Broadband Equity, Access, and Deployment (BEAD) Program

We write to urge the National Telecommunications and Information Administration (NTIA) to make the Broadband Equity, Access, and Deployment (BEAD) program more accessible to unconnected regions across the country by considering alternatives to the program’s irrevocable standby Letter of Credit (LOC) requirement. One alternative to the LOC requirement is the use of performance bonds, which are commonly used in construction projects.

The United States is no stranger to wildfires. These fires can ignite utility poles, melt aerial fiber optic cables, obscure wireless signals, or damage transmitting or receiving equipment. This kind of damage can cut homes off from key public safety resources, and prevent calls for help in the most dire situations. As states now know their share of the $42.5 billion Broadband, Equity, Access, and Deployment (BEAD) program, they should begin planning new network deployments and upgrades to withstand increasingly severe natural disasters.

On October 2, AEI hosted an expert panel to discuss how price controls might affect broadband affordability and ways to ensure broadband is affordable for all Americans. The panel featured New Street Research’s Jonathan Chaplin, Duke University’s Michelle P.

In a letter to the Federal Communications Commission, Sen Shelley Moore Capito (R-WV) asked the FCC to take action on a long-standing proceeding which could change the way broadband providers access utility poles. Capito said she continues to hear “problems and delays” associated with broadband providers getting access to utility poles.

We, the undersigned advocates for responsible government, write to express our concern with the Biden Administration’s blatant disregard for Congressional intent in its attempts to impose price controls on broadband Internet access service. These attempts exhibit a pattern of behavior whereby Administration officials say one thing while doing the opposite. In the Infrastructure Investment and Jobs Act (IIJA), Congress spoke its bipartisan will: there shall be no rate regulation of broadband.

As states and territories define high-cost thresholds for their Broadband Equity, Access and Deployment (BEAD) proposals, the industry finds itself divided on the best approach. Under the Infrastructure Investment and Jobs Act, Congress established a preference for "priority broadband projects" that meet high performance standards, can scale with needs over time, and will enable the deployment of 5G. The National Telecommunications and Information Administration (NTIA) has since determined that "end-to-end fiber optic facilities" are the platform most likely to satisfy those requirements.

Cable operators and vendors are a bit defensive about comparing cable’s hybrid fiber coax (HFC) networks with fiber networks. New fiber builds are being driven by the $42.5 billion in Broadband Equity, Access and Deployment (BEAD) Program. Jay Lee, chief technology and strategy officer with ATX, said he attended the Fiber Broadband Association’s Fiber Connect conference in August. “I guess I shouldn’t have been surprised the fiber guys were going to beat up on the cable guys,” he said.

We write today to ask the National Telecommunications and Information Administration (NTIA) to provide guidance on alternatives to the Broadband Equity Access and Deployment (BEAD) program’s requirement that all applicants for program funding obtain an irrevocable letter of credit of 25% of the award, in addition to the 25% company match requirement. We believe that the letter of credit requirement in its current state will force many ISPs out of the program.

The National Telecommunications and Information Administration's new dashboard allows anyone to track how Broadband Equity, Access and Deployment (BEAD) Program Eligible Entities are progressing through the major milestones necessary to submit their Initial Proposal by the December 27, 2023 due date.

On September 29, the American Enterprise Institute hosted an expert panel to discuss states’ plans for managing the billions of dollars allotted to broadband expansion. The panel featured Duke University’s Michelle Connolly, North Carolina Department of Information Technology’s Nate Denny, ConnectLA’s Veneeth Iyengar, and Kansas Office of Broadband Development’s Jade Piros de Carvalho. Piros de Carvalho highlighted the need for solutions to the labor shortage that the deployment process will soon be facing, as well as the need for streamlined permitting processes.