Universal Service Fund

The Federal Communications Commission’s Rural Digital Opportunity Fund (RDOF) is still in the process of authorizing bids from its $9.2 billion auction conducted in December 2020. Areas for which winning bids are authorized will have a much harder time going after Broadband Equity, Access, and Deployment (BEAD) program funding.

Resound Networks, a winning bidder in the Federal Communications Commission's Rural Digital Opportunity Fund (RDOF) auction, has successfully achieved gigabit speeds using fixed wireless access (FWA) in the 6 GHz band via an experimental license. The company reached a distance of more than three miles using 160 MHz-wide channels that will become available in the band. Fixed wireless providers have big hopes for the 6 GHz band, which contains a wide swath of spectrum that will be available on an unlicensed basis. The FCC voted in 2020 to free up spectrum in the band. 

Recently, the Minnesota Telephone Alliance and the Minnesota Rural Electric Association asked the Minnesota Public Utilities Commission to revoke the Eligible Telecommunications Carrier (ETC) status for LTD Broadband. ETC staus must awarded by a state regulatory authority or by the Federal Communications Commission to any carrier that wants to collect funding from the FCC’s Universal Service Fund. The petition stems from LTD being the winner in the Rural Digital Opportunity Fund (RDOF) auction in Minnesota to receive $311 million to bring broadband to 102,000 passing in the state.

During the first quarter of 2022, the Lifeline National Verifier received 4,457,395 applications. Of the applications received, 48% were fully qualified automatically, and 7% were qualified through manual documentation review. The overall qualification result is determined after eligibility is checked and includes further checks related to identity and duplicates. Of the applications submitted, 1,989,492 applications were determined to be “Not Qualified” because they did not meet the program criteria and were not resolved by the applicant within 45 days.

Consolidated Communications is partnering with the Southern Vermont communications union district (CUD) to provide symmetrical gigabit speed broadband services to almost 12,000 Bennington County (VT) homes by the end of summer 2022. A CUD is a non-profit municipal entity that provides or aims to provide broadband in Vermont to two or more towns that are underserved or unserved. A CUD can fund operations through grants, debt and donations — but not taxes.

The Federal Communications Commission's Rural Broadband Auctions Task Force (RBATF), Wireline Competition Bureau (WCB or Bureau), and the Office of Economics and Analytics (OEA) announce they are ready to authorize Rural Digital Opportunity Fund (Auction 904) support for 88 more Auction 904 winning bids. Cyber Broadband will provide service in Alabama. And North Texas Fiber will offer service in Texas.

In a meeting with the Federal Communications Commission's Telecommunications Access Policy Division, USTelecom argued that the Commission should commit to launching a proceeding to modernize the Universal Service Fund (USF)  contributions system by ensuring that the services and entities that contribute reflect the purposes and beneficiaries of the USF. USTelecom said the FCC should request additional authority from Congress as necessary to ensure it can substantially expand the contributions base.

The Federal Communications Commission voted to seek comment on a proposal to provide additional universal service support to certain rural carriers in exchange for increasing deployment to more locations at higher speeds. The proposal would make changes to the Alternative Connect America Cost Model (A-CAM) program, with the goal of achieving widespread deployment of faster 100/20 Mbps broadband service throughout the rural areas served by rural carriers currently receiving A-CAM support. The Notice of Proposed Rulemaking seeks comment on whether and how the FCC could:

The hits just keep coming for LTD Broadband. The Minnesota Telecom Alliance renewed an effort to block the operator from receiving millions in federal funding to deploy broadband in Minnesota, arguing LTD lacks the technical, managerial and financial capabilities needed to deliver the promised coverage. At issue is the $311 million in support LTD Broadband won in the Federal Communications Commission’s Rural Digital Opportunity Fund (RDOF) auction in 2020 to cover 102,000 residents in Minnesota.

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.