months-long review of participants’ long-form applications following the announcement of winning bidders in December 2020. Earlier this month, two key Senators prodded Rosenworcel to explain what was taking so long and when it might begin distributing funds.
LTD takes a hit
Alongside the authorization news, the FCC announced it had partially denied a petition from top auction winner LTD Broadband for more time to prove its eligibility to receive funding in certain states.
As announced in December, LTD Broadband won $1.3 billion to provide service to 528,000 locations across 15 states. Its winnings included $187.5 million to cover 76,856 locations in California; $3.2 million to reach 2,122 locations in Kansas; and $81.1 million to connect 39,889 locations in Oklahoma.
Auction winners were required to demonstrate their status as an eligible telecommunications carrier (ETC) in all bid areas by June 7, 2021. That day, LTD Broadband petitioned the FCC to waive that deadline to give it more time to submit documentation proving its ETC status in California, Iowa, Kansas, Nebraska, North Dakota, Oklahoma, South Dakota and Texas.
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But the FCC argued in an order issued today LTD Broadband dragged its feet seeking certification paperwork from state officials and denied its waiver petition for the states of California, Kansas and Oklahoma. The agency said it planned to issue a public notice finding “LTD in default on its bids” in those states.
“Consistent with the Commission’s direction in the Rural Digital Opportunity Fund Order, applicants who default will be subject to the applicable forfeiture under the Commission’s rules, and defaults will be referred to the Enforcement Bureau,” the order stated.