The Rural Digital Opportunity Fund (RDOF) aimed to bring broadband to unserved and underserved areas through competitive subsidies. However, the broadband landscape continues to be in flux due to RDOF defaults as some providers fall short of their obligations.
Why RDOF Defaults Matter Right Now
RDOF defaults are drawing renewed attention because many occurred after the June 2025 BEAD eligibility cutoff, leaving thousands of broadband serviceable locations (BSLs) in an uncertain position. These areas were previously considered covered under enforceable federal commitments and were therefore excluded from BEAD funding. Now, with defaults occurring after the BEAD cutoff date, those BSLs fall outside both RDOF and BEAD support.
This has created a massive quantity of unserved and underserved communities that will remain on the other side of the digital divide for the foreseeable future. These defaults have impacted tens of thousands of BSLs across the country.
For example, in July 2025, CenturyLink defaulted on approximately 41,000 RDOF locations across eight states and 153 census block groups and Lumen & Commnet Four Corners defaults caused the FCC to reopen certain census block groups for alternate funding in Colorado, Idaho, Minnesota, Montana, Nebraska, Oregon, and Washington.
As BEAD allocations move forward and federal programs wind down, the question of how to serve these BSLs has become increasingly urgent for states and local governments. Local internet service providers (ISPs) assessing future buildout strategies may have an opportunity to expand to these defaulted regions.
What Do RDOF Defaults Mean for Local ISPs?
While these defaults create short-term uncertainty for communities, they also open potential long-term opportunities for local ISPs. Many of the defaulted locations are rural or remote areas that larger providers found cost-prohibitive to serve due to construction expenses, supply chain disruptions, or lower-than-expected take rates.
However, local and regional ISPs often operate differently. They tend to have leaner deployment models, deeper community relationships, and a stronger focus on customer service within their footprint. These traits could make smaller providers better positioned to evaluate whether expansion into defaulted areas makes financial sense, especially if they can do so efficiently and with data-backed analysis.
What Do RDOF Defaults Mean for WISPs?
For wireless internet service providers (WISPs), RDOF defaults represent a rare opportunity. Many of the locations that larger fiber-focused providers defaulted on are precisely the kinds of hard-to-reach, lower-density areas where fixed wireless can be deployed faster and at a fraction of the cost.
WISPs that already operate in or near these defaulted census blocks have an advantages such as existing infrastructure, local knowledge, and flexible deployment models.
The challenge lies in determining which areas are actually viable. With limited federal funding left on the horizon and BEAD largely locked in, WISPs need to rely on precise data and targeted financial modeling to decide where expansion makes sense. Tools that combine topography, competitor data, and cost modeling can help WISPs pinpoint areas where a wireless overlay or hybrid fiber-wireless solution could succeed where others have struggled.
An assessment using our broadband analysis platform, OptiDesigni™ can help WISPs quickly identify if a potential area of expansion would be profitable. Speed and clarity of data is a key advantage for WISPs ready to act on the gaps that RDOF defaults are creating.
Turning Defaults into Dollars
RDOF defaults may signal setbacks in the nation’s broadband rollout, but they also highlight where progress is still possible. The areas left behind are indicators of where innovation and local leadership are most needed. As federal programs like BEAD move into later stages, local providers and WISPs have a chance to redefine what rural connectivity looks like. By combining agility with data-driven planning, they can close the gaps left by RDOF and BEAD while building networks that are both financially and operationally sustainable.