Charter Aside, Big Cable Not Likely to Be Key Player in RDOF Phase I
Some cable operators expressed interest in the $16 billion Phase I Rural Digital Opportunity Fund auction, including Charter Communications, but broadband consultants don't expect other big operator to participate. It's less clear what the FCC might do about Charter tying its possible RDOF participation to pole attachment rules (see 2007170023).
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Cox said it applied. Altice and Comcast didn't comment Monday. Midco said it couldn't comment, citing the auction quiet period. Charter also didn't comment, citing the quiet period.
Cable, especially larger operators, likely will play a limited role, as in the Connect America Fund (CAF) Phase II auction, with perhaps some companies looking at using RDOF funds to edge into wireless services, said Larry Thompson, CEO of telecom consultancy Vantage Point Solutions. Government money comes with strings on issues like performance testing, and large operators often don't like that, he said. There are opportunities for cable, as some RDOF-eligible census block groups might fit well with operators' footprints, such as those fairly contiguous to existing operations and in areas with some population density, he said.
If participation in the California Advanced Services Fund (CASF) broadband infrastructure subsidy program is a guide to RDOF, Charter seems to be identifying areas adjacent to its service territory where it wants to build out, said Tellus Venture Associates President Steve Blum. Charter's challenge could be that CASF allows narrower slicing of service areas than RDOF's census block groups, Blum said.
Telecom consultant-lawyer Carol Mattey said major cablers in the past said they considered the requirements to be an eligible telecom carrier a roadblock. That could point to low involvement now by big cable operators, though participation by smaller, regional ones is likely, she said. Charter might be interested because RDOF is making money available for a broader geographic territory than was through CAF Phase II, so it could be an enticing opportunity for edging beyond a current footprint into adjacent areas at a relatively low cost, Mattey said.
Vantage Point's Thompson said it would be surprising if the FCC bent to Charter pressure on pole attachments. The agency has been very visible the past few years on streamlining infrastructure deployment rules, he said, and there will be enough interest in RDOF without pole attachment tweaks: The FCC seems to have found a middle ground that it won't want to jeopardize.