Infrastructure Investment and Jobs Act

We are seeing a shift into a digital world. Internet access is increasingly becoming a requirement to participate in education, health care and the workforce. More and more, national companies are embracing the idea of virtual reality, and on the city level, we’re seeing growth in the use of social media and digital engagement more than ever before. We even consume our news mostly online. And, while this is an exciting and fast-paced shift, we MUST make sure that we are not leaving people behind as we grow.

In January, I was in Raleigh, North Carolina, where we’re investing $3 billion to connect the entire state for affordable high-speed Internet to end—by the end of the decade.  And we’re doing it in all 50 states. It’s critical for children to be able to do their homework, small businesses to be able to sell their products, folks to have access to telemedicine when they’re driving—without driving to see their doctors if they live in the countryside.

The Department of Commerce’s National Telecommunications and Information Administration (NTIA) has accepted South Dakota’s Digital Equity plan. The Digital Equity Act, part of the Internet for All initiative and a key piece of President Biden’s Investing in America Agenda, provides $2.75 billion to establish three grant programs that promote digital equity and inclusion. The program aims to ensure that all people and communities have the skills, technology, and capacity needed to reap the full benefits of our digital economy.

The Department of Commerce’s National Telecommunications and Information Administration (NTIA) has accepted Wyoming’s Digital Equity plan. The Digital Equity Act, part of the Internet for All initiative and a key piece of President Biden’s Investing in America Agenda, provides $2.75 billion to establish three grant programs that promote digital equity and inclusion. The program aims to ensure that all people and communities have the skills, technology, and capacity needed to reap the full benefits of our digital economy.

The Department of Commerce’s National Telecommunications and Information Administration (NTIA) has accepted Wisconsin’s Digital Equity plan. The Digital Equity Act, part of the Internet for All initiative and a key piece of President Biden’s Investing in America Agenda, provides $2.75 billion to establish three grant programs that promote digital equity and inclusion. The program aims to ensure that all people and communities have the skills, technology, and capacity needed to reap the full benefits of our digital economy.

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.

The United States has lately gotten serious about broadband expansion, with the federal government spending tens of billions of dollars to deploy services all over the country — especially in rural areas, where coverage is sparse. But how widely connectivity is available matters little if consumers can’t afford it.

While there's still a chance that funding for the Affordable Connectivity Program (ACP) will be extended beyond April, one top policy expert fears that a successful extension faces an "uphill struggle." That was the assessment of New Street Research Policy Analyst Blair Levin, who shared his latest thoughts on the perils of the program in a research note. A pressing issue, he points out, is that ACP was not woven into Congress's latest budget package.

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.

With the end of the Affordable Connectivity Program (ACP) increasingly likely if Congress does not quickly step in with more funding, broadband operators are adjusting their game plans to continue to serve customers who have been benefiting from the program. Comcast, which has about 1.4 million customers on ACP, is no different.