As the deployment of the BEAD program approaches, it could be affected by possible flaws in the previous RDOF program.
How? Let’s read the details and find out.
More RDOF defaults arrive as stakeholders seek to vacate BEAD zones
As the Federal Communications Commission (FCC) prepares to distribute $42.5 billion in Broadband Equity, Access, and Deployment (BEAD) funding to provide broadband connectivity in rural areas, more RDOF defaults are expected on the way.
The defects relate to network operators who won tenders under the RDOF (Rural Digital Opportunity Fund) 2020 program but failed to fulfill the commitments for which they were awarded funding.
This means that they have not yet deployed broadband infrastructure in the designated areas for which they won the tenders.
The FCC regulates the RDOF program and reportedly did not approve funding for some winning carriers until 18 months or more after the auction ended, during which time deployment costs increased.
As a result, some RDOF winners began arguing that they could not carry out the deployments if the FCC did not make additional funds available to them.
The FCC does not appear to be providing additional funding, but it has said it may consider reducing default penalties for RDOF winners who have failed to meet their commitments.
Also see “Key broadband developments in 2024”.
Likewise, providers who have obtained funding under the Connect America Fund (CAF II) are in default in the areas for which they obtained financing.
A group of seventy stakeholders sent a letter to the FCC chairman Jessica Rosenworcel asking to waive or reduce the default RDOF and CAF II penalties for a short period of time for winners who are at risk of defaulting on their awards.
Under BEAD rules, locations that have already received funding through federal programs such as RDOF and CAF II are not eligible for BEAD funding from the Broadband Access and Deployment Program.
With RDOF faults increasing, many rural and remote areas of the country are at risk of not receiving any connectivity.
The letter says, “The commission should not allow these unserved rural communities to face this type of double whammy and be left behind once again. » According to the letter, certain regions of Missouri and Mississippi are most at risk.
Also read “South Carolina Broadband Funding: $112.3 Million to Local Providers.”
These stakeholders, including broadband providers, trade associations, state and local officials, school districts, labor unions and civil society organizations, say unforeseen challenges have made it difficult for some RDOF winners to complete their deployment obligations.
They believe that easing sanctions would free these areas from BEAD funding and ensure wider access to rural broadband.
Defaults reportedly affected about a third of the $9.2 billion the FCC planned to award under the RDOF program.
The situation shows the challenges of deploying broadband infrastructure in underserved areas of the country.
As BEAD aims to bridge the digital divide, addressing potential flaws in the RDOF is crucial to ensure its success and maximize rural broadband access.
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