ACA Connect Releases BEAD Regulatory Analysis

July 26, 2024 – Trade association ACA Connects and communications consultant Cartesian released a new regulatory analysis of the $42.5 billion Broadband Equity, Access and Deployment program on Thursday. 

The newest version of the report, using data from the latest iteration of the Federal Communications Commission’s National Broadband Map, estimates that 5.4 million unserved and underserved locations will be eligible for BEAD funding by the time states and territories begin to select broadband deployment projects.

The BEAD program, administered by the National Telecommunications and Information Administration and made possible through the Infrastructure Investment and Jobs Act, allocates funds to states to build out high-speed internet connection to all addresses in its jurisdiction. The FCC mapped all eligible locations for the BEAD program in its National Broadband Map.

ACA Connects and Cartesian’s report demonstrated that the BEAD program will reach fewer locations if states choose to exclusively use fiber optic technology and if they require providers to meet “unreasonable affordability mandates or to incur high labor costs.”

Experts have touted the affordability mandate, which requires states to include a low-cost subscription option for low-income households, as a significant barrier for internet service providers attempting to gain access to the BEAD funds. 

In a press release, the companies said that they found that “requiring providers to deploy to large project areas would tend to diverge from efficient builds and therefore reduce fiber deployments. And, importantly, these mandates would deter smaller, experienced providers from participating in the program, which would further lessen the chances the program would achieve its objectives.”

Grant Spellmeyer, ACA Connects president and CEO said in a letter on the analysis that “smaller providers with vast experience serving small towns and rural areas are well positioned to drive the success of the BEAD program, but they will not be able to make a business case to participate if the requirements are too onerous.”

The report follows a letter that more than 30 broadband associations signed Tuesday addressed to the United States Secretary of Commerce Gina Raimondo to urge the NTIA to reduce restrictions on the BEAD program that they claim would limit small and rural providers from participating in the program.