State

We write to provide economic insight to help states maximize the benefits of its Broadband Equity Access and Deployment (BEAD) and other funds for its residents. Several economic concepts are critical to maximizing the benefit of the BEAD money for state residents.  

Spend a little time with Idaho State Broadband Program Manager Ramón Hobdey-Sánchez and it’s easy to see his enthusiasm for his home state. “I have a passion for public service and there are few things that I love more than the State of Idaho,” Hobdey-Sánchez said. “Broadband and internet connectivity is something that we can all agree is good for individuals, communities, and the state.

Governor Kathy Hochul (D-NY) announced that applications are now open for the $100 million Affordable Housing Connectivity Program, a partnership led by Empire State Development’s ConnectALL Office in consultation with New York State Homes and Community Renewal to design and install broadband infrastructure at 100,000 affordable housing units across New York State.

Dozens of states appear to be set to cap how much broadband providers can charge low-income households.

States are racing to finish their Initial Proposals for the National Telecommunications and Information Administration's $40+ billion Broadband Equity Access and Deployment (BEAD) program. One of the things they need to be thinking about is how to design their programs so that they have viable applicants for all their eligible locations, not just most of them. This requires a radical shift in mindset from past grantmaking activities, when the state’s task was to award grants to improve service in discrete areas.

The Idaho Broadband Advisory Board (IBAB) has awarded $120 million in funding from the Idaho Capital Projects Fund (CPF) to 18 broadband projects across Idaho, connecting over 30,000 homes and businesses. The IBAB and the State of Idaho funded broadband projects that assist with or improve distance learning, telehealth, telework, economic development and public safety. These awards meet the federal CPF criteria and improve internet connectivity in unserved and underserved locations. 

When I first read the Infrastructure Investment and Jobs Act legislation that created the Broadband Equity, Access, and Deployment (BEAD) grants, I thought it was going to be a grant program that a whole lot of my clients would choose to ignore. The requirements in the legislation seemed overwhelming. But over the last year, my opinion mellowed because I assumed that State Broadband Offices (SBOs) would soften some of the rough edges of the federal rules.

Under the Broadband Equity, Access, and Deployment (BEAD) Program, providers are required to offer a low-cost option to subscribers who are eligible for the Affordable Connectivity Program (ACP). However, the exact definition of what will qualify as “low-cost” is up to state and territory broadband offices to decide.

The prison communication industry is dominated by two companies—Securus and ViaPath. Together, they serve the vast majority of jails and prisons. Bundling of services is standard practice: devices, communication services, payment services, and even ownership of the inmate networks.

A conflict between state and federal laws may delay the first distribution of Broadband Equity, Access, and Deployment (BEAD) Program funds to the states. Sixteen states bar or restrict municipally owned broadband—and nearly all of those states appear unwilling to amend their laws as they finalize plans for how they will use their share of BEAD funds.