Four years ago, Bloosurf, was the first broadband provider to have its Connect America Fund Phase II auction buildout validated as complete by the Universal Service Administrative Company with a personal thank you by then FCC Chairman Ajit Pai. The company was five years ahead of schedule. Today, the fixed wireless provider is behind the eight ball, it says in a recent lawsuit, because T-Mobile is allegedly interfering with its operations.
In a high-stakes legal battle that could set a precedent for the telecommunications industry, Bloosurf LLC has filed a lawsuit against T-Mobile USA, Inc. and its subsidiary TDI Acquisition Sub, LLC. The lawsuit, lodged in the United States District Court for the District of Maryland, accuses T-Mobile of purposefully interfering with Bloosurf’s fixed wireless broadband operations on the Eastern Shore, resulting in significant customer and revenue losses for the rural service provider.
Core allegations are seeking $116 million
Bloosurf, which offers broadband and VOIP services predominantly in rural areas of the Delmarva Peninsula, bordering parts of Delaware, Maryland, and Virginia, claims that T-Mobile’s actions began to severely disrupt its service following T-Mobile’s acquisition of Sprint.
According to the complaint, T-Mobile’s 5G technology caused substantial interference with Bloosurf’s existing 2.5GHz spectrum operations. The lawsuit seeks $116 million in damages, asserting that T-Mobile broadcasted on frequencies exclusively licensed to Bloosurf, a move seen as a tactic to push Bloosurf out of the market.
Legal claims and University lease dispute
The plaintiff has laid out several claims under both federal and state laws, including willful and wanton interference, negligence, and private nuisance.
Bloosurf alleges that T-Mobile not only interfered with its spectrum but also manipulated its relationship with Maryland Universities that hold the Educational Broadband Spectrum (“EBS”) licenses. These licenses are central to Bloosurf’s operations and are tied to various state and federal grants, including a substantial CAF2 grant by the FCC.
Bloosurf contends that T-Mobile’s strategy was to acquire these EBS licenses from the universities, effectively undermining Bloosurf’s business foundation. This aggressive move jeopardized Bloosurf’s ability to serve its rural customer base, leading to a halving of its customer numbers and a precipitous drop in business valuation.
Bloosurf had previously filed a complaint with the FCC over the issue. However, the agency dismissed the complaint on procedural grounds. Now, Bloosurf has again filed a review request on the topic in the hopes that the FCC will reconsider the issue.
In its filing, the company said, “Bloosurf’s network provides a critical lifeline to local communities, including by offering voice/911 service to many of its customers and by providing broadband access where it is not otherwise available,” and T-Mobile is preventing the services. They said T-Mobile had previously proposed synchronization of its network with Bloosurf’s using Special SubFrame 7, “but such a solution is not feasible for a variety of reasons.”
