From a Silk Purse to a Sow’s Ear? Implementing the Broadband, Equity, Access and Deployment Act

The Infrastructure Investment and Jobs Act (IIJA) included some $42.45 billion to ensure “access to affordable, reliable, high-speed broadband” throughout the United States. However, $42 billion is unlikely to be sufficient to serve all households. To maximize the number of households receiving service, awards need to ensure sufficient quality at the lowest cost. In addition, because the bulk of the money is to subsidize initial setup costs in high-cost areas, providers should not expect ongoing support for customers who can afford typical broadband prices and the regulatory structure should make that clear. Now, as the warm glow of the IIJA's passage gives way to the implementation phase––to be carried out under the auspices of the Broadband Equity, Access and Development (BEAD) Program––it is critical that policymakers think very carefully about the program design to reduce the chances of repeating the mistakes of prior efforts to achieve universal service. The current vision of the implementation plan embodies several features that should be rethought. Here we highlight two that are central to the ultimate success or failure of the BEAD Program. The program should be designed to: (1) promote high-quality build-out at the lowest possible cost and (2) reflect “best practices” of modern regulation.