The FCC's Rural Digital Opportunity Fund results are a puzzle. RDOF was the recent auction for large swaths of rural areas of the U.S. that have no broadband access, in large part because they were the territories of big companies like AT&T, CenturyLink (now rebranding as Lumen in hopes of improving its dismal image among its subscribers), Frontier, Windstream, and others. Up to $16 billion was at stake though the auction will actually disperse some $9+ billion dollars because many areas were bid well below what was expected.
Please understand that this post is the best I can do right now - this is confusing and we are sorting our way through it. Please let me know if you can help us understand it. See our past coverage for more information.
The auction resulted in far more gigabit - 85% of locations I believe - than anyone expected, at far lower subsidy than expected. However, there is a lot of frustration and confusion because it is not clear that some of the top bidders can deliver. NTCA - The Rural Broadband Association - shared my original enthusiasm for RDOF and our concerns - best articulated over the years by Jon Chambers from Conexon - that the FCC was going to blow this auction by not ensuring those who bid had the capacity to deliver on the promised level of service. Shirley Bloomfield, CEO of NTCA, wrote this and recently tweeted on this:
Not feeling quite as bullish about this final outcome for RDOF #1 and worry that it will take years to show that rural America is still waiting for #broadband and resources needed will be gone. Hoping @FCC has a robust back-end review so the process won’t fail Americans again.
— Shirley Bloomfield (@sbloomfield15) December 8, 2020
Doug Dawson, President of CCG Consulting, has addressed this in the...Read more