FCC Provides Guidance for RDOF and CAF Phase II Support Recipients on Procedures for Provider Defaults to Ensure That Broadband Networks Are Deployed to All Consumers

The Federal Communications Commission's  Wireline Competition Bureau provided guidance to Rural Digital Opportunity Fund (RDOF) and Connect America Fund (CAF) Phase II support recipients and other stakeholders regarding the processes for provider defaults. Support recipients are showing significant progress in meeting their deployment milestones and there is no demonstrated need for widespread relief from the RDOF and CAF Phase II default penalties. Given the flexibility available under the existing default processes and other FCC rules and the lack of demonstrated need for broad relief, as well as our strong interest in preserving the integrity of the Commission’s broadband deployment programs, the FCC declines to provide a blanket amnesty. However, the FCC recognizes that certain carriers may not be able to meet their broadband deployment obligations or have experienced changed circumstances that may impact their deployment.  To ensure that high-speed broadband is deployed across the country, close coordination between the FCC’s high-cost programs and other federal broadband deployment programs is critically important. In recent months, the Bureau has quickly responded to default requests for these high-cost programs, has approved transfers of deployment obligations to other carriers which avoids support payment recovery and default penalties, and has waived FCC rules where warranted to reduce support payment recovery and default penalties. The Bureau also has the ability, where good cause exists based on individual circumstances, to waive other non-compliance rules for defaults in these high-cost programs. To ensure federal deployment funds reach the locations where they are needed, the Bureau strongly encourages carriers contemplating defaulting on their deployment obligations under the FCC’s competitively bid high-cost programs to reach out to the Bureau, and to the relevant state or territory broadband offices or Tribal governments, about their situation as soon as possible.  Earlier defaults can limit the support recovery and penalty costs to the carrier and also ensure that states and territories timely receive the necessary information for their Broadband Equity, Access, and Deployment (BEAD) planning.  Earlier defaults also ensure that our sister federal agencies timely receive this information to target funding for their broadband deployment programs.