RDOF Winners Face Fines for Allegedly Violating FCC Rules

The FCC proposed fines of $8.8 million against 22 applicants in the Rural Digital Opportunity Fund Phase I auction for apparently violating agency requirements by defaulting on their bids last year between May 3 and Dec. 16. Two applicants also failed to submit audited financial paperwork, resulting in additional fines. “The FCC provided clear guidance in its rules and notices on the monetary forfeitures associated with defaults in Auction 904,” the FCC said Monday: “The bid defaults prevented 2,994 census block groups in 31 states and an estimated 293,128 locations from receiving new investments in broadband infrastructure.” Leading the list, California Internet, a CLEC, faces a fine of more $3 million and Connect Everyone, a wholly owned subsidiary of Starry, a fine of more than $3.8 million. Some proposed fines were less than $10,000. “Not following the rules has consequences,” said Chairwoman Jessica Rosenworcel: “For those who failed to meet their obligations, today’s action shows the Commission takes seriously its commitment to hold applicants accountable and ensure the integrity of our universal service funding.”