Red States May Oppose Affordability, Labor and Climate Policies Provided for in NTIA Broadband Rules

WASHINGTON, May 18, 2022 – Counsel for trade association the Fiber Broadband Association said Wednesday that states with Republican governments may oppose broadband affordability, labor and climate policies provided for in the National Telecommunications and Information Administration’s Notice of Funding Opportunity released Friday for implementation of the bipartisan infrastructure bill.

Such action could delay implementation of policies laid out in the NOFO.

Tom Cohen, FBA’s counsel, spoke about the possibility during a discussion hosted by the FBA breaking down the NOFO, including issues and opportunities going forward based on it.

Affordability plan proposals were also stated to be a concern for internet service providers, many of who believe the policy could force them to pass down costs to consumers and increase subscription prices.

Another concern raised in the discussion was that the NOFO’s regulations make it difficult for new and small providers to take advantage of the infrastructure bill.

Chris Champion, vice president of government relations for ISP C Spire and a chair of FBA’s public policy committee, suggested that the NTIA may have structured its policies this way on purpose to ensure most infrastructure builds come from experienced providers who already know how to expand networks.

The discussion also noted a lack of policy in the NOFO on hotly debated Buy America requirements for providers to use domestic materials in construction of products and suggested that providers should look to the White House’s Office of Management and Budget for details on the requirements.

Cohen also raised that whether the grant money providers receive from the bill will be taxable income is another question which must be worked out and clarified, saying that some individuals he has spoken to believe it will in fact be taxed.