States and Municipalities Should Move Quickly on Infrastructure Funding, BEAD or Not

WASHINGTON, November 20, 2022 – Despite an unprecedented influx of federal broadband funding, states should expeditiously pursue diverse network funding options, said Tom Coverick, managing director at Keybanc Capital Markets, speaking Thursday at Broadband Breakfast’s Digital Infrastructure Investment conference.

Coverick advocated financial strategies that are “nimble, responsive, and quick.” And among other benefits, beginning financial planning early on allows time to tweak statutes that may stand in the way of certain funding options, he argued.

“I don’t think sitting and waiting for one piece (of financing) is the right thing to do,” he said. “I don’t say that people should be hasty, but the reality is it’s always easier to slow things down in the financial world than it is to speed them up,” he added.

David Wedick, chief financial officer of the Maine Connectivity Authority, also spoke to importance of timely action. “Time is money, and the market is changing,” he said.

The two were speaking on a panel moderated by Broadband Breakfast Editor and Publisher Drew Clark, and including Vikash Harlalka, a member of the Communications Services team at New Street Research.

The private sector can offer much more to the broadband industry than just financial support, Wedick argued. “Investment from the private sector is not just going to be in terms of dollars, it’s going to be in terms of resources (such as) the law firm that decides to create a new division around broadband legal work,” he said.

In addition to seeking out private investment, state officials must navigate the federal government’s multitude of broadband-funding efforts, including a $65 billion infusion from the Infrastructure Investment and Jobs Act.

Federal moneys are divided among numerous programs administered by various federal agencies, including the United States Treasury’s Capital Projects Fund, the Department of Agriculture’s ReConnect program, the Federal Communications Commission’s Rural Digital Opportunity Fund, and the National Telecommunications and Information Administration’s Broadband Equity, Access, and Deployment initiative. The BEAD fund will distribute $42.45 billion to the states for deployment and related projects.

View a full video recording of the panel by signing up for the Broadband Breakfast Club.