Universal Service Fund

I’m working with a number of rural counties that are trying to come to grips with the long-term implications of Rural Digital Opportunity Fund (RDOF) awards in their counties going to internet service providers' (ISP) that plan to deliver broadband using fixed wireless technology. Most of them are not sure what to make of the situation for the following reasons:

The Federal Communications Commission has launched a database connection with the Veterans Benefits Administration, an agency of the U.S. Department of Veterans Affairs, to make it easier for veterans to sign up for the Affordable Connectivity Program (ACP) and Lifeline. The connection will enable automatic eligibility verification of Veterans receiving qualifying pension benefits.

Northleaf Capital Partners acquired a controlling interest in Mercury Broadband and will invest up to $230 million over the next several years to support the provider’s expansion plans. Mercury Broadband, also known as Mercury Wireless, won Rural Digital Opportunity Fund (RDOF) money to cover some of the costs of deploying a combination of fixed wireless and fiber broadband to unserved and underserved rural areas of Indiana, Michigan, Ohio, Illinois, Missouri, Kansas, Iowa, and Nebraska. Northleaf, a “global private markets investment firm,” raised $21 billion in private equity, private cre

We believe the Broadband Equity, Access, and Deployment (BEAD) program provides the best possible chance to bring robust, reliable all-fiber broadband service to the many millions of unserved and underserved locations throughout the country. That said, we understand that National Telecommunications and Information Administration may be considering permitting States and Territories to award grants to applicants using other, less capable transmission technologies where the costs to deploy networks can be extremely high.

The US Department of Agriculture (USDA) is awarding $59 million to expand high-speed internet access to rural Michiganders through four major projects across the state, including two in the Upper Peninsula.  The Upper Peninsula Telephone Company will receive a $34,532,301 grant to install a fiber-to-the-premises network to connect 1,625 people, 69 farms, 40 businesses, and two educational facilities with the higher speeds in Dickinson, Luce, Mackinac, Marquette, Menominee, and Ontonagon counties.

An ambitious new plan by the state of Colorado seeks to end the state’s digital divide once and for all — and to do so using fiber, the gold standard for the fastest internet connections. Brandy Reitter, the executive director of the Colorado Broadband Office, said she took the position because she wanted to do impactful work “that was well funded” so she could actually fix the problem. Now she’s leading the state’s plan to use $1 billion in federal money to improve internet service, not just to help those with no internet access, but those with subpar service.

The Universal Service Administrative Company (USAC) submited the federal Universal Service Support Mechanisms fund size and administrative cost projections for the first quarter of calendar year 2023 (1Q2023). USAC projects a consolidated budget of $67.28 million for 1Q2023. Direct costs for all support mechanisms total $33.88 million. Joint and common costs (including billing, collection, and disbursement activities) total $33.40 million.

All across the country, state governments are scrambling to beef up their broadband offices and stand up new grant programs in anticipation of millions in funding from the $42.5 billion Broadband Equity, Access, and Deployment (BEAD) Program. Chad Rupe, the former administrator of the US Department of Agriculture’s Rural Utilities Service, has advice for states looking to make their broadband programs a success. According to Rupe, there are a few lessons states can take from the success of the ReConnect program as they navigate the path ahead.

TekWav, Nextlink, and Plains Internet won Rural Digital Opportunity Fund (RDOF) funding in the December 2020 reverse auction. Two of the three providers were quoted as saying that the cost to build the networks to satisfy the RDOF obligations has doubled since they won the award – the third said costs have risen materially. Most providers I’ve been working with estimate the increase to be between 15% and 30%, differing by region and the planned technology.

The Rural Digital Opportunity Fund (RDOF), a Federal Communications Commission plan to spend over $20 billion to close the digital divide, drew interest from startups and household-name carriers alike. But several upstart winners have dropped off the winner's list because of financial problems or the inability to supply high-speed Internet access. Top 10 bidder Starry said that it is withdrawing from the RDOF program, under which it had been awarded nearly $270 million in funds to cover 108,506 locations in 9 states.