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FCC to Spend $9.3 Billion on 5.2 Million Broadband Locations as Result of Rural Digital Opportunity Fund Auction

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Photo illustration from the Pelican Institute

December 7, 2020 – The Federal Communications Commission on Monday announced that it had awarded $9.3 billion in broadband funds (PDF) for rural Americans, over 10 years, through the recently-concluded Rural Digital Opportunity Fund auction.

About 5.2 million locations in rural America will now gain access to high-speed internet service through the first phase of the RDOF reverse auction.

Results showed that Charter Communications, bidding as CCO Holdings, was the biggest RDOF auction winner, when measuring by the number of locations, reports Telecompetitor. The cable company won $1.22 billion in the auction, which was completed early last week, to bring service to over one million locations in 24 states.

Charter was not the biggest winner, when measuring by funding. Using that metric, the biggest winner was LTD Broadband, which won $1.3 billion. That company won funding to bring broadband to 528,000 locations in 15 states.

The federal government was able to obtain broadband service for 5.2 million of the 5.9 million target locations, and is only paying $9.2 billion, or only 57.5 percent of the $16 billion it had targeted spending in this first phase of the auction.

A broad range of providers competed in the Phase I auction, including cable operators, electric cooperatives, incumbent telephone companies, satellite companies, and fixed wireless providers.

Other auction winners include the Rural Electric Cooperative Consortium, which won $1.1 billion for 618,000 locations in 22 states; Space Exploration Technologies Corp., or SpaceX, which won $885.5 million for 642,000 locations in 35 states; Windstream, which won $522.9 million for 192,567 locations in 18 states; and Frontier, which won $370.9 million for 127,188 locations in eight states.

According to the FCC, 99.7 percent of RDOF auction winners have committed to deploying broadband service at speeds of at least 100 Megabits per second (Mbps) download/20 Mbps upload, and with a full 85 percent deploying gigabit broadband.

The FCC said that results pointed to the success of the weighting system used in the auction, which was designed to favor bids to provide higher-speed service.

Big name companies that qualified to bid in the auction but are not on the RDOF auction winners list include Verizon, ViaSat and Cox.

The total amount of funding awarded was $9.3 billion for 49 states. The auction had been budgeted to award up to $16 billion, which means that the non-awarded balance of $6.7 billion will be allocated toward Phase Two of the RDOF auction.

Former Assistant Editor Jericho Casper graduated from the University of Virginia studying media policy. She grew up in Newport News in an area heavily impacted by the digital divide. She has a passion for universal access and a vendetta against anyone who stands in the way of her getting better broadband. She is now Associate Broadband Researcher at the Institute for Local Self Reliance's Community Broadband Network Initiative.

Funding

FCC Announces $163 Million in Second Round of Approved RDOF Funding

The agency is reevaluating winning bids after asking providers to ensure census blocks aren’t already served.

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Acting FCC Chairwoman Jessica Rosenworcel

WASHINGTON, October 7, 2021 – The Federal Communications Commission announced Thursday another approved round of funding from the $9.2-billion Rural Digital Opportunity Fund.

The $163 million in approved money will go to 42 providers who will drive fiber to the home for gigabit services covering 65,000 locations in 21 states over the next ten years, the FCC said Thursday.

“More help is on the way to households without broadband,” said FCC Acting Chairwoman Jessica Rosenworcel in a press release Thursday. “This is an important program for getting more Americans connected to high-speed internet, and we are continuing careful oversight of this process to ensure that providers meet their obligations to deploy in areas that need it.”

The FCC in July asked that providers conduct an assessment in areas for which they won money from the fund in December, because complaints emerged that the approved areas were already served with adequate connectivity.

The commission said 85 bidders chose not to pursue their bids in 5,089 census blocks because those areas were either served or could be wasted. Some attributed their enlightenment to updated FCC maps based on Form 477 data, an often criticized form of data collection that is reliant on service provider data.

The last round of approved money was last month, when the FCC approved a further 13 bidders.

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Rural

Varying Technologies Needed to Make Widespread Public Library Wi-Fi a Reality

From direct fiber connections to low-earth orbit satellites, libraries can provide public Wi-Fi through varying means.

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Don Means from the Gigabit Libraries Network.

WASHINGTON, October 4, 2021 – The director of the Libraries Whitespace Project said libraries across the country will need varying ways to get connected and provide access to public Wi-Fi.

That means that while the “cheapest, most equitable, most economical way to connect every community with next generation broadband is to run fiber to all of the 17,000 libraries,” Don Means said Friday, other solutions will need to be considered where geography doesn’t allow for a direct fiber connection.

“Every community is a unique combination of density, topology, socioeconomics, existing infrastructure and also available spectrum and then whatever the local policy preferences are,” said Means, who was hosted by the Gigabit Libraries Network hosted as part of Libraries in Response series on Friday.

There is no one size fits all solution to connectivity, Means said. But vendors, he said, are often concerned with selling a single solution for the simple reason that it’s more efficient and profitable to do so.

A technology still in its infancy is low-earth orbit satellites for broadband, which hover closer to earth than traditional satellites and thus theoretically provide better connectivity than those flying higher above the earth’s surface. The first library in the world connected through LEO satellites is a tribal library located in northern New Mexico, Means said, noting that such technologies could help fill the connectivity gap.

SpaceX’s Starlink is racing to make its broadband constellation of LEOs a staple of rural and urban connectivity, as it has been beta testing its technology for months now.

Means added that some free Wi-Fi hotspots have served to cover entire communities.

“We talk about rural in terms of density, and we use the numbers of countywide density, people per square mile across the county, which is really low,” he said.

“But when you look at where people really live, most rural people live close together in small communities. It might be a mile or two across… which means that these few hotspots across town could cover the whole town.”

He used the example of the town of Plymouth, Nebraska, which set up a handful of these Wi-Fi access stations for $17,000 and gave the entire rural community access to the internet.

The GLN began the series in response to the pandemic, which made clear that broadband, connectivity, and the internet are fundamental to the nation’s wellbeing.

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Funding

Christopher Ali’s New Book Dissects Failures of Rural Broadband Policy and Leadership

“Farm Fresh Broadband” explains the world of broadband policy and provides solutions to bridge the digital divide.

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WASHINGTON, September 24, 2021—In his most recent book, University of Virginia Professor Christopher Ali argues that the ongoing battle for improved connectivity is not only far from over, but also critically flawed.

“Farm Fresh Broadband” proposes a new approach to national rural broadband policy to narrow the rural-urban digital divide. In Ali’s view, the lack of coordinated, federal leadership and a failure to recognize the roles that local communities and municipalities need to play in the deployment of broadband has contributed to a lack of competition between carriers, and ultimately, higher costs to consumers.

Just two days after it was released, Ali sat down for a video interview with Broadband Breakfast Editor and Publisher Drew Clark to discuss his story – and Ali’s recommendations that resulted from his journey.

Ali raises the question about How the $6 billion in federal funds allocated to broadband is spent annually? Based on his findings, he makes policy recommendations to democratize rural broadband policy architecture and re-model it after the historic efforts to bring telephony services and electricity to Americans across the country.

In particular, Ali discusses how, in one chapter of his book, he raises the provocative question about whether “Good Is the Enemy of Great: The Four Failures of Rural Broadband Policy.” In his telling, less money, lower speed, and poor-quality broadband mapping have all contributed to an approach that, in seeking “good enough,” federal policy has failed Rural America.

Ali, an associate professor at UVA’s Department of Media Studies and a Knight News Innovation Fellow with the Tow Center for Digital Journalism at Columbia University, is also the chair of the Communication Law and Policy Division of the International Communications Association and the author of two books on localism in media, “Media Localism: The Policies of Place” (University of Illinois Press, 2017) and “Local News in a Digital World” (Tow Center for Digital Journalism, 2017)

“Farm Fresh Broadband: The Politics of Rural Connectivity” available at the MIT Press.

See Professor Ali’s recent Expert Opinion for Broadband Breakfast, “Christopher Ali: Is Broadband Like Getting Bran Flakes to the Home?

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