NTCA CEO: 'Give BEAD a Chance'
The group has told the federal government some rules might keep its members from participating.
Jake Neenan
WASHINGTON, August 20, 2024 – The head of a rural broadband trade association is urging members to “give BEAD a chance.”
The message came from Shirley Bloomfield, CEO of NTCA - The Rural Broadband Association, and she was referring to the $42.45 billion Broadband Equity, Access, and Deployment (BEAD) program run by a division of the Commerce Department. Some broadband providers and trade organizations have said they’re hesitant about the grant program because it comes with more requirements than other federal and state funding programs.
In her message, she stressed that taking a close look at BEAD would be in her members self-interest.
“Take a serious look at the program in your state and the unserved or underserved areas that might be eligible for bidding and do some due diligence around what your participation might look like,” Bloomfield wrote last Friday in a blog post. “If you don’t, someone else might (or will) and you could end up with a less experienced but well-funded competitor’s network on your doorstep or even in your [incumbent phone] area for those parts that you haven’t finished building out yet.”
NTCA’s members provide broadband in rural locations. A spokesperson for the trade group said each member received support from the Federal Communications Commission’s $4.3 billion high-cost fund.
NTCA, which represents more than 900 rural ISPs, recently sent a letter to the agency tasked with handling the program, outlining concerns that she said could prevent small and rural providers from participating.
These included price caps for low-income subscribers served by BEAD infrastructure, too-large project areas in some states, and application scoring rules favoring providers that were flush with cash.
In her blog, Bloomfield said NTCA would “continue to weigh in on these issues as well.”
“Those critical conversations continue, and while I would love to say that we have broken through these implementation obstacles, much of this is still a work in progress,” Bloomfield wrote. “But sometimes in Washington, we just need to seize the opportunity to make our case, present our data and realities and work with policymakers to find a way to thread a needle.”
Commerce’s National Telecommunications and Information Administration, which is running BEAD, has been responsive to some industry complaints so far, loosening some of the program’s domestic manufacturing requirements and letter of credit rules.
Two states, Louisiana and Montana, have started accepting grant applications under the Infrastructure Act program. The majority of states are still at varying stages of refining broadband coverage data, and analysts expect program funds to start flowing in earnest in 2026.
