Infrastructure Investment and Jobs Act

Billions of dollars are about to flow from the Broadband Equity Access & Deployment (BEAD) Program, which is driving all kinds of interest in delivering fiber broadband to unserved and underserved areas of the US. In addition, the wireless carriers, T-Mobile and Verizon, are deploying fixed wireless access (FWA) in many underserved areas where people have never been happy with their choices of low-speed cable or DSL. Comcast CEO Brian Roberts said, “I don't think we competed as well for the lower end of the market.

Is the Lifeline program effective? Should E-Rate be expanded to cover school-related connectivity outside of campuses? Would it make sense to fold the Affordable Connectivity Program (ACP) into the Universal Service Fund (USF)? These were some of the questions asked and answered at a Senate Commerce Committee hearing on the state of universal service. Sen John Thune (R-SD) claimed the Lifeline program is “riddled with waste, fraud and abuse” and chided the Federal Communications Commission for failing to evaluate whether the program is functioning as intended.

President Joe Biden (D-DE) signed the Infrastructure Investment and Jobs Act (IIJA)  18 months ago. To date, the Administration has announced over $220 billion in IIJA funding, including over 32,000 specific projects and awards, across over 4,500 communities in all 50 states, DC, and territories. To implement the law, agencies have now hired over 5,000 federal employees, and states and territories have appointed infrastructure coordinators to facilitate clear communication and coordination with the federal government.

All people in the United States shall have access to rapid, efficient, nationwide communications service with adequate facilities at reasonable charges.

Some policymakers are calling for money to subsidize middle-mile networks. Because it is so difficult to precisely define “middle mile,” and therefore identify and measure its outcomes beyond simply being built, it’s hard for politicians and recipients of the money to resist their spending spree of federal funds regardless of whether it’s needed. More middle-mile funding can generate new construction and a ribbon-cutting ceremony, but nobody will ever know if it generated more broadband. 

[Sarah Oh Lam is a senior fellow at the Technology Policy Institute]

WIA Connect(X) show panelists were asked if there is a magic number that developers should target for the cost per home passed with fiber. Beth Hoffman, managing director with Berkshire Partners, said that a lot of it depends on the density of the market. The cost per home passed in a dense city like San Francisco (CA) could be as low as $700.

Broadband providers have been complaining that the Broadband Equity, Access, and Deployment (BEAD) Program rules are adding a lot of cost to building broadband networks. One of the issues adding the most cost to BEAD-funded networks is the requirement that all construction be done using prevailing wages. That means wages that are paid at Davis-Bacon wage levels—to include benefits.

The House Commerce Committee's Subcommittee on Oversight and Investigation held a hearing on May 10 discussing federal funding for broadband deployment as part of ongoing efforts to

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The ACCESS BROADBAND Act requires the