Commnet looks to offload RDOF locations to local providers

The FCC is soliciting comments on a request from Commnet Wireless to transfer some of its Rural Digital Opportunity Fund (RDOF) obligations in Montana to local providers Wispwest and Montana Internet.

The FCC last week released two separate public notices soliciting comments on the company's requests, with initial responses due by August 30, 2024.

Commnet was initially approved for $28.4 million through RDOF over ten years to connect roughly 19,000 locations (including $5.9 million for 2,078 locations in Montana). The company is looking to offload its commitment to serve 93 of the 224 census blocks it was awarded in Montana to Wispwest (exact number of locations was not specified), supported with $2.4 million in FCC funding; and an additional 563 locations to Montana Internet, supported with $784,756 in FCC funding.

"Applicants state that Montana Internet commits to meeting the buildout milestones and performance obligations established for the Assigned Census Blocks, including the upcoming 40% buildout milestone. Applicants note that Montana Internet is not taking on any debt repayment obligations or otherwise increasing substantially its costs to deploy service," states the FCC's public notice on the latter request.

In Commnet's individual filings requesting to transfer locations to both Montana Internet and Wispwest, the company suggested it would be more economically viable for those providers to deploy service in the region due to their proximity.

Related:FiberLight seeks to drop RDOF support for FWA builds in Georgia, Virginia

"Because Commnet's RDOF areas are adjacent to Wispwest's existing operations, Wispwest can achieve economies of scale and leverage its labor force, existing infrastructure and operational capabilities to rapidly and cost effectively build out the Assigned Census Block areas as it expands its broadband operations," argued Commnet in a July 26 filing. "Finally, assignment of the Assigned Census Blocks to Wispwest will enable Commnet to devote its attention to its other RDOF areas, to the benefit of the public."

Other Commnet transfers

Commnet's latest request to offload certain RDOF locations in Montana follows similar efforts by the company this year. Indeed, public filings with the FCC show that Commnet has requested to transfer over 6,600 of its RDOF locations to local providers in 2024.

In addition to its requests to transfer locations to Wispwest and Montana Internet, Commnet also asked the FCC for approval to transfer 3,761 RDOF locations in Washington to Rock Island Communications; and to transfer 2,287 RDOF locations in Washington and Montana to Inland Cellular. The FCC opened public comment periods on those requests as well.

Commnet is hardly alone in altering its RDOF commitments, with a range of providers notifying the FCC of their decisions to withdraw their participation in certain regions. Last week, FiberLight requested permission with the FCC to relinquish its RDOF support in Georgia and Virginia. Both Cable One and Altice chose to default on awarded locations in Louisiana as well. RDOF winners have cited higher-than-expected costs and encroaching competition as reasons for dropping their commitments.

Commnet, a subsidiary of ATN International, has been shifting its wireless strategy in recent years in general, away from mobile roaming and toward fixed wireless expansion, and relying on next-generation fixed wireless access (ngFWA) equipment from Tarana for that. Since 2021, ATN has acquired other rural providers including Sacred Wind Enterprises and Alaska Communications.