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Reverse Auctions, State-Led Funding, Higher Speeds: Speculation Mounts About Final Infrastructure Bill

Without further word on what to expect in the bipartisan infrastructure framework, Doug Dawson examines what direction it could take.

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July 6, 2021—With the Biden Administration nearing a bipartisan infrastructure agreement, and questions swirling about exactly what the broadband component could look like, one consultant believes the final version could include a reverse auction process to disburse funds and a push for a higher speed minimum.

Both Democrats and Republicans are claiming victory for infrastructure with a tentative compromise that would allocate $65 billion for high-speed broadband. Though this is a far cry from the $100 billion that President Joe Biden’s initial “American Jobs Plan” called for in March, it is also significantly higher than the GOP’s first counter of $20 billion for broadband.

Though both Biden and Speaker of the House Sen. Nancy Pelosi, D-California, have made it clear that they will not support the legislation without specific preconditions, there are still so many unknowns regarding the legislation.

Doug Dawson, the owner and president of CCG Consulting, joined Broadband Breakfast’s Live Online event on June 30 to discuss some of the possible models and solutions that the bill in question might provide.

Reverse auction and state-led fund distribution

He explained that there are a handful of ways that this bill could be rolled out. The first model he pointed to was the reverse auction model, whereby funds are given to those bidders who require the least amount of money to build.

Dawson argued that even though this model was suggested in the “Accessible, Affordable, Internet for All Act” that was put forward by Sen. Amy Klobuchar, D-Minnesota, he did not anticipate that it would garner much support.

“People have a whole lot of problems with some of the things that popped up in [previous auctions] so I don’t think that idea has as much merit among the talking heads in Washington as it used to,” he said, “and we are certainly not hearing nearly as much support for it.”

In addition to the “Accessible, Affordable, Internet for All Act”, Dawson also brought up the “Broadband Reform and Investment to Drive Growth in the Economy Act.” This bipartisan model would see that money is given directly to the states and can be distributed for projects as each state deems necessary.

He pointed out that the wrinkle with this model is that while some states will do a fine job ensuring that the funding is distributed one way, others may deviate completely from tried-and-true methods. “Every state has their own politics,” Dawson said. “States are going to decide very different solutions, but I don’t know if there’s anything wrong with that.”

But Dawson stated that these are only some of the more notable proposals, and there are a myriad of models being circulated through Congress right now. “Pretty much every major topic related to how you would give broadband money out is probably on the table right now,” he continued. “I do not imagine [that the final version of the bill] is going to look like either one of those two bills—it’s going to be something brand new.”

Biden may push for 100 Mbps symmetrical speed minimum

Though he said that the plan will likely be under a model that is yet to be revealed, Dawson did point to several items that observers should expect to see the Biden Administration push for. He said that the White House will likely push for an emphasis on providing broadband for low-income communities and 100 Megabits per second symmetrical service as a minimum definition for broadband.

Though there has been little discussion about making any of these bills explicitly aligned with any one technology, Dawson said that there are few technologies that can sustain 100 Mbps symmetrical service, and that fiber may become the de facto technology used.

Satellite technologies in the mix

Despite this, he said that technologies like satellite need to be a part of the conversation for the hard-to-reach homes that could cost tens of thousands of dollars to cover.

“I do not think that [the federal government] has ever said every single home in America gets broadband; we want to get 99 something percent right but that last one percent is incredibly expensive.”

Only time will tell which direction the bipartisan framework will take. Whether Washington decides to model the “Bridge Act,” utilize a reverse auction model, or try something completely new and different, the experts are still left to guessing until more word comes down from Congress or the White House.

Our Broadband Breakfast Live Online events take place every Wednesday at 12 Noon ET. You can watch the June 30, 2021, event on this page. You can also PARTICIPATE in the current Broadband Breakfast Live Online event. REGISTER HERE.

Wednesday, June 30, 2021, 12 Noon ET — “5G, Digital Real Estate Investment Trusts and the Future of Broadband Infrastructure”

There are many potential outcomes and implications of the long-awaited federal broadband infrastructure bill. Join Broadband Breakfast for a session delving into some of the possibilities, as well as data centers, towers and Digital REITs, as the race for 5G accelerates.

More about Digital Infrastructure Investment 2021 at Broadband Communities Summit

Panelists:

  • Doug Dawson, President, CCG Consulting
  • Drew Clark (moderator), Editor and Publisher of Broadband Breakfast

Doug Dawson has worked in the telecom industry since 1978 and has both a consulting and an operational background. He and CCG specialize in helping clients launch new broadband markets, develop new products and finance new ventures. CCG, the largest telecom consulting firm in the United States in terms of clients, has a varied telecommunications practice and helps clients with engineering, regulatory, operation and planning issues. Dawson also writes the daily blog potsandpansbyccg.com, which covers a wide range of topics for broadband and related subjects.

Drew Clark, Editor and Publisher of Broadband Breakfast, also serves as Of Counsel to The CommLaw Group. He has helped fiber-based and fixed wireless providers negotiate telecom leases and fiber IRUs, litigate to operate in the public right of way, and argue regulatory classifications before federal and state authorities. In addition to representing public and private providers on broadband issues, Drew is actively involved in issues surrounding interconnected Voice-over-Internet-Protocol service, spectrum licenses, robocalling including STIR/SHAKEN, and the provision of video franchises and “over-the-top” copyrighted content.

WATCH HERE, or on YouTubeTwitter and Facebook

As with all Broadband Breakfast Live Online events, the FREE webcasts will take place at 12 Noon ET on Wednesday.

SUBSCRIBE to the Broadband Breakfast YouTube channel. That way, you will be notified when events go live. Watch on YouTubeTwitter and Facebook

See a complete list of upcoming and past Broadband Breakfast Live Online events.

Reporter Ben Kahn is a graduate of University of Baltimore and the National Journalism Center. His work has appeared in Broadband Breakfast, Washington Jewish Week, and The Center Square, among other publications. He primarily covers Big Tech and spectrum policy.

Funding

Broadband Notice of Funding Availability Seeks to Balance Requirements with Flexibility

Alan Davidson says NOFO requires that grant recipients offer both low-cost service options and middle-class affordability plans.

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KEYSTONE, Colorado, May 24, 2022 – The National Telecommunications and Information Administration is attempting  to balance stakeholder demands to ensure new entrants to the broadband marketplace, while making certain the agency is a good shepherd of the federal funds, the administrator of the U.S. Department of Commerce agency said here Tuesday.

Alan Davidson, the assistant secretary of Commerce responsible for the agency that is spending the lion’s share of federal broadband money, said that NTIA will consider affordability to be an important consideration in making awards.

In a discussion with Broadband Breakfast editor and publisher Drew Clark, the pair reviewed the NTIA’s guidelines governing three new broadband grant programs that will see more than $45 billion in federal funding dispersed over the next few years.

Three Notices of Funding Opportunity were released on May 13, 2022. The largest one is for the Broadband Equity, Access, and Deployment program, a $42.5-billion-dollar program aimed at expanding last-mile, high-speed Internet access across the United States.

Davidson referred to the released NOFO as the “starting gun” signaling for states to begin the sprint toward making funding and infrastructure deployment plans to connect local unserved and underserved communities to futureproof Internet connections.

Photo of Alan Davidson at press conference after his remarks at Mountain Connect by Drew Clark

Less than a week since the release of the notices, 25 states and territories have already submitted Letters of Intent to participate in the program, with 35 states and territories stating they intend to submit an initial proposal to access a share of the federal funding by the July 18, 2022, deadline.

Process for states to apply

The NOFO requires that grant recipients offer both low-cost service options and middle-class affordability plans over the resulting infrastructure. The NOFO offers states examples of different affordability plans to model, while also giving states the flexibility to define what can be deemed “affordable” within their borders.

Further, BEAD requires robust stakeholder engagement, and gives preference to grant applicants pursuing public-private partnerships, as well as those which demonstrate they have coordinated with local and Tribal Governments, and community-based organizations, in the creation of their applications.

In an effort to bolster economic development and the creation of new jobs within the United States, the NOFO includes a “Buy America” statute, which requires grant recipients purchase 55% of all network components being used from American manufacturers. During the keynote, Davidson reiterated that the NTIA will prioritize the deployment of fiber infrastructure over other technologies, including cable, DSL, and satellite.

Davidson explained that increased state and federal oversight should be expected to ensure federal broadband funds go to the localities where they are most needed. Oversight requirements are largely spelled out in the statute, but grant recipients can expect more post-award reporting requirements than have been necessitated by previous federal programs.

Davidson’s presentation raised some questions surrounding well-known industry supply chain issues, the shortage of fiber technicians nationally, and the issue of BEAD grant dollars being considered taxable income. Davidson replied to the raised concerns stating that the NTIA is eager to hear about stakeholder’s pain points, and that he predicts there will be an ongoing process of working with states on these issues.

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Funding

Sean Gonsalves: NTIA Assistant Secretary Alan Davidson Dishes on BEAD at Mountain Connect 2022

The NTIA will press states to not lock out publicly-owned broadband project. If they do, they must disclose why.

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Mountain Connect 2022 got a big kick off this morning in Keystone, Colorado with a Q&A discussion between National Telecommunications and Information Administration Assistant Secretary Alan Davidson and Broadband Breakfast CEO, Editor and Publisher Drew Clark.

Davidson provided a broad overview of the newly released Notice of Funding Opportunity for the $42.5 billion Broadband Equity Access & Deployment program, which set the table for the multitude of break-out sessions that attracted a who’s who of broadband providers, vendors, policy-makers and vendors.

Under the BEAD program, each of the 50 states will be eligible to receive a minimum of $100 million to expand high-speed Internet access, though most states will receive hundreds of millions more as additional funding will be allocated to states based on a formula that takes into account how many unserved households are in each state.

Most states on board for BEAD

Davidson said that 25 states have already submitted their Letter of Intent to seek BEAD funding. In all, 35 states have indicated they will also participate in the program so far as NTIA works with the other 15 states and territories to encourage them to take advantage of the largest ever federal investment in broadband.

While Davidson touted the unprecedented opportunity now being made available to states to close the digital divide, Clark did probe him on several concerns around the requirements of the BEAD application process that a number of broadband advocates and small- to midsize Internet Service Providers have raised since the NOFO was released on May 13.

One question in particular Clark raised was the letter of credit requirement that subgrantees must acquire to qualify for funding. A number of ISPs and local officials interested in municipal broadband projects are saying the requirement is onerous and may prove to be a disincentive for new entrants into the broadband market now dominated by the big monopoly ISPs.

Davidson noted his office has been hearing those concerns and that the NTIA may adjust the rules based on that feedback.

NTIA will encourage states to include publicly-owned networks

We also had a chance to ask Davidson a question: Would states with preemption laws that prevent or erect barriers to municipalities, cooperatives, nonprofits and other public entities from accessing BEAD funds be disqualified from the BEAD program?

Davidson said the NTIA will press states to not lock out publicly-owned broadband projects and if they propose to do so they must disclose why. But, he stopped short of saying that states with such preemption laws would be disqualified from participating in the BEAD program.

However, Davidson and Clark both, pointed to the specific language in the NOFO that says:

  • NTIA strongly encourages Eligible Entities (states) to waive all such (preemption) laws for purposes of the Program. If an Eligible Entity does not do so, the Eligible Entity must identify all such laws in its Initial Proposal and describe how the laws will be applied in connection with the competition for subgrants. Such Eligible Entity must, in its Final Proposal, disclose each unsuccessful application affected by such laws and describe how those laws impacted the decision to deny the application.

Internet for all?

While Davidson did not explicitly say NTIA would wholeheartedly accept BEAD applications from states with preemptions laws that lock out public sector providers, it seems clear the NTIA will not deny BEAD funds to states with preemption laws that violate both the letter and spirit of the Infrastructure Investment and Jobs Act (IIJA), which authorized the BEAD program.

The BEAD NOFO and Davidson’s remarks were a major topic of discussion at the dozens of breakout sessions held later in the day, covering everything from funding new broadband investments and community development to community broadband case studies and emerging technologies.

Multiple NTIA officials claimed BEAD is intended to connect all Americans and, in fact, the Biden admininstration calls it the Internet for All intiative. However, neither Congress nor the Biden administration have a plan to ensure all low-income urban households are connected.

The three-day conference will conclude on Wednesday with that final day being kicked-off by a Q&A with U.S. Sen. John Hickenlooper.

Watch our Connect This! livesteam discussing the implications of the BEAD NOFO here.

This article originally appeared on the Institute for Local Self Reliance’s Municipal Broadband project on May 24, 2022, and is reprinted with permission.

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Funding

NTIA Broadband Official Scott Woods Joins Ready as Vice President of Community Engagement

Woods had been the inaugural Director of the Office of Minority Broadband Initiatives at the National Telecommunications and Information Administration.

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Photo of Scott Woods

KEYSTONE, Colorado, May 24, 2024 – Ready announced that Scott D. Woods, who had been the inaugural Director of the Office of Minority Broadband Initiatives in the administration’s Office of Internet Connectivity and Growth, will join the company as Vice President of Community Engagement and Strategic Partnerships on June 3. He will also open an office for Ready in Washington, D.C.

Ready produces Broadband.Money, a sponsor of Broadband Breakfast.

“Ready is a great company and its software product ReadyBOSS is one that will revolutionize the approach for developing and managing broadband projects in accordance with grant rules,” said Woods. “It’s the best way to make the most out of all of the historic funding that’s out there.”

While at the NTIA, Scott also served as a principal liaison between the BroadbandUSA and OIGC program offices, and key strategic partners and external stakeholder groups. This included representatives from state and local governments, telecommunications companies, for-profit and non-profit corporations, and colleges and universities.

Woods is a broadband funding, implementation and stakeholder engagement expert and a key member of the OIGC leadership team responsible for implementing the Consolidated Appropriations Act of 2020 grant programs and the historic $65 billion broadband funding program authorized by the Infrastructure Investment and Jobs Act of 2021.

“There are few, if any, people in this country with Scott’s experience in helping communities close the digital divide,” said Ready Co-Founder Mike Faloon. “Our goal is to use the Ready platform to amplify Scott so that any community or operator can have access to him and his unique insights to guide them on their broadband journey.”

Wood received a Bachelor of Arts (B.A.) in Urban Studies from Morehouse College; a Master of Arts in Public Policy (M.P.P.) from American University; and Juris Doctor (J.D.) from Howard University School of Law.

Ready is a company that makes the Ready BOSS software system. It enables internet service providers and local communities to use interactive maps to create proposed broadband coverage areas and then to create corresponding grant applications. It also helps applicants to find match capital. The system also helps ISPs manage subscribers, plans and revenue, monitor and manage their networks, and seamlessly offer Affordable Connectivity Benefits. And it helps grant awardees manage their extensive reporting requirements.

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