Another week, more RDOF defaults and surrenders

Lumen has told the FCC that it plans to withdraw from RDOF funding support for all of the census block groups (CBG's) in three states had previously been awarded.

The previously awarded CBG's in South Dakota, New Mexico, and Wyoming will now be eligible for funding under the BEAD program. Other large defaulters under RDOF include LTD Broadband, Frontier, and Starlink/SpaceX. In some states where work has not begun in RDOF funded areas, local leaders are advocating for providers who've changed their minds to default before the final BEAD maps are released so other providers can apply.

There are a number of reasons for the RDOF defaults that have occurred (and others that likely will occur).

• Overly Ambitious Bids: Some companies underestimated the costs and complexity of building broadband infrastructure in rural areas. After winning RDOF bids, they realized that the project expenses were much higher than initially anticipated.
• Regulatory Scrutiny: Some companies faced challenges meeting the FCC's technical or financial requirements, which resulted in their awards being scrutinized or withdrawn.
• Technological Limitations: Providers promising satellite or fixed wireless solutions found it difficult to meet the speed and latency requirements set by the FCC.
• Funding and Resource Constraints: Smaller companies, in particular, struggled to secure the necessary financing or resources to fulfill their RDOF obligations.