Building broadband in the infrastructure bill: The good, the bad, and the uncertain

The Infrastructure Investment and Jobs Act includes $42.45 billion in funding for broadband networks, which, if passed, would reflect the government’s most significant commitment to date to addressing America’s broadband availability gap. While I applaud making states the locus of fund distribution, I question the choice of National Telecommunications and Information Administration rather than the Federal Communications Commission as the locus of oversight. Although NTIA and other agencies have administered some broadband buildout programs, the FCC is unquestionably the federal government’s expert on network deployment. As a subdivision of the Department of Commerce, NTIA is controlled directly by the executive branch, unlike the FCC, which is an independent agency. NTIA oversight thus involves a greater risk of politics intervening in funding decisions that should be made apolitically. Also, unlike prior broadband bills, the act declines to require funds be distributed through a reverse auction mechanism. FCC experience has shown reverse auctions are the best way to assure taxpayers get the best bang for their buck. During Phase II of the Connect America Fund, reverse auctions sparked competition that drove efficiency: Areas that the agency estimated would cost $5 billion to serve were ultimately covered by a $1.5 billion subsidy.