Rural Digital Opportunity Fund

The next big spectrum tug of war will play out in the 12 GHz band, where a broad 500 MHz of spectrum could be available for fixed or mobile use, possibly involving 5G and Wi-Fi. The Federal Communications Commission in Jan adopted a notice of proposed rulemaking (NPRM) about possibly changing the rules for the 12 GHz band that could allow spectrum sharing and other changes. The NPRM is likely to generate a barrage of comments including diverse and, in some cases, mutually exclusive, recommendations.

The emphasis on “rural broadband” misses potentially the most important long-term issue. For valuable reasons, policymakers are focusing on the immediate issue of lack of internet access. However, delivering ultra-fast connectivity at an affordable price in a socially equitable manner in all of our American communities is just the table stakes.

Some of the winning bids in the Federal Communications Commission's Rural Digital Opportunity Fund (RDOF) auction were for unrealistically low levels of support and the net result could be that those areas do not get service, according to two of the rural electric cooperatives that bid in the auction. Midwest Energy Communications (MEC) won $37 million in the RDOF auction as part of a consortium organized by the National Rural Telecommunications Cooperative (NRTC).

Recently, the Federal Communications Commission received a letter from members of Congress urging it to use the Rural Digital Opportunity Fund long-form application process to ensure that winning bidders are capable of meeting their obligations. To honor Congressional intent, safeguard the public’s money and deliver necessary services to rural America, I suggest the FCC should:

The Federal Communications Commission's Rural Digital Opportunity Fund (RDOF) Phase I encouraged many with the promise of needed support to connect homes with true broadband services in unserved rural communities. However, RDOF’s Phase I exposed many issues that will likely lead to deployment delays, missed expectations, or worse. Specifically, some applicants that bid in the Gigabit tier have submitted unrealistic wireless network designs that are highly unlikely to produce Gigabit service to rural communities.

This paper considers specifically the extent to which fixed wireless services may be capable of delivering Gigabit‐level services in the kinds of sparsely populated rural areas that the Rural Digital  Opportunity Fund (RDOF) auction primarily seeks to serve. Fixed wireless networks will face difficult, if not insurmountable, challenges to provide Gigabit services in very select circumstances when attempting to service distant, non‐town rural subscribers.

Pressure is rising on the Federal Communications Commission and Congress to rethink the $8 billion Universal Service Fund that subsidizes phone and broadband service, as it teeters on a shrinking budget base. Big phone companies like AT&T, entities that benefit from USF programs, and public interest groups see the Biden administration as a new opportunity to press their case for an overhaul of the funding mechanism.

For some time, many experts have been warning that the universal service funding system is in a death spiral, as the base on which the fees are assessed—generally a telecom company’s interstate and international end-user revenues—is shrinking. The new Federal Communications Commission is forced to consider a rising assessment on a shrinking revenue base to address an increasing demand, with Ajit Pai’s FCC having not done any of the analytic, political, or legal work necessary to make adjustments. Pai was willing to spend billions to address the needs of rural communities lacking broadband.

Add Windstream CEO Tony Thomas to the list of those who have questioned whether some Rural Digital Opportunity Fund (RDOF) winners will be able to deploy the networks they committed to building at the level of funding they won. Without mentioning names, he said some “new entrants” that won RDOF funding believe they can “do something the established carriers can’t do using technology and economics that simply aren’t in the marketplace.”

Minnesota officials announced the winners of $20.6 million in grants to develop high-speed internet across Minnesota, the latest infusion of money approved by lawmakers to fully connect the state. Many celebrated the cash, which Steve Grove, commissioner of the Department of Employment and Economic Development, called a “vital” push to correct disparities in internet service that were highlighted during the pandemic. Yet the grants also drew frustration from some broadband developers. That’s because Gov.