Maryland Broadband Providers Default on RDOF Commitments Due to High Costs
Three broadband service providers, including Easton Utilities, have defaulted on their commitments under the Rural Digital Opportunity Fund (RDOF) in Maryland, Kansas, and Texas. The Federal Communications Commission (FCC) announced that these providers, which also include Plains Internet and MSEC Communications, have withdrawn from their obligations due to financial constraints. Easton Utilities, which was set to receive $189,047 to serve 909 locations in Maryland, cited the high costs of ongoing testing requirements as the reason for its withdrawal. Similarly, MSEC Communications, which was to receive $4.2 million for services in Texas, pointed to extremely high construction costs as a barrier. These defaults mean the providers will not receive further RDOF support payments and must repay the support recovery amount within six months or face financial penalties.