Fierce Telecom takes a look at how LTD Broadband did so well with the RDOF process…
The RDOF auction was a “reverse auction.” This is different than typical auctions where multiple buyers bid up the price for an item from the seller. In its reverse auction, the FCC drove down the price of its item — awards to deploy broadband — by having multiple bidders compete against each other to provide the best technology at the lowest price. The FCC has used reverse auctions before.
But there was a provision in the FCC’s auction rules (paragraph 20, page 9) for RDOF that created a “clearing round.” The bidding system took into account the performance and latency promises of bidders in a census block and eliminated the inferior bidder from proceeding.
The electric co-ops may not have bid at the highest speed tier — the 1 Gbps/500 Mbps — if they weren’t confident they could deliver those speeds. But it turned out they were often eliminated from the auction if another bidder in a particular census block did bid at that speed tier.
Sounds like LTD was able to use this to their advantage; they did bid at the higher tiers.
Fierce Telecom also look at how LTD plans to deliver on their fiber plan…
Hauer said LTD plans to deliver on its promise of fiber to rural areas, and he doesn’t seem daunted by the cost, even though the expense of fiber has humbled large companies in the past, such as Verizon.
He said it’s hard for providers to lay fiber in urban and suburban areas because there is a lot of existing infrastructure to contend with such as natural gas lines, sewer pipes, water systems and buildings. “Our theory is that it’s going to be easier to do in rural areas,” he said. “Fiber is primarily a labor proposition.” He said his company will be able to deploy fiber faster and cost-effectively in rural because there are less obstacles.
He said LTD will probably lay fiber using both methods: in-the-ground and aerial on existing infrastructure such as telephone wires. He said, “With a fiber plow that puts fiber in the ground, you can go at walking speed.”
Even though there’s a shortage of skilled fiber layers, Hauer said he has a plan for securing workers, which he’s not willing to share publicly.
In areas where it’s simply impossible to lay fiber, LTD will use other methods such as microwave hops. “Fiber is the source of the river,” said Hauer. “And in many cases, we also will use fiber at the end. For RDOF, where we would consider FWA would be the middle mile…. It might be mountain top to mountain top where we could do multi-gigabit microwave links as part of this. In most cases we’ll be able to run fiber.”