Telecoms in Island Territories Face Tougher LOC Challenges, FCC Told

The FCC should loosen letter of credit requirements for providers seeking USF support to rebuild and harden networks in Puerto Rico and the U.S. Virgin Islands, stakeholders said in comments posted through Thursday in docket 18-143 (see 2004080036). "The PR-USVI Fund Coalition’s emergency request for waiver is appropriate and necessary in light of the current circumstances in Puerto Rico," WorldNet said. Puerto Rico Public Service Regulatory Board associate member Alexandra Fernandez-Navarro supported revisiting the LOC requirements so "all providers can have a reasonable opportunity of accessing the Uniendo a PR and the Connect USVI Fund while assuring that most resources go towards building resilient, quality networks." The Wireless ISP Association said, unlike other high-cost USF broadband support programs, PR-USVI Fund applicants must provide the commitment LOCs before the FCC selects winning applicants. WISPA added the COVID-19 pandemic makes "it extremely difficult for Stage 2 support applicants" to file LOCs "when the applications are likely to be due." Oriental Bank said no banks in Puerto Rico or the U.S. Virgin Islands meet the rating requirements of the PR-USVI Fund, and mainland banks are unwilling to be such creditors. But Virgin Islands Telephone (doing business as Viya) opposed the waiver, seeking accountability. Puerto Rico Telephone wants the FCC to "proceed with caution" as it considers which criteria to waive because "entities with no prior experience participating in the Commission’s High-Cost program are eligible to participate in the Stage 2 competitive process."