Broadband Execs: Rural Broadband in Trouble, Irrespective of BEAD
Industry leaders warn permitting delays and USF collapse could cripple connectivity in rural America
Jericho Casper
WASHINGTON, March 6, 2025 – Despite much attention Wednesday to whether and how the $42.5 billion BEAD program will change under the Trump administration, industry executives warned House lawmakers at a hearing that two other challenges may pose a greater long-term threat to rural broadband deployment.
Even if BEAD were fixed overnight, the uncertain future for the Universal Service Fund and bureaucratic permitting hurdles could stall or kill rural deployment, executives from independent and wireless groups warned during Wednesday’s House Communications and Technology Subcommittee hearing.
“If USF went away completely, then we would quickly have very negative operating income,” said Greg Hale, CEO of LTC Connect, a rural broadband cooperative in Kentucky.
“Unfortunately, USF programs are under attack and the sustainability and affordability of connectivity for millions of rural Americans is at risk,” Hale said. “A 9-7 Fifth Circuit decision declaring the USF’s contribution method unconstitutional is now before the Supreme Court for review.”
Hale warned that eliminating USF would send broadband prices skyrocketing. “Recent NTCA member surveys show rates could skyrocket to an average of $165 a month — [that is] where service even survives,” he said.
“If we do not meet this challenge, we will see hearings like today’s being held five or 10 years from now, asking how we missed the mark,” Hale warned.
Tim Donovan, president of the Competitive Carriers Association, told lawmakers the frustrations with USF were compounded by permitting obstacles.
“As Congress explores ways to support deployment through broadband programs like BEAD and USF, updates to siting and permitting processes should align and enhance those initiatives,” Donovan said.
“CCA members need permits from federal, state, and local authorities… Current processes for acquiring the necessary permits from various agencies can take months or even years,” Donovan said.
Grant Spellmeyer, CEO of ACA Connects echoed these concerns. “A provider last night from Ohio was talking about how he regularly has a slew of projects that are three years in the queue at utilities because of permitting problems."
“We encourage Congress to adopt reforms that encourage consistency in state and local permitting and to… streamline permitting policies across federal agencies,” he added.
Spellmeyer pointed to several bills that could ease broadband deployment challenges, including: the American Broadband Deployment Act, backed by Rep. Buddy Carter, R-Ga.; and the Federal Broadband Deployment Tracking Act, introduced by Reps. August Pfluger, R-Texas, and Darren Soto, D-Fla.
While the hearing primarily focused on the challenges and future direction of the BEAD program, discussions also encompassed the modernization of the 5G Fund, the implications of taxing BEAD grants, and the current state of the Federal Communications Commission's spectrum authority.
