Tag Archives: RDOF

FCC denies Savage Communications request for waiver of the Commission’s RDOF non-compliance rules

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The Benton Institute for Broadband and Society report on a recent order from the FCC…

The Federal Communications Commission’s Wireline Competition Bureau (WCB or Bureau) denied Savage Communications, Inc.’s (Savage) request for waiver of the Commission’s Rural Digital Opportunity Fund (RDOF) non-compliance rules, finding that Savage did not demonstrate that good cause supports waiving the non-compliance rules or reducing the required support recovery. After being announced as an RDOF winning bidder, Savage filed a long-form application seeking to be authorized to receive support for the winning bids in exchange for providing voice and broadband service.  In December 2021, Savage was authorized to receive $6,090,479.10 in RDOF support over 10 years to serve 4,541 model-estimated locations in Minnesota.  In September 2025, WCB approved Savage’s transfer of its remaining RDOF support and obligations associated with its non-defaulted RDOF winning bids to Midcontinent Communications (Midcontinent). In November 2025, Savage officially notified the Bureau that it did not intend to meet its RDOF obligations in certain census block groups (CBGs) covering 1,310 model-estimated locations and acknowledging it “may be subject to the applicable non-compliance rules.” The Bureau stopped Savage’s future RDOF support and announced Savage’s default in a public notice in February 2026. In December 2025, Savage submitted a petition requesting waiver of the Commission’s non-compliance rules. Savage requested that the FCC generally waive its non-compliance rules, and if it denied this relief, Savage requested that the FCC reduce the required support recovery. Savage claimed there is good cause to grant the waiver, citing its inability to obtain a right-of-way access “despite good faith efforts and consultation with Mille Lacs Band of Ojibwe Tribe,” and explained that Consolidated Telephone Company (Consolidated) had received funding from a Minnesota county to offer broadband in one of the defaulted CBGs. Savage also indicated that it “was required to surrender four” of its RDOF CBGs as a result of being acquired by and transferring the RDOF support and obligations associated with the remaining 14 RDOF CBGs to Midcontinent, and emphasized its commitment to meeting the RDOF obligations as evidenced by the fact that had “connected 572 locations” across the defaulted CBGs. Finally, Savage claimed that the support recovery “would be unreasonable and disproportionate to the harm” caused by the defaults

FCC announces RDOF areas that are now eligible for broadband funding including some in MN

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The FCC reports…

The Federal Communications Commission announced that certain Rural Digital Opportunity Fund (RDOF) census block groups (CBG) are now eligible for other funding programs.  Specifically, Savage Communications (Savage) has notified the FCC of its decision to withdraw from the RDOF support program in the CBGs covered by its remaining authorized winning bids in Minnesota (study area code (SAC) 369052).  FiberLight of Virginia, LLC (FiberLight) has also notified the FCC of its decision to withdraw from the RDOF support program in the CBGs covered by its remaining authorized winning bids in Virginia (SAC 199031). Additionally, South Central Connect has notified the FCC it will not fulfill its commitment to offer voice and broadband service to certain CBGs within its RDOF supported service area in Arkansas (SAC 409043).  Southwest Arkansas Telecommunications & Technology, Inc. d/b/a Four States Fiber (Four States Fiber) has also notified the FCC it will not fulfill its commitment to offer voice and broadband to certain CBGs within its RDOF supported service areas in Arkansas (SAC 409055) and Louisiana (SAC 279060).  Finally, Siuslaw Broadband has notified the FCC of its decision to withdraw from the RDOF program in Oregon (SAC 539024).  These carriers will be subject to non-compliance measures.  Additionally, we refer Savage, South Central Connect, Four States Fiber, and Hyak’s defaults to the FCC’s Enforcement Bureau for further consideration. The FCC also took the necessary step to formally announce that the relevant census blocks are eligible for funding from other federal and state funding programs subject to the rules of the other programs.  This announcement avoids leaving these areas unserved for the duration of the RDOF deployment terms, because providers may now have access to alternative funding to serve these areas.  These carriers remain subject to all eligible telecommunications carrier (ETC) obligations unless and until they follow the relevant procedures to relinquish their designations. Additionally, they cannot discontinue voice service without Commission approval.

Is BEAD looking like RODF?

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Telecompetitor spoke with Finley Engineering Client Vice President Andy Heins about his take on BEAD…

First, the National Telecommunications and Information Administration (NTIA) is setting three cost-per-location thresholds. Depending on the threshold reached, providers must (1) explain and justify their price, (2) explain, justify, and lower their price, or (3) renegotiate and accept other providers’ technology to serve the proposed area.

The practical result of these thresholds and the revised BEAD guidelines established in June is that, in the future, some rural areas and communities may not have access to the reliable, high-speed connections they want, need, and have been promised by the BEAD legislation. Heins believes rural areas and communities across the nation that want fiber will end up with low Earth orbit (LEO) satellite connections and will be disappointed with its quality.

The second challenge Heins identified is equally troubling. The provisional awards announced so far suggest that private equity may play a significant role in funding BEAD projects.

Private equity is not inherently a bad source of funding. But the typical investment profile for private equity involves making investments and seeking an exit with positive returns in a shorter timeframe than is typically required for rural network deployments.

This approach can lead to faster deployment, but it also raises questions about the long-term commitment to operating and maintaining these networks. Heins said rural communities need partners that foster both investment and sustainable stewardship to ensure these broadband projects continue to serve them for years to come.

While NTIA must sign off on every state’s final BEAD proposal — and retains the authority to request further revisions to approved budgets and projects — Heins wonders if the race to drive per-location costs lower will push the industry toward the same pitfalls we saw with the Rural Digital Opportunity Fund’s (RDOF) low-bid auctions, where aggressive underbidding has already led to widespread defaults and unfinished builds.

These are grim possibilities. It’s not what any of us wants for the future of BEAD. But when someone with years of industry experience speaks, it behooves us to listen.

Folks in some part of Minnesota are acutely aware of the issue s with RDOF, especially folks living in areas where LTD Broadband was awarded RDOF money and then funds were revoked and those areas lost out on the funding and the opportunity to work with another provider during the process.

The FCC announces former RDOF areas that are now eligible for other funding including Lumen locations in Minnesota

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The FCC reports…

By this Public Notice, the Wireline Competition Bureau (WCB or Bureau) announces that certain Rural Digital Opportunity Fund (RDOF) census block groups (CBGs) are now eligible for other funding programs.  Specifically, CenturyTel of Montana, Inc.; CenturyTel of Washington, Inc.; Embarq Florida, Inc.; and Qwest Corporation (collectively, Lumen) have notified the Commission of their decision to withdraw from the RDOF program in Colorado (study area code (SAC) 465102), Florida (SAC 210341), Idaho (SAC 475162), Minnesota (SAC 365142), Montana (SAC 482249), Nebraska (SAC 375143), Oregon (SAC 535163), and Washington (SAC 522408).[1]  Additionally, Commnet Four Corners, LLC (Commnet) has notified the Commission of its decision to withdraw from the RDOF program in Colorado (SAC 469011).[1]  Both carriers will be subject to non-compliance measures, as described below.  We also refer Commnet’s default to the Enforcement Bureau for further consideration.

By announcing in this Public Notice that Lumen and Commnet will not meet their RDOF obligations in the identified states, we take the necessary step to formally announce that the eligible census blocks within the relevant CBGs are eligible for funding from other federal and state funding programs subject to the rules of the other programs,[2] furthering our responsibility to coordinate with other agencies to maximize the deployment of high-quality broadband service across the United States.[3]  To promote the efficient use of broadband funding, a number of funding programs make areas ineligible for broadband deployment funding where a service provider is already subject to an enforceable commitment to serve.[4]  This announcement avoids leaving these areas unserved for the duration of the RDOF deployment terms,[1] because providers may now have access to alternative funding to serve these areas.

[1] RDOF recipients authorized in 2021 and 2022 must offer the required service to 100% of their original location total by December 31, 2027 and December 31, 2028, respectively.  RDOF Order, 35 FCC Rcd at 709, para. 45.  If more locations than the original estimated are identified during the support term, recipients will have an additional two years to serve the additional locations subject to limited exceptions.  Id. at 710, para. 49.

CenturyLink defaults on 41,000 RDOF locations after BEAD maps are updated

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Doug Dawson reports…

CenturyLink told the FCC recently that it is defaulting on 41,000 RDOF locations spread across eight states and 153 Census block groups. That’s a big portion of the 77,000 locations that the company won in the RDOF reverse auction. CenturyLink originally was awarded $262.3 million in subsidies, spread over ten years.

There are a number of consequences of this default. First, this has now happened after states made BEAD maps and allocation. That makes it likely that nobody will be bringing improved broadband to the default areas. If the defaults had happened earlier, these areas could have been rolled into the BEAD process.

CenturyLink should expect a significant fine. In 2024, the FCC fined two companies that defaulted on RDOF. Etheric Communications was fined $732,000 for defaulting on 244 locations. GigFire (LTD Broadband) was fined $21.7 million for defaulting on 7,238 locations. Mercury Broadband was fined $14.2 million in a separate FCC decision and is also expected to return all RDOF funding for the defaulted areas.

If CenturyLink is fined at the same level or around $3,000 per location as the recent defaults, the fine will be $123 million. Additionally, roughly half of the RDOF funding has flowed to auction winners, meaning CenturyLink would have to return approximately $65 million of RDOF subsidy to the FCC.

The CenturyLink default defies the usual explanation of RDOF defaults. Many other defaults have been blamed on the FCC’s auction rules that didn’t pre-qualify companies before entering the auction. That resulted in companies winning RDOF that had weak balance sheets or insufficient financial backing.

But any pre-qualifying process would have easily allowed CenturyLink to enter the RDOF auction. CenturyLink is now obviously in financial distress and has decided that fines are less expensive than completing the required construction.

MN has invested $400 million in broadband; federal investment has been more complicated

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KTTC out of Rochester takes a look at the history of federal and state broadband funding in Minnesota…

Between billions of dollars of defaulted rural broadband expansion projects and highly-regulated legislation that bogs down developers, the federal government has not had the most success when it comes to connecting our rural communities with high-speed fiber internet.

To recap what’s currently happening with national broadband assistance: in 2019, the Federal Communications Commission ran the Rural Digital Opportunity Fund (RDOF) which awarded $20 billion in federal assistance to internet service providers (ISPs), roughly $3 billion of which was defaulted on that the government is still trying to get back.

In 2021, the Infrastructure Investment and Jobs Act (IIJA) created its own solution for connecting rural communities to the internet through the Broadband, Equity Access, and Deployment (BEAD) program which contained substantially more restrictions and requirements and even conflicted with existing RDOF policies. BEAD was also intended to be run through the National Telecommunications and Information Administration (NTIA) rather than the FCC.

In the aftermath of the billions that have gone into default from the failed RDOF initiative, the FCC has attempted to reclaim some of the misappropriated funds. All in all, roughly $6.4 billion of RDOF funds have actually been used, with the remaining $14 billion up in the air.

The article looks at BEAD…

Also in June, the Trump administration issued a Policy Notice through the NTIA that reforms parts of BEAD’s initial requirements and regulations, removing several sections that dictated multiple aspects of the expansion efforts.

And outlines the more straightforward Minnesota investment…

The federal government aside, since 2014, Minnesota has invested more than $805  $400 million [correction made hours after posting – sorry for the error] across 294 projects, or nearly 113,000 locations, according to a report from the Midwest Economic Policy Institute and are already seeing benefits for farmers and businesses.

Lumen RDOF defaults include 3,265 locations in MN for a total default of $15.6M

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Earlier this month, I reported on Lumen’s defaults on more than 41,000 RDOF locations. According to the federal funding map, Lumen’s RDOF default in Minnesota includes 3,265 locations for a total default of $15.6M.

The FCC denies LTD Broadband’s appeal earlier RDOF decision

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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.

Lumen Defaults on More Than 41,000 RDOF Locations – including those in Minnesota

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Broadband Breakfast reports…

Lumen Technologies announced Friday that it was relinquishing control of over 41,000 Rural Digital Opportunity Fund locations spread across eight states and 153 census block groups.

In a letter sent to the Federal Communications Commission’s Wireline Competition Bureau Chief Joseph Calascione, Lumen stated that it was “returning all census block groups (“CBGs”) where it was awarded RDOF funding” in Colorado, Florida, Idaho, Minnesota, Montana, Nebraska, Oregon, and Washington.

Headed by CEO Kate Johnson, the Monroe, La. based internet-service provider did not give a reason for the relinquishment, stating only that it “understands that it will no longer be entitled to receive further RDOF support for the surrendered CBGs and that it may be subject to applicable non-compliance rules.”

Here are the 20 census blocks to be relinquished in Minnesota:

  • 270030507104
  • 270030508131
  • 270030511011
  • 270030512062
  • 270079400021
  • 270251101001
  • 270251101002
  • 270251102003
  • 270251103021
  • 270530265141
  • 270530267081
  • 270530268076
  • 270530268123
  • 270530269092
  • 270717903002
  • 270717905002
  • 270774603001
  • 270774604002
  • 271230413022
  • 271239800001

ILSR talks about States wanting defaulted RDOF allocations

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According to the Institute for Local Self Reliance, about a third of the money allocated to states from the federal Rural Digital Opportunity Fund has been lost by default from the provider awarded the funds. The Connect This! Team has a brief conversation about whether there’s a chance that states might see that money again. Minnesota was one of the hardest hit by RDOF defaults. (Spoiler, it doesn’t seem likely.)

LTD Broadband loses case against FCC over RDOF awards and revocation

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Broadband Breakfast reports on the latest chapter of LTD Broadband…

Judges probed LTD Broadband and the Federal Communications Commission Monday during oral arguments in the company’s challenge to its $1 billion subsidy denial.

LTD’s attorney Michael Showalter argued the company received heightened scrutiny because of its smaller size. He said the agency should have given more weight to its letter of credit and engineer-certified network designs.

Here’s a quick summary of LTD’s history…

The company had initially won more than $1.3 billion to serve 528,000 homes and businesses in 15 states from the FCC’s Rural Digital Opportunity Fund auction. After the bidding process, winners submitted more detailed long-form applications to serve the locations they won, and the FCC denied LTD’s. The agency said it wasn’t convinced the company was financially or technically capable of scaling up to meet its RDOF commitments.

FCC attorney Maureen Flood said the idea the agency applied a unique standard of review to LTD’s application was “a fiction.”

It did not end as LTD would have liked…

Showalter said the company was looking for judges to remand its denial back to the agency and require staff to use “the correct standard of review,” which he said the company thought would result in its application being approved.

“Under even the most deferential standard of review, LTD is not technically and financially qualified for universal service support, and the commission’s findings in that regard are reasonable,” Flood said.

LTD Broadband was originally granted a large RDOF award in Minnesota that was later revoked.

 

Doug Dawson looks at history of Starlink and RDOF and how that may impact BEAD funding

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Doug Dawson describes how Starlink being denied RDOF awards might have opened the door to even greater opportunities for the satellite provider through BEAD, despite the fact that the reasons they were denied have not been entirely resolved…

The FCC finally decided to reject Starlink on the speed issue. When Starlink applied to enter the RDOF reverse auction, it said it could meet the 100/20 Mbps speed goal. And it looked for a while like it might. In the first quarter of 2021, Ookla says Starlink had an average U.S. speed of 66/16 Mbps but improved to 91/11 Mbps by the second quarter of 2022. However, since then, the speeds have slipped, and for the whole U.S. Ookla says speeds were 67/8 Mbps at the end of 2023 and a little slower in the first quarter of 2024.

Starlink has done a phenomenal job launching satellites and now has 6,371 functional satellites in orbit. But Starlink is like any ISP might be a victim of its own success – the slower speeds over time probably reflects that the number of customers has outpaced the number of satellites. The FCC was justified in rejecting the RDOF on the speed issue – the FCC 100/20 Mbps goal was not aspirational, but a real technical requirement.

The FCC could also have rejected Starlink on the coverage issue as well. One of the benefits of winning the RDOF subsidy is that winners were protected from any other ISPs receiving subsidies to build in the same Census blocks. For all practical purposes, RDOF winners in rural places were granted a monopoly – but for that award they were expected to be able to serve everybody.

In the early years, when it didn’t have a lot of satellites, Starlink put prospective customers on a wait list. The wait lists have disappeared, and Starlink is now willing to serve almost everybody in the U.S. – although there are a few places with geographical challenges where the company doesn’t claim the ability to serve.

The issue with coverage is that not everybody is a good candidate for Starlink. I live on a steep hill and am surrounded by other hills in all directions. I would guess that 35% to 45% of my view of the sky is blocked. My situation is not unusual in Appalachia, and much of the mountainous West and Southwest. If Starlink had only applied for RDOF in relatively flat areas, this would not have been an issue. However, Starlink won a lot of geography in RDOF in places like western North Carolina and the rest of Appalachia.

Starlink reception is also hindered by heavy foliage. The suggested solution for this is to put the receiver where this is not an issue. But there were places in the RDOF award areas that are fully covered by a forest canopy.

Interestingly, Starlink is back in the conversation in the BEAD grant process. Those awards are supposed to bring a broadband solution to every unserved and underserved location in the country. In every market, there are some locations where building other technologies is infeasible. NTIA prudently decided recently that Starlink is probably the only realistic solution for such places.

Unfortunately, some states say they don’t have enough money to reach everybody with fiber and/or wireless, and Starlink might get the final laugh by winning more subsidy from BEAD grants than it was denied for RDOF.

Is the Universal Service Fund Unconstitutional? Why does it matter? A Connect This conversation

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Connect This is a regular podcast hosted by the Institute for Local Self Reliance, where smart people talk about complicated technology policy issues. Each participant is smart in his/her own silo and those silos shadow each other but they “dumb down” the conversation a little to be understood. So, the lawyers, the engineers and the policy wonks all use English! Acronyms are explained – but the assumption is that you know what broadband is. It’s rarely a 101 discussion; it’s graduate level but interdisciplinary.

The other day they took on the Universal Service Fund (USF) and its constitutional standing. Sounds wonky – it is. But it’s important to schools, providers, customers who get charged USF and the ones who reap the benefits. RDOF could be in a sticky situation.

Here’s the blurb and video from the ILSR… (pro tip: I walk while I listen so I don’t get distracted and I soak up the MN summer while I can!)

On July 24, 2024, the Fifth Circuit Court of Appeals ruled 9-7 that the Universal Service Fund is unconstitutional.

The decision throws a whole raft of federal broadband programs – including those which help schools pay for connectivity, those which help homes pay for home Internet access, and more – into a state of uncertainty.

All signs point to a stop at the Supreme Court for final ruling on the future of the program. On the most recent episode of the Connect This! Show, hosts Christopher Mitchell (ILSR) and Travis Carter (USI Fiber) were joined by regular guests Doug Dawson (CCG Consulting) and Kim McKinley (UTOPIA Fiber) as well as special guest Casey Lide (Keller and Heckman Law Firm) to talk about the decision. They discuss the impact of the decision in the long-term, including how the USF fits into the jigsaw puzzle of federal broadband funding programs and what we can expect to see if the decision is upheld.

ILSR report: Native Nations and Federal Telecom Policy Failures – consent is key

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The Institute for Local Self Reliance has a new report (Native Nations and Federal Telecom Policy Failures) that tracks the history of how poor or nonexistent technology policies have hindered relationships between broadband providers and tribes and tribal nations…

As Tribes work in record numbers to close the significant digital divide across Indian Country, they need good policy that facilitates self-determined and sustainable solutions. To the contrary, RDOF became, for many, yet another lesson in the dangers of investing significant sums of federal money into new Internet networks on Tribal lands without regard to local knowledge or priorities, leaving Tribal governments to spend their own time and resources to fix broken processes.

While some recent federal broadband programs do require ISPs to secure Tribal consent prior to receiving funds, the FCC still has not adopted this approach. The problems outlined in this report reinforce the need for such a requirement. This report examines RDOF’s program design in the context of the FCC’s policies on Tribal nations, highlights the practical and fundamental concerns raised by some Tribes about the program, and considers the long-term reverberations it continues to have on broadband funding for Tribes. It concludes that the FCC should have stronger, more clear requirements for ISPs operating on Tribal Reservations.

It seems consent is key…

It doesn’t seem far-fetched to tie the release of the FCC’s November 2023 memo to the provider letter in the Pacific Northwest. With state BEAD challenges underway or on the horizon, RDOF recipients bumped up against the threat of competition and felt a renewed sense of urgency to secure consent. Companies could use undue pressure or selective information in an attempt to do so. If Tribes do not fully understand the leverage they hold, they may feel pressured to provide that consent or be unnecessarily warned off of competing for BEAD funds. The legacy of disingenuous outsiders taking advantage of Tribes does not seem to be consigned to history.

There remain a lot of moving parts in the broadband funding landscape – a lot of different state and federal funding programs with different rules and guidelines. For many years, the FCC has doled out the largest share of money, especially to rural areas, but the Commission’s policies on Tribal consultation have often resulted in broken promises, frustration, and bureaucratic hurdles for already time-strapped Tribes looking to close the digital divide on their lands. It is a heap of trouble that some Tribes are still actively trying to unwind. NTIA’s decision not to recognize enforceable commitments without Tribal consent can be a helpful corrective for Tribes who might otherwise be eligible for BEAD funding, though it looks like it may take another big effort to make it a reality.

For years strong public-private partnerships have been touted as essential to deploying broadband in rural areas. Trust and consent are essential to any relationship. Even parenting, I know a begrudged “I’ll clean my room,” will not yield the same result as a happy “I’ll clean my room for $10 or your birthday or to have friends over.” There’s begrudged consent and partnership and many shades in between.

 

Cook County getting FTTH and Electricity thanks to RDOF and Arrowhead Cooperative

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WTIP reports...

Residents and cabin owners along the Arrowhead Trail, including those on McFarland Lake and Tom Lake, will soon have access to electric and broadband services, marking a transformative shift to the remote area of Cook County.

The expansion of services, funded by the Rural Digital Opportunity Fund (RDOF), aims to bridge the digital divide by investing billions nationwide to build and expand broadband networks in rural areas of the United States. The RDOF was introduced by the Federal Communications Commission (FCC) in 2019 and is the single largest investment to expand and improve communications services in the U.S. Phase 1 of the RDOF includes a 10-year investment of $16.4 billion, with Phase 2 providing $4.4 billion.

Arrowhead Cooperative, the electric and internet provider in Cook County, applied for grant funding through the RDOF in 2019 and was awarded funds to expand services in the county in Nov. 2021. Since receiving the funds, Arrowhead Cooperative has begun installing electric and fiber in Cook County, including, most recently, the Arrowhead Trail. In 2023, Arrowhead Cooperative oversaw the installment of 19.3 miles of infrastructure.

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