Tag: "auction"

“This Isn’t a Game:” The RDOF Auction, Unforced Errors, and Getting Infrastructure Funding Right - Episode 448 of the Community Broadband Bits Podcast

Posted February 16, 2021 by Ry Marcattilio-McCracken

The conclusion of the RDOF auction was met with a good deal of drama and uncertainty, leaving many of us working after the fact to understand the policy and practical impacts of its outcomes.

This week on the podcast Christopher talks with Jonathan Chambers, a partner at Conexon, a network solutions provider for electric cooperatives around the United States who helped organize a consortium of nearly 100 cooperatives to successfully bid for more than $1 billion in funding from the recent Rural Digital Opportunity Fund Auction administered by the FCC. 

Christopher and Jonathan unpack the design and implementation of RDOF not only in the context of the current broadband landscape, but the history of FCC auctions and federal infrastructure subsidy policy. They discuss how the funding will support upcoming projects which will bring fiber networks — many of them owned and operated by electric cooperatives — to hundreds of thousands of Americans over the next decade. 

But they also talk about the multitude of winning bids that went for a worryingly low percentage of what it will actually cost to build those networks across the country. Jonathan and Christopher discuss why we saw that happen, but also what kind of guardrails we don’t but should have in place to make sure that public money for broadband infrastructure doesn’t go to waste and, equally importantly, so that households in those areas don’t go another decade without a quality Internet connection. 

This show is 53 minutes long and can be played on this page or via iTunes or the tool of your choice using this feed. You can listen to the interview on this page or visit the Community Broadband Bits page.

Read the transcript here.

We want your feedback and suggestions for the show-please e-...

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Big Bucks for Broadband in the Balance: Explaining the Affordable, Accessible Internet for All Act - Part 4

Posted December 23, 2020 by Sean Gonsalves

If you have been following our series on the Accessible, Affordable Internet for All (AAIA) Act, you already know the proposed legislation calls for a $100 billion investment in expanding broadband access and affordability in unserved and underserved parts of the country. In this fourth installment of the series, we explore the part of the bill that contains the bulk of the funding. Of the $100 billion proposed in the bill, $85 billion of it can be found in the Title III - Broadband Access section.

Amending the Communications Act of 1934, Section 3101 of the bill appropriates $80 billion for “competitive bidding systems” to subsidize broadband infrastructure. That is to say, it requires the Federal Communications Commission (FCC), and states, to use “competitive bidding systems” for Internet Service Providers (ISPs) to bid on broadband deployment projects in “areas with service below 25/25 Megabits per second (Mbps), and areas with low-tier service, defined as areas with service between 25/25 and 100/100 Mbps.” The term “competitive bidding” seems to suggest a reverse auction process, though it hardly makes sense for each state to set up such a system given the logistical challenges. A legislative staffer responded to our email earlier this year saying he believed that language would allow for state programs that solicited applications from ISPs and scored them for evaluation, much like Minnesota’s Border-to-Border Broadband program operates. However, he noted that the FCC would interpret that language ultimately. More on this below. 

Prioritizing Higher Upload Speeds

It’s worth noting that this part of the bill implicitly acknowledges the insufficiency of the current FCC definition of a minimum broadband speed of 25/3 Mbps. As it stands now, the FCC defines “unserved areas” as parts of the country where there is either no Internet access or broadband speeds under 25/3. This legislation raises the bar and broadens the definition of “unserved areas.” It’s a step in the...

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RDOF Auction Ends but Confusion and Corruption May Just Be Beginning

Posted December 9, 2020 by Christopher Mitchell

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:

Doug Dawson, President of CCG Consulting, has addressed this in the...

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