Cable companies are likely to target out of footprint for BEAD opportunities

New Street Research analyst Jonathan Chaplin says that cable operators will have a lot of opportunity to snag Broadband Equity, Access and Deployment (BEAD) funds for locations that are out of—but proximate to—their existing footprints. Chaplin delineated three areas out of their existing footprints that will be most ripe for them. The first area will be locations that are unserved that are near their existing footprints, and where there’s no other internet service provider nearby. The second area will be locations that are officially unserved, according to the Federal Communications Commission's definition, but where there is an existing internet service provider. “These are locations with [a broadband provider] providing less than 25/3 Mbps that are also near existing cable plant,” wrote Chaplin.  And the third area with good opportunity for cable will be underserved locations with a broadband provider providing more than 25/3 Mbps but less than 100/20 Mbps that are also near existing cable plant. Chaplin said the incumbent local exchange carrier (ILEC) will have an advantage when competing for these locations, since their upgrade costs should be lower than having to build from scratch. "Though cable will offer a compelling alternative in these markets too,” he wrote.