UPDATE Regional wireless service provider SI Wireless gave Telecompetitor early access to what it says is a status update filing on participation in the FCC’s Rip & Replace program. It says it’s waiting for approval for reimbursement of over 258 invoices totaling nearly $15 million, with an average invoice age of 189 days.
“SI Wireless participated in this program with the understanding that dismantling their fully functional 204-site network serving rural communities in Western Tennessee and Kentucky to protect national security would be followed by timely reimbursements for the replacement network as per the program guidelines, states the company. “While SI Wireless has fulfilled its part by removing this potential national security threat, the administrative execution of the program has been lacking.”
SI Wireless says some invoices “have been pending approval for over 628 days, while 145 invoices are still in ‘Submitted’ status without an initial review, the oldest pending for over a year… SI Wireless has had to take out loans to cover expenses, accruing non-reimbursable interest due to the delay in reimbursements.”
The company states in the document that the fund administrator, Ernst and Young, “appears to have a conflicting interest, with no incentive to quickly process invoices as they are paid hourly. This results in excessive back-and-forth over minor discrepancies, serial RFIs, and extensive delays in reimbursement.”
Inside Towers reported the company sought another six-month extension to its construction deadline in April. It said back then it submitted “a large number of invoices” with Ernst & Young, but was experiencing “excessive delays with the processing of these invoices.”
The continued shortfall in funding for the program “has forced SI Wireless to submit modifications to its initial removal, replacement, and disposal plan, which, until recently, completely halted the processing of its many submitted invoices,” it told the agency. “The lack of full funding has resulted in uncertainty, delays, and additional costs for SI Wireless to complete the project.”
Equipment vendors, SI Wireless says, have been focusing on their production of 5G equipment and have reduced or terminated their production of 4G LTE equipment, resulting in four to six-month delays for it to receive that gear. SI Wireless adds that Rip & Replace does not reimburse 5G equipment. “The delays in processing of invoices, the lack of full funding, and supply chain delays have each played a significant role in hampering its efforts to meet its one-year completion deadline,” it said in requesting a November construction deadline.
The FCC declined to comment, and Ernst & Young did not return a message seeking comment, notes Telecompetitor.
By Leslie Stimson, Inside Towers Washington Bureau Chief
Reader Interactions