Following announcements from large fiber equipment providers that they are building fiber equipment manufacturing plants in the United States, the telecommunications industry is turning its focus from domestic manufacturing requirements to other regulatory burdens that have the potential to bar Broadband Equity Access and Deployment projects.

Of those regulations, matching and letter of credit requirements could be the major hurdles. Rules for the $42.5 billion BEAD program require that grantees produce a match of at least 25 percent of total program awards on top of a letter of credit. A letter of credit certifies that a bank will reimburse the federal government with 25 percent of program awards in the event of a default.

“Nobody wants to see BEAD funding go to waste. But requiring applicants to provide a 25 percent match and a 25 percent letter of credit risks shutting out those best-placed to bridge the digital divide and does little to protect U.S. taxpayers,” Connect Humanity CEO Jochai Ben-Avie told Broadband Breakfast. Connect Humanity is a digital equity advocacy group that invests in community connectivity providers.

Matching requirement

Many small, rural, minority and women-owned internet service providers and municipalities are ready and willing to build affordable, high-speed broadband in America’s least served and most marginalized communities, said Ben-Avie. “But, unlike the large incumbents, they don’t have millions of dollars spare to scale the BEAD capital hurdle,” he said. He called the letter of credit requirement a test of a provider’s ability to lock up working capital rather than the provider’s ability to deliver high-speed broadband.

read more….

Read the three reports on BEAD in advance of the BEAD Implementation Summit on September 21, 2023. Register now and receive a copy of each of the three reports!

• July 2023 – A Deep Dive into Allocations Under the Broadband Equity, Access and Deployment Program
• August 2023 – Precursors to BEAD Implementation: A Deep Dive Into Prior Broadband Programs
• September 2023 – A Deep Dive into the BEAD Program’s Matching Funds

Or – sign up for the Broadband Breakfast Club and receive access to all Premium Content!

The process of rolling out broadband funds under the country’s bipartisan infrastructure law has begun in earnest, with the White House announcement in June of allocations for each state under the Broadband Equity, Access and Deployment program. States, meanwhile, are deeply in the midst of planning for BEAD implementation.

The Broadband Breakfast community will be exploring the details of this rollout at the BEAD Implementation Summit in Washington on Sept. 21, 2023. In preparation for the summit, Broadband Breakfast is producing three monthly reports.

In our July 2023 Exclusive Report, we reviewed the state allocations under BEAD, considering the approaches being taken by a multitude of state broadband offices.

In this August 2023 Exclusive Report, we’re considering some of the precursor programs to BEAD — and what those involved in the BEAD Implementation can learn from these prior programs.

In our September 2023 Exclusive Report, we’ll be considering the role of matching funds and public-private partnerships in the rollout of BEAD.

read more….

Read the three reports on BEAD in advance of the BEAD Implementation Summit on September 21, 2023. Register now and receive a copy of each of the three reports!

• July 2023 – A Deep Dive into Allocations Under the Broadband Equity, Access and Deployment Program
• August 2023 – Precursors to BEAD Implementation: A Deep Dive Into Prior Broadband Programs
• September 2023 – A Deep Dive into the BEAD Program’s Matching Funds

Or – sign up for the Broadband Breakfast Club and receive access to all Premium Content!

The Broadband Equity, Access and Deployment program will invest $42.5 billion in high-speed internet across the country. With White House funding announcement on June 26, 2023, state broadband offices have begun to react and release reports on their next steps in the landmark broadband infrastructure measure.

States react to award allocations

The BEAD program is implemented by the Commerce Department and its National Telecommunications and Information Administration allocates funds directly to state broadband offices, which are in charge of developing their own programs and issuing subgrants to qualifying internet service providers. ISPs can include private, public/municipal, or cooperative entities. States have a lot of work to do to prepare for the federal funding coming down the pipeline.

In late 2022, the National Telecommunications and Information Administration awarded BEAD planning grants that funded state processes in developing a five-year action plan for BEAD awards. States have 270 days from the receipt of planning grants to release their five-year plans intended to “provide a foundation for alignment with future initial and final proposals.”

The NTIA has provided states with a five-year action plan template that includes a statement of a clear vision for broadband deployment and digital equity. It outlines goals and objectives that ensure all residents will have access to high-speed internet and empower local municipalities to develop and implement lasting broadband infrastructure across the state or territory.

Additionally, states must list all existing broadband programs or offices, relevant partnerships with stakeholders, and a needs and gaps assessment with obstacles and barriers residents face in connecting to the internet.

State digital equity plans must identify the barriers to digital equity and measurable objectives for documenting and promoting the availability, affordability and accessibility of digital equity programs. They must provide an assessment of how the objectives will impact and interact with other state economic and social goals.

Louisiana was the first state to publicly release its five-year and digital equity plans in May. Since then, Delaware, Hawaii, Idaho, Maine, Montana, North Carolina, Ohio and Utah, have released drafts of their five-year plans for public comment. Maine, Michigan, Montana and Utah also released their draft digital equity plans. And Virginia and Louisiana have both released the first volume of their draft BEAD Initial Proposals.

read more….

Read the three reports on BEAD in advance of the BEAD Implementation Summit on September 21, 2023. Register now and receive a copy of each of the three reports!

• July 2023 – A Deep Dive into Allocations Under the Broadband Equity, Access and Deployment Program
• August 2023 – Precursors to BEAD Implementation: A Deep Dive Into Prior Broadband Programs
• September 2023 – A Deep Dive into the BEAD Program’s Matching Funds

Or – sign up for the Broadband Breakfast Club and receive access to all Premium Content!