Rural Digital Opportunity Fund

When the Rural Digital Opportunity Fund (RDOF) Phase I auction was held in 2020, there was no way the Federal Communications Commission could have known that Congress would invest heavily in achieving universal broadband coverage a few years later, according to New Street Research analyst Blair Levin. But once Congress passed the Infrastructure Investment and Jobs Act (IIJA), it was clear there would be tension between the two efforts, he said.

The Federal Communications Commission's Wireline Competition Bureau, in conjunction with the Rural Broadband Auctions Task Force and the Office of Economics and Analytics, authorizes Rural Digital Opportunity Fund (Auction 904) support for another 830 winning bids. For each of the winning bids, the FCC has reviewed the long-form application information, including the letter(s) of credit and Bankruptcy Code opinion letter(s) from the long-form applicant’s legal counsel.

The Infrastructure Investment and Jobs Act (IIJA) will put $42.45 billion into broadband buildout, to be distributed by the states. Less than a year earlier, the FCC’s high-cost Rural Digital Opportunity Fund (RDOF) committed $9 billion for rural buildout and subsidies in some of the same areas. Here, I explore which RDOF areas are likely to get funded, what that means for the remaining unserved locations, and the amount of funding each state will have for each remaining unserved location.

Sens Shelley Moore Capito (R-WV) and Amy Klobuchar (D-MN) introduced the Rural Broadband Protection Act (S.4126), which would require a more thorough vetting and verification process for internet service providers seeking to participate in the Federal Communications Commission's high-cost programs.

The Federal Communications Commission is ready to authorize $199,336,695 through the Rural Digital Opportunity Fund to fund new broadband deployments in 26 states and the Northern Mariana Islands, bringing service to over 230,000 locations. This is the ninth round of program funding since July 2021, when the FCC announced the first approvals for applicant bids meeting the stringent requirements that Chairwoman Rosenworcel put in place to ensure the integrity of the program, which draws on funding in the high-cost universal service program.

Fund size and administrative cost projections for the third quarter of calendar year 2022 (3Q2022). USAC projects a consolidated budget of $61.60 million for 3Q2022.

The Federal Communications Commission is proposing a forfeiture of $100,000 against LTD Broadband for repeatedly engaging in prohibited communications of its bidding and bidding strategies during the FCC’s Rural Digital Opportunity Fund (RDOF) Phase I Auction (Auction 904), and its failure to timely report such prohibited communications. The FCC has long-standing rules that bar communications between and among auction applicants during an auction that could detract from a fair and competitive auction process.

Charter Communications updated investors during its first quarter 2022 earnings call and offered some insight on the impact of the Rural Digital Opportunity Fund (RDOF) program on the operator. Charter was the largest RDOF auction winner,  measured by the number of locations. The cable company won $1.22 billion to bring service to over one million locations in 24 states.

For the first time in its history, the Universal Service Administrative Company (USAC) expanded beyond administering the four universal service programs: E-Rate, High Cost (Connect America Fund), Lifeline, and Rural Health Care. In 2021, USAC rose to the challenge and successfully administered four Federal Communications Commission initiatives, collectively known as the Congressional Response Programs.

The Federal Communications Commission authorized Rural Digital Opportunity Fund (Auction 904) support for 1,345 winning bids in its eighth round of awards. The RDOF program is designed to provide funding to companies to cover some of the costs of making broadband available to rural areas currently lacking high-speed service. Winning bidders were determined through a reverse auction that awarded funding for an area to the company that committed to deploying service for the lowest level of support, with a weighting system favoring bids for higher-speed, lower-latency service.