What is RDOF?

The Rural Digital Opportunity Fund (RDOF) is an FCC initiative designed to inject billions of dollars into the construction and operation of rural broadband networks. ACT NOW!! RDOF is a once-in-a-generation funding program that will take place in the year 2020. Applications for funding must be submitted by the August/September timeframe (exact date not yet available.) Feasibility assessments for interested applicants should begin immediately to ensure participation in the funding program.

This new fund would target rural areas across the country where residents currently lack access to adequate broadband and would deploy high-speed broadband to millions of rural Americans in an efficient and effective manner. – FCC Chairman Ajit Pai on the $20.4 billion Rural Digital Opportunity Fund (RDOF)

RDOF

Facts about RDOF

  • RDOF will provide $20.4 billion in funding over a ten-year period to support broadband networks in rural communities across the country.
  • Funding for RDOF come from traditional high-cost universal service funding (USF) and is not dependent on legislative appropriations. The funds are there.
  • FCC is disbursing funds through a reverse auction. Interested broadband carriers can participate in the auction and bid for these funds, with bidders promising to deliver broadband and voice services at the lowest cost to those same territories. Final auction rules are expected to be published in January/February timeframe.
  • The FCC proposes winning RDOF bidders must be designated eligible telecommunications carriers (ETCs), a designation obtained through state regulatory commissions for each territory within that state that a provider intends to offer service.
  • FCC proposes to assign funding from the auction in two phases. Phase I will have a budget of $16 billion and will target those areas that currently lack 25 Mbps downstream and 3 Mbps upstream broadband service. Phase II, with a budget of $4.4 billion (plus any remaining funds from Phase I) will target those areas that are deemed partially served as well as any areas not won in the first phase.
  • The FCC proposes creating performance tiers for RDOF funding. High bandwidth, low latency fiber solutions will be most favored.
  • A proposed two step application process for RDOF participation includes a short form and a long form. Long form is required after funds are awarded.
  • The Electric Cooperative is ineligible for RDOF if it has already received RUS funds.

Electric cooperatives are best positioned to deliver Utility Grade Broadband to their communities, and the FCC is making it happen.

Navigating the RDOF Application Process

RDOF will be a significantly more demanding and higher stakes auction than its predecessor, Connect America Fund (CAF) phase II. RDOF provides ten times the funding and covers a greater geography. The application process will be complex, and a knowledge of the FCC reverse auction process is essential to maximizing the chances of success.

Access to Application and Auction Expertise

The good news… the FCC shares the vision for broadband in rural America and has put a funding program in place that will bridge the digital divide and transform communities.

The not-so-good news… resources to assist the electric cooperatives in feasibility and business modeling as well as application expertise are finite, and the short timeframe of the RDOF program will cause many cooperatives to compete for the same resources simultaneously, with many finding themselves without assistance.

To further restrict the process, the FCC has barred communication between auction participants to prevent collusion during the auction rounds. Further, consultants and advisors are prohibited from working with more than one bidder.

The only exception to this rule allows bidders to bid for RDOF funds as a group – the Consortium. FCC auction rules permit bidding consortium members to share auction information, strategy, and advisors.

The Answer - The RDOF Consortium

FiberRise formed the RDOF consortium to help electric cooperatives overcome the FCC’s many programmatic and regulatory hurdles and the growing fiber resource shortage. Membership in the RDOF Consortium is limited to ONLY electric utilities.

RDOF Consortium Membership = Low Risk, High Reward

  • Turnkey, cost-effective access to all needed experts
  • Streamlined, low cost way for a cooperative to enter the FCC process
  • Synergies in data analysis, mapping, cost modeling, and network design
  • Access to joint bidding strategies for succeeding locally in both inter- and intra-geographic auction competition

By joining the RDOF Consortium, electric cooperatives gain exclusive access to the best RDOF team in the country, which includes Quadra Partners, FiberRise and a host of strategic resources.

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Quadra Partners is located in Washington, DC and New York, NY, and comprises former senior FCC executives including former Chairman Tom Wheeler’s chief of staff, a former FCC chief operating officer, and several former chiefs of the wireless bureau, the team responsible for developing the reverse auction process that will be used during RDOF. Quadra’s extensive expertise is available exclusively for RDOF consortium members.

The RDOF Consortium offers two phases of membership:

Phase I membership includes:

  • Initial strategic meeting/discussion
  • Feasibility study (includes a complete and comprehensive business plan)
  • Strategic development, including a comprehensive plan for each member cooperative complete with tailored and competitive bid strategies
  • Monthly RDOF informational webinars
  • RDOF white papers, FCC actions and rulings, key auction details, and insights into RDOF strategies
  • Maps of Eligible Areas
  • Monthly action item updates and benchmarks

Phase II membership includes:

Phase II consortium members will have full access to all consortium expertise from strategic planning through the auction, award, and long-form application processes.

Membership in the RDOF Consortium does not obligate the Electric Cooperative to the project, even if funds have been awarded.

FiberRise is the premier fiber solutions team in America and is focused on helping Electric Cooperatives serve their communities. Time is short. Join the RDOF Consortium NOW and secure your spot in this unique funding opportunity. Low Risk, High Reward.