Broadband Providers, Bankers Want FCC Not to Rely on Weiss Ratings

WASHINGTON, August 6, 2024 – Broadband providers and banking groups are continuing to ask that the Federal Communications Commission ditch the bank rating system it has relied on for its subsidy program’s financing requirements. They say the current system could delay deployments by diverting time and resources to finding letters of credit.

The FCC has required Internet Service Providers participating in its $6 billion Rural Digital Opportunity Fund and $1.8 billion Connect America Fund Phase II Auction programs to obtain a letter of credit equal to at least their first year of support, plus yearly increases until certain deployment milestones have been met. That has typically involved putting up an equal amount of cash as collateral.