Mercury Broadband Defaults on Hundreds of RDOF Locations

WASHINGTON, Nov. 7, 2024 – A federal broadband auction program designed to serve rural, unserved communities with fixed broadband and voice service is experiencing complications after yet another default.

Mercury Broadband, based in Kansas City, Mo., defaulted on more than 800 Census Block Groups under the $20 billion Rural Digital opportunity Fund – two in Kansas, six in Indiana, 161 in Illinois and about 640 Michigan. 

Mercury, an Internet Service Provider that provides fiber and wireless connectivity solutions in five states, did not note the total number of locations within the CBGs that will be affected in its Wednesday letters to the Federal Communications Commission.

“Factors outside of the company’s control, including rising costs and competitive encroachment, have rendered deployment to many of these RDOF CBGs economically unviable and ultimately unachievable,” Mercury Broadband CFO AJ Long said.

Long noted that deployment costs have risen dramatically since the 2020 RDOF reverse auction.

The default comes on the heels of another default on Oct. 22 in which the company defaulted on 98 CBGs in Michigan, Missouri and Illinois.

Mercury noted in some letters to the FCC that its defaults could benefit rural communities by making them eligible for other broadband funding programs like the $42.45 billion Broadband Equity, Access, and Deployment program.

The company recognized that it would no longer be eligible for RDOF support in the defaulted areas, though it reserved the ability to seek relief from any penalties imposed by the FCC.