The National Telecommunications and Information Administration (NTIA) has expressed a preference for fiber when it comes to dispensing $42.5 billion from the Broadband, Equity, Access and Deployment (BEAD) funding. But the NTIA rules allow U.S. states some leeway in regard to areas where it will be extremely expensive to deploy fiber. Specifically, states and territories must define their thresholds for extreme high-cost locations. This will open the door for less expensive alternatives to fiber to be deployed in areas where the fiber cost is over the threshold. But the NTIA expects the thresholds to be set as high as possible so that as many people receive fiber as possible. Extreme high-cost deployments of fiber got a lot of attention in 2022 when reports surfaced of some USDA ReConnect grants being allocated for crazily expensive fiber deployments. For example, the Alaska Telephone Company won a $33 million ReConnect grant to run fiber to 211 homes and five businesses at a shocking cost of nearly $204,000 per passing. The Fiber Broadband Association (FBA) is working with the consulting company Cartesian to develop business models for deploying fiber in extremely high-cost situations.

The federal infrastructure bill enacted in late 2021 included resources and funding requirements to significantly narrow the gap between American households that have access to affordable, high-speed internet and those that do not. Although much of the implementation effort is in the hands of state governments, Congress’ work on expanding broadband access is far from over. In February 2022, The Pew Charitable Trusts brought together state broadband leaders and congressional staffers to discuss priorities for the coming year and the importance of collaboration among all levels of government. State officials identified four key challenges that could derail the implementation of federal funds: financial due diligence requirements, federal permitting processes, limited interagency coordination, and the need for sustainable funding for the Affordable Connectivity Program (ACP). Created by the Infrastructure Investment and Jobs Act (IIJA), the ACP provides eligible households with discounts on broadband services and connected devices. The discussion highlighted that state policymakers can offer valuable insights to federal lawmakers looking to better align programs at all levels to accelerate progress toward universally available and affordable broadband service.

[Katryn de Wit is Project Director of the Pew Charitable Trusts' Broadband Access Initiative.]

City officials in Syracuse (NY) have formally approved a new project to provide heavily discounted wireless broadband to low-income city residents. The plan is being made possible courtesy of the $1.9 trillion American Rescue Plan Act (ARPA), $123 million of which has been doled out to Syracuse city leaders for various urban improvement efforts. After issuing a request for proposals (RFP) in 2022, Syracuse officials say they’ve selected Community Broadband Networks FLX to help build the fledgling, city-owned network. City officials say the finished project, estimated to be completed by the end of 2023 summer, should cover 10 Census tracts in the south, southwest, and west sides of the city for a total project cost of around $3.5 million. Once completed, the network should provide wireless broadband service at speeds up to 100 megabits per second (Mbps) to roughly 2,500 Syracuse residents currently living below the poverty line in a city of 146,000. City officials say they hope to charge a fixed rate of around $40 per month for service. The lion’s share of those costs will be supplemented by the Affordable Connectivity Program (ACP). To qualify for Syracuse’s looming program, city officials say residents can earn up to 200% of the federal poverty level—or roughly $29,000 for a single resident, $39,000 for a two-person household, or $60,000 for a family of four. Participating users will be given a free router and modem, which in turn will connect to city transmitters affixed to local city-owned buildings and utility poles.