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As Industry Seeks Changes to RDOF Timing Amid COVID-19, Status Quo is Expected

By April 30, 2020May 4th, 2020No Comments

There’s bipartisan support to disperse the RDOF money now, said Mississippi Public Service Commissioner Brandon Presley. One proposal would free up census blocks that received state-funded broadband support in exchange for a quicker review of shovel-ready phase I applications. “It’s an administrative action the FCC could take, and it should take it,” he said. He tweeted on the topic Tuesday. Presley is president of NARUC but not speaking on its behalf. Wednesday, he and two PSC colleagues wrote Senate Commerce Committee Chairman Roger Wicker, R-Miss., to seek FCC RDOF acceleration (see 2004290064).

Conexon partner Jonathan Chambers wants to accelerate RDOF. He said more than 70 rural electric co-ops signed an April 10 letter telling the FCC they’re prepared to start construction. “We’re at a unique point,” Chambers said. He wants the FCC to award funds to those prepared to submit both short- and long-form applications. “Procedurally, we could go forward next month,” he said. The only step missing is the auctions procedures notice, he added. RDOF is nearly identical to previous broadband auctions, he said. His plan would spend tens of billions of dollars on rural broadband and jobs for rural communities, he said, and “leverage private funds.”

United Electric Cooperative of Maryville, Missouri, bid successfully in the recent Connect America Fund phase II auction and plans to participate in RDOF as part of the Conexon bidding consortium, said United CEO Jim Bagley. He vowed United will start planning and network construction immediately if it wins RDOF bids: “We wouldn’t wait for the funding to arrive.” In the CAF program, “we invested millions of dollars on top of what we won,” he said. “It gives you a down payment to make the loan feasible.” He said broadband need in rural America was “great” before the current crisis but has ballooned since: “Any delay would hurt rural America.”

Auction Concerns

The Colorado Governor’s Office of Information Technology’s Broadband Office asked the FCC to delay the RDOF phase I auction’s opening by 180 days, in a letter posted Monday. Its rural broadband and tribal communities were “exponentially impacted” by the pandemic, CBO said. “Timelines considered reasonable pre-COVID-19 are simply unworkable as our rural communities attempt to respond to the pandemic.”

Wireless ISP Association Vice President-Policy Louis Peraertz said he hasn’t heard concerns among his members asking for auction delays. He’s also not hearing indications from the FCC that the October auction date might be delayed. WISPA and the National Rural Electric Cooperative Association asked, in a filing posted Tuesday, for an expedited inquiry into Frontier Communications claims the FCC should exclude 16,000 census blocks from phase I because it deployed 25/3 Mbps since its June form 477 filings. The groups want a speedy inquiry “so as not to delay to any extent” the auction, they said. “The Commission should not allow Frontier to take advantage of the one-sided challenge process and the relatively short amount of time to resolve challenges as an excuse to avoid inquiry.”

Frontier filed challenges to the initial list of eligible census blocks “where Frontier already offers speeds of 25/3 Mbps or higher and where there is a state grant commitment to provide these speeds,” emailed Ken Mason, senior vice president-regulatory affairs. He said the telco continues to invest in its network, including through public-private partnerships. The company is evaluating plans to participate in RDOF, he said.

Frontier’s recent bankruptcy filing (see 2004150063) shouldn’t preclude it from participating, said Tellus Ventures Associates President Steve Blum. “It’s up to bankruptcy courts and managers” and not the FCC, he said. The carrier “shouldn’t be cut any slack,” he added. “RDOF is not a Frontier bail-out program. It’s a rural broadband program, and if they can’t do this, tough.”

Even if challenges raised “fairly significant questions about providers’ prior mapping practices, the agency appears to remain focused on moving forward on the current schedule,” emailed NTCA Senior Vice President-Industry Affairs and Business Development Mike Romano. “The FCC staff is proficient in dealing with this, and I expect they will meet their deadlines,” said Kelley Drye’s Tom Cohen, counsel for ACA Connects. He said it could be difficult for the FCC to move up the auction date because bidders need time to examine the final list of eligible census blocks to see whether they have viable business models there. “Everybody will sharpen their pencils and do their due diligence,” he said.

East Mississippi Electric Power Association is looking at participating in RDOF as a way to provide broadband, said CEO Randy Carroll. It would participate as a member of the Conexon bidding consortium, and seek more money from lenders, he said. Many potential subscribers now have internet access only through copper wire DSL or mobile service, he said: “The pandemic has amplified the need and created a sense of urgency.”

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Conexon

Author Conexon

Conexon works with Rural Electric Cooperatives to bring fiber to the home in rural communities. The company is comprised of professionals who have worked in electric cooperatives and the telecommunications industry, and offer decades of individual experience in business planning, building networks, marketing and selling telecommunications. Conexon offers its electric cooperative clients end-to-end broadband deployment and operations support, from a project's conception all the way through to its long-term sustainability. It works with clients to analyze economic feasibility, secure financing, design the network, manage construction, provide operational support, optimize business performance and determine optimal partnerships. To date, Conexon has assisted more than 150 electric cooperatives, 40 of which are deploying fiber networks, with nearly 100,000 connected fiber-to-the-home subscribers across the U.S., and has secured more than $200 million in federal and state grants for its clients.

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