Broadband Equity, Access, and Deployment (BEAD) Program

From an internet service provider perspective, the BEAD grant program has progressed at a glacial scale. The BEAD grants were signed into law on November 15, 2021, as part of the Infrastructure Investment and Jobs Act. Folks in the industry assumed that BEAD would follow a timeline similar to the earlier grants that were awarded using federal CARES and ARPA funding, and vendors certainly thought that grant awards would start in 2023 with construction underway by 2024. And then nothing happened. The BEAD process got bogged down in paperwork and bureaucracy.

The thinking behind the $42.5 billion BEAD rural funding program was that individual states were better positioned than the federal government to understand their local needs and tailor state-level rules accordingly, and we are seeing a lot of variation from state to state. A case in point: Two Midwestern states—Minnesota and Missouri—have mapped out two somewhat different paths for administering the BEAD program.

The US Department of Agriculture just announced a new round of ReConnect grants. These are grants that can only be used to serve the most rural places in the country, and one of the qualifications is the distance between the grant market and the nearest towns. The homes served by the grants must not have any broadband available at speeds of at least 25/3 Mbps. A grantee must serve every home in a grant area. It’s not going to be easy to find a grant area that is rural and that has no homes where internet service providers claim the capability to deliver speeds of at least 25/3 Mbps.

A coalition of nearly 70 broadband experts, internet service providers (ISPs), community leaders, and nonprofits wrote to the Federal Communications Commission with a request to grant a limited amnesty designed to prevent the exclusion of America’s least connected rural communities from upcoming federal broadband subsidies. Under the rules of the Broadband Equity Access and Deployment (BEAD) program, communities that are already covered by grants awarded under programs like the Rural Digital Opportunities Fund (RDOF) and Connect America Fund II (CAF II) are not eligible to receive BEAD fund

State broadband offices are asking internet service providers interested in Broadband Equity, Access, and Deployment (BEAD) funding to self-fund a $30 discount for low-income customers after the end of Affordable Connectivity Program. Since this request came from multiple states, I have to imagine the idea came from the National Telecommunications and Information Administration. I can’t think of any better proof that policymakers are out of touch with the reality of rural business plans. Even providers that are successful in rural markets are going to have small margins.

Poor infrastructure, small number of customers, bottom of the list: That is the story of rural broadband in the United States. The situation is much more than an annoyance for the 7 million U.S. households that still do not have access to broadband internet — 90 percent of them in rural areas. Many times that number are “underserved,” with speeds below 100 mbps, or have high-speed broadband infrastructure but can’t afford service.

When we released the proposed Build America, Buy America (BABA) waiver in August 2023, we estimated that our approach would mean close to 90% of BEAD funds spent on equipment would be spent on equipment manufactured in the U.S.

The Federal Communications Commission last updated its speed benchmarks for advanced telecommunications capability in January 2015; since then our online lives have changed dramatically, so the Commission’s coming action is welcome and overdue. The new benchmark aligns the FCC standard with the bar set by Congress in the Infrastructure Investment and Jobs Act.

If you follow broadband news, you’d be forgiven for thinking we’re about to end the digital divide. That sentiment has dominated recent conversations we’ve had with foundation leaders who, having initially joined the chorus of voices calling for digital equity at the height of Covid-19, are now drifting to the sidelines, under the impression that the government’s broadband spending push will solve the problem. It won’t. Despite its ambition, the latest round of public investment will not reach all 42 million Americans still living without internet access.

The Illinois Office of Broadband formally launched its Challenge Process on February 20, 2024, starting the 120-day clock to get the broadband map right. The Broadband Equity, Access and Deployment (BEAD) Challenge Process gives Illinois non-profits, local governments, residents, and internet service providers the opportunity to weigh in on the broadband availability map to ensure funding is going where it is needed most.