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Caution Ahead: RDOF and BEAD Collision Course

The Rural Digital Opportunity Fund (RDOF) was supposed to drive affordable fiber into vast swaths of long-underserved parts of rural America. And while the FCC administered program accomplished some of that goal, a multitude of problems have plagued the program since its inception, putting both current and future broadband funding opportunities at risk.

The $20.4 billion RDOF program was created in 2019 by the Trump FCC as a way to shore up affordable broadband access in traditionally unserved rural U.S. markets.

The money was to be doled out via reverse auction in several phases, with winners chosen based on having the maximum impact for minimum projected cost.

During phase one of the program, the FCC stated that 180 bidders won $9.2 billion over 10 years to provide broadband to 5.2 million locations across 49 states and the Commonwealth of the Northern Mariana Islands.

But, according to ILSR data, roughly 34 percent of census blocks that won RDOF funding–more than $3 billion in awards – are now in default. All told, 287,322 census blocks were defaulted on by more than 121 providers as of December 2023.

Image
RDOF top 10 screenshot

The defaults are only one part of a larger problem: namely that many communities bogged down in RDOF program dysfunction may risk losing out on the historic amount of federal funding to build modern broadband networks (BEAD) made possible by the 2021 bipartisan infrastructure law.

One Big Giant Mess

Caution Ahead: RDOF and BEAD Collision Course

The Rural Digital Opportunity Fund (RDOF) was supposed to drive affordable fiber into vast swaths of long-underserved parts of rural America. And while the FCC administered program accomplished some of that goal, a multitude of problems have plagued the program since its inception, putting both current and future broadband funding opportunities at risk.

The $20.4 billion RDOF program was created in 2019 by the Trump FCC as a way to shore up affordable broadband access in traditionally unserved rural U.S. markets.

The money was to be doled out via reverse auction in several phases, with winners chosen based on having the maximum impact for minimum projected cost.

During phase one of the program, the FCC stated that 180 bidders won $9.2 billion over 10 years to provide broadband to 5.2 million locations across 49 states and the Commonwealth of the Northern Mariana Islands.

But, according to ILSR data, roughly 34 percent of census blocks that won RDOF funding–more than $3 billion in awards – are now in default. All told, 287,322 census blocks were defaulted on by more than 121 providers as of December 2023.

Image
RDOF top 10 screenshot

The defaults are only one part of a larger problem: namely that many communities bogged down in RDOF program dysfunction may risk losing out on the historic amount of federal funding to build modern broadband networks (BEAD) made possible by the 2021 bipartisan infrastructure law.

One Big Giant Mess

Edison, New Jersey Nabs $2 Million For City-Owned Fiber Network

Edison, New Jersey is proceeding with the construction of an affordable, gigabit-capable fiber network after receiving $2 million cash infusion from state leaders. The resulting network will be built on the back of decades’ worth of local frustration with the high prices, spotty availability, and slow broadband speeds provided by regional monopolies. 

The city spent $36,750 on a feasibility study in 2022 to determine the plausibility of building a citywide fiber network. The resulting study by Matrix Design Group found that 87 percent of Edison locals would likely switch to a city-owned and operated fiber network if the option existed.

Edison’s network is in the early stages of planning, and city leaders are only just starting to field competing bids from consulting vendors who’ll then draft a more comprehensive business plan.

Image
Edison Survey Results

In the interim, the city has received $2 million as part of the New Jersey fiscal year 2024 budget to help get the proposal off the ground.

"Access to the Internet is no longer a luxury, it’s a necessity,” State Senator Patrick Diegnan, Assemblyman Robert Karabinchak and Assemblyman Sterley Stanley said of the funding. “We commend Mayor Sam Joshi for making high-speed municipal broadband a priority for Edison."

In a post last year made to social media, Joshi detailed the city’s longstanding frustration with regional telecom monopoly Optimum, owned by French telecom giant Altice.  

Edison, New Jersey Nabs $2 Million For City-Owned Fiber Network

Edison, New Jersey is proceeding with the construction of an affordable, gigabit-capable fiber network after receiving $2 million cash infusion from state leaders. The resulting network will be built on the back of decades’ worth of local frustration with the high prices, spotty availability, and slow broadband speeds provided by regional monopolies. 

The city spent $36,750 on a feasibility study in 2022 to determine the plausibility of building a citywide fiber network. The resulting study by Matrix Design Group found that 87 percent of Edison locals would likely switch to a city-owned and operated fiber network if the option existed.

Edison’s network is in the early stages of planning, and city leaders are only just starting to field competing bids from consulting vendors who’ll then draft a more comprehensive business plan.

Image
Edison Survey Results

In the interim, the city has received $2 million as part of the New Jersey fiscal year 2024 budget to help get the proposal off the ground.

"Access to the Internet is no longer a luxury, it’s a necessity,” State Senator Patrick Diegnan, Assemblyman Robert Karabinchak and Assemblyman Sterley Stanley said of the funding. “We commend Mayor Sam Joshi for making high-speed municipal broadband a priority for Edison."

In a post last year made to social media, Joshi detailed the city’s longstanding frustration with regional telecom monopoly Optimum, owned by French telecom giant Altice.  

Edison, New Jersey Nabs $2 Million For City-Owned Fiber Network

Edison, New Jersey is proceeding with the construction of an affordable, gigabit-capable fiber network after receiving $2 million cash infusion from state leaders. The resulting network will be built on the back of decades’ worth of local frustration with the high prices, spotty availability, and slow broadband speeds provided by regional monopolies. 

The city spent $36,750 on a feasibility study in 2022 to determine the plausibility of building a citywide fiber network. The resulting study by Matrix Design Group found that 87 percent of Edison locals would likely switch to a city-owned and operated fiber network if the option existed.

Edison’s network is in the early stages of planning, and city leaders are only just starting to field competing bids from consulting vendors who’ll then draft a more comprehensive business plan.

Image
Edison Survey Results

In the interim, the city has received $2 million as part of the New Jersey fiscal year 2024 budget to help get the proposal off the ground.

"Access to the Internet is no longer a luxury, it’s a necessity,” State Senator Patrick Diegnan, Assemblyman Robert Karabinchak and Assemblyman Sterley Stanley said of the funding. “We commend Mayor Sam Joshi for making high-speed municipal broadband a priority for Edison."

In a post last year made to social media, Joshi detailed the city’s longstanding frustration with regional telecom monopoly Optimum, owned by French telecom giant Altice.  

Edison, New Jersey Nabs $2 Million For City-Owned Fiber Network

Edison, New Jersey is proceeding with the construction of an affordable, gigabit-capable fiber network after receiving $2 million cash infusion from state leaders. The resulting network will be built on the back of decades’ worth of local frustration with the high prices, spotty availability, and slow broadband speeds provided by regional monopolies. 

The city spent $36,750 on a feasibility study in 2022 to determine the plausibility of building a citywide fiber network. The resulting study by Matrix Design Group found that 87 percent of Edison locals would likely switch to a city-owned and operated fiber network if the option existed.

Edison’s network is in the early stages of planning, and city leaders are only just starting to field competing bids from consulting vendors who’ll then draft a more comprehensive business plan.

Image
Edison Survey Results

In the interim, the city has received $2 million as part of the New Jersey fiscal year 2024 budget to help get the proposal off the ground.

"Access to the Internet is no longer a luxury, it’s a necessity,” State Senator Patrick Diegnan, Assemblyman Robert Karabinchak and Assemblyman Sterley Stanley said of the funding. “We commend Mayor Sam Joshi for making high-speed municipal broadband a priority for Edison."

In a post last year made to social media, Joshi detailed the city’s longstanding frustration with regional telecom monopoly Optimum, owned by French telecom giant Altice.  

Edison, New Jersey Nabs $2 Million For City-Owned Fiber Network

Edison, New Jersey is proceeding with the construction of an affordable, gigabit-capable fiber network after receiving $2 million cash infusion from state leaders. The resulting network will be built on the back of decades’ worth of local frustration with the high prices, spotty availability, and slow broadband speeds provided by regional monopolies. 

The city spent $36,750 on a feasibility study in 2022 to determine the plausibility of building a citywide fiber network. The resulting study by Matrix Design Group found that 87 percent of Edison locals would likely switch to a city-owned and operated fiber network if the option existed.

Edison’s network is in the early stages of planning, and city leaders are only just starting to field competing bids from consulting vendors who’ll then draft a more comprehensive business plan.

Image
Edison Survey Results

In the interim, the city has received $2 million as part of the New Jersey fiscal year 2024 budget to help get the proposal off the ground.

"Access to the Internet is no longer a luxury, it’s a necessity,” State Senator Patrick Diegnan, Assemblyman Robert Karabinchak and Assemblyman Sterley Stanley said of the funding. “We commend Mayor Sam Joshi for making high-speed municipal broadband a priority for Edison."

In a post last year made to social media, Joshi detailed the city’s longstanding frustration with regional telecom monopoly Optimum, owned by French telecom giant Altice.  

Edison, New Jersey Nabs $2 Million For City-Owned Fiber Network

Edison, New Jersey is proceeding with the construction of an affordable, gigabit-capable fiber network after receiving $2 million cash infusion from state leaders. The resulting network will be built on the back of decades’ worth of local frustration with the high prices, spotty availability, and slow broadband speeds provided by regional monopolies. 

The city spent $36,750 on a feasibility study in 2022 to determine the plausibility of building a citywide fiber network. The resulting study by Matrix Design Group found that 87 percent of Edison locals would likely switch to a city-owned and operated fiber network if the option existed.

Edison’s network is in the early stages of planning, and city leaders are only just starting to field competing bids from consulting vendors who’ll then draft a more comprehensive business plan.

Image
Edison Survey Results

In the interim, the city has received $2 million as part of the New Jersey fiscal year 2024 budget to help get the proposal off the ground.

"Access to the Internet is no longer a luxury, it’s a necessity,” State Senator Patrick Diegnan, Assemblyman Robert Karabinchak and Assemblyman Sterley Stanley said of the funding. “We commend Mayor Sam Joshi for making high-speed municipal broadband a priority for Edison."

In a post last year made to social media, Joshi detailed the city’s longstanding frustration with regional telecom monopoly Optimum, owned by French telecom giant Altice.  

Edison, New Jersey Nabs $2 Million For City-Owned Fiber Network

Edison, New Jersey is proceeding with the construction of an affordable, gigabit-capable fiber network after receiving $2 million cash infusion from state leaders. The resulting network will be built on the back of decades’ worth of local frustration with the high prices, spotty availability, and slow broadband speeds provided by regional monopolies. 

The city spent $36,750 on a feasibility study in 2022 to determine the plausibility of building a citywide fiber network. The resulting study by Matrix Design Group found that 87 percent of Edison locals would likely switch to a city-owned and operated fiber network if the option existed.

Edison’s network is in the early stages of planning, and city leaders are only just starting to field competing bids from consulting vendors who’ll then draft a more comprehensive business plan.

Image
Edison Survey Results

In the interim, the city has received $2 million as part of the New Jersey fiscal year 2024 budget to help get the proposal off the ground.

"Access to the Internet is no longer a luxury, it’s a necessity,” State Senator Patrick Diegnan, Assemblyman Robert Karabinchak and Assemblyman Sterley Stanley said of the funding. “We commend Mayor Sam Joshi for making high-speed municipal broadband a priority for Edison."

In a post last year made to social media, Joshi detailed the city’s longstanding frustration with regional telecom monopoly Optimum, owned by French telecom giant Altice.  

Edison, New Jersey Nabs $2 Million For City-Owned Fiber Network

Edison, New Jersey is proceeding with the construction of an affordable, gigabit-capable fiber network after receiving $2 million cash infusion from state leaders. The resulting network will be built on the back of decades’ worth of local frustration with the high prices, spotty availability, and slow broadband speeds provided by regional monopolies. 

The city spent $36,750 on a feasibility study in 2022 to determine the plausibility of building a citywide fiber network. The resulting study by Matrix Design Group found that 87 percent of Edison locals would likely switch to a city-owned and operated fiber network if the option existed.

Edison’s network is in the early stages of planning, and city leaders are only just starting to field competing bids from consulting vendors who’ll then draft a more comprehensive business plan.

Image
Edison Survey Results

In the interim, the city has received $2 million as part of the New Jersey fiscal year 2024 budget to help get the proposal off the ground.

"Access to the Internet is no longer a luxury, it’s a necessity,” State Senator Patrick Diegnan, Assemblyman Robert Karabinchak and Assemblyman Sterley Stanley said of the funding. “We commend Mayor Sam Joshi for making high-speed municipal broadband a priority for Edison."

In a post last year made to social media, Joshi detailed the city’s longstanding frustration with regional telecom monopoly Optimum, owned by French telecom giant Altice.