Broadband Equity, Access, and Deployment (BEAD) Program

John Greene, former CEO of New Lisbon Holdings, said, “Who would have ever thought we’d see private equity filter into rural areas and small companies?” Rural broadband is very expensive to build. That’s why the Broadband Equity, Access and Deployment (BEAD) program is designed to subsidize the gap where it otherwise doesn’t make financial sense for private companies to build. Panelists at the Connect(X) show noted that one of the main competitors in some rural areas is the local electric co-op. Greene said rural electric co-ops “are going to be a force to be reckoned with.

An appealing way to finance fiber builds is through asset-backed securities (ABS). However, this is only available to established companies that actually have fiber assets, which they can leverage to secure a lower cost of debt. It’s not something available to new entrants in the fiber space. Since the introduction of the Broadband Equity Access and Deployment (BEAD) program, many private equity (PE) investors have entered the fiber market.

Lawmakers are butting heads over a provision within the Broadband Equity Access and Deployment (BEAD) program that allows states to require low-cost service options from participating service providers. Democrats are calling it an affordability policy. Republicans say it's heavy-handed government regulation. As part of the BEAD planning process, the National Telecommunications and Information Administration (NTIA) is considering each state’s definition of a low-cost option, provided that it meets the standards laid out in the program’s statute.

Evan Feinman, director for the Broadband Equity, Access and Deployment (BEAD) program with the National Telecommunications and Information Administration, provided an update on the program. All states have submitted their Volume 1 proposals to NTIA, and Feinman said that nearly all Volume 1 proposals are approved. A check of NTIA’s Progress Dashboard today shows that only Florida, Maryland and Minnesota have yet to have their Volume 1s approved.

I have been asked my opinion several times about Rural Digital Opportunity Fund (RDOF) amnesty—letting RDOF winners walk away from their obligations without big penalties. There is no easy answer to the question. It’s certainly a timely topic, since we are seeing internet service providers (ISPs) walk away from RDOF. There are several good arguments to be made that favor some kind of amnesty.

The 2021 Infrastructure Investment and Jobs Act (IIJA) provides $42.45 billion in grant funding to states via the Broadband Equity Access and Deployment Program (BEAD). IIJA also underscores that any state receiving these funds may not exclude local governments from applying to use these funds to build their own broadband networks.

On May 15, the House Subcommittee on Communications and Technology held a hearing titled “The Fiscal Year 2025 National Telecommunications and Information Administration Budget.” House Commerce Committee Chair Cathy McMorris Rodgers (R-WA), Subcommittee Chair Bob Latta (R-OH), and Assistant Secretary of Commerce for Communications and Information Alan Davidson all delivered remarks.

The Minnesota broadband scene is heating up as service providers rally against new legislation they say will stifle the state’s Broadband Equity, Access and Deployment (BEAD) plan. Minnesota was awarded over $651 million as part of the federal BEAD program. The state’s initial BEAD plan was submitted last year and is still awaiting approval from the National Telecommunications and Information Administration (NTIA).

The Department of Commerce’s National Telecommunications and Information Administration (NTIA) has approved Pennsylvania’s Initial Proposals for the Broadband Equity, Access, and Deployment (BEAD) program, a cornerstone of the Biden-Harris Administration’s “Internet for All” initiative.

On May 14, the Biden-Harris Administration hosted a Rural Communities in Action event at the White House to highlight how the Administration is investing in rural communities.