Infrastructure Investment and Jobs Act

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.

Velocity, founded in 2018 and located in south central Kansas, is a subsidiary of the Butler Electric Cooperative and serves approximately 5,500 consumer customers. Velocity’s fixed wireless service operates on more than one band of unlicensed spectrum, depending on the loading and density of each tower. However, the organization will be migrating to fiber in the coming months and years. As a nonprofit, Velocity is trying to provide service as close to cost as possible. Velocity’s current fixed wireless pricing ranges from $49 (up to 15/3 Mbps) to $84 (up to 100/10 Mbps).

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.

Small rural internet service providers (ISPs) had until the end of September to tell the Federal Communications Commission whether they wanted to participate in the Enhanced ACAM program. The E-ACAM program extends subsidies to these small providers through 2038, and in exchange the providers will serve all locations in their territory with 100/20 Mbps broadband, making most of them ineligible for the BEAD program.

The state of Mississippi will be getting one of the largest allotments in the Broadband Equity, Access and Deployment (BEAD) rural broadband funding program–$1.2 billion. The funding comes on top of $151.5 million that the state was awarded from the Capital Projects Fund and an earlier award of $32.6 million from the Broadband Infrastructure Program (BIP). “We started with a smaller award and the awards have been getting larger and larger," said Sally Doty, director of the Office of Broadband Expansion and Accessibility of Mississippi (BEAM).

The Nevada Governor's Office of Science, Innovation and Technology (OSIT) is accepting public comment this month on its draft Digital Equity Plan, the state's first statewide-level attempt to eradicate the digital divide. For broadband internet subscriptions, Nevada is slightly above the national rate.

In the Infrastructure Investment and Jobs Act, Congress established a preference for “priority broadband projects,” defined as projects providing broadband service that meet high performance standards, can scale with consumer and business needs over time, and will enable the deployment of 5G and other advanced services. After receiving input from a wide range of parties, the National Telecommunications and Information Administration (NTIA) determined that “end-to-end fiber optic facilities” were the only platform that satisfied these requirements and warranted such a priority.

In 2021, Congress provided $65 billion to close the digital divide. The National Telecommunications and Information Administration (NTIA) is responsible for administering most of this money, including the $42.45 billion Broadband Equity, Access, and Deployment (BEAD) program, which will provide states grant money to award providers to deploy broadband networks in unserved and underserved areas. We are concerned about state plans that propose to use funds in ways that will not provide universal connectivity or that are contrary to law.