Broadband Equity, Access, and Deployment (BEAD) Program

A large majority of internet service providers seeking BEAD grants will be financing matching funds using loans. Matching funds are the contributions expected from providers—a 75 percent grant means 25 percent in matching funds. Very few providers carry enough cash on hand to consider using equity to pay for broadband expansion. This contrasts significantly with large telephone and cable companies that will be pursuing BEAD grants, most of whom will finance grants using equity. When it comes to financing using equity vs using loans, equity is the clear winner for the provider.

Some State Broadband Offices are taking a stab at social engineering by trying to force BEAD grant winners to offer low broadband rates. I understand the sentiment behind this because everybody in the industry involved with digital equity issues hears stories about homes that can’t afford broadband even when it is available. I know this feels like a broadband office is doing something good, but there are a number of reasons why this is a terrible idea.

Thanks to our Bipartisan Infrastructure Law, 46,000 new projects have been announced across your communities – modernizing our roads and bridges, ports and airports, and public transit systems. ... Providing affordable high speed internet for every American no matter where you live. 

We’ve heard the National Telecommunications and Information Administration (NTIA) say 2024 is “the year of execution” for the $42.5 billion Broadband Equity, Access and Deployment (BEAD) program. NTIA Administrator Alan Davidson revealed how the agency is juggling BEAD along with its initiatives focused on digital equity and artificial intelligence (AI) risks. When Davidson first took the helm at NTIA, plenty of states didn’t even have broadband offices.

Lieutenant Governor Garlin Gilchrist II (D-MI) and the Michigan High-Speed Internet Office (MIHI) announced that the Biden Administration has approved Michigan’s proposed State Challenge Process, which will give Michiganders an opportunity to help identify locations across the state that are eligible for high-speed internet infrastructure expansion through the Broadband Equity, Access, and Deployment (BEAD) program.

Most of the concern over the impending demise of the Affordable Connectivity Program (ACP)—the federal subsidy that’s made broadband cheaper or free for more than 23 million households—has focused on the people about to have a new hole drilled in their monthly budgets. Attendees at a DC conference hosted by an association of smaller telecom firms feel their pain: “Half of our problem in this nation is not accessibility, it's affordability,” said ACA Connects President and CEO Patricia Jo Boyers, at the group’s 

States and the federal government may agree that the expansion of broadband service around the country funded with $42.5 billion from the infrastructure act should be affordable for low-income people. But at least one state doesn’t agree that it should be dictating what’s affordable. After reviewing Virginia’s plan for its Broadband Equity, Access and Deployment funding, the National Telecommunications and Information Administration told the state it needed to be more specific.

The broadband availability data that mobile and fixed wireless providers report to the Federal Communications Commission is flawed, according to several rural broadband organizations.

Brian Newby, broadband program director for the state of North Dakota, joined the state's broadband office as it was in the process of being created in early 2023. Since then, his primary focus has been on developing the state's Broadband Equity Access and Deployment (BEAD) program.

While Indiana continues to battle the digital divide–the gap between those who have and don’t have broadband access–there are significant signs of progress. State and federal funds totaling nearly $1.5 billion are being deployed to help connect the estimated 150,000 unserved or underserved Hoosier addresses. Private sector companies are also getting engaged, including AT&T, which is in the midst of fiber projects in 12 Indiana communities and regions, and it’s all part of what some are calling a once in a generation opportunity.