As states are getting ready to create their broadband plans for the National Telecommunications and Information Administration (NTIA)’s $42.5 billion Broadband Equity, Access and Deployment (BEAD) Program grants, we’re starting to see some interesting arguments being made by incumbents to influence state broadband plans. One of the aspects of the BEAD plan that hasn’t been discussed much yet is that the NTIA is stressing affordability. For example, the NOFO states several times that states must develop a middle-class rate plan. Everybody I know is scratching their head on what that means, but to the big internet service providers (ISPs), this must sound like rate caps – something they have vigorously fought everywhere. One aspect of high rates – data caps – is a big topic of discussion in the state. ISPs are making the claim that they’ve made many times that data caps are needed to manage the network. The rest of the ISP argument is that heavy broadband users are creating extra costs and should pay for the extra usage. But broadband costs are not related to the overall volume of broadband being delivered on a network; the cost is determined almost entirely by what network engineers call the busy hour.

[Doug Dawson is president of CCG Consulting.]

Thirteen Arkansas electric cooperatives have come together to establish Diamond State Networks, a fiber network that covers more than 64 percent of the state’s land mass. The network was created by interconnecting existing networks operated by the 13 companies. Plans include offering wholesale connectivity on the network to other service providers, as well as further network expansion. Collectively, the companies have invested or plan to invest more than $1.66 billion in fiber network infrastructure, which will serve nearly 600,000 potential customer locations. The co-managing members of Diamond State Networks are Mitchell Johnson, president and CEO of Ozarks Electric, and Jeremiah Sloan, president and CEO of Craighead Electric. “By bringing these networks together, we’re investing to build a middle mile network for long-term, far-reaching affordability and delivering high-performance connectivity to every corner of our state,” said Johnson. “Ultimately it will offer local internet service providers better access and capacity to deliver their services, and better opportunities to directly serve businesses with reliable connectivity wherever they are. We’re making it affordable to reach more areas with best-in-class technology to close the gaps from past limitations.”