CFC Webinar Surveys Broadband Funding at State, National Levels

The February installment of the CFC Financial Webinar Series for Cooperative Staff examined “Funding Rural Broadband: Government Opportunities for Cooperatives” and featured guest speakers from Vantage Point, a broadband consulting service headquartered in South Dakota.

“I’ve been in the broadband industry since 1996, and I’ve never seen this amount of funding available, so it’s certainly a unique time,” Vantage Point Director of Engineering Quentin Flippin commented. “For those thinking about doing broadband, this is a good time to get in.”

Flippin offered an overview of state grant programs, the U.S. Department of Agriculture’s  ReConnect Program and the U.S. Federal Communications Commission’s Rural Development Opportunity Fund (RDOF)—the so-called “big three” opportunities for tapping state and federal funding for rural broadband in 2020. Some highlights of each program:

 

State Grant Programs

• Unique to each state, so rules and requirements vary.
• Target unserved or underserved areas, generally those lacking 10/1 Mbps service, though some programs may target a threshold as high as 100/10 Mbps service.
• Often require a matching contribution to leverage public dollars. The larger the contribution, the more points awarded in applicant scoring.
• Sometimes include a challenge process that allows incumbent providers to contest claims of poor service or speed in eligible areas.
• Tend to have the least amount of competition, so chances of success are higher.
• Require advance preparation because application windows are tight (45-60 days).

Rural Digital Opportunity Fund

• A two-phase, $20.4 billion reverse auction that awards 10 years of support to rural providers in exchange for a commitment to provide a proscribed level of service.
• Subject to strict anti-collusion restrictions, letter of credit covenants, network approval by a professional engineer and other rules.
• Bidding for Phase 1 is proposed to start October 22, 2020.
• Deadline to determine participation in the auction will be several months earlier.

ReConnect Program

• Offers three categories of funding: 100% grant, 50% grant and 50% loan, and 100% loan.
• Targeted to areas that lack 10/1 Mbps service.
• Only terrestrial providers are eligible to participate.
• The round two application window closes March 16. (There is rumor of a third round, but no official notice has been released.)