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Some of the bidders have promised ultra-fast gigabit speeds they haven’t offered before. Others missed earlier deadlines to build subsidized networks, or promised cut-rate network construction.
The review falls to FCC Acting Chairwoman Jessica Rosenworcel, who last year said the program was being pushed ahead too fast in a case of “rush-it-out-the-door electioneering” by the Republican chairman, Ajit Pai.
Pai defended the timeline, saying while chairman that unserved Americans “cannot afford to wait” for service.
Beginning in October, the FCC ran an auction to determine how to split the pot of rural money, which is funded by fees on consumer telephone bills. The agency designated discrete areas without service, and invited bids. The companies that offered to build broadband for the lowest price emerged as winners of subsidies.
Winners announced in December included three that were promised more than $1 billion in subsidies: cable provider Charter Communications Inc., the Rural Electric Cooperative Consortium made up of 95 co-ops, and a company called LTD Broadband that was the top subsidy winner, claiming $1.3 billion for service in 15 states.
Charter on Monday said it would use its $1.2 billion subsidy in a $5 billion project to deliver fast internet service to more than 1 million unserved homes and businesses across 24 states.
LTD Broadband, which was founded in 2011, offers broadband distributed wirelessly from 2,100 tower sites in Iowa, Minnesota, Nebraska and South Dakota, according to its website. It said it will fulfill its obligations with fiber connections, which generally offer quicker speeds than wireless.
