Lumen Defaults on its RDOF Obligations in Four States

The Federal Communications Commission's Wireline Competition Bureau (WCB or Bureau) announced that certain Rural Digital Opportunity Fund (RDOF) census block groups (CBG) are now eligible for other funding programs. Specifically, Qwest Corporation and CenturyTel of Wyoming (collectively, Lumen) have notified the FCC of their decisions to withdraw from the RDOF support program in all of the CBGs covered by their authorized winning bids in New Mexico (Study Area Code (SAC) 495105), South Dakota (SAC 395145), and Wyoming (SAC 512299).  In addition, Lumen has notified the FCC that it will not fulfill its commitment to offer voice and broadband service to certain CBGs within its RDOF-supported service area in Colorado (SAC 465102). Lumen will be subject to penalties for its defaults. The Bureau will also refer Lumen’s defaults to the Enforcement Bureau for further consideration. 

When notified of a default, the FCC's Broadband Deployment Alignment Plan (BDAP) procedures provide for taking immediate action to coordinate with other federal and state agencies to minimize the impact on consumers and the geographic areas to which the defaulting carriers committed. BDAP is part of the Rural Broadband Accountability Plan which seeks to ensure that high-cost funds are properly invested and produce new broadband services to consumers lacking connectivity. First, the Bureau ensures that the carrier has notified the relevant state broadband offices about the carrier’s inability to deploy broadband infrastructure to the defaulted locations. Second, the Bureau notifies the National Telecommunications and Information Administration (NTIA) to begin a similar dialogue about the locations. These notifications allow the state and NTIA to promptly consider the implications for the ongoing BEAD Program and other, similar programs. Third, where feasible, the Bureau discusses with both the relevant state broadband office and the carrier whether there is another entity that may be interested in serving the area and assuming the defaulting carrier’s RDOF obligations. Finally, if another carrier does not assume the obligation, the Bureau notifies NTIA, the Rural Utility Service of the US Department of Agriculture (RUS), and the US Department of Treasury of the circumstances so that the defaulted area can be given priority consideration in other federal broadband funding programs, in accordance with agreed-upon best practices. The Bureau also makes enforcement referrals where appropriate.