Broadband Equity, Access, and Deployment (BEAD) Program

The Fiscal Year 2024 Commerce, Justice, Science, and Related Agencies (CJS) Appropriations Act provides a total of $68.537 billion in discretionary funding.  The bill provides $10.8 billion for the Department of Commerce.

The Department of Commerce's Inspector General asked industry stakeholders to identify challenges they are facing with broadband programmatic deployment to unserved and underserved locations.

From all over the country, I’m hearing stories about internet service providers who are gaming the Federal Communications Commission (FCC) broadband maps in order to block areas from being eligible for the BEAD grants. It’s relatively easy for a provider to do this. All that’s needed is to declare the capability to deliver a speed of 100/20 Mbps in the FCC maps. Providers can largely do this with impunity. The archaic FCC rules allow providers to claim ‘up-to’ marketing speeds in the maps.

At least 13 states intend to undertake “nondeployment” projects as part of their funding under the $42.5-billion BEAD program, according to their initial proposals. The number of states that expect money left over after allocating funds for all unserved and underserved locations could be higher, and perhaps considerably so.

Elaina Zempel, manager of the Wyoming broadband office, laments that the office didn’t have more funds to distribute in its recent Capital Projects Fund (CPF) program, which awarded funding to network operators to cover some of the costs of deploying broadband to 15,000 unserved and underserved locations. Fortunately, NTIA allocated $347.9 million in rural broadband funding to Wyoming for the BEAD rural broadband funding program, so there is still an opportunity to fund many of the failed requests from Wyoming’s 

From an internet service provider perspective, the BEAD grant program has progressed at a glacial scale. The BEAD grants were signed into law on November 15, 2021, as part of the Infrastructure Investment and Jobs Act. Folks in the industry assumed that BEAD would follow a timeline similar to the earlier grants that were awarded using federal CARES and ARPA funding, and vendors certainly thought that grant awards would start in 2023 with construction underway by 2024. And then nothing happened. The BEAD process got bogged down in paperwork and bureaucracy.

The thinking behind the $42.5 billion BEAD rural funding program was that individual states were better positioned than the federal government to understand their local needs and tailor state-level rules accordingly, and we are seeing a lot of variation from state to state. A case in point: Two Midwestern states—Minnesota and Missouri—have mapped out two somewhat different paths for administering the BEAD program.

The US Department of Agriculture just announced a new round of ReConnect grants. These are grants that can only be used to serve the most rural places in the country, and one of the qualifications is the distance between the grant market and the nearest towns. The homes served by the grants must not have any broadband available at speeds of at least 25/3 Mbps. A grantee must serve every home in a grant area. It’s not going to be easy to find a grant area that is rural and that has no homes where internet service providers claim the capability to deliver speeds of at least 25/3 Mbps.

A coalition of nearly 70 broadband experts, internet service providers (ISPs), community leaders, and nonprofits wrote to the Federal Communications Commission with a request to grant a limited amnesty designed to prevent the exclusion of America’s least connected rural communities from upcoming federal broadband subsidies. Under the rules of the Broadband Equity Access and Deployment (BEAD) program, communities that are already covered by grants awarded under programs like the Rural Digital Opportunities Fund (RDOF) and Connect America Fund II (CAF II) are not eligible to receive BEAD fund

State broadband offices are asking internet service providers interested in Broadband Equity, Access, and Deployment (BEAD) funding to self-fund a $30 discount for low-income customers after the end of Affordable Connectivity Program. Since this request came from multiple states, I have to imagine the idea came from the National Telecommunications and Information Administration. I can’t think of any better proof that policymakers are out of touch with the reality of rural business plans. Even providers that are successful in rural markets are going to have small margins.