FCC’s O’Rielly: Rate of Return for Rural Broadband is “Sound”

FCC Commissioner Michael O’Rielly told rural broadband providers Tuesday the agency’s “rate of return” framework is “sound” and not too complicated. Released last spring, the Rate of Return Order was intended to achieve a long-term fiscally-responsible system to provide certainty for carriers to invest in broadband and expand their service to rural America.

He spoke at the fall conference of the WTA, Advocates for Rural Broadband, formerly called the Western Telecommunications Alliance. O’Rielly said the reforms established requirements to extend broadband to unserved consumers, to better target funding to where it is needed most while being cognizant of prior investments, and to prevent funding areas where actual competition exists. They also improved transparency and accountability regarding how the funding is used. It’s voluntary for carriers. More than 200 rate-of-return carriers in 43 states elected and have been authorized to receive model support.  Continue Reading