Will Federal Broadband Funds Just Go to Big Companies Again?

The bipartisan infrastructure bill appears to transform how the federal government subsidizes broadband infrastructure. But evidence suggests that big companies may not allow the status quo to change without a fight. In a break from the past, the majority of new broadband infrastructure money won’t be distributed by the Federal Communications Commission, which tended to award grants to the biggest companies. This time, the National Telecommunications and Information Administration (NTIA) will distribute the funds through the states as part of the Broadband Equity, Access and Deployment (BEAD) Program. Peggy Schaffer, executive director of the ConnectMaine Authority, said BEAD shifts the broadband conversation toward the consumer and state economic development, which has caused “a lot of angst on part of the industry who have never worked with the states before, who have maintained a monopolistic view of their network and controlled their network.” “This is the first time Congress has stopped and said, ‘You know, what we had been doing through the FCC and others — giving money to big companies who can get their stuff together and bid — is not working. It is time to have a new strategy,’” Schaffer remarked. Schaffer also shared a strictly pragmatic view when it comes to BEAD applications. As much as anyone may or may not like the new status quo with federal broadband dollars, it’s up to each organization to adapt.