Broadband Providers: Inflation has doubled RDOF build costs

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Inflation is wreaking havoc on several broadband operators’ rural build plans, making financially tough projects even tougher. A number of operators with Rural Digital Opportunity Fund (RDOF) commitments stated that the cost estimates for their builds have skyrocketed. Some are finding it difficult to find banks willing to lend them the money needed to complete their projects. That means those broadband providers without a hefty amount of cash on hand could be at risk of defaulting on their obligations. Joseph McGrath, owner of Texas-based fixed wireless provider TekWav, and Plains Internet COO Andrew Monroe said that the estimated build costs for their RDOF projects have doubled since they were originally calculated. In the case of Plains Internet, this means a jump from an estimated $500,000 to $1 million. Baker and McGrath attributed the change to inflation, which is pushing the cost of things like labor, materials, and fuel skyward. Monroe also pointed to materials but added that it’s also more expensive to train and hire the workers necessary to build the networks. Additionally, operators are concerned about finding additional funding to complete their RDOF builds. McGrath argued the US government should consider extending its broadband loan programs to include RDOF winners in order to ensure broadband providers can meet their commitments. 


Broadband Providers: Inflation has doubled RDOF build costs