Etheric Seeks Hold on Draft Calif. ETC Denial

Etheric asked California Public Utilities Commissioner Darcie Houck to put a hold on a proposed decision, scheduled for vote Oct. 20, that would deny the company designation as an eligible telecom carrier (ETC). Etheric, which needs ETC status to get $248 million in Rural Digital Opportunity Fund (RDOF) support, met virtually with a Houck aide Oct. 7, Etheric reported Wednesday. The CPUC draft includes “high-level conclusions” with no “explanation,” Etheric complained. Etheric filed its application more than two years ago, in January 2020, but had only one meeting with staff, Oct. 5, after the draft’s release, it noted. Concerns expressed about the company’s “financial ability to carry out the RDOF project were based on a misunderstanding of a letter submitted by” venture capital firm Summit Partners, Etheric said. The letter “included a standard disclaimer in a footnote meant to indicate that due to the amount of time that has passed since its initial underwriting of the project, it would need to reconfirm its underwriting and finalize credit documentation at the time Etheric receives ETC designation and the FCC publishes a public notice with final approval for the RDOF award.” To clarify, Etheric attached a letter from Summit. The CPUC proposal incorrectly found Etheric’s cost estimates for the RDOF project are too low, possibly “due to a misunderstanding about the FCC’s reserve price for the Census Blocks won by Etheric,” the company said. The FCC’s $541 million reserve price was based on all-fiber design, but Etheric calculated $248 million would cover a hybrid network mixing fiber and fixed wireless, it said. Etheric made sure it can scale its existing network and “any staff concerns about scalability should be fully addressed by the substantial financial resources at its disposal,” it said. Responding to concerns about fixed wireless performance in mountainous and dense foliage areas, Etheric said 75% “of its RDOF locations have direct line of sight between the network and customer location.” Of remaining areas, 11% will get fiber, while 14% will use citizens broadband radio service (CBRS) “UNII mid-band Tarana Radio Systems to ensure good signal levels for the light foliage conditions at those locations.”