RDOF Providers Seek More LTD ETC Scrutiny
Winning FCC Rural Digital Opportunity Fund Phase I auction bidders seek increased scrutiny of LTD Broadband efforts to obtain eligible telecom carrier designation for its provisionally won bids in California (see 2108260036). LTD stands to lose more than $187 million in RDOF support for nearly 77,000 locations there.
LTD was the top winner during RDOF Phase I. It provisionally won $1.3 billion to service 528,088 locations in 15 states (see 2012070039). Winning providers asked the FCC to review LTD's allegations of misconduct against its former attorney for its late filing, and deny its petition for reconsideration to obtain ETC OK. LTD has “gone to great length to convince the commission that its attorney, Kristopher Twomey, committed a fraud on the FCC and the California Public Utilities Commission,” said a letter filed on behalf of “multiple clients" that participated in Phase I, posted Wednesday in docket 19-126. Those clients weren't identified. An attorney representing the providers declined to comment.
"This is something people knew were coming” and had “plenty of time to plan for it,” said NTCA Senior Vice President-Industry Affairs Mike Romano: “You don’t let that slip.” LTD’s late application doesn’t “demonstrate a level of interest in taking those obligations as seriously as they should’ve been taken,” Romano said. LTD CEO Corey Hauer declined to comment.
Long-form applications weren't made public and aren’t subject to full examination by other applicants. The FCC declined to comment Friday.
LTD petitioned the FCC in August to reconsider its July order denying the company’s request for an extension to obtain ETC designation, claiming it was misled by Twomey. Winning bidders had until Jan. 6 to submit applications for ETC designation to meet safe harbor rules if they didn’t receive the designation by June 7. LTD told the FCC that Twomey informed the company its application with CPUC was filed in April, but records show the application was instead filed June 3. Twomey didn’t comment now.
The decision to file a late application was "clearly and knowingly made" so LTD could "focus on other states where it believed it could more easily obtain ETC designation," said the Ensuring RDOF Integrity Coalition last week. It asked the commission to dismiss LTD's petition on procedural grounds or for "falling short on the merits." ERIC didn’t comment Friday. An attorney for the group declined to name its members.
“We’re disappointed that [LTD] didn’t pursue the ETC process quickly enough to get that addressed,” said The Utility Reform Network Telecom Director Regina Costa. “To the extent that this harms people … we would hope that another provider could step in.” In California, LTD’s application is pending. A prehearing conference was held Sept. 1 and a ruling is expected to be issued soon.