CCG Consulting

Let the Broadband Equity, Access and Deployment Grant Process Begin!

The Notice of Funding Opportunity (NOFO) for the $42.2 billion Broadband Equity, Access and Deployment (BEAD) Program grants has been released by the National Telecommunications and Information Administration (NTIA). Here are some issues I’ll be exploring in more detail:

An Advocate for Municipal Broadband

From a lobbying perspective, municipal broadband providers have never had a seat at the table. In any given state, a municipal broadband provider might get its voice heard through organizations like the League of Cities and Counties – or whatever that is called in a given state. But municipal broadband internet service providers (ISPs) have never had a national voice to push back against the hard lobbying that has been leveled against them for the last few decades.

A Disturbing View of Future Cable Broadband

Sean McDevitt, a partner at Arthur D. Little, a consulting firm that largely works for the giant ISPs, says cable companies are not likely to universally upgrade broadband networks in the future. In the past, when a cable company migrated from DOCSIS 1.0, to 2.0, and to 3.0 everybody in a community was upgraded to the latest technology. He says going forward that it’s almost certain that there will not be across-the-board upgrades.

Is Your Broadband Getting Cheaper?

Since the national dialog has suddenly fixated on inflation, the big ISPs decided to jump into the discussion by claiming that broadband prices are falling. The big ISP industry has been trotting out this untruth for the last several years. What underlies this claim is that the cost per megabit of speed has been falling as ISPs increase speeds. By definition, when an ISP upgrades a customer from 100 Mbps to 200 Mbps, the cost per megabit drops. While the cable companies have been unilaterally increasing speeds, consumers have not seen the check they write each month drop.

ISPs Lobby for Broadband, Equity, Access and Deployment Program Grants

As you might expect, the lobbying is becoming hot and heavy to position internet service providers (ISPs) to win the $42.5 billion of Broadband Equity, Access, and Deployment (BEAD) grants that will likely start being awarded in 2023. This is one of the most interesting lobbying challenges I’ve ever seen because there is no one central place that will be awarding these grants. Congress gave the responsibility for these grants to the National Telecommunications and Information Administration (NTIA), but the money is going to flow from them to the states.

Home Broadband and the Cloud

I’m not sure that most people understand the extent to which our online experience has moved to the cloud – and this movement to the cloud means we’re using a lot more bandwidth than in the recent past. A huge number of online functions now reside in the cloud, when only a few years ago a lot of processing was done on our computers. The shift to the cloud is still an ongoing transition and there are still plenty of software packages that are not processed in the cloud, but it’s obvious that everything will eventually be in the cloud.

The landscape of lawsuits between big and small internet service providers

One thing that is extremely rare in the broadband industry is lawsuits between internet service providers (ISPs) concerning unfair trade practices. Big ISPs bully and compete unfairly against small ISPs all of the time, and yet you don’t hear of many cases where a small ISP sues the big ISP. There are several reasons for this. One is simple to understand – the big ISPs have a flock of in-house lawyers who can overwhelm anybody who sues them. Little ISPs don’t generally have the deep pockets needed to last through a long, protracted lawsuit.

Get Ready for Middle-Mile Grants

Alan Davidson, the Administrator of the National Telecommunications and Information Administration (NTIA), recently held a press conference and webcast talking about the $1 billion Middle-Mile Broadband Infrastructure grant program. The biggest takeaway from that conversation is that the NTIA is likely to make these awards much sooner than the awards from the $42.5 billion Broadband, Equity, Access and Deployment (BEAD) grants for last-mile broadband. Davidson was not specific about the dates of these grants, but anybody wanting to request one of these grants should start getting ready.

Estimating Broadband Customers

There has been a huge shift in broadband subscriptions from early in the pandemic until the end of 2021. Increasingly, customers are signing up for faster broadband speed tiers. It’s obvious that a lot of people have upgraded their broadband subscription during the eighteen months. I’ve heard a lot of anecdotal evidence to support this from my internet service provider (ISP) clients. My consulting firm does a lot of surveys and interviews, and we’ve been seeing this shift everywhere.

Broadband for Communities

When talking about the benefits of broadband, it’s easy to overlook how broadband has become the glue that brings people and communities together. This is becoming particularly important for rural communities but matters to people everywhere. Rural communities have been rapidly losing other forms of media that were the focal point in the past. 2004 was the peak of the newspaper business in terms of readership and revenues. Since then, the number of journalists has been cut in half.