Tag Archives: LTD

Rural broadband advocates in MN hopeful new law will prevent missed future funding

Posted on by
Reply

Regular readers will recognize the story that the Minnesota Star Tribune tells of grant funds lost because of light scrutiny on applicants for federal funding. Broadband advocates are hoping that a new law will help protect loss in the future…

So some locals were optimistic when, in 2020, LTD Broadband, a company with Minnesota ties, received more than a billion dollars in federal funding to provide broadband to rural areas like Le Sueur County. Because of the provisional grant, the county found itself shut out of state funding for its own programs because of possible overlap with LTD territories — even though officials in Le Sueur worried the company’s efforts would fail.

LTD’s plans fell apart in 2022 after state and federal regulators revoked key licenses and canceled grants after determining the company couldn’t fulfill its promises.

The result has been missed opportunities for the county, said Barbara Droher Kline, a financial planner and rural broadband consultant for Le Sueur County. She and other broadband advocates said they hope a new federal law will force the U.S. government to do a better job vetting broadband internet providers and their promises.

The Rural Broadband Protection Act, introduced by U.S. Sens. Amy Klobuchar of Minnesota and Shelley Moore Capito of West Virginia, directs the Federal Communications Commission to provide more thorough scrutiny.

“The new FCC vetting process will confirm that providers have the ability — financially, technically and operationally — to follow through with their commitments,” Klobuchar said in a statement to the Minnesota Star Tribune. “This will prevent situations where companies that win federal funding to deploy rural broadband cannot actually deliver service.”

Advocates say the impetus for the law came from the fallout with LTD. The company, which rebranded in 2023 and is now known as GigFire, did not respond to requests for comment.

The FCC denies LTD Broadband’s appeal earlier RDOF decision

Posted on by
Reply

The FCC releases judgement on LTD Broadband’s appeal of  earlier RDOF decision…

We heard this appeal on the record from the Federal Communications Commission and the parties’ briefs and arguments. We fully considered the issues and determined that a published opinion is unnecessary. See D.C. Cir. R. 36(d). It is ORDERED AND ADJUDGED that the petition be DENIED.

The Federal Communications Commission allocates subsidies to private companies that promise to build out rural broadband networks. At a reverse auction, petitioner LTD Broadband won nearly $1.3 billion of these subsidies. But before LTD could collect, it had to complete a “long-form application” showing it was “legally, technically, and financially qualified” to provide service. In re Rural Digital Opportunity Fund; Connect America Fund, Report and Order, 35 FCC Rcd. 686, 717 (2020) (“Rural Digital Opportunity Fund”). LTD failed to do so, and the FCC denied its application. Because the FCC acted reasonably, we deny LTD’s petition.

The document continues outlining the history and decisions.

Representative Dave Lislegard asks MN PUC to revoke LTD Broadband’s ETC designation

Posted on by
Reply

I’ve been tracking what’s happening with MN PUC looking into revoking LTD Broadband’s expanded ETC designation (get background). The latest development is that Representative Dave Lislegard sent a letter to the MN PUC…

I’m writing to encourage the Public Utilities Commission to revoke LTD Broadband’s expanded ETC designation and to expedite the proceeding.

FCC Rejects RDOF applications of LTD broadband and Starlink

Posted on by
Reply

From the FCC…

The Federal Communications Commission today announced that it is rejecting the long-form applications of LTD Broadband and Starlink to receive support through the Rural Digital Opportunity Fund program. The Commission determined that these applications failed to demonstrate that the providers could deliver the promised service. Funding these vast proposed networks would not be the best use of limited Universal Service Fund dollars to bring broadband to unserved areas across the United States, the Commission concluded.
“After careful legal, technical, and policy review, we are rejecting these applications. Consumers deserve reliable and affordable high-speed broadband,” said Chairwoman Rosenworcel. “We must put scarce universal service dollars to their best possible use as we move into a digital future
that demands ever more powerful and faster networks. We cannot afford to subsidize ventures that are not delivering the promised speeds or are not likely to meet program requirements.”
“Starlink’s technology has real promise,” continued Chairwoman Rosenworcel. “But the question before us was whether to publicly subsidize its still developing technology for consumer broadband—which requires that users purchase a $600 dish—with nearly $900 million in
universal service funds until 2032.”
In the initial auction results announced December 7, 2020, LTD Broadband won $1,320,920,718.60, and Space Exploration Technologies Corp. (Starlink) won $885,509,638.40.
Although LTD was a relatively small fixed wireless provider before the auction, it was the largest winning bidder in the auction, submitting winning bids in 15 states. Subsequently, it failed to timely receive eligible telecommunications carrier status in seven states, rendering it ineligible in
those states for support. Ultimately, the FCC review concluded that LTD was not reasonably capable of deploying a network of the scope, scale, and size required by LTD’s extensive winning bids.

Regular readers will know this is bittersweet news. LTD was awarded the opportunity to apply for $311 million to deploy fiber in Minnesota. On the one hand, this is $311 million that is unlikely to come back to Minnesota in the same way. On the other hand, many people were suspect with LTD’s ability to meet what they proposed. In Minnesota, the MN PUC recently agreed to look into revoking LTD’s credentials here; these credentials were required to get RDOF money. The FCC had previously proposed fining LTD for violating requirements.