FCC Proposes Fines of $4.3 Million Against 73 Rural Digital Opportunity Fund Applicants for Defaults

The Federal Communications Commission proposed $4,353,773.87 in fines against 73 applicants in the Rural Digital Opportunity Fund auction (Auction 904) for apparently violating FCC requirements by defaulting on their bids between July 26, 2021 and March 10, 2022. The FCC provided clear guidance in its rules and notices on the monetary forfeitures associated with defaults in Auction 904. The bid defaults prevented 1,702 census block groups with 129,909 estimated locations in 36 states from seeing timely new investments in broadband infrastructure. The proposed action, formally called a Notice of Apparent Liability for Forfeiture (NAL) contains only allegations that advise a party on how it has apparently violated the law and may set forth a proposed monetary penalty. The FCC may not impose a greater monetary penalty in this case than the amount proposed in the NAL. Neither the allegations nor the proposed sanctions in the NAL are final FCC actions. The party will be given an opportunity to respond and the FCC will consider the party’s submission of evidence and legal arguments before acting further to resolve the matter.