FCC Proposes More than $8 Million in Fines Against 22 Rural Digital Opportunity Fund Applicants for Defaulting on Auction 904 Obligations

The Federal Communications Commission proposed $8,778,527.39 in fines against 22 applicants in the Rural Digital Opportunity Fund (RDOF) Phase I Auction (Auction 904) for apparently violating Commission requirements by defaulting on their bids between May 3, 2022, and December 16, 2022. Two applicants also failed to submit their audited financial paperwork, resulting in an additional monetary liability. The FCC provided clear guidance in its rules and notices on the monetary forfeitures associated with defaults in Auction 904. The bid defaults prevented 2,994 census block groups in 31 states and an estimated 293,128 locations from receiving new investments in broadband infrastructure. The proposed action, formally called a Notice of Apparent Liability for Forfeiture, or NAL, advises parties that they apparently violation the FCC’s rules and proposes a monetary penalty for violations.