Fiber to the Clubhouse: Pai Subsidizes Broadband for the Rich

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The Pai Federal Communications Commission took a victory lap when it announced the results of a $9.2-billion reverse auction that is supposed to bring broadband to over 5.2 million unserved homes and businesses. This Universal Service Fund (USF) effort, the Rural Digital Opportunity Fund (RDOF), is a continuation of the broadband reforms to the USF started by the Obama-era FCC. Announcing the winning bidders, Chairman Pai said:

I’m thrilled with the incredible success of this auction, which brings welcome news to millions of unconnected rural Americans who for too long have been on the wrong side of the digital divide . . . We aimed for maximum leverage of taxpayer dollars and for networks that would meet consumers’ increasing broadband needs, and the results show that our strategy worked. This auction was the single largest step ever taken to bridge the digital divide and is another key success for the Commission in its ongoing commitment to universal service.

Did the Pai FCC get it right? Is this $9.2 billion in ratepayer dollars being allocated in the most efficient way possible? Is this funding solely helping to bring broadband to people living in “unconnected rural” areas? Is Pai’s closing effort here even a success on his own terms? 


Fiber to the Clubhouse: Pai Subsidizes Broadband for the Rich