Ars Technica reports on RDOF winners who are asking for more money or an out…
A group of Internet service providers that won government grants are asking the Federal Communication Commission for more money or an "amnesty window" in which they could give up grants without penalty.
The ISPs were awarded grants to build broadband networks from the FCC's Rural Digital Opportunity Fund (RDOF), which selected funding recipients in December 2020. A group calling itself the "Coalition of RDOF Winners" has been meeting with FCC officials about their requests for more money or an amnesty window, according to several filings submitted to the commission.
The group says broadband construction costs have soared since the grants were announced. They asked for extra money, quicker payments, relief from letter of credit requirements, or an amnesty window "that allows RDOF winners to relinquish all or part of their RDOF winning areas without forfeitures or other penalties if the Commission chooses not to make supplemental funds available or if the amount of supplemental funds the Commission does make available does not cover an RDOF Winner's costs that exceed reasonable inflation," a July 31 filing said.
A different group of ISPs urged the FCC to reject the request, saying that telcos that win grants by pledging to build networks at a low cost are "gaming" the system by seeking more money afterward.
So far, the FCC leadership seems reluctant to provide extra funding. The commission could issue fines to ISPs that default on grants—the FCC recently proposed $8.8 million in fines against 22 RDOF applicants for defaults.
The members of the coalition are unknown. In Minnesota, folks who watch broadband issues will remember that LTD Broadband was initially awarded the opportunity to apply for $1.3 billion but in the end, the FCC did not authorize the grants. During the time when LTD has been awarded the opportunity and was then not given the award many Minnesota communities were stuck in a limbo, unable to apply for other funding and often not certain about the future of LTD Broadband. Sounds like other communities mayb be in a similar position.
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