Broadband Equity, Access, and Deployment (BEAD) Program

To connect more Americans, Congress designated a slice of the $1.2 trillion 2021 Infrastructure Investment and Jobs Act (Infrastructure Act), as well as a portion of the $350 billion 2021 American Rescue Plan Act (ARPA) that passed to provide financial relief during the COVID pandemic, to fund projects that would cross this digital divide. All told, the bills provide around $90 billion in funding for connectivity spread across a plethora of initiatives. The question remains: Will this colossal sum be enough to bridge the digital divide?

Brightspeed's fiber expansion is gaining momentum. The privately-backed company said its fiber network is now available at one million locations, notching that achievement just one year after it launched Brightspeed Fiber Internet. And sure, hitting that milestone is cool. But what really matters is that people are buying it. A spokesperson for the company said Brightspeed Fiber Internet sales increase every month.

The National Telecommunications and Information Administration (NTIA) understands that closing the digital divide requires ongoing, meaningful engagement with the communities the Internet for All (IFA) programs are serving. NTIA views strong involvement from state, local, territorial, and Tribal communities as key to ensuring that the broadband needs of all unserved and underserved locations and underrepresented communities are met.

The Utah Broadband Center (UBC), part of the Governor’s Office of Economic Opportunity, is launching the Utah Broadband Availability Challenge Process to finalize identifying broadband serviceable locations in Utah without access to reliable high-speed internet infrastructure.

The federal Digital Equity Act and the Broadband Equity, Access, and Deployment (BEAD) program will collectively send more than $1 billion to Illinois, and state officials have been working for more than a year to lay out their roadmap for implementation. The State Digital Equity Plan describes how Illinois officials envision supporting broadband adoption, digital devices, and digital skills, while the BEAD 

In 2021, the Broadband Equity, Access, and Deployment (BEAD) program allocated $42.45 billion to enhance high-speed internet access across the United States. As part of this funding initiative, The Federal Communications Commission (FCC) developed a national coverage map to guide the allocation of BEAD funds. This map was the key determinant to direct BEAD investments to areas in need of broadband infrastructure improvements.

As policymakers in the nation’s states and territories explore how best to spend billions of dollars in federal infrastructure money intended to expand access to broadband, a key focus has been on how to avoid a host of potential obstacles that can impede or thwart their progress. Critically, stakeholders in a majority of states repeatedly raised the same key issues.

I’ve heard rumors for years that the policymakers in DC never expected the Affordable Connectivity Program (ACP) to be permanent. The expectation of the original architects of the plan was that ISPs would bow to public pressure to fill the void when ACP ran dry. However, the giant ISPs are not likely to self-fund the discounts and smaller ISPs can’t afford to do so. I’ve seen some recent articles that argue that the Federal Communications Commission could employ the Universal Service Fund.

One tactic that both private and public fiber companies are using to raise capital is to tap asset backed security (ABS), according to the analysts at TD Cowen. ABS is a type of financial investment that uses income-generating assets as collateral and is an alternative to other ways of raising capital, such as corporate bonds.

According to state broadband officials in Michigan, Vermont and Pennsylvania, the termination of the Affordable Connectivity Program (ACP) could not only impact the 23 million households on the program, but also those who live in areas where broadband is being built out. In Michigan, for instance, the state wants to require broadband companies receiving grants under the Broadband Equity, Access and Deployment (BEAD) program to charge lower-income people no more than $30 a month.