20251107Request to Relinquish ETC.pdf

CWL-T-25-01 RECEIVED
November 7, 2025
IDAHO PUBLIC
UTILITIES COMMISSION
Preston N. Carter, ISB No. 8462
Morgan D. Goodin, ISB No. 11184
GIVENS PURSLEY LLP
601 West Bannock Street
P.O. Box 2720
Boise, Idaho 83701-2720
Office: [phone]
Fax: [phone]
[e-mail]
[e-mail]
19208823.1 [15657.21
Attorneys for Commnet Wireless, LLC
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION Case No.
OF COMMNET WIRELESS, LLC TO
RELINQUISH DESIGNATION AS AN COMMNET WIRELESS,LLC's REQUEST
ELIGIBLE TELECOMMUNICATIONS TO RELINQUISH ELIGIBLE
CARRIER TELECOMMUNICATIONS CARRIER
DESIGNATION
Pursuant to 47 U.S.C. § 214(e)(4), 47 C.F.R. § 54.205(a), and Idaho Code § 62-6101)(4),
Commnet Wireless, LLC ("Commnet" or the "Company") respectfully submits this request to
the Idaho Public Utilities Commission("Commission") to relinquish its designation as an
Eligible Telecommunications Carrier("ETC") for the purpose of receiving federal Rural Digital
Opportunity Fund ("RDOF") support in the single Census Block Group ("CBG") located in
Boise County, Idaho (CBG 160159502001), where the Commission designated it as an ETC in
Order No. 35049 in Case No. CWL-T-21-01 on May 21, 2021.
In support of this request, Commnet states:
1. Commnet is a Delaware limited liability company that provides voice and broadband
services in portions of the western United States.
2. On May 21, 2021, the Commission granted Commnet ETC status in a single CBG
located in Boise County, Idaho, for purposes of participation in the Federal Communications
REQUEST TO RELINQUISH ETC DESIGNATION PAGE I OF 4

Commission's ("FCC") RDOF program in which the Company was deemed the winning bidder
for Phase I of the Federal Communications Commission's RDOF auction("Auction 904").
3. On December 9, 2024, Commnet notified the FCC that it was withdrawing from its
winning RDOF bid for that CBG (CBG 160159502001),which includes 1,400 RDOF-eligible
locations in Boise County. In so doing, Commnet explained to the FCC that it had observed
deployment costs in this county increase dramatically since the Company submitted its bids in
Auction 904. Commnet further explained that it was returning this CBG so that it may become
eligible for other federal, state, or local subsidy programs, such as the National
Telecommunications and Information Association's Broadband Equity Access and Deployment
("BEAD") Program.
4. On January 15, 2025, the FCC's Wireline Competition Bureau issued a Public Notice
announcing that CBG 160159502001, among other CBGs, is now eligible for other funding
programs. A copy of the FCC's Public Notice is attached as Exhibit 1.
5. Accordingly, Commnet files this request for relinquishment.
6. Per Section 214(e)(4) of the Communications Act, a"State commission . . . shall
permit an eligible telecommunications carrier to relinquish its designation as such a carrier in any
area served by more than one eligible telecommunications carrier...."' Idaho law similarly
states that the Commission"shall permit" an ETC to relinquish its ETC designation for an area
served by more than one ETC upon no less than 30 days' notice to the Commission.2
7. Relinquishment of the ETC designation will not harm the public and no consumers
will be impacted because: (i) the Company does not serve any Idaho customers pursuant to its
147 U.S.C. § 214(e)(4). The FCC's rules likewise provide that a"state commission shall permit an eligible
telecommunications carrier to relinquish its designation as such a carrier in any area served by more than one eligible
telecommunications carrier." 47 C.F.R. § 54.205(a).
2 Idaho Code § 62-6101)(4).
REQUEST TO RELINQUISH ETC DESIGNATION PAGE 2 OF 4

ETC designation, and(ii) there are other ETCs already operating in the CGB in which the
Company has been designated, including Cambridge Telephone Company, Safelink, TruConnect,
and AirTalk Wireless. Thus, there will be no impact on any Idaho residents associated with the
relinquishment of the Company's ETC designation.
8. No customer notice is required in connection with the relinquishment because the
Company does not serve any customers in Idaho pursuant to its ETC designation.
9. Finally, there will be no discontinuance of service associated with the relinquishment
of the Company's ETC designation given the Company does not currently serve any customers in
Idaho.
THEREFORE, based on the foregoing, Commnet respectfully requests the Commission
issue an order granting its request for relinquishment.
Dated: November 7, 2025
GIVENS PURSLEY LLP
By Is/Preston N. Carter
Preston N. Carter
Givens Pursley LLP
Attorneys for Commnet Wireless, LLC
REQUEST TO RELINQUISH ETC DESIGNATION PAGE 3 OF 4

CERTIFICATE OF SERVICE
I hereby certify that on November 7, 2025, I caused to be served a true and correct copy of
the foregoing document to the person(s) listed below by the method indicated:
Commission Staff Via Electronic Mail
Monica Barrios-Sanchez, Commission Secretary [e-mail]
Idaho Public Utilities Commission [e-mail]
11331 W. Chinden Blvd., Bldg. 8, Suite 201-A
Boise, ID 83714
/s/Preston N. Carter
Preston N. Carter
REQUEST TO RELINQUISH ETC DESIGNATION PAGE 4 OF 4

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PUBLIC NOTICE
Federal Communications Commission
45 L Street NE News Media Information 202/418-0500
DC 20554 Internet: https://www.fcc.gov
Washington
TTY: 1-888-835-5322
DA 25-45
Released: January 15,2025
WIRELINE COMPETITION BUREAU ANNOUNCES COMMNET WIRELESS,LLC,
MERCURY WIRELESS INDIANA,LLC,AND MEDIAPOLIS TELEPHONE COMPANY
DEFAULTS ON CERTAIN RDOF CENSUS BLOCK GROUPS IN IDAHO,WASHINGTON,
OHIO,AND IOWA
AU Docket No.20-34
WC Docket No. 19-126
WC Docket No. 10-90
By this Public Notice,the Wireline Competition Bureau(WCB or Bureau) announces that certain
Rural Digital Opportunity Fund(RDOF)census block groups (CBG) are now eligible for other funding
programs. Specifically, Commnet Wireless,LLC (Commnet)has notified the Commission it will not
fulfill its commitment to offer voice and broadband service to certain CBGs within its RDOF support
service areas in Washington(study area code(SAC) 529033).1 Commnet has also notified the
Commission of its decision to withdraw from the RDOF support program in the CBG covered by its only
authorized winning bid in Idaho (SAC 479028). Additionally,Mercury Wireless Indiana,LLC (Mercury
Indiana)has notified the Commission it will not fulfill its commitment to offer voice and broadband
service to certain CBGs within its RDOF support service areas in Ohio(SAC 309024).2 Moreover,
1 Letter from Warren Thomas,General Counsel,Commnet Wireless,LLC,to Trent Harkrader,Chief,Wireline
Competition Bureau,FCC,WC Docket No. 19-126 et al.(filed Dec. 9,2024)(Commnet Withdrawal Letter). In
February 2022,Commnet was authorized to receive$2,594,984 in RDOF support over 10 years to serve 1,400
model-estimated locations in Idaho,$5,964,913 in RDOF support over 10 years to serve 2,078 model-estimated
locations in Montana,and$7,776,005 in RDOF support over 10 years to serve 5,639 locations in Washington.
Rural Digital Opportunity Fund Support Authorized for 2,576 Winning Bids,AU Docket No.20-34 et al.,37 FCC
Rcd 1617(WCB/OEA 2022)(Commnet Authorization Public Notice). Commnet is defaulting on 487 model-
estimated locations in Washington and all 1,400 model-estimated locations in Idaho. Commnet remains obligated to
meet its RDOF commitments in the remaining CBGs in its RDOF auction supported areas. 47 CFR§ 54.802(c).
2 Letter from AJ Long,Chief Financial Officer,Mercury Broadband,LLC,to Trent Harkrader,Chief,Wireline
Competition Bureau,FCC,WC Docket No. 19-126 et al.(filed Dec. 18,2024). Mercury Wireless,Inc.assigned its
Indiana,Michigan,and Ohio winning bids to Mercury Indiana. Long-Form Applicants in the Rural Digital
Opportunity Fund Phase I Auction (Auction 904),AU Docket No.20-34 et al.,Public Notice,36 FCC Rcd 4140
(WCB/OEA 2021)(Auction 904 Long-Form Applicants Public Notice). In July 2022,Mercury Indiana was
authorized to receive$9,437,647 in RDOF support over 10 years to serve 13,529 model-estimated locations in
Indiana,$37,598,649 in RDOF support over 10 years to serve 77,925 model-estimated locations in Michigan,and
$6,456,923 in RDOF support over 10 years to serve 17,842 model-estimated locations in Ohio. Rural Digital
Opportunity Fund Support Authorized for 1,605 Winning Bids,AU Docket No.20-34 et al.,37 FCC Rcd 8331
(WCB/OEA 2022)(Mercury Authorization Public Notice). Mercury Indiana is defaulting on 14,372 model-
estimated locations in Ohio. In November 2024,the Bureau announced that Mercury Indiana had defaulted on
certain CBGs in Indiana and Michigan. Wireline Competition Bureau Announces Mercury Wireless,Indiana LLC;
Mercury Wireless Kansas LLC;PVT NetWorks,Inc.; Cable One, V61P LLC d/b/a Sparklight;and Fidelity
Cablevision,LLC Defaults on Certain RDOF Census Block Groups in Idaho,Illinois,Indiana,Kansas,Michigan,
Missouri, and New Mexico,AU Docket No.20-34 et al.,Public Notice,DA 24-1199(WCB Nov.27,2024)
(continued....)

Federal Communications Commission DA 25-45
Mediapolis Telephone Company(Mediapolis) (SAC 351251)has notified the Commission of its decision
to withdraw from the RDOF support program in the CBG covered by its only authorized winning bid in
Iowa.3 The carriers will be subject to penalties, as described below,for their defaults. We also refer
Commnet's and Mercury Indiana's defaults to the Enforcement Bureau for further consideration.4
Although some defaults after auctions are expected because of changing business plans or
economic circumstances,we expect carriers to live up to their deployment commitments, and those who
fail to meet their obligations can jeopardize the opportunity to bring broadband to the promised areas and
undermine the integrity of the programs. Such defaults are particularly regrettable when the carrier waits
years after authorization to default,making it difficult to correct the problem and otherwise accommodate
the defaulted areas in other deployment programs. On July 3, 2024,the Bureau released a public notice
strongly encouraging carriers that were contemplating a default to contact the Bureau, as well as the
relevant state or territory broadband offices and Tribal governments, as soon as possible to discuss their
specific situation.5 We emphasized that early defaults ensure that states and territories timely receive the
necessary information for their Broadband Equity Access and Deployment(BEAD)planning and ensure
that our sister federal agencies timely receive this information to target funding for their broadband
deployment programs.6
When notified of a default,our Broadband Deployment Alignment Plan(BDAP)procedures
provide for taking immediate action to coordinate with other federal and state agencies to minimize the
impact on consumers and the geographic areas to which the defaulting carriers committed. BDAP is part
of the Rural Broadband Accountability Plan which seeks to ensure that high-cost funds are properly
invested and produce new broadband services to consumers lacking connectivity.? First,the Bureau
ensures that the carrier has notified the relevant state broadband offices about the carrier's inability to
deploy broadband infrastructure to the defaulted locations. Second,the Bureau notifies the National
Telecommunications and Information Administration(NTIA)to begin a similar dialogue about the
locations. These notifications allow the state and NTIA to promptly consider the implications for the
ongoing BEAD Program and other, similar programs. Third,where feasible,the Bureau discusses with
both the relevant state broadband office and the carrier whether there is another entity that may be
interested in serving the area and assuming the defaulting carrier's RDOF obligations. Finally, if another
carrier does not assume the obligation,the Bureau notifies NTIA,the Rural Utility Service of the U.S.
Department of Agriculture(RUS), and the U.S. Department of Treasury of the circumstances so that the
(Continued from previous page)
(Mercury Indiana Default Public Notice). Mercury Indiana remains obligated to meet its RDOF commitments in the
remaining CBGs in its RDOF auction supported areas. 47 CFR§ 54.802(c).
3 Letter from Marc Carlson,General Manager,Mediapolis Telephone Company—MTC Technologies,to Trent
Harkrader,Chief,Wireline Competition Bureau,FCC,WC Docket No. 10-90 et al. (filed Dec.30,2024). American
Heartland assigned one of its Iowa winning bids to Mediapolis. Auction 904 Long-Form Applicants Public Notice.
In December 2021,Mediapolis was authorized to receive$27,498 in RDOF support over 10 years to serve 33
model-estimated locations in Iowa. Rural Digital Opportunity Fund Support Authorized for 2008 Winning Bids,AU
Docket No.20-34 et al.,36 FCC Rcd 17198(WCB/OEA 2021)(Mediapolis Authorization Public Notice).
4 Mercury Indiana was referred to the Enforcement Bureau for its prior defaults on November 27,2024. Mercury
Indiana Default Public Notice at 2.
5 Wireline Competition Bureau Provides Guidance for RDOF and CAF Phase II Support Recipients on Procedures
for Provider Defaults to Ensure that Broadband Networks are Deployed to All Consumers,AU Docket No.20-34 et
al.,DA 24-646,at 2(WCB Jul.3,2024).
6 Id.
I Federal Communications Commission,Rural Broadband Accountability Plan,https://www.fcc.gov/rbap(last
visited Nov.26,2024).
2

Federal Communications Commission DA 25-45
defaulted area can be given priority consideration in other federal broadband funding programs,in
accordance with agreed-upon best practices. The Bureau also makes enforcement referrals where
appropriate.
Our BDAP procedures have resulted in avoiding some defaults or mitigating the consequences.
For example,the Bureau and the Virginia Department of Housing and Community Development worked
closely with a carrier to avoid a Connect America Fund Phase II Auction default by efficiently facilitating
a transfer of those obligations to another carrier.$ Similarly, after RUS determined that a Community
Connect grantee would be unable to meet the terms of its grant,the Bureau issued a waiver to include part
of the grant area in the Enhanced A-CAM program to ensure broadband is deployed to those locations.9
By announcing in this Public Notice that 1)Commnet will not meet its RDOF obligations in the
identified census blocks within the defaulted CBGs in Washington,10 2) Commnet is defaulting on the
eligible census blocks within the defaulted CBG covered by its one authorized winning bids in Idaho, 3)
Mercury Indiana will not meet its RDOF obligations in the identified census blocks within the defaulted
CBGs in Ohio, and 4)Mediapolis is defaulting on the eligible census blocks within the defaulted CBG
covered by its one authorized winning bid in Iowa,we take the necessary step to formally announce that
the relevant census blocks are eligible for funding from other federal and state funding programs subject
to the rules of the other programs, furthering our responsibility to coordinate with other agencies to
maximize the deployment of high-quality broadband service across the United States." To promote the
efficient use of broadband funding, a number of funding programs make areas ineligible for broadband
deployment funding where a service provider is already subject to an enforceable commitment to serve.12
'See Grant of Domestic Section 214 Application for the Acquisition of Connect America Fund Phase HAuction
Funding and Related Buildout and Service Obligations of RiverStreet Communications of Virginia,Inc. by
EMPOWER Broadband,Inc. and Limited Relief for EMPOWER from Certain CAF Phase II Auction Compliance
and Letter of Credit Rules,WC Docket No.24-145,Public Notice,DA 24-741 (WCB July 31,2024).
9 Connect America Fund,WC Docket No. 10-90,Order,DA 24-424(WCB May 3,2024).
11 The minimum geographic unit for bidding for RDOF was a CBG containing one more eligible census blocks.
Rural Digital Opportunity Fund Phase I Auction Scheduled for October 29, 2020;Notice and Filing Requirements
and Other Procedures for Auction 904,AU Docket No.20-34 et al.,Public Notice,35 FCC Rcd 6077,6146,para.
213 (2020). Accordingly,a default must occur at the CBG level. While bidders were required to bid at the CBG
level,they can only use their support to offer service in the eligible census blocks within those CBGs. Id.;Rural
Digital Opportunity Fund et al.,WC Docket No. 19-126 et al.,Report and Order,35 FCC Rcd 686,690-94,paras.
9-16(2020)(RDOF Order).
11 Broadband Interagency Coordination Act of 2020,Pub.L.No. 116-260, § 904, 134 Stat. 1182,3214(codified at
47 U.S.C. § 1308 et seq.)(BICA)(requiring the Federal Communications Commission,the Department of
Agriculture,and the National Telecommunications and Information Administration to"enter into an interagency
agreement requiring coordination between the covered agencies for the distribution of funds for broadband
deployment. . . ."). On June 25,2021,the agencies announced that they had entered into an agreement. Press
Release,FCC,FCC,NTIA and USDA Announce Interagency Agreement to Coordinate Broadband Funding
Deployment(June 25,2021),htWs://www.fcc.gov/document/fcc-ntia-usda-sign-interagency_pact-broadband-
funding-deploy. In an effort to further facilitate broadband deployment funding coordination,on May 9,2022,
the FCC,USDA,and NTIA entered into an interagency agreement with the Department of Treasury. Press Release,
FCC,FCC,NTIA,USDA and Treasury Announce Interagency Agreement to Collaborate on Federal Broadband
Funding(May 12,2022),htWs://www.fcc.gov/document/fcc-ntia-usda-treasury-announce-broadband-info-sharing-
agreement. In May 2024,the four agencies extended the interagency agreement for an additional four years.
Federal Communications Commission,Memorandum of Understanding Between FCC,NTIA,USDA,and Treasury,
hgps://www.fcc.gov/document/memorandum-understanding-between-fcc-ntia-usda-and-treasury(Jul.23,2024).
12 See, e.g.,Department of Commerce,National Telecommunications and Information Administration,Broadband
Equity,Access,and Deployment(BEAD)Program Notice of Funding Opportunity at 36-37&n.52(May 13,2022),
(continued....)
3

Federal Communications Commission DA 25-45
This announcement, in conjunction with the actions described above, avoids leaving these areas unserved
for the duration of the RDOF deployment terms,13 because providers may now have access to alternative
funding to serve these areas.
The carriers remain subject to all eligible telecommunications carrier(ETC)obligations unless
and until they follow the relevant procedures to relinquish their designations.14 Additionally,they cannot
discontinue voice service without Commission approval."
Commnet(Washington), Mercury Indiana. In Attachment A, available here,we provide a list of
all the RDOF eligible census blocks contained within the CBGs Commnet will not serve in Washington
and that Mercury Indiana will not serve in Ohio pursuant to their RDOF obligations. In addition,we will
also update the Broadband Funding Map to remove these census blocks from Commnet and Mercury
Indiana's service areas.16 Below,we provide a limited waiver of the Commission's non-compliance rules
to adjust support to reflect that these areas will not be served. Commnet and Mercury Indiana otherwise
remain subject to RDOF non-compliance measures for failure to meet the terms and conditions of
support,including support recovery for all unserved locations at the end of the deployment term." We
will continue to use the available tools to monitor Commnet and Mercury Indiana's compliance with the
(Continued from previous page)
https://broadbandusa.ntia.doc.gov/sites/default/files/2022-05BEAD%20NOFO.12df(BEAD Program NOFO)
(explaining that any location that is already subject to an enforceable commitment for the deployment of qualifying
broadband cannot be treated as unserved or underserved);Department of Commerce,National Telecommunications
and Information Administration,Tribal Broadband Connectivity Program Round 2 Notice of Funding Opportunity
at 10-11,28(July 27,2023),https://www.ntia.izov/sites/default/files/2023-07/ntia-tbcp-round2-nofo.pdf("A Tribal
Government may not certify Tribal Lands covered under an Enforceable Buildout Commitment as defined[in the
NOFO] . . .,as Unserved");Department of Agriculture,Rural Utilities Service,Corrected Notice of Funding
Opportunity for the Community Connect Grant Program for Fiscal Year 2023, 88 Fed.Reg. 87750,87751 (Dec. 19,
2023)("Areas receiving,or areas that have received final approval for,other federal funding to construct terrestrial
facilities providing at least 10/1 Mbps service in the project Proposed Funded Service Area as of the date of this
notice,and which have been reported to the agency,are ineligible.");Department of Agriculture,Rural Utilities
Service,Rural eConnectivity(ReConncct)Program Notice of Funding Opportunity,89 Fed.Reg. 13035, 13036
(Feb.21,2024)(defining an enforceable commitment to mean"a legally enforceable obligation by any federal,
state,or local agency,utilizing Federal Funds,to provide broadband service with speeds of at least 100 megabits per
second(Mbps)downstream and 20(Mbps)upstream");Department of Treasury,Guidance for the Coronavirus
Capital Projects Fund for States,Territories,and Freely Associated States,at 3-4(Sept.2021),
https://home.treasM.gov/system/files/13 6/Capital-Projects-Fund-Guidance-States-Territories-and-Freely-
Associated-States.pdf("To the extent Recipients are considering deploying broadband to locations where there are
existing enforceable federal or state funding commitments for reliable wireline service at speeds of at least 100
Mbps of download speed and 20 Mbps of upload speed,the Recipient should ensure that the Capital Projects Fund
grant funding will not be used for costs that will be reimbursed by the other federal or state funding stream(s).That
is,Capital Projects Fund grant funds must be used only for complementary purposes.").
13 RDOF recipients authorized in 2021 and 2022 must offer the required service to 100%of their original location
total by December 31,2027 and December 31,2028,respectively. RDOF Order,35 FCC Rcd at 709,para.45. If
more locations than the original estimated are identified during the support term,recipients will have an additional
two years to serve the additional locations subject to limited exceptions. Id. at 710,para.49.
14 47 U.S.C. §214(e)(4).
15 47 U.S.C. §214(a);47 CFR§ 63.71.
16 Federal Communications Commission,Broadband Funding Map,httl2s://ftmdingmgp.fcc.gov/home(last visited
Nov.26,2024).
17 See, e.g.,47 CFR§§ 54.320(c),(d),54.806(b),(c).
4

Federal Communications Commission DA 25-45
applicable deployment obligations in their remaining supported service areas.'$
While Commnet and Mercury Indiana notified the Commission that they will not serve the
identified census blocks,they are not withdrawing from RDOF in these states. The RDOF support
program rules do not provide for partial withdrawals from the program. The Commission takes
compliance with the terms and conditions of its high-cost programs seriously and imposes non-
compliance measures if the requirements are not met.19 Commnet and Mercury Indiana remain subject to
the program rules, including the applicable non-compliance measures,20 for the duration of the support
term except as explained below, and remain obligated to serve the eligible census blocks within the
remaining CBGs in their supported service areas with voice and broadband service meeting program
requirements.
On our own motion,we find good cause to waive in part sections 54.320(d) and 54.806(c)(1)of
the Commission's rules for the census blocks identified in Attachment A consistent with precedent,21 and
instruct USAC to stop paying support for the identified census blocks pursuant to section 54.320(c)of the
Commission's rules.22 Consistent with previous precedent,we also provide a limited waiver of section
54.802(c)(1)(iii)of the Commission's rules to the extent Commnet and Mercury Indiana would be
required to serve upon reasonable request locations in the defaulted census blocks that are newly built
after the Bureau adopts revised location totals for RDOF.23 Generally,the Commission's rules may be
waived for good cause shown.24 Waiver of the Commission's rules is appropriate only if both: (1) special
circumstances warrant a deviation from the general rule, and(2) such deviation will serve the public
interest.25
18 See, e.g.,47 CFR§§ 54.316,54.320(d)(1).
19 See, e.g., 47 CFR§§ 54.320(c),(d),54.806(b),(c); Connect America Fund et al.,WC Docket No. 10-90 et al.,
Report and Order,29 FCC Rcd 15644, 15694-700,paras. 142-54(2014)(2014 Connect America Order)(adopting a
framework for support reductions,support recovery,and reporting obligations that are calibrated to the extent of a
support recipient's non-compliance with service milestones);RDOF Order,35 FCC Rcd at 710,para.48(explaining
that compliance with RDOF deployment obligations would be determined at the state level).
20 See, e.g.,47 CFR§§ 54.320(c),(d),54.806(b),(c).
21 Wireline Competition Bureau Announces Certain RDOF and CAF II Auction Census Block Groups are Eligible
for Other Funding Programs,AU Docket No.20-34 et al.,Public Notice,DA 24-181 (WCB Feb.28,2024)(Feb
2024 Post-Authorization Default Public Notice).
22 47 CFR§§ 54.320(c),(d),54.806(b),(c)(1). Section 54.320(c)of the Commission's rules states that support
recipients that"fail to comply with public interest obligations or any other terms and conditions may be subject to
further action,including. . .reductions in support amounts. . . ." 47 CFR§ 54.320(c). Future monthly support
payments will be reduced pro rata based on the number of locations associated with the CBGs that the support
recipient is defaulting on and calculated as follows,subject to any applicable non-compliance tiers: ((total monthly
authorized support/total authorized locations)x(total authorized locations—defaulted locations)). Subject to
support withholding pursuant to any applicable non-compliance tiers,Commnet's new monthly support will be
approximately$59,203 in Washington and Mercury Indiana's new monthly support will be approximately$10,464
in Ohio.
23 47 CFR§ 54.802(c)(1)(iii); Wireline Competition Bureau Announces Lumen Technologies,Inc.'s Default on its
RDOF Obligations in Four States and Also Announces Broadband Deployment Alignment Plan Procedures,AU
Docket No.20-34 et al.,Public Notice,DA 24-899,at 5 n.22(WCB Sept.9,2024).
24 47 CFR§ 1.3.
25 See Northeast Cellular Tel. Co. v.FCC,897 F.2d 1164, 1166(D.C.Cir. 1990)(citing WAIT Radio v. FCC,418
F.2d 1153, 1157-59(D.C. Cir. 1969),cert. denied,93 S.Ct.461 (1972)(WAIT Radio))(Northeast Cellular).
5

Federal Communications Commission DA 25-45
Despite our limited waivers,which are narrowly limited to stopping payments of future support
for the identified census blocks and eliminating the requirement that Commnet and Mercury Indiana serve
newly built locations in the defaulted census blocks upon reasonable request, Commnet and Mercury
Indiana otherwise remain subject to section 54.320(d) and 54.806(c)(1)of the Commission's rules.26 If
Commnet or Mercury Indiana fails to meet its interim service milestones by not serving the required
number of locations based on its original authorized location totals, it will be placed in the associated non-
compliance tier.27 If the applicable non-compliance tier requires that we withhold an amount of support
that exceeds the amount of support we have stopped paying for the identified census blocks,we will
withhold an amount of additional support that equals the difference between: 1)the amount of support
required to be withheld pursuant to section 54.320(d)(1), and 2)the amount of support we stopped paying
for the identified census blocks.28 If the applicable non-compliance tier requires that we withhold less
support than the amount of support we have stopped paying for the identified census blocks pursuant to
our limited waiver,we will make no further adjustments to Commnet's or Mercury Indiana's monthly
disbursement, i.e.,we will withhold no support other than the support we stopped paying for the
identified census blocks.29 At the end of the deployment period,we will apply section 54.806(c)(1)to
recover support for all unserved locations, including the locations covered by the identified census
blocks.30 Any additional issues related to the support recovery required by section 54.806(c)(1)of the
Commission's rules will be addressed in a separate release.31
Commnet(Idaho), Mediapolis. We consider Commnet and Mediapolis to have defaulted on their
RDOF service milestones in Idaho and Iowa respectively. These carriers will receive no further RDOF
auction support payments32 and are subject to support recovery and non-compliance measures consistent
26 47 CFR§§ 54.320(d),54.806(c)(1).
27 47 CFR§§ 54.320(d)(1),54.806(c).
2147 CFR§ 54.320(d)(1). As a simplified example,if a carrier receiving$100 per month in support is required to
serve 100 locations and has indicated it will not serve eligible census blocks within CBGs covering 20 of those
locations,we will reduce the carrier's ongoing monthly support by a pro rata amount to stop future payments for the
defaulted census blocks so that the carrier is now receiving$80 per month(i.e.,the Commission will no longer pay
the$20 per month associated with the identified census blocks)(($100/100)x(100-20)=$80 a month). If the
carrier is in non-compliance Tier 3 so that we are required to withhold 25%of support(i.e.,$25; .25 x$100),we
would withhold an extra$5 a month so that we are not paying the carrier$25 in total each month(i.e.,$20 for the
defaulted census blocks+$5 additional). If the carrier comes back into compliance so that it is entitled to have its
support restored,we would only restore the additional monthly amount of support that we withheld(i.e.,$5 a
month)and would not restore the$20 we have stopped paying for the identified census blocks. 47 CFR§
54.320(d)(1)(iii).
29 Assuming the same simplified example as in the prior footnote,if the carrier is in non-compliance Tier 2 so that
we are required to withhold 15%a month(i.e., $15, .15 x$100),we would not withhold any additional monthly
support since we have already stopped paying the carrier$20 a month for defaulted census blocks,and$20 exceeds
the$15 we are required to withhold. 47 CFR§ 54.320(d)(1)(ii).
3147 CFR§ 54.806(c)(1).
31 Id.
32 See 47 CFR§ 54.804(c)(4)("Authorization to receive Rural Digital Opportunity Fund support is conditioned
upon full and timely performance of all of the requirements set forth in this section,and any additional terms and
conditions upon which the support was granted."). See also Commnet Authorization Public Notice,37 FCC Rcd at
1617-25;Mediapolis Authorization Public Notice,36 FCC Rcd at 17198-208(providing a non-comprehensive
summary of the RDOF requirements). After Commnet and Mediapolis notified WCB of their intent to withdraw
from the RDOF support program,WCB instructed USAC to suspend their RDOF support payments. 47 CFR§§
54.320(c),54.806(b).
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Federal Communications Commission DA 25-45
with the Commission's rules.33 We will also remove their RDOF service areas from the Broadband
Funding Map.34
-FCC-
33 47 CFR§§ 54.804(c)(4),54.320,54.806(c). Commnet's and Mediapolis' decision to withdraw from the RDOF
support program and not pursue further support constitutes notification that they will not meet the final service
milestone and that they will not come into compliance after a 12-month grace period or at any point during the
support term. If a support recipient does not repay the required support recovery amount within six months of
receiving an invoice from USAC,the Bureau will authorize USAC to draw on the support recipient's letter of credit.
47 CFR§ 54.804(c)(4)(i). Carriers seeking relief from applicable support recovery measures have the option of
submitting a request for waiver. 47 CFR§ 1.3.
34 The census blocks covered by Commnet's and Mediapolis' authorized winning bids are available on the"Results"
tab of the Auction 904 website at hlWs://www.fcc.aov/auction/904 in the document"Historical Authorized Auction
904 Long-Form Applicants Data."
7