Infrastructure

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.

Governor Tim Walz (D-MN) announced over $50 million in grants to expand broadband access to an estimated 8,900 homes and businesses throughout Minnesota. Twenty four broadband expansion projects will receive grants from the Department of Employment and Economic Development's (DEED) Office of Broadband Development, helping deploy new broadband infrastructure around Minnesota.

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.

California's Broadband Loan Loss Reserve Fund is a $500 million fund that provides a credit enhancement related to the financing of local broadband infrastructure development. The reserve fund expands the ability of local governments, tribes and non-profits to secure financing for building last-mile projects, with an emphasis on public broadband networks. The Fund will provide collateral to local governments to enable more favorable borrowing rates and terms for bonds issued to deploy broadband infrastructure. The Fund was established in 2021. The benefits of the Fund include:

Akron (OH) Mayor Shammas Malik announced a long-term plan to bring affordable high speed internet to all city residents. Through a partnership with SiFi Networks, $200 million will be invested in a plan to install, maintain and operate an underground fiber optic internet network by the above targeted year of 2030. SiFi Networks plans to foot the entire $200 million bill at no cost to the city of Akron. “In 2024, it is essential that every person in Akron has access to high-speed, affordable internet,” said Mayor Malik.

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 

Alabama is getting a major open access fiber boost via private investment. Meridiam, an infrastructure investment firm, is kicking off a $230 million project to build an open access network that will reach 17 Alabama cities, including Selma and Demopolis. It aims to eventually cover 53,000 homes and businesses in partnership with Yellowhammer Networks, a fiber-to-the-premises network developer that’s financed by Meridiam. This is far from Meridiam’s first time riding in the broadband infrastructure rodeo.

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.