Tag: "ltd broadband"

Posted June 8, 2022 by Ry Marcattilio-McCracken

With so much attention on how the Broadband Equity, Access, and Deployment (BEAD) Act is continuing to unfold (including from us), it’s important to remember that the FCC’s Rural Digital Opportunity Fund (RDOF) is still in the process of authorizing bids from its $9.2 billion auction conducted in December of 2020. This is for two reasons: first, because areas for which winning bids are authorized will have a much harder time going after BEAD funding. And second, because after the auction closed there was an array of bids by a variety of Internet Service Providers (ISPs) which looked problematic to us - either because they were for technologies that don’t represent equitable, pragmatic solutions in the long run, or because they were won by ISPs ill-prepared to scale to the level they would need to to fulfill obligations. 

New Resource: RDOF Tracker

The Rural Digital Opportunity Fund was designed to bridge the digital divide in rural America by incenting deployment to households lacking access to basic broadband speeds, defined as 25/3 Megabits per second (Mbps). Phase I was operated as a reverse auction over many rounds in December of 2020, with ISPs bidding on locations throughout the country. The lowest bids won, and committed those providers to completing new connections to those addresses using RDOF support spread out over ten years.

Today we’re releasing a new resource we hope will be helpful in keeping tabs on which providers have gotten money, how much has been authorized, and in which states. The dashboard below is built on the Tableau platform, and shows the real-time results according to the latest authorization spreadsheets released by the FCC.

Click here to open a full-size version of our RDOF Tracker in a new...

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Posted February 6, 2022 by Ry Marcattilio-McCracken

By Karl Bode and Ry Marcattilio-McCracken

 The FCC’s Rural Digital Opportunity Fund (RDOF) Reverse Auction was completed a little more than a year ago to much fanfare and spilled ink, and though we’ve seen irregular updates over the last twelve months, we thought it worth the time to round up what we know so far in an effort to see where we’re at and determine what is likely to come.

The RDOF was built to award up to $20.4 billion in grants over 10 years using competitive reverse auctions generally won by the lowest bidder. The money comes from the Universal Service Fund fees affixed to consumers’ monthly telecom bills. The previous FCC announced $9.2 billion in auction winners in December of 2020. 

To date the FCC has announced five rounds of Authorized funding released, six rounds of applicants whose bids they have decided are Ready-to-Authorize, and three rounds of Default bids. 

It’s clear that the final picture is still taking shape, but looking at things a year later leaves us feeling a little better than we were immediately after the auction closed. To date, it appears the FCC is closely scrutinizing many of the bidders that most worried industry veterans and broadband advocates, while releasing funds for projects that will bring future-proof connectivity to hundreds of thousands of homes over the next ten years.

Moving Slowly on Problematic Awards

The biggest news so far is that of the top ten winners, seven look to have received no funds at all (see table below or high-resolution version here). That’s $4.1 billion worth of bids for almost 1.9 million locations, and includes LTD Broadband, SpaceX’s Starlink, AMG Technologies (NextLink), Frontier, Resound Networks, Starry (Connect Everyone), and CenturyLink. This is a big deal.

Among the top 10 bidders who have received funds or will shortly, Windstream has received about two-...

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Posted November 17, 2021 by Ry Marcattilio-McCracken

When the FCC announced the winners of the Rural Digital Opportunity Fund (RDOF) last December, many industry veterans were surprised by the appearance of LTD Broadband as the largest recipient of funds. The company managed to snag more than $1.3 billion to serve 528,000 locations across 15 states, but its capability to do so immediately drew skepticism from many (including us).

Now, a little less than a year later, the company's chickens are coming home to roost. In a recent ruling denying the company the expanded Eligible Telecommunications Carrier (ETC) status it needs to offer service in RDOF-awarded areas, the Iowa Utilities Board took LTD to task for a history of noncompliance and late payments:

Specifically, LTD had not complied with the Board’s February 22, 2019 order, as LTD had not yet filed a registration as a telecommunications service provider, was past due on its DPRS assessment, and had not yet filed an annual report with the Board for reporting years 2019 and 2020. 

[B]eyond the procedural flaws in LTD’s Application, the company’s responses to Board . . . illustrate that LTD has routinely submitted regulatory filings with obvious errors, if filings were submitted at all . . . It is for this reason that the Board takes seriously LTD’s history of inconsistent compliance with this provision, as the regulatory burden is minimal and the consequence of failing to uphold the obligation ETCs pledge to carry out impacts the rest of the industry, the Board, and most importantly, the Iowans served by the program.

But the regulatory board took its comments a step further, basing its ruling also on the fact that the company's behavior in the state betrays what looks like a lack of ability to meet its bidding commitments during the auction:

The record in this docket does not merit the expansion of a credential that signals to the public that LTD has evidenced the technical and financial capabilities required to carry out the public interest obligations of those entrusted with federal funds. LTD’s responses and actions lack the candor that the Board would expect from a carrier seeking to evidence the expertise to take on this degree of expansion.

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