Cogeco-owned Breezeline said it is tapping into government funding for broadband deployment with plans to extend its fiber network into King William County, Virginia, next year to target 1,200-plus unserved homes and businesses

Breezeline is funding the expansion along with a $1.5-million subsidy from the Rural Digital Opportunity Fund, administered by the Federal Communications Commission. In a release quoting Breezeline VP of operations Sean Brushett, the company said it "completed the field walk out phase, the design phase is now underway, and we expect the construction phase to begin this fall.” The expansion is a multi-year initiative, it said.

Also: Biden Administration Doles Out BEAD Broadband Billions to States 

Breezeline said it's also expanding internet connectivity to about 7,500 unserved homes and businesses in eastern Caroline County and Essex County through a $15.2 million Virginia Telecommunication Initiative (VATI) grant, with additional contributions from Breezeline and the counties. The cable company said it finished construction earlier on a $7.2-million, 150-mile fiber-broadband expansion to more than 1,400 homes and businesses in Mathews, Caroline, Lancaster and Middlesex counties, also funded by VATI with contributions from Breezeline and the counties.

Charter Communications said Wednesday that it has named Christopher Winfrey president and CEO and that current chairman and CEO Tom Rutledge will become executive chairman effective December 1, ending a 10-year run as the chief architect of the cable giant’s strategy.

Rutledge joined Charter in 2012, after serving as chief operating officer of Cablevision Systems for about 10 years, and led the company through its biggest period of growth, engineering the 2016 purchase of Time Warner Cable that vaulted Charter into the No. 2 spot among cable operators in the country.  Rutledge will serve as Charter’s executive chairman and serve on its board of directors through 2023, where he will maintain oversight of government affairs and help with a smooth transition. He then plans to retire after a 50-year career in the cable industry. 

“It has been an honor and a pleasure to lead Charter and this incredible team over the past 10 years,” Rutledge said in a press release. “We have grown the company through innovation and strategic investments and have positioned Charter to provide the best-converged connectivity products and services available today. During my 50 years in this industry, I have witnessed first-hand its ability to continually evolve and change the world, and our opportunity today is greater than ever with ubiquitous connectivity being central to everything we do.”

Also: SCTE Cable-Tec Expo: Talent Gap Depends on What You’re Doing, Cable Chiefs Say

Rutledge can trace his cable roots back to 1972, when he served as a technician for Eastern Telecom while still attending college. His first permanent job in the industry came in 1977, when he joined American Television and Communications (ATC), a predecessor of Time Warner Cable, as a manager trainee. He eventually became president of Time Warner Cable, and in 2002 left to head up operations for Cablevision, joining Charter a decade later and steering it to its greatest period of growth. Under Rutledge’s watch, Charter’s annual revenue rose more than 600% while its customer base has increased 500%. Rutledge also oversaw the launch of the Spectrum brand, the company’s forays into mobile and 1-gigabit per second broadband. Today Charter has more than 32 million customer relationships, second only to Comcast. 

“When Tom was chosen to lead Charter in 2012, his reputation as a skilled operator was second to none, but we never anticipated the new heights to which he would take this company,” Charter’s lead independent director, Eric Zinterhofer, said in a press release. “He redefined and exceeded every measure of success, establishing Charter as a best-in-class U.S. connectivity provider. He grew the company both organically and through transformative acquisitions, which included Time Warner Cable, Bright House Networks and Optimum West (Bresnan). In addition, Tom has skillfully developed the next generation of leaders at Charter, including Chris. We are pleased Tom will continue to serve Charter and its shareholders as Executive Chairman of the Company and its Board in 2023.” 

Winfrey “has consistently demonstrated significant leadership and delivered an impressive track record of successes. He earned the respect and trust of his colleagues, the industry, the financial community and this Board,” Zinterhofer added. 

Winfrey joined Charter in 2010 as chief financial officer and was named chief operating officer in 2021. He has nearly 25 years of experience in the cable business, and before Charter served as managing director for cable operations, broadcasting and satellite entities at Unitymedia GmbH, Germany's second-largest cable operator. Earlier in his career, he served as senior VP, corporate finance and development at Cablecom GmbH, and was previously a director of financial planning and analysis and director of operations services of NTL’s Continental Europe operations, and a senior associate in the private equity group at Communications Equity Associates. 

“Chris’s leadership and expertise in both operations and finance have been pivotal to Charter’s growth and success,” Rutledge said in a press release. “He has repeatedly demonstrated innate strategic insight and keen market and industry awareness to drive an organization to perform at the highest level. Having worked closely with Chris for more than 10 years, he is the right choice to be our next CEO and will serve Charter’s customers, employees and shareholders with integrity and skill, leading the company to new and extraordinary heights.” 

Also: Texas Judge Cuts Charter Damages Bill to $1.15 Billion in Case of Customer Murdered by Installer

Currently, Winfrey is leading Charter’s rural construction initiative including its $5 billion investment associated with the Rural Digital Opportunity Fund (RDOF), making gigabit broadband connectivity available to more than 1 million currently unserved locations. He also will lead the company’s path to a fully converged broadband offering with symmetrical and multi-gigabit speeds across its entire network. As CFO, he spearheaded Charter’s transformative M&A activity, played an integral role in the Time Warner Cable and Bright House Networks integrations and managed Charter’s financial activities through a period of significant growth. 

“I am grateful to Tom and the Board for entrusting me with this appointment and the incredible opportunity to lead this top-flight management team and company,” Winfrey said in the press release. “I am deeply committed to Charter’s success and will continue our track record of delivering the best connectivity products and service to our customers, investing in the careers of our employees and building long-term value for shareholders.” ■

The broadband subsidy bucks continue to flow out of Washington.

The Federal Communications Commission has authorized almost $800 million dollars more in rural subsidies from its Rural Digital Opportunity Fund (RDOF) to six broadband providers reaching some 350,000 locations in 19 states, with the most money going to Illinois ($212 million), Arizona ($140 million) and Iowa ($113 million), the regulator said.

In its 2020 RDOF auction, the FCC allocated $20 billion for 1) rural broadband buildouts ($16 billion) and 2) unserved areas ($4 billion) over the next 10 years, money that can go to cable broadband providers as well as telecoms.

Also: FCC Proposes Millions in RDOF Default Fines

So far, the RDOF program has handed out more than $6 billion in funds to 47 states.

“This funding will connect more households throughout the country with high-speed broadband as part of our ongoing work to close the digital divide,” said FCC chair Jessica Rosenworcel, who has made closing the digital divide a signature issue since she was a commissioner. “We are confident these projects can bring quality service to currently unserved areas.” ▪️

FCC commissioner Brendan Carr said that the FCC's recent decision to de-approve Starlink's $885 million in broadband subsidies was illegal.

Saying it did not think Elon Musk's Starlink satellite broadband service could deliver the goods, as it were, the FCC two weeks ago rejected its application for the Rural Digital Opportunity Fund (RDOF) subsidies it won at auction in 2020.

In rescinding the funding, FCC chair Jessica Rosenworcel said Starlink had "real promise," but giving it nearly $900 million in USF funds through 2032 for users to purchase a $600 dish" was not something the FCC was going to do.

Also: FCC Ready to Hand Out $1.2 Billion in RDOF Bucks

In a lengthy statement Wednesday (Aug. 24), Carr, who expressed immediate opposition to the decision, which was made at the staff level, which means without a vote by the commissioners, elaborated on his concerns, including that the FCC couldn't do what it did. 

"The 2020 Commission-level decision governing the Starlink award and similar ones did not authorize staff to deny a winning bid based on equipment price point considerations—let alone based on an arbitrary one selectively applied to one winner. As such, the denial here is without a lawful basis," he said.

In its RDOF auction, the FCC allocated $20 billion for 1) rural broadband buildouts ($16 billion) and 2) unserved areas ($4 billion) over the next 10 years.

Carriers bid on how economically they could deliver service that met FCC speed and build-out metrics. The money is for fixed voice and broadband service to unserved, high-cost, areas at speeds of at least 25/3 Mbps. ■

Saying it did not think Elon Musk's Starlink satellite broadband service could deliver the goods, as it were, the FCC has rejected its application for the Rural Digital Opportunity Fund subsidies it won at auction in 2020.

"Funding these vast proposed networks would not be the best use of limited Universal Service Fund dollars to bring broadband to unserved areas across the United States, the Commission said in rejecting the applications of Starlink and LTD Broadband.

The FCC said both applicant's broadband proposals were 'risky' and that both had failed program requirements.

Also: FCC Ready to Hand Out More RDOF Bucks

"Consumers deserve reliable and affordable high-speed broadband," said FCC chair Jessica Rosenworcel. "We cannot afford to subsidize ventures that are not delivering the promised speeds or are not likely to meet program requirements,” she said.

The decision did not require a vote by the commission, which was made clear by the shocked reaction of Republican Commissioner Brendan Carr.

“I am surprised to find out via a press release—while I am on a work trip to remote parts of Alaska—that the FCC has made this significant decision," he said in a statement. "I will have more to say because we should be making it easier for unserved communities to get service, not rejecting a proven satellite technology that is delivering robust, high-speed service today.

"To be clear, this is a decision that tells families in states across the country that they should just keep waiting on the wrong side of the digital divide even though we have the technology to improve their lives now," he said.

Rosenworcel said Starlink had "real promise," but giving it nearly $900 million in USF funds through 2032 for users to purchase a $600 dish" was not something the FCC was going to do. Same goes for LTD Broadband.

Starlink won $885,509,638.40 in the RDOF auction back in 2020 and LTD Broadband won $1,320,920,718.60.

To date, RDOF has authorized more than $5 billion in funds for, primarily fiber gigabit broadband, to over 3 million locations in 47 states.

In its RDOF auction, the FCC allocated $20 billion for 1) rural broadband buildouts ($16 billion) and 2) unserved areas ($4 billion) over the next 10 years.

Carriers bid on how economically they could deliver service that met FCC speed and build-out metrics. The money is for fixed voice and broadband service to unserved, high-cost, areas at speeds of at least 25/3 Mbps.

"The FCC’s denial of SpaceX’s bid for RDOF subsidies for Starlink is exciting and stunning news for all Americans," said Gary Bolton, president of the Fiber Broadband Association. "The Fiber Broadband Association and the NTCA supplied the technical assessment and model to aid the FCC’s evaluation of Low Earth Orbiting (LEO) Satellite broadband networks, and we could not be more pleased that this contribution has been successful in convincing the agency of the limited capabilities of satellite broadband networks."  ■

The FCC is proposing to fine dozens of rural broadband providers millions of dollars for defaulting on winning bids for Rural Digital Opportunity Fund (RDOF) subsidy money.

That comes in a notice of apparent liability (NAL), which is only an allegation. The defaulting parties can respond to the NAL, and that response will then be taken into account before any final action.

The FCC said Friday that it was proposing $4,353,773.87 in fines against 73 individual applicants and two consortia. The targeted providers include Bright House Networks, multiple Charter Fiberlink applications, and multiple Time Warner Cable Information Services (also Charter) applications.

The defaults occurred July 26, 2021 through March 10, 2022.

In its RDOF auction, the FCC allocated $20 billion for: 1) rural broadband buildouts ($16 billion); and 2) unserved areas ($4 billion) over 10 years.

Also: FCC Hands Out More Rural Broadband Funding

The FCC said it had made it clear that defaults would draw fines because they would delay the timely rollout of needed broadband. "The bid defaults prevented 1,702 census block groups with 129,909 estimated locations in 36 states from seeing timely new investments in broadband infrastructure," the FCC said.

The defaults were a mix of withdrawn applications and failure to meet deadlines in the auction rules.

“The applicants agreed to follow the Commission’s auction rules when they signed up to participate in the Rural Digital Opportunity Fund program,” said Acting FCC Enforcement Bureau Chief Loyaan A. Egal in announcing the proposed fines. “These defaults have put at risk the timely deployment of broadband access for many and necessitate this strong enforcement action.” 

Charter, for one, responded that its defaults were because otherwise they would have had to overbuild existing service.  

“Facts on the ground showed the majority of the RDOF locations returned by Charter already had a provider offering service or one committed to soon do so or were areas with no passings – concerns the FCC itself specifically identified as raising '“significant concerns about wasteful spending,'" the company said in a statement. "Charter’s return of these locations served the public interest by helping to ensure scarce Universal Service funds reach the areas where they are needed most, including the one million currently-unserved homes and small businesses that will soon gain access to reliable high-speed internet service through Charter’s ongoing rural deployment initiative.”▪️

Charter Communications chairman and CEO Tom Rutledge gave voice to one of the telecom industry’s biggest dilemmas at an industry conference Wednesday. Despite the billions of dollars the federal government is pouring into programs earmarked to create fiber networks to bring broadband to rural areas, there aren’t enough workers to build them.

“There is no labor force,” Rutledge said at the MoffettNathanson Media & Communications Summit in New York, when asked about the worker shortage. “For all the construction that hasn’t been done, there is no skilled labor force that is currently out there.”

Adding to the dilemma is that many of the areas where the build outs are taking place have small populations, meaning that workers have to be brought in, which creates logistic and transportation issues.

Also: Equipment, Worker Shortage Could Delay Fiber Buildout

Rutledge added that the problem is greater for smaller operators.

“We are a big operator and we can manage through these big projects,” he said. “We’ve already invested a lot of money in new construction equipment and hired a couple of thousand people just to manage the contract process of building out these new assets.”

Still, it hasn’t been entirely smooth sailing, even a company the size of Charter.

“We have thousands of unfilled positions,” Rutledge said.

Colleges and companies throughout the country have started training programs to fill the gap. In April, AT&T and Corning launched a fiber optic training program in North Carolina and trade organizations like the Wireless Infrastructure Association and the Fiber Broadband Association have launched training and certification programs to beef up and educate the future workforce.

But training takes months and even years to fully complete. And in the meantime, the shortage continues. In 2021, a group of industry associations warned that there could be a need for as many as 850,000 additional workers in the telecom business through 2025, as more and more fiber projects go online.

Also: Could Fiber Save Netflix?

Charter has extended its fiber footprint by about 1 million homes per year over the past few years through its edge-out programs. And the company was one of the biggest recipients of federal Rural Digital Opportunity Fund (RDOF) grants to extend service to unserved and underserved areas.  

Rutledge said that Charter will be an eager participant in federal projects to bring broadband service to rural areas.

“We’re very interested. There’s $42 billion there. That’s a lot of money,” Rutledge said. ■ 

With most of the Biden administration‘s $65 billion in broadband subsidies yet to be handed out, the Federal Communications Commission continues to distribute hundreds of millions of dollars to help close the digital divide.

An additional $313 million to be distributed via the FCC’s through its Rural Digital Opportunity Fund (RDOF) was authorized Friday (March 25). Total authorized funding now comes to more than $5 billion, including more than $1 billion doled out in January.

The latest tranche of money will go for new deployments in 19 states.

Also: FCC Authorizes Over $1 Billion for Rural Broadband

“The funding announced today will help hundreds of thousands of Americans get access to high-speed, reliable broadband service,” FCC chairwoman Jessica Rosenworcel said. “We continue our expanded oversight of this program through the Rural Broadband Accountability Plan to make sure that applicants deliver services as promised to areas that truly need help.”

That plan is intended to prevent waste, fraud and abuse, and make sure the money is going where it is most needed.

In its RDOF auction, the FCC allocated $20 billion for: 1) rural broadband buildouts ($16 billion); and 2) unserved areas ($4 billion) over 10 years.

The Commerce Department’s National Telecommunications & Information Administration is overseeing the vast majority of the $65 billion in new broadband subsidies provided for in the Biden infrastructure package, but the FCC remains a big player through its longstanding Universal Service Fund money, which constitutes billions of dollars for advanced telecommunications in areas of the country that are difficult to monetize or reach.

“The Fiber Broadband Association commends the Federal Communications Commission for continuing to carefully scrutinize the Rural Digital Opportunity Fund (RDOF) long form applications and for approving fiber and well-designed broadband projects by authorizing an additional $313M in 19 states and 130,000 locations into the program," said Gary Bolton, president of the Fiber Broadband Association, "bringing us up to over $5 billion in RDOF funding to fiber and high performing deployments in 47 states and 2.8 million locations. We encourage the FCC continue to carefully scrutinize non-fiber projects, as this precious funding is desperately needed to connect communities with reliable and future-proof broadband service now and into the future.” ■

With the National Telecommunications & Information Administration getting most of the attention for its role in overseeing more than $40 billion in infrastructure broadband subsidies, the Federal Communications Commission is reminding digital divide watchers that it is already handing out billions.

The FCC said it has authorized another $640 million in Rural Digital Opportunity Fund broadband monies to help close the rural digital divide in 26 states. There were also some defaulted bids, meaning those census blocks will be eligible for other broadband subsidy programs, like those being overseen by NTIA, which includes the Administration's Affordable Connectivity Program (ACP) and Broadband Equity Access and Deployment Program (BEAD).

It has so far authorized $4.7 billion to almost 300 providers in 47 states to connect over 2.5 million locations.

The FCC has yet to finish revamping the broadband availability maps that would help the agency better target the funds, but chairwoman Jessica Rosenworcel did create a Rural Broadband Accountability Plan (RBAP) to monitor compliance with FCC program rules, including improved audit and verification. ■ 

The FCC said that 23 broadband providers in 32 states have been authorized to receive over $1.2 billion in Rural Digital Opportunity Fund (RDOF) money, the largest funding round so far, the FCC pointed out Friday.

The money will provide broadband service to over 1 million locations, said the FCC.

The commission has also launched the Rural Broadband Accountability Plan to better track compliance with the FCC's universal service high-cost programs, including RDOF.

The plan includes more audits and verification of those getting the money (double the number of audits from last year and with additional on-site audits) and making public the results of its verifications, audits and speed and latency testing.

In its RDOF auction, the FCC allocated $20 billion for 1) rural broadband buildouts ($16 billion) and 2) unserved areas ($4 billion) over the next 10 years.

Carriers bid on how economically they could deliver service that met FCC speed and build-out metrics. The money is for fixed voice and broadband service to unserved, high-cost, areas at speeds of at least 25/3 Mbps.

The FCC has taken some criticism for handing out the RDOF billions of dollars before it collects better broadband availability data. ■

The Federal Communications Commission has authorized more than $163 million to 42 providers in the second round of phase one of Rural Digital Opportunity Fund broadband buildouts.

The second round will cover approximately 65,000 locations in 21 states.

“More help is on the way to households without broadband,” said FCC acting chair Jessica Rosenworcel.

In August 2019, the FCC voted to propose handing out over $20 billion in Universal Service Fund (USF) subsidies for rural fixed broadband over the next decade, money that could go to cable broadband providers as well as telecoms.

The FCC is giving out up to $16 billion in phase one to deploy broadband, with 386 providers having qualified to bid in the reverse auction.

Back in July, the FCC approved over $311 million in 21 states in phase one of the buildout program, which will distribute $16 billion of the $20 billion total.

Also Read: Charter Wins Most RDOF Locations

The FCC is trying to make sure the money goes to unserved areas, which it says let to 85 bidders choosing not to buildout over 5,000 census blocks after the FCC asked them to review their bids due to evidence there was already existing service.

The FCC has said defaulted winning bid areas would immediately become eligible for other broadband funding — the Biden administration has given out billions of dollars in state and local broadband deployment grants, for example.

Carriers bid on how economically they could deliver service that meets FCC speed and buildout metrics. The money is for fixed voice and broadband service to unserved, high-cost, areas at speeds of at least 25 Megabits per second upstream and 3 Mbps downstream. While service of at least that 25/3 high speed definition is eligible for the money, the FCC is prioritizing bids for higher speeds and lower latency.

Also Read: FCC Releases List of RDOF-Eligible Locations

Democrats on the FCC had argued the agency should not give out that money until it had gotten better data on where broadband is and isn‘t, something it is working on on its own initiative as well as at the command of Congress. But the FCC‘s Republican majority at the time (August 2019) voted to proceed. 

A new level of resolve to bridge the digital divide has emerged in 2021, resulting in an unprecedented amount of government programs and consequent funding being operationalized at every level of government. Equally dramatic is the shift in decision-making on where and how program money will be spent. In addition to the traditional approach of a national program designed and administered by the Federal Communications Commission, a new approach has evolved, in favor of allocations directly to states, counties, municipalities and tribal areas, empowering them to determine priorities and service providers with whom to partner.

Granted, the Treasury Department still sets guidelines for compliance, but the steering wheel is genuinely in the hands of those closest to the market. For example, 3,233 U.S. counties were allocated a total of $65.1 billion through the Coronavirus State and Local Recovery Act; amongst the many eligible uses for the funding is “necessary investments in water, sewer and broadband infrastructure.”

An additional $65 billion is earmarked directly for broadband in the infrastructure bill.

Accelerate Planning Process

With some funding in hand and anticipating more to come, communities are now pushing hard on service providers to accelerate the path to upgrading broadband to the underserved and the unserved. The pressure on service providers is to understand where to prioritize, how to build most efficiently, how to craft win-win public-private partnerships, and who else might be breathing down their neck within and tangential to their footprint.

The ramifications are enormous and the timeline is concise. These awards will be depleted within months, not years. Where service providers decide to focus their energy and resources today will impact their market share and profitability for years to come.

Therefore, moving rapidly to build a solid analytical framework and populating it with accurate data is critical to enabling intelligent decisions. The framework should incorporate the following:

1.) Identification of the underserved and unserved within and tangential to their existing footprint, including those whose upload speed is insufficient for today’s economy.

2.) Assessment of viable deployment options within these communities. For example, in a rural area, are there utility poles suitable for aerial fiber deployment? If the distance between homes is dauntingly large, what is the propensity for service with fixed wireless?

3.) Definition of viable project boundaries and rough order of magnitude (ROM) cost to serve.

4.) Identification and analysis of the competitive landscape, especially winners of Rural Digital Opportunity Fund (RDOF) awards; assess the value of the award against the ROM.

5.) Weighting these attributes and then simply running the math to identify
the opportunities with the highest possibility of success.

With this data in hand, the service provider will be equipped to prioritize and focus energy on the communities that rose to the top of the list.

Designing an Efficient Plan

The next step is to drill down further by designing the most efficient network plan possible to expand and/or enhance broadband to the targeted communities. A comprehensive build out plan should identify and consider the following: 

• Which locations or census blocks might a community have surveyed and designated as underserved? 

• Conduct a review of the new National Telecommunications and Information Administration (NTIA) maps with the community to validate the applicability to broadband in extended areas beyond the Form 477 disclosures. 

• Are homes with school-going children served? Create a plan to serve them first.

• What is the average cost for a robust fiber-to-the-home network?

• What level of subsidy would be needed to make it a winning proposition for both the local government and service provider?

• Are there any outlying locations that could drive the project cost to be sky high? 

• Would fixed wireless to the more remote locations be a viable alternative to achieve the goal for everyone?

• Are there additional households or businesses along the new network path, that expand the addressable market and improve the business case?

• Where should the build start to assure the strongest cash flow?

• Validate if the RDOF winner in the area has plans to build in the near term.  Confirm the RDOF win value against the cost to build the distribu­tion network.

Service providers armed with these detailed plans will be ready to productively engage with community leaders on a path to most efficiently and effectively assuring significantly better broadband for all in the community. 

The FCC said Monday (July 26) that it is prepared to authorize over $311 million in winning bid broadband funding to 36 states from its Rural Digital Opportunity Fund (RDOF) Auction. The auction allocated $9.2 billion for rural broadband buildouts over the next 10 years.

The FCC also released a list of winning bids now in default and totaling thousands of locations and tens of millions of dollars, including defaults by Charter Fiberlink of some of its bids, as well as co-owned Time Warner Cable.

The FCC said those defaulted winning bid areas would immediately become eligible for other broadband funding--the Biden Administration has given out billions of dollars in state and local broadband deployment grants, for example.

Charter won the most locations at just over one million of the 5.2 million locations. Bidders won $9.2 billion of an available $16 billion, with the rest to be rolled over into Phase II, which will now have over $11 billion.

Carriers bid on how economically they could deliver service that meets FCC speed and build-out metrics. The money is for fixed voice and broadband service to unserved, high-cost, areas at speeds of at least 25/3 Mbps.

The FCC said the defaults were a mix of winning bidders who had told the FCC they did not intend to pursue some or all of their winning bids, and those who had assigned their winning bids to related entities, which had told the FCC they did not intend to pursue the bids.

The FCC also said that the defaulting bidders would be subject to "enforcement penalties as warranted" and the defaults are being referred to the Enforcement Bureau.

Acting FCC Chairwoman Jessica Rosenworcel called the $311 million a "significant down payment" on broadband deployment, in this case closing the rural digital divide.

The FCC also said it had sent letters to a number of bidders following complaints that the program was about to fund broadband to parking lots and well-served urban areas. The letters gave the bidders a chance to withdraw their funding requests "from those places already with service or where significant questions of waste have been raised."

The FCC said that it wanted to make it clear that "it will not tolerate any provider participating in the program that is not serious about providing broadband service or has not made appropriate efforts to secure state approvals. To this end, the FCC rejected requests from AB Indiana in Florida and LTD Broadband in California, Oklahoma, and Kansas to waive program deadlines, in light of their failure to act in a timely way to seek state certification.

"[W]e 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," said a tough talking Rosenworcel. "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.”

The funding has buildout requirements, including reaching all assigned locations completed by the end of year six, but incentives to build out all locations ASAP.

Charter had not returned a request for comment on the defaults at press time.

“The Competitive Carriers Association applauds the FCC’s decision to send letters to 197 RDOF winners based on CCA’s study showing that the RDOF program was poised to misdirect scarce rural broadband funding to wealthy urban areas," said CCA President Steven K. Berry. "The FCC’s actions will help ensure that genuinely unserved areas are the ultimate target of much needed resources for rural America.  As we have seen, it is difficult to determine coverage areas without reliable maps, and this is an important step to ensure the integrity of the RDOF program.”

All the gold in California isn't in Beverly Hills banks. Some of it is in the FCC's multi-billion-dollar rural broadband subsidy fund.

Rural residents in California got the most money for broadband in the FCC's recent Rural Digital Opportunities Fund (RDOF) auction at $830 per resident, while Rhode Island got the least with only $9.

That is according to Satelliteinternet.com, which analyzed Phase 1 of the fund outlay comparing FCC dollar figures with Census Bureau data on residents in general and rural residents in particular given that it is a rural broadband subsidy program.

West Virginia was second most at $530, followed by Arkansas with $377, Minnesota with $328, and Massachusetts with $327. Among the lowest, New Jersey was second at $13 per rural resident, Connecticut third least at $23, followed by New Hampshire with $50 per rural resident and North Dakota, $53.

Also Read: FCC's Rural Broadband Subsidy Bidding Begins

The FCC has said that winning bidders in its RDOF Phase I auction have the money to deploy high-speed broadband to more than 5.2 million unserved homes/businesses (5,220,833 to be specific), which it said was almost 99% of the available locations in the auction.

The auction allocated $9.2 billion for rural broadband buildouts over the next 10 years. it has buildout requirement, including reaching all assigned locations completed by the end of year six, but incentives to build out all locations ASAP.

While service of at least the FCC's 25 mbps upstream/3 mbps downstream high speed definition was eligible for the money, the FCC prioritized bids for higher speeds and lower latency. 

Also Read: Charter Wins Most RDOF Buildout Locations

Somewhat surprisingly, North Dakota got some of the least funding per rural resident--$53.73--even though almost 40% of the state's population is rural.

The analysis found that Maryland ranks as one of the states with the least funding per resident (rural and non-rural), even though one in four of those residents lacks a home wireline broadband connection, with African Americans representing 40% of those unconnected households.

South Dakota, which has some of the slowest average internet speeds, says Satellite Internet, and a large rural population, ranks among the lowest in overall funding.

The national average for funding per resident (rural and nonrural) was $37.03.

Below are the top and bottom 10 states in terms of dollars per rural resident:

Top 10 funded states: funding per rural resident

California: $830

West Virginia: $530

Arkansas: $377

Minnesota: $328

Massachusetts: $327

Mississippi: $313

Pennsylvania: $254

Wisconsin: $248

Michigan: $201

Illinois: $205

Least funded states: funding per rural resident:

Rhode Island: $9

New Jersey: $13

Connecticut: $23

New Hampshire: $50

North Dakota: $53

Delaware: $73

Vermont: $80

Hawaii: $90

Utah: $93.30

Texas: $117

Satellite Internet's report included a Spoiler Alert: "[L]ooks like some states got a fair amount, others are getting shortchanged, and a few scored more than seems fair (looking at you, California)."

The FCC has approved Frontier's plan for restructuring out of bankruptcy, which includes allowing it to complete what amounts to a transfer of control from the old company to the restructured one before the FCC authorizes its Rural Digital Opportunity Fund (RDOF) Phase I support. It was one of the winning bidders in the recent auction for rural broadband buildout subsidies.

That is part of a $1.4 billion investment the company has said it planned to make in building out its network.

Also Read: Frontier Maps Out Restructuring Plan

"We have thoroughly reviewed the record, including the supplemental information submitted by the Applicants, and we conclude that the transaction serves the public interest, convenience, and necessity and meets the requirements of the Act," the FCC said.

A bankruptcy court approved the plan Aug. 21.

The Communications Workers of America had asked the FCC to hold off on the decision until it collected more data on the restructuring's impact on workers and until it had reviewed the results of state regulatory reviews, but the FCC declined to do both.

"Based on the record, we find no merit to CWA’s and TURN’s concerns regarding service quality, competitiveness, workforce, including CWA’s members, and operations," it said. "Indeed, we expect that Frontier is more likely to improve service quality and invest in infrastructure than it would be absent its prompt emergence from bankruptcy."

It pointed out Frontier had promised that “all employee wages, compensation, benefit programs, and collective bargaining agreements in effect as of the Plan’s effective date will remain in place.”

CWA said it would continue to monitor the deal.

"In the absence of an investigation of these issues by the FCC, some states like California are pursuing thorough oversight that is resulting in strong commitments to ensure the bankruptcy reorganization will benefit the public," CWA said in a statement. "Frontier’s recent proposed settlement to the California Public Utility Commission to gain approval of the bankruptcy restructuring plan included a commitment of $1.75bn in new capital investment, 350,000 new fiber to the premise connections, and a commitment to maintain technician staffing levels and California call center locations required to perform this work. CWA will continue its advocacy for other states to follow suit and for Frontier to use its enhanced financial flexibility to invest equitably across all the communities it serves."

While Charter Communications continues to aggressively move to accumulate wireless spectrum, chairman and CEO Tom Rutledge said ultimately its mobile motivations are tied to supporting the overall business. 

Charter has been keen on building up its spectrum holdings -- the Federal Communications Commission said Monday the cable operator wins the most locations in its Rural Digital Opportunities Fund (RDOF) auctions.  At the UBS Virtual TMT conference Monday, Rutledge said that the company’s wireless spectrum plays -- including participating in the CBRS auctions and “edging out” its existing footprint -- are parts of the overall strategy to reach as many customers as possible. 

Rutledge said he couldn’t speak directly about the RDOF auction -- he is still in a quiet period -- but said in general, its edge-out program, its wireless network and working with local, state and federal governments for rights of way are all moves to increase the size of its customer base as well as the communities it serves. 

“We think it’s smart to do that, and if it can be done in an economically efficient way, we’ve embraced that,” Rutledge said. “If we do that, we end up with more customers and a happier customer.”

Rutledge added that wireless doesn’t only mean mobile phone service -- Charter customers have connected about 400 million wireless devices to its network. And the wireless product has had a tangible effect on how Charter sells its flagship product, broadband.

Charter added about 363,000 wireless lines in Q3, bringing its total Spectrum Mobile customers to about 2.1 million. 

“The overall value of the relationship is improved by wireless,” Rutledge said. “As a standalone business it’s still a good business. We’ve actually crossed the threshold where every incremental customer becomes profitable in mobile. We’ve covered our fixed costs, with the customer base we’ve already creed, so incrementally the wind is at our back financially. But it’s also a positive driver of our overall ability to have a good relationship with customers that improves the whole value proposition of a customer’s telecom bill.”

Charter made headlines with its positive video customer growth over the past two quarters -- 102,000 additions in Q2 and 67,000 in Q3 -- and Rutledge said some of those increases were due to satellite TV customers that dropped that service after buying broadband from Charter. In doing that, many also bought video service, too.

“We’ve pulled bb growth from all sorts of places, and shifted share toward us. Some of that share had satellite customers in it, and when they made the conversion to us, they bought video from us.”

Charter also has developed additional products, some over the top, and some related to skinnier packages of traditional cable, which has helped. 

“Through time we will have to mix the mixture of those services so we can maximize our growth potential,” Rutledge said, adding that video growth is still hampered by price pressures associated with the business. “It’s still a highly desired product though, people want it. To the extent there is less cost pressure, you can get more demand.”

While cord-cutting and SVOD services like Netflix and Amazon Prime Video have helped pare traditional pay TV subscribers, Rutledge said it hasn’t had a big effect on programming costs. He added that while cable companies have paid less in affiliate fees recently, it’s more a factor of fewer video customers, not lower prices.   

“What’s happening is the mix of viewers is changing  because of the packages we’re selling,” Rutledge said. “That’s been the reason that content prices in aggregate have moderated for us. It hasn’t moderated on a price per viewer basis. That’s an important thought because it shows how much money is flowing from customers to content companies through us. In terms of how a linear bundle works in an environment where the same companies that provide content in a linear bundle also sell a premium direct-to-consumer product is a question of, if you cannibalize one, do you put us in a position where we would be willing to drop you or your bundled package, because customers can get your product directly, there is no need for us to pay for that as part of the bundle. Or do you have a dual content strategy where you have good content in your linear product, but different content in your direct-to-consumer products? It’s yet to be determined whether owners of content are going to try to support both worlds or not.”

The FCC said that winning bidders in its Rural Digital Opportunity Fund (RDOF) Phase I auction have the money to deploy high-speed broadband to more than 5.2 million unserved homes/businesses (5,220,833 to be specific), which it said was almost 99% of the available locations in the auction.

The FCC, which released data following the end of Phase I, said the majority of locations will be getting gigabit speeds.

Related: FCC's Rural Broadband Subsidy Bidding Begins

Charter won the most locations at just over one million of the 5.2 million locations. Bidders won $9.2 billion of an available $16 billion, with the rest to be rolled over into Phase II, which will now have over $11 billion.

The auction allocated $9.2 billion for rural broadband buildouts over the next 10 years.

“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," said FCC Chairman Ajit Pai. "They now stand to gain access to high-speed, high-quality broadband service."

The auction includes buildout requirement, including reaching all assigned locations completed by the end of year six, but incentives to build out all locations ASAP.

“ACA Connects congratulates the FCC on the just-completed Rural Digital Opportunity Fund Phase I auction, as well as the numerous ACA Connects members who will be receiving RDOF support to help close the digital divide," said ACAC President Matt Polka. "We especially applaud the FCC for ensuring that funding would only go to truly unserved areas, thus maximizing use of limited support and not undermining private investment. 

 “In addition, by awarding support through a competitive process open to incumbent providers and new entrants alike, the RDOF program will bring higher speed broadband service to unserved areas with far less federal support than has been allocated in the past," said Polka.

 “Further, by prioritizing bids for the highest speed services, the auction appears to have yielded substantial benefits for consumers in unserved areas, with more than 99.7% of locations receiving at least 100 Mbps service. Any future federal, state and local government broadband grant program should adopt these same requirements and processes in awarding support," he  said.

Sen. John Kennedy (R-La.), a vocal FCC critic who pushed the FCC to use C-Band spectrum auction proceeds (the auction launched Tuesday, Dec. 8) to help close the digital divide rather than pay incumbent satellite operators, had some encouraging words for the commission. 

“Louisianians without broadband access deserve the same educational and work opportunities that Americans who have high-speed internet already enjoy," he said in a statement. "The pandemic has made it more urgent than ever to bridge the digital divide in underserved rural areas—telehealth, telework, and online classes demand broadband expansion. I’m glad to see the FCC invest $342 million to expand broadband access to 175,000 Louisiana families and businesses. It’s past time to build out this infrastructure.”

The FCC has launched its latest effort to bridge the rural digital divide, beginning the bidding on phase one its Rural Digital Opportunity Fund (RDOF). 

In August 2019, the FCC voted to propose handing out over $20 billion in Universal Service Fund (USF) subsidies for rural fixed broadband over the next decade, money that could go to cable broadband providers as well as telecoms. 

The FCC is giving out up to $16 billion in phase one to deploy broadband, with 386 providers having qualified to bid in the reverse auction.

Related: FCC Releases List of RDOF-Eligible Locations

The money will fund service for up to 10.25 million people. The FCC deemed roughly 5.3 million unserved locations--home and businesses--in areas eligible for the $16 billion in subsidies. Those are locations the FCC has determined lack high-speed broadband at the required speeds. The second phase of RDOF money--about $4 billion--will go to underserved areas. 

While service of at least the FCC's 25 mbps upstream/3 mbps downstream high speed definition is eligible for the money, the FCC will prioritize bids for higher speeds and lower latency. 

Related: Are You Ready for the Rural Digital Opportunity Fund  

“Today, I’m excited to announce that the bell has rung on the start of our historic $16 billion auction—one that will pave the the way for up to 10 million rural Americans to get broadband service," said FCC chairman Ajit Pai. "This is the biggest step yet in our ongoing commitment to close the digital divide."

The 386 applicants are a 75% increase over the number of bidders in the 2018 Connect America Fund Phase II auction, which was the forerunner of RDOF.

Commission Democrats had argued the FCC should not give out that money until it had gotten better data on where broadband is and isn't, something it is working on on its own initiative as well as at the command of Congress. But the FCC's Republican majority voted to proceed. Pai said the data on where broadband isn't was pretty solid--it is where data shows it is, but it turns out it isn't, that is the bigger issue. Delaying the bidding until the completion of a better data-collection framework would needlessly delay closing the rural digital divide, he argued, saying: "Digital opportunity delayed is digital opportunity denied." 

Actually, the June vote on the auction framework was unanimous--the Dems want the rural digital divide closed, too--but those Dems also used their public statements to hammer the item for giving out the money before the FCC had fixed the broadband maps, so both dissented from that part while approving the item as a whole.

As structured, the auction 1) adopts census blocks as the smallest geographic area for bidding, 2) reserves bids only for technologies proven to provide mass market retail broadband, 3) insures that bidders have the experience, the money, and the technology to meet performance requirements, and 4) adopts a multi-round, descending clock auction, which means low bid that meets performance and latency requirements wins. 

The FCC is prohibiting commonly controlled entities from filing more than one application and banning joint bidding arrangements.  

“RDOF’s mission: narrow the digital divide, maximize rural deployment and target the truly unserved is a connectivity mission shared by all USTelecom members," said Association President Jonathan Spalter. "These innovators built the high-speed communications networks that connect more rural Americans to the internet than any other industry segment, and they are leading the charge to connect all consumers. Broadband deployment can be tough and expensive work, but with a partner at the FCC that shares our belief in the essential role of broadband, bringing quality connectivity to the most remote parts of the country takes an important step forward today.”

The FCC said that almost 400 applicants have qualified to bid in the upcoming Rural Digital Opportunity Fund (RDOF) Phase 1 auction, which is scheduled to launch Oct. 29.

Related: FCC Finalizes RDOF-Eligible Areas

The FCC also said that the 386 applicants are a 75% increase over the number of bidders in the 2018 Connect America Fund Phase II auction, which was the forerunner of RDOF.

In the reverse auction, up to $16 billion is available in subsidies for rural broadband buildouts over 10 years.

The money will go to census tracks lacking the FCC's definition of minimum high-speed broadband service.

The FCC has said those eligible areas have about 5.3 million unserved homes, or perhaps upwards of 10 million people, as well as businesses.

Related: FCC Launches 2021 Broadband Deployment Data Collection

While anything over the FCC's 25 mbps upstream/3 mbps downstream high speed definition is eligible for the money, the FCC will prioritize bids for higher speeds and lower latency. 

“The unprecedented interest in this auction is due in large part to key decisions by the FCC, including providing substantial funding and promoting technological neutrality toward potential bidding participants, as well as our staff’s extensive work to spread awareness of the program and ensure the broadest participation in a competitive auction that will deliver real benefits to rural Americans across the country," said FCC chairman Ajit Pai.

The FCC has released the list of rural areas eligible for the phase I of its Rural Opportunity Development Fund reverse auction for up to $16 billion in subsidies for rural broadband buildouts.

California has the most eligible locations--homes and businesses--with 370,986 and North Dakota the fewest with 2,780.

The money will go to census tracks lacking the FCC's definition of minimum high-speed broadband service.

The FCC said those eligible areas have about 5.3 million unserved homes, or perhaps upwards of 10 million people, as well as businesses.

Related: Rep. Doyle Says ISPs Claim Service Where it Isn't

The FCC released the preliminary list back in June then allowed for time to challenge that list if folks thought locations needed to be added or deleted.

While anything over the FCC's 25 mbps upstream/3 mbps downstream high speed definition is eligible for the money, the FCC will prioritize bids for higher speeds and lower latency. 

"The current pandemic has highlighted the importance of bringing broadband access to all Americans, and the Rural Digital Opportunity Fund is our boldest step yet to bridge the digital divide," said FCC Chairman Ajit Pai. "Our announcement today demonstrates the broad impact that our investment in rural America will have across the country."

The FCC is scheduled to auction access to that $16 billion (phase one) of the $20.4 billion in RDOF funding starting Oct. 29. The money will be awarded over 10 years to providers to offer fixed voice and broadband to unserved, high-cost, areas, at speeds of at least that 25/3 mbps. 

The second tranche of RDOF money--about $4 billion--will go to underserved, rather than unserved, areas.   

The FCC Wednesday (July 1) opened the short-form application window for phase one of its Rural Digital Opportunity Fund (RDOF) reverse auction (Auction 904).

All potential bidders must complete and submit such an application.

Carriers will be bidding on how economically they can deliver service that meets FCC speed and build-out metrics. The money is for fixed voice and broadband service to unserved, high-cost, areas at speeds of at least 25/3 Mbps. 

RDOF is the re-imagined Connect America Fund II subsidy.

Related: FCC Names New Rural Auctions Chief of Staff 

RDOF, phase one, is the $16 billion over 10 years the FCC is spending to close the rural digital divide to get broadband to unserved areas. Phase two has another $4 billion to go to underserved areas. 

The application window closes July 15 at 6 p.m. 

On July 25, the FCC released an updated list of the census blocks it has determined lack the requisite service and thus are eligible for the "unserved" subsidies. 

The FCC said that 5,392,530 unserved locations have been "deemed eligible" for carriers to bid on in the auction beginning Oct. 29. 

FCC Chairman Ajit Pai said the FCC was releasing the list Thursday (June 25) of locations eligible for the first $16 billion in Rural Digital Opportunities Fund (RDOF) money.

That cat came out of the bag on an Internet Innovation Alliance webinar. 

Only minutes later, the list was issued. The FCC said that 5,392,530 unserved locations have been "deemed eligible" for carriers to bid on serving with the $16 billion being auctioned beginning Oct. 29

The FCC released a preliminary list back in March and gave commenters a chance to challenge/weigh in on the list until April 1. 

Legislators will be eager to check the list to see where money will be going in their states and districts.  

Related: FCC Names New Rural Auctions Chief of Staff 

The FCC is scheduled to auction access to that $16 billion (phase one) of the $20.4 billion in RDOF funding starting in October. The money will be awarded over 10 years to providers to offer fixed voice and broadband to unserved, high-cost, areas, at speeds of at least 25/3 Mbps.     

Related: WISPA Praises Bill Speeding RDOF Auction 

Pai said on the webinar that by the end of the day the FCC would be releasing that list of proposed locations that the FCC has been working to verify--or not. 

Those are locations the FCC has determined lack high-speed broadband at the required speeds. The second tranche of money--about $4 billion--will go to underserved areas. 

Sen. Roger Wicker (R-Miss.), chairman of the Senate Commerce Committee, is getting a shout out from wireless internet service providers (WISPs) for a bill he is introducing (co-sponsoring the bill are Shelley Moore Capito [R-W.V.] and Marsha Blackburn [R-Tenn.]), the “Accelerating Broadband Connectivity Act of 2020” (ABCA), to speed up the FCC's Rural Digital Opportunities Fund auction so it can get broadband deployed more quickly to close the rural digital divide in Mississippi and elsewhere. 

The divide has been magnified by the COVID-19 pandemic-generated reliance on remote life and work.  

"This bill will help even more rapidly more rural Americans get the Internet. We want thank Chairman Wicker for his dedicated leadership on this integral matter – one which accommodates today’s exigencies and works to comprehensively expand broadband deployment in unserved areas," said WISP Association president Claude Aiken."Rural providers who have won RDOF support and who voluntarily choose to begin construction within 180 days and deliver broadband within one year would be eligible to receive expedited, one-time funding offers from the FCC to build those networks. Importantly, it does this in a truly technologically neutral manner, leaving the decision process to the FCC and its upcoming auction." 

Related: FCC Votes on Rural Broadband Subsidy Framework 

The FCC is scheduled to auction access to the first $16 billion (phase one) of the $20.4 billion Rural Digital Opportunity Fund (RDOF), starting Oct. 22.   

Wicker's bill would direct the FCC to allocate money to applicants who were expected to be the sole bidder and who promised gigabit speeds. It would also require the FCC to start processing provider applications for the auction by July 31 (it could more quickly identify which sole bidders might be able to get money early).  

Wicker says he has heard from providers in his home state who are ready to deploy in unserved areas--the first $16 billion is targeted to unserved areas--but need the subsidy money to do so.  

The senator said expediting the funding could help close the digital divide. He said that while Congress is considering the bill and is cognizant of the legal and procedural constraints on modifying FCC rules already approved, Wicker wanted some questions answered--by June 12--to help them with the legislation.  

They include how the FCC would modify the auction to meet accelerated deadlines or make awards of money early and when it will update its March 17 list of areas eligible for that phase one support.  

Wicker's desire to advance the auction and funding is in contrast to a number of Democrats who have been arguing the auction should be delayed until the FCC can collect more accurate data on where broadband is and isn't.  

A "partially" divided FCC voted Tuesday (June 9) to establish rules of the road for the auction of $16 billion in subsidies for rural broadband buildouts via its Rural Digital Opportunities Fund (RDOF). 

The vote was technically unanimous, but the Democratic members hammered the item for giving out money before the FCC had fixed its broadband maps, so both cast partial dissents from that part. 

That came at the FCC's first virtual video public meeting Tuesday (June 9)--previously socially distanced meetings had been via teleconference. 

The money will be awarded over 10 years to providers to offer fixed voice and broadband to unserved, high-cost, areas, at speeds of at least 25/3 Mbps. 

The auction (904) is scheduled to launch Oct. 29. Short-form applications can be filed beginning July 1. That application window closes July 15. 

The public notice establishing the rules also: 1) adopts census blocks as the smallest geographic area for bidding, 2) reserves bids only for technologies proven to provide mass market retail broadband, 3) insures that bidders have the experience, the money, and the technology to meet performance requirements, and 4) adopts a multi-round, descending clock auction, which means low bid that meets performance and latency requirements wins. 

The FCC is prohibiting commonly controlled entities from filing more than one application and banning joint bidding arrangements.  

Related: Bipartisan Bill Would Goose Broadband Buildouts 

FCC chair Ajit Pai circulated the draft public notice last month. 

Pai said that in his three-plus years, closing the digital divide has been his top priority, and the FCC has gotten results. 

He said more work remains to be done and events in 2020 have driven home how important that connection is. He said the procedures for phase one of the auction will get money to areas "everyone agrees" lacks service. 

He said politically motivated calls to delay the auction miss the mark. He said the country cannot afford to wait for more granular coverage maps. "Digital opportunity delayed is digital opportunity denied." 

Commissioner Michael O'Rielly said the item put the FCC one step closer to the auction and, "hopefully," significantly expanded broadband access.  

O'Rielly said he would have preferred no upfront technology restrictions. He did say he was grateful for changing language that was prejudicial to certain providers. The FCC will also reevaluate participation conditions for the second phase of the program, said O'Rielly, something he had asked for. 

Commissioner Jessica Rosenworcel, who cast a partial dissent, said the FCC does not have accurate data so it lacks an honest picture of who has broadband and who is falling behind. She said the current pandemic and protests means that the country needs connections that support bonds between people. She said the FCC needs a real plan for broadband for all. She said job one of getting the job done is good data. She criticized the FCC for not addressing the mapping issue years ago.  

Rosenworcel said the FCC made no effort to improve the data, and is now handing out billions of dollars using maps they know is wrong. She called the item "rushed out the door electioneering." 

She called the item the wrong way to close the digital divide, and irresponsible in the bargain. She also took issue with not giving the money in places where states are already using other government subsidy money. Rosenworcel said rushing the money out was a "fatal flaw." 

FCC commissioner Brendan Carr also called it the next step to serving the hardest-to-serve. He said the FCC's broadband maps are accurate for what the FCC is doing with the first part of the auction, which is to serve the unserved.  

Commissioner Geoffrey Starks dissented in part, unhappy with the bulk of the money being handed out before the FCC gets a better hand on where broadband is. 

"I would have preferred to start with a smaller budget or shorter term of support so that the bulk of the RDOF funds could be spent after we complete the mapping overhaul that data-driven policymaking and the Broadband DATA Act require," he said. "Because this item builds on that flawed foundation, I must dissent in part." 

In August 2019, the FCC voted to propose handing out over $20 billion in Universal Service Fund (USF) subsidies for rural broadband over the next decade, money that could go to cable broadband providers as well as telecoms.   

Related: Are You Ready for the Rural Digital Opportunity Fund  

The first phase of the program will hand out $16 billion for census tracks where there is no service. In the second, $4.4 billion, plus whatever money is left over from phase one, will be available for building out partially served census tracts.  

The FCC has taken some criticism for handing out the $16 billion before it collects better broadband availability data, but Pai has pointed out that while the FCC concedes it needs better data, that is generally for areas that might show service where there is none, not where the data shows there is no service. He also points out that, in the wake of COVID-19, getting that broadband out to unserved rural areas ASAP is a priority. 

“The Fiber Broadband Association supports today’s action by the FCC to adopt procedures and a timeframe for the Rural Digital Opportunity Fund Phase I auction," said Lisa Youngers, president of the Fiber Broadband Association. "This universal service program has the potential to drive the deployment of all-fiber networks to many locations in unserved areas, giving consumers and businesses access to infrastructure essential for full participation in our 21st-century society and economy. The COVID-19 pandemic, during which broadband traffic has surged, has revealed that all-fiber network access for all Americans has never been more important. Our members remain committed to connecting Americans, both rural and urban, with all-fiber broadband and will continue to work to make this a reality.”

“ACA Connects supports today’s action by the FCC to move forward with the Rural Digital Opportunity Fund program, which will bring higher-performance broadband service to millions of unserved locations," said ACA Connects President Matt Polka. "With the RDOF, the FCC also takes another step to ensure limited government funding will be distributed more efficiently by giving providers of all stripes, including ACA Connects members, a fair and reasonable opportunity to participate in the program.

“Just as with the 2018 Connect America Fund auction, we expect many ACA Connects members will seek to take part in October’s RDOF auction. In the end, the winners will be consumers in unserved areas, who will get upgraded broadband service, and the American public, who will see government funding used more effectively.”

Sen. Roger Wicker, the chairman of the Senate Commerce Committee, is asking FCC chairman Ajit Pai to weigh in on how the FCC will speed the allocation of billions of dollars for rural broadband subsidies. 

The FCC is scheduled to auction access to the first $16 billion (phase one) of the $20.4 billion Rural Digital Opportunity Fund (RDOF), starting Oct. 22.  

Related: Bill Would Goose Broadband Buildouts 

Wicker points out that legislation, the Rural Broadband Acceleration Act (H.R. 7022), has been introduced to get money out even before that auction. It would direct the FCC to allocate money to applicants who were expected to be the sole bidder and who promised gigabit speeds. It would also require the FCC to start processing provider applications for the auction by July 31 (it could more quickly identify which sole bidders might be able to get money early). 

Related: House Democrats Update Broadband Plan

Wicker said he has heard from providers in his home state who are ready to deploy in unserved areas--the first $16 billion is targeted to unserved areas--but need the subsidy money to do so. 

The senator said expediting the funding could help close the digital divide. He said that while Congress is considering the bill and is cognizant of the legal and procedural constraints on modifying FCC rules already approved, Wicker wanted some questions answered--by June 12--to help them with the legislation. 

Related: Pai Circulates Framework for Rural Broadband Fund

They include how the FCC would modify the auction to meet accelerated deadlines or make awards of money early and when it will update its March 17 list of areas eligible for that phase one support. 

Wicker's desire to advance the auction and funding is in contrast to a number of Democrats who have been arguing the auction should be delayed until the FCC can collect more accurate data on where broadband is and isn't. 

The FCC is voting June 9 on final auction procedures for handing out billions in rural broadband funding ASAP, with FCC chair Ajit Pai signaling that is one reason that the FCC needs to push money out before it completes a separate proceeding for better identifying where broadband is and isn't. 

Pai said Monday he has circulated a draft for those final procedures to his colleagues. 

In August 2019, the FCC voted to propose handing out over $20 billion in Universal Service Fund (USF) subsidies for rural broadband over the next decade, money that could go to cable broadband providers as well as telecoms.  

Related: Are You Ready for the Rural Digital Opportunity Fund 

The first phase of the program will hand out $16 billion for census tracks where there is no service. In the second, $4.4 billion, plus whatever money is left over from phase one, will be available for building out partially served census tracts. 

The FCC has taken some criticism for handing out the $16 billion before it collects better broadband availability data, but Pai has pointed out that while the FCC concedes it needs better data, that is generally for areas that might show service where there is none, not where the data shows there is no service. 

He also points out that, in the wake of COVID-19, getting that broadband out to unserved rural areas ASAP is a priority. 

The Rural Digital Opportunity Fund (RDOF) will be allocated via a two-phase, reverse, descending clock, auction. That means carriers will bid on the right to use the funds to build out broadband and voice to unserved high-cost areas, which are generally rural areas, low bid wins.  

The auction is scheduled to begin Oct. 29. 

“Closing the digital divide is my top priority as Chairman, and this auction is our boldest step yet to ensure that broadband is available to all Americans,” said Pai in announcing the item's circulation. “We’ve designed this auction to ensure robust participation, with incentives for bidders to build high-performance networks so we get fast broadband to as many as six million American homes and business that aren’t currently connected. The COVID-19 pandemic highlights the need for the Commission to continue its work to ensure that all Americans have access to high-speed broadband as soon as possible. That’s one reason why we’re moving full speed ahead with the Rural Digital Opportunity Fund.”

"The task ahead of you requires integrity of planning, especially cost-to-performance analysis with the ability to compare different architectures/deployment options, and insight into potential competitive bids, guided by clear milestones and business objectives along the way." -Raj Singh, CEO, VCTI

Nothing in U.S. history has exposed the rural digital divide as has the COVID-19 pandemic. Too many students in rural communities are being asked to participate in “distance learning” but are being left behind because their community’s infrastructure is insufficient. Adults, too, in rural communities are struggling with access to job listings and unemployment benefit applications as these services are frequently only available online. Without access to broadband, working from home is not an option, nor are the video chat services that many of us use to catch up with our friends and family.

Prior to COVID-19, the FCC announced its next step to bridge the digital divide, the Rural Digital Opportunity Fund (RDOF). This $20 billion program aims to drive better broadband more deeply into the un-served and underserved communities around America. The final list of eligible locations is not yet published (as of this writing) but is expected to include approximately 6 million households.

The auctions for phase 1, with $16 billion allocated, are scheduled to begin on October 22, 2020.

Like its predecessor, the Connect America Fund II (CAF II), winning bids will be determined by a combination of committed speed (up and down) and latency performance. The performance tiers will also be weighted to provide a bias to speeds above 100/20 Mbps. Unlike CAF II, which gave incumbents the right of first refusal, there is no advantage to incumbency in the RDOF auctions.

Incumbents and Independents will be competing to out-underbid each other from the starting gate.

With more competition and less predictability to factor into bid decisions, the caliber of the analysis on prospective markets – the demographics, the services, and the best technology to deploy -- is more critical than ever to the development of bids that will have a high probability of success and profitability.

Develop the Framework

The task ahead of you requires integrity of planning, especially cost-to-performance analysis with the ability to compare different architectures/deployment options, and insight into potential competitive bids, guided by clear milestones and business objectives along the way.

Which takes us to the first best practice. Define the products/services and cost structure needed to win the bid for each specific target market, and the shortlist of deployment architecture options to be modeled.

The weighting gives an advantage to speed and performance, but that does not mean fiber is the only viable architecture. For homes that can’t be viably served by fiber, fixed wireless is a practical and attractive option.

Therefore, your shortlist of deployment options should include both fiber and fixed wireless architectures.

In bidding for multiple markets, maybe even hundreds of communities, establishing standard templates to model against is critical to work through the analytics efficiently. Anticipate running multiple iterations with different architecture criteria so that you can glean insight into the best end state architecture, technology, economic return and bid viability for each target market.

Here are four critical planning analytics that you need to guide your target market selection and bids:

Determine middle mile costs-options-constraints.

For the non-incumbent prospective service provider, understanding the options and costs involved with reaching remote locations is a critical component in building your cost model.

For the incumbent service provider, understanding capacity constraints and any required upgrades are one of the critical foundation data points for your cost model.

Review architecture options.

Analyze fiber reach to DLC/DSLAMs/Routers in current infrastructure (COs/remote cabinets/data centers/substations). Model adding fiber and converting current equipment to Ethernet-based backhaul, or model using wireless backhaul options, when the cost of extending fiber makes the upgrade out of reach.

Model Fiber-to-the-Premises (FTTP) and next generation XGS PON and beyond.

Model Fixed Wireless Access and propagation analysis and bandwidth estimation.

For service providers with cable infrastructure, model fiber closer to the customer, deep fiber and DOCSIS support for Symmetrical.

Evaluate service target penetration by architecture, including hybrid options. What percentage of the market will receive above average vs. baseline vs. minimum speeds? What individual or hybrid architecture delivers the best, broadest coverage?

Model cost and projected revenue per household with each of the service target scenarios. Be sure to include a complete cost per home as well as first cost to upgrade to the service targets and technology.

Preparation for the bidding process will require modeling numerous network scenarios. The fixed wireless modeling must include the specifics of the signal propagation, such as strength and reach, within the target coverage area. An automated planning tool that lets you analyze across technologies, such as fiber and fixed wireless and household demographics, is a necessity.

With focused decisions on fiber and fixed wireless architectures, supported by automated planning tools, you’ll be in a position to undertake in-depth, detailed comparative analysis of hundreds of markets and define your bid packages with greater precision and confidence.

Raj Singh serves as CEO ofVCTI, the broadband network services firm.

Charter Communications said it has seen no reason for the FCC to deny its request that the commission not open up census blocks in New York State for government-funded broadband buildouts where Charter is already under a state mandate to build out 25/3 high-speed broadband per a settlement with the State's Public Service Commission.  

It was responding to comments on its request that the FCC exclude its census block from funding for potential overbuilds of that mandated buildout, just as the FCC is excluding subsidies where government money is already going to broadband buildouts, via the USDA's Rural Utilities Service subsidies, for example. 

Related: On Rural Broadband It's Go Big AND Stay Home

While some critics argue Charter's request is anticompetitive, the operator said that the Rural Digital Opportunities Fund (RDOF) is not meant to be competitive. "The purpose of the universal service fund is not to subsidize competition, but to support the deployment of service where there is none," it said, service Charter is already providing under a government, albeit state, mandate.  

Charter also said the petition's critics "ignore some crucial facts," which are that "a) Charter has nearly completed deployment to many of the census blocks at issue, and (b) Charter’s allowance to make substitutions to the addresses it will serve to meet the commitment is constrained—although Charter is permitted to make some discretionary changes to that list (which are strictly capped in quantity), it does not anticipate doing so in a way that would cause it to no longer serve the specific census blocks that are the subject of the Petition."  

The Wireless Internet Service Providers Association said that because Charter did not file a petition to reconsider the RDOF, the petition is premature because the FCC has yet to finalize the census blocks eligible for the RDOF funds. 

But Charter said if it waited until that list was finalized and the auction process underway, "the Commission could not consider how to address the more than 2,000 census blocks at issue here without delaying or otherwise disrupting that process." 

Related: New York Rep Raps Charter Over RDOF Waiver Request 

As part of its deal to get its Time Warner Cable deal approved by New York State, a process that as a long and contentious one, Charter agreed to New York PSC broadband buildout conditions.   

The FCC, in proposing its Rural Digital Opportunities Fund, which is billions of dollars for broadband buildouts, said that money could not go to places where federal or state money from other programs was already going to subsidize service, the idea being to avoid putting funds into overbuilding areas where high-speed broadband was already on the way. But the frameworks' census block requirements do currently allow for Charter to be overbuilt. 

New York Republican Rep. Elise Stefanik is calling on the FCC to deny Charter's petition that the commission waive RDOF funding to census blocks where Charter is already required to build out 25/3 high-speed broadband per a settlement with the State's Public Service Commission. 

As part of its deal to get its Time Warner Cable deal approved by New York State, a process that as a long and contentious one, Charter agreed to New York PSC broadband buildout conditions.  

The FCC, in proposing its Rural Digital Opportunities Fund, which is billions of dollars for broadband buildouts, said that money could not go to places where federal or state money from other programs was already going to subsidize service, the idea being to avoid putting funds into overbuilding areas where high-speed broadband was already on the way. But the frameworks' census block requirements do currently allow for Charter to be overbuilt. 

Related: FCC Rural Broadband Fund Decision Draws Crowd

Charter said the FCC should waive its census block criteria to also exclude funds going where Charter is already required to build out and says it is in the process of doing. 

The Commission may waive any provision of its rules “if good cause therefor is shown," Charter told the FCC in petitioning for the waiver earlier this month. "Good cause plainly exists to grant the waiver to avoid overbuilding areas in which Charter has already begun the process of deploying service and is investing private capital well in excess of $600 million," it said. "This will ensure scarce universal service support is deployed to close the gap/digital divide in actually unserved areas. The Commission has previously granted rule waivers where, as here, the purposes of the rule would be disserved by its strict application, and where waiver would affirmatively serve the public interest." 

Stefanik disagrees. 

“I strongly oppose Charter’s waiver request to the FCC, as it would reverse much of the eligibility for rural communities to access broadband project funding through the RDOF,” she said in a statement. “I worked with FCC chairman Pai this past January to include New York State on the list of states eligible for RDOF funding and to get that funding to our upstate communities who so desperately need broadband access. I have heard directly from constituents and local elected officials that this decision would have a severe impact on their ability to gain rural broadband access, which is essential, especially during this time of crisis." 

It is unlikely RDOF money could be supplied to an overbuilder in time to provide it any sooner than Charter since the company is under a September 2021 New York State deadline. Charter said it will have begun serving some of those areas even before the scheduled October 2020 start of that auction 

Regardless, Stefanik said she will work with her colleagues and the FCC to keep that RDOF funding available to Upstate New York. 

In an age of 5G technological prowess, the so-called rural digital divide remains a vexing thorn in the side of policymakers. So much so, in fact, that it unites both sides of the aisle that more needs to be done to get all Americans online no matter where they live.

The most recent and prominent of these efforts is the FCC’s Rural Digital Opportunities Fund (RDOF) proposal. Later this month the FCC will vote on the ten-year, $20 billion RDOF plan to get more broadband out to rural Americans. Its central feature employs a competitive reverse auction process, which in the past has brought many large and small companies with innovative networks and business models to the table to compete and deliver broadband to unserved Americans. In fact, in the previous highly successful CAF Phase II auction, the FCC used this auction design format to provide support to over 710,000 locations in 45 states, proving that competition by diverse companies throughout the auction is the most efficient way to provide faster broadband networks across the Nation.

Will the RDOF auction bring a broad pool of bidders together to best ensure the plan’s success?

It can if it closely adheres to its successful CAF II model.

How?

The CAF II model more inclusively enables an important group of small rural innovators – namely, Wireless Internet Service Providers (WISPs) – to meaningfully participate in all of the bidding rounds, thereby maximizing limited taxpayer dollars, and providing a larger palette of nimble solutions, which can flexibly and cost-consciously scale to rural communities.

During the CAF Phase II auction, WISPs bid in all phases of the auction, from round one, beyond the clearing round 12, and through to the last round 18. WISPs’ active participation in the auction helped reduce the level of federal support needed to provide faster broadband to 45 states from $1.98 billion to $1.49 billion. As a result, many of America’s hardest to serve communities are now receiving robust and evolving broadband solutions where none existed before.

WISPs use “fixed wireless” architecture, which employs spectrum instead of wires, to deliver high-speed broadband service to more than 6 million, mainly rural Americans. They can bring broadband to customers at 15% of the cost of a fiber provider virtually overnight, even in the most challenging of geographies.

By the end of 2020, WISPs will have pumped approximately $4.4 billion directly into the economy, creating nearly a $10 billion indirect effect on the U.S. GDP. This output will keep growing. The WISP marketplace expands at about a 15% per-year clip – several times faster than the rest of the fixed broadband industry. It confirms WISPs are adept at quickly, cost-effectively and currently – not at some distant time in the future – meeting both the demands of rural consumers and the vital national policy objective of bringing faster broadband networks to all Americans no matter where they live.

The Commission, Congress and the Administration must be commended for their efforts to bridge the rural digital divide. RDOF shows a tremendous commitment to inject much needed vigor into the battle to eradicate the problem. That aside, the FCC could better guarantee success in this fight if it remained faithful to its proven CAF Phase II model and allowed WISPs and other entities to participate beyond the clearing round. This ensures that market forces enabled by a more inclusive pool of bidders determine RDOF’s auction outcome. Unfortunately, the RDOF draft order would only allow the fastest broadband speeds to continue past the clearing round.

Returning to a CAF Phase II-like auction promotes participation by small rural innovators such as WISPs, and helps the hardest to serve rural areas get the evolving and affordable solutions they need to thrive.

WISPs are a key part of achieving this, showing 6 million times over that they can bring new communities online and connected to our digital economy. They should be allowed meaningful access throughout the RDOF auction process, uniting rural America to the rest of the country via innovative yet taxpayer-friendly solutions, which meet the broadband needs of their local communities.