Why industry groups think federal broadband dollars could go to waste

While Minnesota will be receiving $652 million from the federal Broadband Equity, Access and Deployment (BEAD) program to help fund broadband access projects across the state, many internet service providers might not opt-in over frustrations with the program. “My members are telling me they’re not going to participate,” said Brent Christensen, president and CEO of Minnesota Telecom Alliance. “The way that BEAD is structured. I don’t know how anybody’s going to participate.” His group represents 70 companies that provide advanced telecommunications services, like wireless video and high-speed internet, to Minnesota’s rural and metropolitan regions. Members vary in size, with the largest, Century Link, serving metro customers and the smallest serving a little over 200 customers. Many of the companies have built out broadband in rural locations with the help of state funding, but the requirements of the federal program, which is administered by the National Telecommunications and Information Administration (NTIA), are much more “onerous,” Christensen said. The industry is frustrated with the federal body because of these requirements and the amount of time it’s taken to set up a program. Melissa Wolf, executive director of the Minnesota Cable Communications Association, said Minnesota already had programs that worked well with internet service providers and that if BEAD had more closely modeled those programs, projects would have already been completed. One of the requirements is that any property or equipment improved with the funds will have to be held in trust by the NTIA, meaning the providers record liens on what they install. Christensen said many MTA members can’t do that.