FCC Proposes Fines of $4.3M Against 73 RDOF Applicants for Defaults – some with MN connections

The FCC reports

The Federal Communications Commission today proposed $4,353,773.87 in fines against 73 applicants in the Rural Digital Opportunity Fund auction (Auction 904) for apparently violating Commission requirements by defaulting on their bids between July 26, 2021 and March 10, 2022. The FCC provided clear guidance in its rules and notices on the monetary forfeitures associated with defaults in Auction 904. The bid defaults prevented 1,702 census block groups with 129,909 estimated locations in 36 states from seeing timely new investments in broadband infrastructure.

The applicants defaulted on their respective bids by withdrawing applications in certain areas, or failing to meet deadlines and requirements required in the auction rules after having already placed winning bids in Auction 904. In order to be authorized to receive universal service support, winning bidders or their assignees were required to provide information that demonstrated they are legally, financially, and technically qualified to fulfill the Auction 904 public interest obligations. The Notice of Apparent Liability proposes forfeitures for 73 applicants and two bidding consortia. However, the Notice does not propose forfeitures for applicants who defaulted on bids in response to the FCC’s letters identifying census blocks that may have been already served or raised significant concerns about wasteful spending.

There was one bidders found in default in MN…

  1. Aspire Networks 2, LLC (Aspire); FRN: 0030311583; File No.: EB-IHD-22- 00033836; NAL/Acct No.: 202232080013. Aspire is a competitive local exchange carrier registered in Delaware and Minnesota that provides internet services to rural locations in Minnesota.9 Aspire’s parent company, Atlantic Engineering Group, Inc. (AEG), a Georgia company, was part of the AEG and Heron Broadband I (Consortium).10 The Consortium timely submitted its Short-Form Application to participate in Auction 904 and was a successful bidder.11 The Consortium then assigned two CBGs to Aspire, which timely filed its Long-Form Application in Auction 904.12 On February 16, 2021, Aspire notified the Commission of its intent to default on its two CBGs subject to forfeiture in Minnesota.13 WCB declared Aspire to be in default on July 26, 2021, and referred the company to EB for enforcement action.14 The Commission finds that Aspire apparently committed two violations by defaulting on its CBGs subject to forfeiture, which places the company’s base forfeiture at $6,000.00.15 Aspire’s assigned CBGs in default subject to forfeiture amounted to $6,470,222.30, thereby capping the maximum possible forfeiture at $970,533.34, which is 15% of Aspire’s defaulted support subject to forfeiture in Auction 904.16 Because the base forfeiture is less than the 15% cap established in the Rural Digital Opportunity Fund Order, 17 the Commission finds that the forfeiture amount of $6,000.00 against Aspire is appropriate here.

LTD was also one of the bidders found in default…

  1. LTD Broadband LLC (LTD Broadband); FRN: 0020926788; File No.: EB-IHD-22- 00033870; NAL/Acct No.: 202232080047. LTD Broadband is a Nevada company that provides fiber and fixed wireless service to customers, businesses and governmental entities located in rural areas.306 LTD Broadband timely submitted its Short-Form Application to participate in Auction 904 and was a successful bidder.307 On August 16, 2021, LTD Broadband notified the Commission of its intent to default on certain census blocks.308 On August 25, 2021, LTD Broadband also notified the Commission that it would not seek reconsideration of WCB’s denial of the company’s deadline waiver request for its Kansas and Oklahoma bids.309 The areas where LTD Broadband intended to default cover 768 CBGs subject to forfeiture. WCB declared LTD Broadband to be in default on December 16, 2021,310 and on January 28, 2022,311 and referred the company to EB for enforcement action. The Commission finds that LTD Broadband apparently committed violations by defaulting on 768 CBGs subject to forfeiture, which places the company’s base forfeiture at $2,304,000.00.312 LTD Broadband’s CBGs in default subject to forfeiture amounted to $78,496,778.40, thereby capping the maximum possible forfeiture at $11,774,516.76, which is 15% of LTD Broadband’s defaulted support subject to forfeiture in Auction 904.313 Because the base forfeiture is less than the 15% cap established in the Rural Digital Opportunity Fund Order, 314 the Commission finds that the forfeiture amount of $2,304,000.00 against LTD Broadband is appropriate here
This entry was posted in FCC, Funding, MN, Vendors and tagged , by Ann Treacy. Bookmark the permalink.

About Ann Treacy

Librarian who follows rural broadband in MN and good uses of new technology (blandinonbroadband.org), hosts a radio show on MN music (mostlyminnesota.com), supports people experiencing homelessness in Minnesota (elimstrongtowershelters.org) and helps with social justice issues through Women’s March MN.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s