Chairman Pai's Response to Senators Regarding the Rural Digital Opportunity Fund

On March 9, 24 senators wrote to Federal Communications Commission Chairman Ajit Pai to express concerns about key details of the Rural Digital Opportunity Fund (RDOF), particularly excluding areas that are awarded funding through the US Department of Agriculture's ReConnect program and state-run broadband deployment or subsidy programs from being eligible for the RDOF. "This decision not only exacerbates the digital divide in communities across the country, but it also knowingly disincentives states from implementing their own broadband programs." The senators asked eight questions in order to provide states and Congress "with the clarity needed to most effectively utilize this vital broadband funding." 

On March 27, Chairman Pai responded by saying Phase I would target support to wholly unserved census blocks, and then Phase II would fill in the remaining coverage gaps by supporting networks that will serve partially unserved census blocks. Phase II would leverage the FCC's new Digital Opportunity Data Collection. Additionally, the FCC has commenced a limited challenge process, to make sure "finite universal service support is awarded in an efficient and cost-effective manner and does not go toward overbuilding areas where problem providers already are receiving support to deploy 25/3 Mbps broadband service." FCC staff will review comments received identifying areas for exclusion or inclusion, and will release a final list of eligible blocks prior to the short-form application deadline. 

• With regard to how the FCC’s RDOF program affects preexisting broadband subsidy programs, the basic principle is simple: if a service provider already has been given funding (federal and/or state) to serve a particular area with 25/3 Mbps broadband, the FCC is not going to give them yet more taxpayer funding to do something they’re already obligated (by federal and/or state law) to do.
• With regard to the federal ReConnect Program, the FCC will consult with the USDA's Rural Utilities Service before publication of the final eligible areas and exclude the portions of any census blocks from eligibility for the RDOF Phase I that are substantially overlapped by a ReConnect awardee.
• With regard to state programs, if a service provider has state-based funding and a commitment to deploy 25/3 Mbps or better service in one area, it cannot receive FCC funding to deliver similar service to that same area. But it would still be eligible to participate in the RDOF in other areas in the state that are unserved and not covered by a funding commitment.