Cable One, Mercury Broadband Default on RDOF Locations

WASHINGTON, Oct. 24, 2024 - A federal broadband auction program designed to bring fixed broadband and voice service to the unserved continues to encounter difficulties after several new defaults.

Two companies, Mercury Broadband and Cable One, defaulted on their obligations under the $20 billion Rural Digital Opportunity Fund Tuesday and last Thursday, respectively.

The companies cited rising costs and competitive encroachment as the reasoning behind their defaults. Cable One, under the leadership of President and CEO Julie Laulis, noted that deployment costs have inflated at an unforeseen rate since the conclusion of the RDOF auction in 2020. 

The service providers noted that the Federal Communications Commission declined requests to provide blanket relief for companies defaulting on RDOF responsibilities, an action that could have reduced or eliminated the FCC’s default financial penalties.

Despite the FCC’s refusal to provide blanket relief for companies, it recognized that providers have experienced changing circumstances that could affect their ability to deploy broadband networks.

Mercury noted in its letter to the FCC that its RDOF default could benefit communities there by making them available for funding under other federal programs, such as the Biden administration’s $42.45 billion Broadband Equity, Access, and Deployment program.

Mercury defaulted on 98 census block groups in Michigan, Missouri and Illinois. Cable One defaulted on its CBGs in the states of Idaho and Missouri. The company did not note the number of CBGs to be affected.

The companies and their subsidiaries recognized that they would no longer be eligible for RDOF support in the defaulted areas, though they asserted the ability to seek relief from any penalties imposed by the FCC.

Based in Phoenix, Ariz., Cable One serves more than 1.1 million residential and business customers in 24 states.

Mercury Broadband is based in Kansas City, Mo., and provides fiber and wireless connectivity solutions in 5 states.

This story was updated at 3:30 p.m. ET on Oct. 24, 2024 to add Missouri to the list of states in which Mercury Broadband reported RDOF defaults to the FCC. Mercury added Missouri in a new Oct. 24 filing with the FCC.