The Federal Communications Commission (FCC) says it won’t be providing broader relief for broadband operators that have defaulted on grant awards via the agency’s messy and controversial Rural Digital Opportunity Fund (RDOF) broadband subsidy program.

According to an FCC public notice, the FCC stated it found "no demonstrated need for broad relief" from provider penalties connected to either the RDOF or Connect America Fund II (CAF II) programs. It also shot down calls for a broader amnesty program for defaulters.

“Given the flexibility available under the existing default processes…we decline to provide a blanket amnesty,” the agency’s Wireline Competition Bureau said.

In a letter to the agency last February, a broad coalition of providers and consumer organizations suggested that either reduced penalties – or some sort of amnesty program – might speed up defaults, freeing areas for upcoming broadband infrastructure bill (Broadband Equity Access And Deployment, or BEAD) subsidies.

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The group was quick to point out that areas where RDOF and CAF II money has been committed are considered “served” for purposes of BEAD deployments, potentially boxing out many desperate U.S. communities from billions in potential funding.

“Many of the RDOF and CAF II awardees who cannot or will not deploy their networks are located in states with the greatest connectivity needs, like Missouri and Mississippi,” the authors wrote. “The Commission should not permit these unserved rural communities to face this type of double whammy and be left behind once again.”

But in its statement, the FCC insisted that changes to its approach aren’t necessary because, it claims, its existing processes are working.

Cooperatives and Tennessee municipal broadband projects have nabbed a respectable chunk of Tennessee's latest round of middle and last mile broadband grants.

Tennessee’s Department of Economic and Community Development (TNECD) recently announced the state had awarded more than $162.7 million in broadband and digital opportunity grants, funded primarily via federal COVID relief legislation.

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TNECD indicates that $97.2 million is being earmarked for last mile and middle mile connectivity programs, with $65.5 million set aside for digital opportunity programs. The grants should extend broadband to an additional 236,000 Tennessee residents across 92 counties. Winners will provide $48 million in matching funds and must complete all projects by the end of 2026.

As is often the case, the regional telecom monopoly nabbed the lion’s share of the grants and awards, with Charter (Spectrum) being awarded more than $11.7 million for projects across Polk, Hardin, and Wayne counties. Charter was the top winner in the TNECD’s 2022 grant awards as well, nabbing $20.4 million to fund expansion across six counties.

At the same time, municipalities and cooperatives have been fairly well represented in both the 2022 and this year’s awards.

Recent federal government efforts to expand use of public Citizens Broadband Radio Service (CBRS) spectrum could be of significant help to municipalities and local communities looking to bridge the digital divide with the increasingly popular wireless technology.

CBRS spectrum refers to 150 MHz of spectrum in the 3.5 GHz band. In 2015, the FCC adopted rules for shared commercial use of the band, creating a three-tiered structure to avoid interference with military radar during collaborative use of the spectrum.

For municipalities, the spectrum has already proven to be a valuable way to deploy wireless access to the public. In Syracuse, New York, the city last fall launched a new public wireless network on the back of CRBS. In Longmont, Colorado, the St. Vrain Valley School District used CBRS to build a private LTE network connecting 4,000 students in partnership with NextLight, which operates Longmont's city-owned municipal fiber network.

Not all community deployments of CRBS have delivered satisfactory results for municipalities, however. The STEM Alliance in Westchester County, New York retired their efforts to deploy a CBRS network in Yonkers after they struggled with urban capacity constraints and low usage.

The nonprofit digital equity organization Connect Humanity has struck a new partnership with Microsoft to fund the deployment of affordable broadband access to long neglected residents of Appalachia.

The new partnership, outlined in a recent announcement, will leverage the Connect Humanity’s IDEA Fund (Investing in Digital Equity Appalachia) to help finance community-focused Internet Service Providers (ISPs) “best placed to meet the digital needs of residents and businesses in Appalachia’s unserved areas.”

Appalachia – which technically stretches from the Catskill Mountains in New York State to the hills of Mississippi – continues to be among the least connected areas in the nation. Appalachian residents are 31 percent more likely than the national population to lack a broadband subscription, and fewer than 20 percent of households use the internet at broadband speeds.

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Only 25 of the existing 423 Appalachian counties meet or exceed the national average for broadband speeds – and all were in metropolitan areas. Given the unreliable nature of FCC broadband maps, Appalachia’s digital divide is likely worse than measurements indicate.

When a $25 million broadband funding award for the Colorado River Indian Tribe (CRIT) was announced in July 2023, CRIT Chairwoman Amelia Flores celebrated it as a “game changer.”

“Broadband access is essential,” Flores’s statement read, making “remote learning, telecommuting, conducting business, and simplifying staying connected” possible.

Coming amid a rolling series of announcements from the Tribal Broadband Connectivity Program – each lauding millions of dollars in broadband funding for Tribes – it would have been easy to file away CRIT’s award as another from that pathbreaking broadband funding program for Tribes.

But this was not the TBCP. Rather, CRIT was among a handful of Tribes that received substantial funding awards from another federal source that has recently stepped up their grantmaking to Tribes – the U.S. Department of Agriculture’s (USDA) ReConnect Grant Program, administered by the department’s Rural Utilities Service (RUS).

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CRIT’s award is a helpful reminder that TBCP is not the be-all-end-all of funding for Tribal broadband. With an award cycle now open, ReConnect offers powerful tools and incentives –  including dedicated Tribal funding, 100 percent grants, and consent for any new infrastructure on sovereign lands – for Tribes looking to expand or launch broadband service.

TBCP, ReConnect, and Federal Funding for Tribal Broadband Infrastructure

A new $4 million project funded by the Appalachian Regional Commission (ARC) and the U.S. Economic Development Administration will help bring affordable fiber broadband to long underserved parts of West Virginia.

The project primarily targets the rural counties of Randolph and Tucker, long stuck on the wrong side of the digital divide.

The RFP for the open access middle- and last-mile file project was issued last summer, seeking partners to help maintain the network and manage access leases in partnership with the Woodlands Development Group (WDG), which will own the finished network.

“The Route 33 Broadband Deployment Project will deploy backbone fiber from Elkins along Route 33 through Bowden, north to Harman, up to Canaan Valley, and ending in Davis, establishing last-mile broadband access to 40 businesses, and enabling future last-mile projects to serve at minimum 480 households and 25 additional businesses located within 1,000 ft of the backbone fiber,” the RFP states.

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WDG, a 501(c)(3), had already been awarded a $1.7 million grant laying the foundation of the effort courtesy of 2021 COVID relief legislation (courtesy of the American Rescue Plan Act). The remainder of the $4 million project will be funded by the Appalachian Regional Commission and the U.S. Economic Development Administration.

The Rural Digital Opportunity Fund (RDOF) was supposed to drive affordable fiber into vast swaths of long-underserved parts of rural America. And while the FCC administered program accomplished some of that goal, a multitude of problems have plagued the program since its inception, putting both current and future broadband funding opportunities at risk.

The $20.4 billion RDOF program was created in 2019 by the Trump FCC as a way to shore up affordable broadband access in traditionally unserved rural U.S. markets.

The money was to be doled out via reverse auction in several phases, with winners chosen based on having the maximum impact for minimum projected cost.

During phase one of the program, the FCC stated that 180 bidders won $9.2 billion over 10 years to provide broadband to 5.2 million locations across 49 states and the Commonwealth of the Northern Mariana Islands.

But, according to ILSR data, roughly 34 percent of census blocks that won RDOF funding–more than $3 billion in awards – are now in default. All told, 287,322 census blocks were defaulted on by more than 121 providers as of December 2023.

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The defaults are only one part of a larger problem: namely that many communities bogged down in RDOF program dysfunction may risk losing out on the historic amount of federal funding to build modern broadband networks (BEAD) made possible by the 2021 bipartisan infrastructure law.

One Big Giant Mess

The rocky rural hills of West Virginia are a formidable foe when it comes to building high-speed Internet infrastructure that offers affordable high-quality service.

Nobody knows that better than Hardy Telecommunications (OneNet), a small community-owned cooperative that delivers affordable fiber to frustrated locals deemed too costly and cumbersome to be served by the incumbent telecom giants.

The cooperative serves parts of four counties (Hardy, Pendelton, Grant, and Hampshire). It connected its first fiber customer in 2013, after receiving $31.6 million in federal BTOP funding. Since then, the cooperative tells ILSR they’ve spent $20 million of their own funds to bring fiber to rural corners of the aptly-named Mountain State.

Derek Barr, Assistant General Manager at Hardy Telecommunications, says the cooperative currently delivers broadband service to 5,050 rural subscribers – 4,736 of which are on fiber lines that simply wouldn’t exist without federal funding programs. Hardy Telecommunications also provides 68 customers with fixed wireless access (FWA) broadband service.

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“Our focus is fiber, and we're trying to build out fiber as much as we can,” Barr tells ILSR. “But it's very tough in our serving region. It's all mountains and a lot of trees, and a big chunk of our area is either state park or national forest land. It's also very hard to do fixed wireless because even if it might work in the winter, it's not going to work in the summer” when tree leaves block line of sight, he noted.

So the cooperative slowly and consistently expands fiber as it can, often in partnership with Pendleton County. As a result, locals have the option of a variety of double and triple play phone, cable, and fiber options, starting with a symmetrical 100 Mbps (megabit per second) downstream, 50 Mbps upstream fiber and phone bundle for $79 a month.

Officials in Washoe County, Nevada have struck a new public private partnership (PPP) with Digital Technology Solutions (DTS) to deploy affordable fiber service into the long-neglected rural towns of Gerlach and Empire, Nevada. The deal is part of a broader effort to bring affordable access to underserved residents just out of reach of broadband access.

Behzad Zamanian, Washoe County Chief Information Officer, tells ILSR that the county’s two-phased project first involved contracting with DTS to construct and maintain a $2.3 million middle-mile fiber network that connected Gerlach to Reno, culminating in a ribbon-cutting ceremony at the Gerlach Community Library last July.

“The reason [Gerlach] was identified as a high priority was that it was considered unserved or underserved; there was no presence of any of the major Internet service providers in that region,” he noted. “There was no high speed Internet available.”

Until last summer, area students and residents were completely cut off from online learning, employment services, remote health care, and other essential services and opportunities.

Expanding the middle mile network required close collaboration with the Pyramid Lake Paiute Tribe, which allowed the county to piggyback on the tribe’s existing fiber runs from Reno to Nixon, Nevada. The county then worked closely with the Nevada Office of Science, Innovation, and Technology (OSIT) and DTS to deploy fiber the remaining 60 miles from Nixon to Gerlach.

Alabama has announced the release of $148.3 million in new broadband grants via the state’s Capital Projects Fund (CPF), made possible by the 2021 American Rescue Plan Act (ARPA). While regional monopolies like Charter nabbed the lion’s share of state funding (once again), cooperatives also secured significant funding to tackle the rural digital divide.

“High-speed internet service continues to strengthen and expand across the state, and we are taking the necessary strides on this journey to achieve full broadband access for Alabama,” Alabama Governor Kay Ivey said in a prepared statement. “This has been a monumental task, but it is one that will pay multiple dividends for our state and its residents. Today is an exciting day as we announce these latest projects.”

Cable giant Charter Communications (Spectrum) was the biggest winner of state funds, awarded 23 grants totaling $44.8 million to shore up access to 22,000 underserved homes across 25 Alabama counties. The next biggest award recipient was Mediacom, which received $22.8 million in grants to fund deployment to 8,000 homes across six Alabama counties.

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All told, 16 providers were awarded grants to expand access to 48 different Alabama counties. While regional monopolies were heavily represented in the awards, four different Alabama cooperatives received $34.8 million in grant funding to expand fiber access to more than 11,092 rural Alabama homes and businesses.