The FCC has moved to “clean up” a fund intended to support the deployment of broadband internet access in underserved US communities. ISPs that were awarded money they might not actually need were asked to explain themselves or give up the funds, but the FCC says it’s now ready to authorize over $311 million in broadband funding across 36 states.
In total, 48 broadband providers will bring 1Gbps broadband speeds to nearly 200,000 homes and businesses over the next 10 years, the commission says.
The decision to revisit winning bids from a December 2020 auction was made after it received complaints that the Rural Digital Opportunity Fund “was poised to fund broadband to parking lots and well-served urban areas,” rather than the rural communities it was created to support.
The FCC sent letters to 197 winners of a reverse auction held under former FCC Chairman Ajit Pai that offered them the “opportunity to withdraw their funding requests from those places already with service or where significant questions of waste have been raised.” The includes SpaceX’s Starlink, which got $885.51 million for broadband in 35 states, Ars Technica reports.
The letters, which can be viewed on the FCC website, reminded bidders of the Rural Digital Opportunity Fund’s purpose and included a list of US census blocks that probably shouldn’t be covered by the program. The companies could default on their bids for blocks found on those lists, though the FCC says companies would have to forfeit $3,000 for each affected census block, with a maximum base forfeiture of “15% of the bidder’s total assigned support for the bid for the support term.” An initial forfeit list was released this week.
Companies that failed to submit their audited financial statements by June 7 were also “subject to a base forfeiture of $50,000,” the FCC said, “which will be subject to adjustment upward or downward as appropriate based on criteria set forth in the Commission’s forfeiture guidelines.” It already rejected requests from AB Indiana in Florida and LTD Broadband in California, Oklahoma, and Kansas to waive program deadlines.
“This program can do great things, but it requires thoughtful oversight,” FCC Acting Chairwoman Jessica Rosenworcel said in the announcement. “That’s why we are refocusing the program on unserved areas and putting winning bidders on notice of their obligation to ensure that support goes to the areas that need it. And for those applicants who are dragging their feet or can’t meet their obligations, follow the rules or we will disqualify you and move on.”
