Funding
In its petition to the court, LTD asserts that the FCC’s denial of RDOF funds is unlawful and should be set aside.
Photo of U.S. Court of Appeals by Tony Webster used with permission.
WASHINGTON, February 20, 2024 – LTD Broadband has filed a petition for review of the Federal Communications Commission’s decision to deny it funding as part of the Rural Digital Opportunity Fund.
The company, which largely offers fixed wireless broadband, filed a request for judicial review with the D.C. Court of Appeals on February 2, contesting the agency decision on December 4.
FCC Proposes $22 Million Fine Against LTD Over RDOF
The company was one of the biggest to default on the Rural Digital Opportunity Fund auction.
In its petition to the appeals court, LTD asserts that the FCC’s denial of RDOF funds is arbitrary and capricious and should be set aside. The statement of issues from LTD is expected to be submitted by March 8, outlining more specific legal arguments, according to the court docket.
The action follows a series of events stemming from the FCC’s proposal for a $21.7-million fine against LTD for defaulting on its bids in the RDOF broadband subsidy program. Under this program, broadband providers competed with bids to serve unconnected areas using the least amount of government money.
LTD, now known as GigFire, was initially the largest winner in the FCC’s 2020 RDOF auction, securing over $1.3 billion in planned support over a decade from the $9.2-billion program. However, in August 2022, the FCC rescinded LTD’s award, citing failure to meet eligibility requirements in several states and doubts about the company’s ability to deliver high-speed internet to the designated areas.
Despite seeking and receiving eligible telecommunications carrier designation in eight states, LTD faced challenges in meeting requirements in the remaining seven states where it had winning bids. The FCC denied LTD’s request for waiver of the ETC certification deadline for several states, leading to the company defaulting on bids in Kansas, Oklahoma, California, and Iowa.
LTD subsequently sought reconsideration of the waiver denials but later withdrew its petition for reconsideration in California and Iowa, resulting in default on all bids in those states.
LTD faces the most substantial fine to date, with the commission also proposing an additional $13 million in fines against 95 other RDOF bidders who defaulted.