RDOF Order Excludes Census Blocks Subsidized by States for 25/3 Mbps

ISPs that win bids in the FCC Rural Digital Opportunity Fund program won't be prevented from seeking additional support from state broadband programs, but the RDOF Phase I auctions won't be open to census block groups that received state subsidies for 25/3 Mbps. That's according to new language in the final order posted Friday for docket 19-126. Commissioners voted along party lines Jan. 30 (see 2001300001).

"The Chairman’s statements had created doubt about state matching grants, and it’s good to see the final language put the issue to rest," emailed CCG consultant and President Doug Dawson. He was referring to Ajit Pai.

The final order clarifies that the FCC excludes from Phase I census blocks identified as having gotten funding through state broadband subsidy programs to provide 25/3 or better service, so as not to support overbuilding areas that already have service.

"That you can give a 30-second pitch of an idea doesn't mean it will be simple to implement," Public Knowledge Senior Vice President Harold Feld told us. The new language is a "needless complication that could very well delay implementation of this program as people try to figure out whether their census block is included and whether they'll appeal if it's not." He suggested an order on reconsideration to strike the sentence on state subsidies or at least, provide guidance.

Commissioner Geoffrey Starks said in a Friday addition to last week's RDOF statement that he was notified Feb. 3 that the RDOF order the commissioners voted on had been revised by Pai in response to concerns Starks raised Jan. 30. Starks said he nonetheless kept original language from his earlier statement "because I want a clear record of the chaotic process by which the majority adopted a revised item, because I stand by the full strength of the legal and policy issues stated there, and because my fundamental concerns remain." Starks referenced an updated footnote explaining the FCC's intent was to exclude areas where 25/3 Mbps or faster has been or will be deployed without RDOF support, "not to prevent winning bidders from accessing other funding sources, including from states." He worries "that we have opened the door to arbitrary and capricious application of the state-subsidy exclusion among different states."

Pai answered lawmakers' concerns about a draft order that would have categorically excluded New York from Phase I participation, in letters posted Friday. Pai addressed "overly broad" language in the draft order that raised concerns among New Yorkers. "I pleased to inform you that this language will be removed from the item, and that the areas in New York eligible for Phase I of the program will be determined by the same neutral principles applicable to other states," he wrote. "While this of course does not guarantee that any particular area will be eligible for support, it ensures that the Commission’s eligibility criteria are applied evenly across the country."

New York's Broadband Program Office is reviewing the order.

The order addressed industry concerns, modifying its letter of credit requirements. New LOC rules allow support recipients to reduce LOCs as they complete service milestones. If followed, "we will then allow the recipient to reduce its letter of credit to an amount equal to only one year of total support" as long as it continues to meet its milestones. But it will require larger LOC for those who fail to meet service milestones.