CCG Consulting

Now that Broadband Offices have started the process of soliciting Broadband Equity, Access, and Deployment (BEAD) grant applications, I thought I’d discuss a topic that anybody who wins a BEAD grant is going to care about—how a Broadband Office will reimburse grant winners for making expenditures. You might think this is straightforward, but unfortunately it is not. Grant offices are taking a wide variety of approaches to how they reimburse internet service providers (ISPs) for grant expenditures. Why does the method of payment matter? It probably doesn’t to giant ISPs.

The Federal Communications Commission (FCC) has gone on the offensive and defended itself against possible lawsuits that might claim that the FCC has overstepped its regulatory authority that was granted by Congress.

A recent Politico article quoted a National Telecommunications and Information Administration (NTIA) spokesperson as saying that the Broadband Equity, Access, and Deployment (BEAD) program was intended to be completed on a 10-year cycle. This is the first time I’ve heard that BEAD was intended to be a 10-year plan. States will be making BEAD awards starting sometime in 2025.

One of the oddest areas of law under the jurisdiction of the Federal Communications Commission is 47 U.S.C. § 230 (Section 230). This is the law that shields internet service providers and social media platforms from liability for content created by users. Section 230 is very much in the political news these days. There were 25 bills introduced in Congress over the last two sessions to modify Section 230 language. The bills look at a range of different topics. One set of proposed regulations would provide more protection for children online.

Pretty much everybody in the industry agrees that the Broadband Equity, Access, and Deployment (BEAD) grant process has taken too long. The Infrastructure Investment and Jobs Act legislation that authorized BEAD was signed into law in November 2021. A few states are now opening a grant portal to accept BEAD grant applications—nearly three years after the legislation was passed. Not all grant programs have taken this long. An interesting contrast to BEAD is another huge-dollar federal grant program, the Capital Project Fund (CPF).

A long-running issue resurfaced recently asking if light poles should be made available for telecommunications.

I constantly see articles that make claims about the percentage of homes that have broadband, cable TV, or telephone service. Any time I see a statement like that, I ask the question—how many total homes are in the U.S.—a number that is needed to calculate a penetration rate. There doesn’t seem to be any consensus on that question. I’ve tackled this exercise periodically and have never gotten close to having a satisfactory answer.

We don’t need any more delays in the Broadband Equity, Access, and Deployment (BEAD) grant process, but there are potential delays on the horizon due to the political calendar. What do I mean by political calendar? There is going to be a new president in the White House, and that means a change in many of the people who run various cabinets and agencies. It could mean a new head of the National Telecommunications and Information Administration (NTIA), which is run by an Assistant Secretary of Commerce.

There has been a strike by 17,000 union members of the Communications Workers of America (CWA) against AT&T that started on August 16. Like most strikes that last for more than a week, there is some rhetoric flying from both parties accusing the other side of negotiating in bad faith. Telecommunications strikes have been part of the history of the industry.

I've identified some concerns with the order for the new 5G Fund for Rural America that will provide $9 billion to improve rural cellular coverage.