The Arkansas Legislature's Joint Budget Committee approved the state Department of Commerce's request to use $53.3 million in federal American Rescue Plan funds for eight broadband grant projects and $2 million for broadband administrative expenses. The proposed broadband grant projects are in Ashley, Baxter, Chicot, Clark, Columbia, Hot Spring, Logan and Lonoke (AR) counties.
Low-income multifamily communities or those with a high percentage of unserved residents are now eligible to receive broadband deployment funding from Congress, and the National Telecommunications and Information Administration (NTIA) reaffirmed this eligibility. Each state is now building out its programs and establishing criteria that build upon federal priorities and requirements. This is a critical next step in ensuring the total and efficient disbursement of these funds.
In 2023, broadband spending could taper off because of high-interest rates and economic challenges, but buildout expansions remain high. A few factors are driving this. Demand for household internet keeps growing. Leichtman Research Group (LRG) found that 90 percent of US households now get internet service, up from 84 percent in 2017.
It was worth the wait. The third round of the US Department of Agriculture's ReConnect Loan and Grant Program closed in 2022, after awarding $759 million in rural broadband grants and loans to 49 deployers, mostly small local exchange carriers (LECs). The average cost of passing each home, farm, other business, or school was just over $4,500, compared to $4,100 in 2019 and almost $6,000 in 2020. All awardees in this round, and almost all in previous rounds, told USDA they were deploying fiber to the premises.
If you zoom into Pine Bluff, Arkansas, on the Federal Communication Commission’s broadband map, it doesn’t take long to realize something doesn’t look right.
Significant increases in consumption and speeds, spurred in part by government incentives, powered broadband toward or past major milestones at the end of 2022.
The wireless industry is out with a new paper that claims, “The bias [towards fiber to the home] ‘could increase costs by upwards of $30 to $60 billion depending on the distribution of fiber deployment costs for the unserved locations.’” It also says “[excluding unlicensed fixed wireless] ‘unambiguously adds’ at least 1.9 million new locations calling for government-funded overbuilding with [Broadband Equity, Access, and Deployment] BEAD funds”. As both my
To make sure that the Infrastructure Investment and Jobs Act's Broadband Equity, Access, and Deployment (BEAD) program funding is used efficiently and not misallocated, it is important that National Telecommunications and Information Administration (NTIA) rules for allocating those funds be based on sound economic and policy principles. Unfortunately, that is not the case presently. As framed, the BEAD Notice of Funding Opportunity (NOFO) is heavily biased to favor and fund Fiber to the Premises (FTTP) projects.
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