Rural Digital Opportunity Fund

I was surprised to find out by an FCC press release that agency leadership had suddenly reversed course on an $885 million infrastructure award that Elon Musk’s Starlink won in 2020 to provide high-speed Internet service to unconnected Americans.

The NCTA—The Internet and Television Association, an industry trade and lobbying association for large cable companies, recently touted big increases in broadband speeds since the start of the pandemic. Specifically, NCTA states that the average U.S. download speed has grown from 138 Mbps in March 2020, the first month of the pandemic, to 226 Mbps in June 2022. Obviously, the cable companies are taking credit for much of the speed increase, and to some extent, that’s true.

When it comes to broadband, the Infrastructure Investment and Jobs Act is about more than money. For example, Congress also directed the Federal Communications Commission to consider the impact of the law's $65 billion broadband investment on the FCC's existing broadband support programs under the umbrella of the Universal Service Fund (known to wonks as the USF).

More than a year and a half after the close of the Rural Digital Opportunity Fund (RDOF) auction, fixed wireless providers Starry, Nextlink and Resound Networks are still waiting for their winning bids to be authorized. The companies have expressed confidence their subsidy money will come through. Starry, Nextlink and Resound were among the top 10 winners in the RDOF auction, collectively winning just over $1 billion. That means they account for about half of the $2 billion in remaining bids the FCC has left to process.

The Schools, Health & Libraries Broadband (SHLB) Coalition and New America’s Open Technology Institute (OTI) released

Each year, Congress recesses for the month of August. While the work—or, at least, the news—of Washington generally slows down in this period, all indications are that policymakers—and, most importantly, policy implementors—will be very busy throughout the summer of 2022 working on universal broadband and provisions of the Infrastructure Investment and Jobs Act. Here's what we're seeing and expecting from the Federal Communications Commission (FCC) and the National Telecommunications and Information Administration (NTIA). 

The Federal Communications Commission rejected the long-form applications of LTD Broadband and Starlink to receive support through the Rural Digital Opportunity Fund (RDOF) program. The FCC determined that these applications failed to demonstrate that the providers could deliver the promised service.

The Federal Communications Commission's Wireline Competition Bureau (WCB)—in conjunction with the Rural Broadband Auctions Task Force (RBATF) and the Office of Economics and Analytics (OEA)—authorized Rural Digital Opportunity Fund (Auction 904) support for 95 more winning bids.

SpaceX filed a letter to the Federal Communications Commission on July 29 in response to Viasat's previous claims that the company is unable to fulfill the requirements of its Rural Digital Opportunity Fund (RDOF) award. According to SpaceX, Viasat is trying to protect its legacy technology through influence the FCC to limit competition. The company also said that recent data from Ookla shows Starlink is able to provide the speeds necessary for RDOF funding, which exceed Viasat's performance.

On July 13, Viasat wrote to the Federal Communications Commission regarding SpaceX's Rural Digital Opportunity Fund (RDOF) commitments. "Viasat writes to update the record with respect to the continued inability of the authorized Starlink system to satisfy SpaceX’s RDOF commitments," said the letter.