Minimum Geographic Bidding Areas Could Cause Concerns After RDOF Procedures Vote

In its draft, the Wireline Bureau asks whether it should enlarge minimum geographic bidding areas from the census block group level to the census tract level. "I was surprised they're asking that question again," said Brian O'Hara, National Rural Electric Cooperative Association senior director-regulatory policy, telecommunications and broadband: "Anything bigger than a census block group would really disadvantage smaller providers."

America's Communications Association opposes an increase for two reasons, said counsel Tom Cohen, an attorney with Kelley Drye: "It would limit participation in the auction, and it would disadvantage" providers that want to deploy fiber. Cohen sees the latter as counter to FCC's goal of favoring higher performing networks.

NTCA Senior Vice President-Industry Affairs and Business Development Mike Romano found "no major surprises" in the RDOF procedures draft, adding "we're still evaluating the different pieces and how this differs from [Connect America Fund]-II." He said the item reflects the FCC's desire to move toward the Oct. 22 auction, doable because CAF-II provides "a playbook."

Setting an auction date helps provide transparency to potential participants, so FCC Chairman Ajit Pai could be reluctant to change it, said Louis Peraertz, Wireless ISP Association vice president-policy: "We know he wants something in 2020." CenturyLink Vice President-Federal Regulatory Affairs Randy Clarke said "when the commissioner puts out a deadline, the bureau works to make that happen."

To help meet the Oct. 22 deadline, the FCC will next adopt auction procedures and finalize a list of eligible bidding areas; "both seem relatively straightforward," said Fiber Broadband Association CEO Lisa Youngers.

The Wireless ISP Association is encouraged by draft language that would alert RDOF participants about the lowest weighted performance tier and latency bids so they could move bids to other geographic areas in subsequent rounds, Peraertz said. "This information would serve the public interest by enabling bidders to have greater flexibility to bid for areas that might otherwise not receive support, facilitating more ubiquitous broadband deployment," he emailed later.

An RDOF auction procedures notice would include a limited challenge process to let providers alert the program managers if they had started delivering broadband service at 25/3 Mbps or higher within the areas deemed wholly unserved. "I look forward to what they propose," said Youngers. Her members want to have the ability to flag information that's wrong and ensure bidding areas are up to date, she said.

"The challenge process is valuable," said Cohen. "If someone has built, they have to come and prove it, but it should shrink the eligible list only marginally."

Stakeholders also said they would like to see more information collected on short-form bid applications early in the process to screen out those without the requisite financial or technical ability.

SpaceX said a proposed ban on satellite operators bidding as low-latency services or in higher speed performance tiers "risks deterring participation in the auction, could harm competition, and ultimately could lead to fewer choices for consumers," it said in a filing posted Friday in docket 19-126 and in meetings Tuesday and Wednesday with aides to Commissioners Mike O'Rielly and Jessica Rosenworcel, and with Wireline Bureau staff.

USTelecom would wait for the comments period before speaking on the item, a spokesperson said. Hughes Network Systems Senior Vice President-Regulatory Affairs Jennifer Manner said the company would wait to see the final procedures notice before deciding whether to file comments. NCTA declined comment.