FCC Proposes $100,000 Fine Against LTD for Prohibited Communications

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. To that end, the Commission also requires auction applicants to self-report such violations promptly upon their occurrence. Timely reporting of these “prohibited communications” allows the agency to address swiftly the effects to the auction process.The FCC finds that LTD, an applicant in Auction 904 bidding for financial support to offer voice and broadband service in underserved areas, apparently violated FCC rules by willfully and repeatedly engaging in prohibited communications of its bidding, bidding strategies, and bidding results to Cox Communications via LTD’s investment agent, RJM & Company. The FCC also finds that LTD apparently violated agency rules by failing to report these communications within the required five-day reporting window.