FCC Faces Appeals from Internet Service Providers Seeking More Funds, Amnesty Window Amid RDOF Grant Concerns

The "Coalition of RDOF Winners" is appealing to the Federal Communication Commission (FCC) for more funding and an amnesty window to return some grants penalty-free. These appeals have been submitted through formal filings and discussions with FCC officials.

Appealing to FCC

A coalition of Internet service providers is now approaching the Federal Communication Commission (FCC) with two specific appeals. According to ArsTechnica, they successfully secured government grants through the Rural Digital Opportunity Fund (RDOF) in December 2020,

Firstly, they are requesting additional funding to further develop their broadband networks. Secondly, they are seeking an "amnesty window" that would allow them to relinquish some of the grants they received without facing any penalties.

These requests have been formally presented to the FCC through various filings made by the group, known as the "Coalition of RDOF Winners," which has been engaging in discussions with FCC officials regarding these matters.

In light of the broadband construction costs since the grants' announcement, the group is making a series of requests. They are seeking additional funding, faster payments, relief from letter of credit requirements, and an amnesty window. This window would allow RDOF winners to give up some or all of their awarded areas without facing forfeitures or penalties.

The filing was submitted on July 31, emphasizing that this is necessary if the Commission does not provide sufficient supplemental funds to cover the increased costs due to inflation.

Urging to Reject the Request

An opposing group of ISPs is urging the FCC to deny the request, alleging that certain telcos are "gaming" the system by winning grants with low-cost network pledges and then seeking additional funding later.

Despite the appeals, the FCC leadership appears hesitant to grant additional funding. Instead, the commission may resort to issuing fines to ISPs that fail to fulfill their grant obligations, as evidenced by the recent proposal of $8.8 million in fines against 22 RDOF applicants for defaults.

A coalition representing RDOF winners informed FCC officials that the initial deployment cost estimates used for winning bids are now outdated. They pointed out that the unforeseen and significant increases in broadband deployment construction costs could not have been anticipated during the RDOF auction when reverse bids were placed.

To address this issue, Telecompetitor reported that the coalition proposed several potential solutions, one of which involves providing additional funding. In their letter summarizing the meeting, they highlighted the purpose of the RDOF auction, which was to support the costs of deploying services in unserved areas.

The funding was granted to the company that committed to providing service to these areas with the lowest level of government support.