Broadband Equity, Access, and Deployment (BEAD) Program

Today, government officials have new strategic decisions to make just as momentous as the ones the intersection of policy and technology dumped in our Federal Communications Commission laps back in the early 1990’s. As we look out on a future in which more and more of our economic and civic activity involves online communications, we should not forget there is an urgent and critical task: eliminating the digital divide.

There are a variety of landline or wireless technologies that can deliver broadband. In most instances, wireless solutions have an advantage with respect to mobility and transferability (the ability to move broadband investment from one subscriber location to another). However, this advantage often disappears (and sometimes flips) when considering the increased operational expenses of wireless and the ongoing capital investment required.

In his most recent State of the Union address, President Joe Biden highlighted the $42.5 billion Broadband Equity, Access, and Deployment (BEAD) Program for connecting unserved and underserved locations to broadband. However, in the same address, President Biden went on to declare that “when we do these projects, we’re going to buy American...I’m also announcing new standards to require all construction materials used in federal infrastructure projects to be made in America.” The problem is that the country can close the rural digital divide in the next few years, or it can enforce a strict

Delivering broadband to a state as large and diverse as California is complicated. Regions and communities vary by levels of competition, historic investment, and the need for subsidies to incentivize infrastructure deployment and broadband adoption. While broadband infrastructure and increasing adoption have helped power California’s fiscal health and well-being for decades, access to this essential service remains uneven.

History always renders a powerful and positive verdict for any group that understands that there are some things that cannot be allowed to divide a nation. And then acts to close that divide. I don’t want claim that the achieving universal broadband connectivity has the same moral imperative as ending slavery or drastically reducing poverty. But it is no small thing. And sometimes things that are not front-page news, overtime have enormous impacts.

States must be the arbiter of coverage disputes for the allocation of coming federal funds, said broadband experts. The $42.5 billion Broadband Equity Access and Deployment (BEAD) program directs states to design their own grant programs. To successfully implement these state grant programs, states must “be the source of truth for challenges,” said Peggy Schaffer of mapping software company VETRO. It is the responsibility of states to determine truth by sifting through many sources of coverage claims, said Schaffer.

There are still lots of unanswered questions about the true benefit the $42 billion Broadband Equity, Access, and Deployment (BEAD) program will bestow upon some of the nation's top broadband providers. But a "rough, preliminary estimate" from New Street Research indicates the BEAD opportunity stands to beef up their combined enterprise values by billions of dollars. New Street Research employed a multi-step model to calculate the number of served and unserved homes that can qualify for BEAD subsidies.

State and federal government officials said that state laws restricting municipal broadband deployments aren’t expected to delay the distribution of funding from the $42.5 billion Broadband Equity, Access, and Deployment (BEAD) Program. BEAD support is expected to be divvied up among all 50 states in the coming months, but, as BroadbandNow noted, rules for BEAD stipulate that states with laws that either restrict or prohibit municipal broadband must disclose whether or not they plan to waive such laws.

Understanding clearly the costs of fiber and other technologies

Service providers in the state of Washington are concerned about legislation pending in the state’s House of Representatives.