LTD Broadband to Contest South Dakota ETC Denial
LTD Broadband “will be seeking reconsideration” of the South Dakota Public Utilities Commission's denial of the company designation as an eligible telecom carrier, CEO Corey Hauer emailed us Tuesday. LTD suffered another blow to its Rural Digital Opportunity Fund (RDOF)…
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ambitions when South Dakota commissioners voted 2-1 Friday to deny the ETC status it needed to get about $46.6 million in 10-year RDOF support in the state. LTD didn’t meet its burden to show approval is in the public interest, said Commissioner Kristie Feigen (R) at the recorded hearing. States must protect scarce USF resources through ETC authority, said Chairman Chris Nelson (R): LTD lacks experience and doesn’t seem to understand true buildout costs. “There is a very low likelihood that the applicant has the ability to provide services throughout the designated area within a reasonable timeframe.” Supporting the company’s application, Commissioner Gary Hanson (R) said he worries commission denial would be “judicial activism” courts could rebuke. “I don’t believe the PUC has ever denied an ETC status.” The commission’s job is to assess if LTD should qualify as an ETC for federal USF support, not for RDOF, even though the decision will determine if the company gets RDOF support, he said. “This does not translate into giving us the privilege to use the RDOF regulations to determine qualification for ETC status.” Also, Hanson asked, “Who will step up to provide these services if LTD does not get a shot?” If the company fails, infrastructure it builds can be sold to others at a discounted price, he said. The California PUC denied an LTD application needed to get about $187.5 million in RDOF in support in December (see 2112160064). The company sought rehearing last month (see 2201200015). LTD sued the Iowa Utilities Board earlier that month for denying ETC status needed to get about $23.2 million (see 2112070065). The Iowa District Court for Polk County earlier this month scheduled April 15 oral argument. LTD’s brief is due Friday, said its attorney, Bret Dublinske of Fredrikson & Byron.