Critical Hub Networks Wants Lower LOC Burden, Execs Tell Starks in Puerto Rico
Letter of credit requirements in the Uniendo a Puerto Rico Fund to help telecom providers rebuild and harden networks are a barrier to small companies' ability to compete for the USF support and are "more onerous" than those in the…
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FCC's new Rural Digital Opportunity Fund (see 2001290018), Critical Hub Networks President Carlo Marazzi and Senior Vice President Karen Larson told Commissioner Geoffrey Starks. That was during Friday's Starks-hosted field hearing in San Juan (see 2002200021), said a filing posted Tuesday in docket 18-143. Marazzi said none of the territory's three banks is eligible to issue a LOC under the fund's rules. "U.S. banks are generally hesitant to conduct business with entities in Puerto Rico" due to its government debt crisis and recent natural disasters, he added. "Banks typically require cash or securities collateral in order to issue a LOC, which would tie up a significant portion of assets, and such assets may be necessary to meet the FCC's milestone and deployment schedule."