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LEO Language Revised

FCC Divides on Party Lines on RDOF Auction Procedures

Commissioners 3-2 approved procedures for the Rural Digital Opportunity Fund Phase I auction Tuesday, with partial dissents from Commissioners Jessica Rosenworcel and Geoffrey Starks. The Democrats repeated concerns about spending most of RDOF's $20.4 billion 10-year support before the agency has access to reliable data on all areas unserved by 25/3 Mbps.

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"The agency has conducted no analysis to justify its Phase II RDOF budget," Rosenworcel emailed us. "This risks leaving millions behind." She said the FCC is poised to give out $16 billion "less than a week before Election Day." Oct. 22 had been earlier date for the auction that now will start Oct. 29.

Starks would have preferred to "start with a smaller budget or shorter term of support so that the bulk of the RDOF funds could be spent after we complete the mapping overhaul" as required by Congress, he said.

Phase I won't necessarily spend its allotted budget, Pai told reporters. Leftover funds will be given to Phase II. Whether additional funds would be designated later as needed would be a conversation for Congress, Pai said.

Commissioner Mike O'Rielly said his office negotiated last-minute changes with the chairman's office over what role low earth satellite broadband providers would play in Phase I. The FCC didn't "entirely close the door" to LEO providers bidding in the low-latency tier, Pai said. But new language makes clear staff can't approve applications from LEO providers "unless the applicant can demonstrate a proven track record of providing a mass-market retail broadband service to consumers with low latency," Pai said. "And given the timing of the application window, I have every reason to believe that this hurdle will be insurmountable."

O'Rielly called the negotiations with Pai's office "a balancing act." O'Rielly told reporters he wasn't sure the changes would be enough to allow SpaceX to "take full advantage" of the Phase I auction. He couldn't communicate with the company during the FCC's quiet period, he said, and the changes won't be detailed until the PN is published. SpaceX didn't comment Tuesday.

"I would have preferred an auction design without up-front technology restrictions," O'Rielly said. "We should have more providers and more bidders" participating in the reverse auction to help reduce Phase I subsidies and deploy to more rural communities, he told reporters. He said the commission may revisit the issue before Phase II.

Starks thanked O'Rielly for helping eliminate "the categorical bar" on LEO systems bidding in low-latency tiers, "especially now that we have evidence in the record that those systems can meet the 100-millisecond latency standard." Starks said "next-generation satellite broadband holds tremendous technological promise for addressing the digital divide and is led by strong American companies with a lengthy record of success. Commission staff should evaluate those applications on their own merits."

Industry largely lauded the vote. USTelecom, NTCA, ACA Connects, Fiber Broadband Association and the National Rural Electric Cooperative Association voiced support.