States are poised to receive $42.5 billion in new Broadband, Equity, Access, And Deployment (BEAD) subsidies in the new year thanks to the 2021 infrastructure bill. But a growing number of ISPs in states like Minnesota say they may not participate in this latest round of federal grants, citing bureaucracy and burdensome restrictions.

While American Rescue Plan Act (ARPA) grants came with significant leeway as to how grant money could be spent, BEAD grants, overseen by the National Telecommunications And Information Administration (NTIA), come with numerous requirements related to lien mandates, low-cost service obligations, and deployment technology.

Those restrictions serve a purpose in the wake of the boondoggle that was the FCC’s Rural Digital Opportunity Fund, which resulted in a massive number of defaulting bids and unfinished projects because companies bidding on projects lacked the competency or financing to finish their awarded projects. It’s a major reason the NTIA was put in charge of BEAD.

But many Minnesota ISPs are still bristling at BEAD’s requirements, according to Brent Christensen, president and CEO of the Minnesota Telecom Alliance, an organization that represents 70 ISPs across the North Star State.

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“My members are telling me they’re not going to participate,” Christensen recently told MinnPost when asked about the $42.45 billion broadband program. “The way that BEAD is structured. I don’t know how anybody’s going to participate.”

States are poised to receive $42.5 billion in new Broadband, Equity, Access, And Deployment (BEAD) subsidies in the new year thanks to the 2021 infrastructure bill. But a growing number of ISPs in states like Minnesota say they may not participate in this latest round of federal grants, citing bureaucracy and burdensome restrictions.

While American Rescue Plan Act (ARPA) grants came with significant leeway as to how grant money could be spent, BEAD grants, overseen by the National Telecommunications And Information Administration (NTIA), come with numerous requirements related to lien mandates, low-cost service obligations, and deployment technology.

Those restrictions serve a purpose in the wake of the boondoggle that was the FCC’s Rural Digital Opportunity Fund, which resulted in a massive number of defaulting bids and unfinished projects because companies bidding on projects lacked the competency or financing to finish their awarded projects. It’s a major reason the NTIA was put in charge of BEAD.

But many Minnesota ISPs are still bristling at BEAD’s requirements, according to Brent Christensen, president and CEO of the Minnesota Telecom Alliance, an organization that represents 70 ISPs across the North Star State.

Image

“My members are telling me they’re not going to participate,” Christensen recently told MinnPost when asked about the $42.45 billion broadband program. “The way that BEAD is structured. I don’t know how anybody’s going to participate.”

States are poised to receive $42.5 billion in new Broadband, Equity, Access, And Deployment (BEAD) subsidies in the new year thanks to the 2021 infrastructure bill. But a growing number of ISPs in states like Minnesota say they may not participate in this latest round of federal grants, citing bureaucracy and burdensome restrictions.

While American Rescue Plan Act (ARPA) grants came with significant leeway as to how grant money could be spent, BEAD grants, overseen by the National Telecommunications And Information Administration (NTIA), come with numerous requirements related to lien mandates, low-cost service obligations, and deployment technology.

Those restrictions serve a purpose in the wake of the boondoggle that was the FCC’s Rural Digital Opportunity Fund, which resulted in a massive number of defaulting bids and unfinished projects because companies bidding on projects lacked the competency or financing to finish their awarded projects. It’s a major reason the NTIA was put in charge of BEAD.

But many Minnesota ISPs are still bristling at BEAD’s requirements, according to Brent Christensen, president and CEO of the Minnesota Telecom Alliance, an organization that represents 70 ISPs across the North Star State.

Image

“My members are telling me they’re not going to participate,” Christensen recently told MinnPost when asked about the $42.45 billion broadband program. “The way that BEAD is structured. I don’t know how anybody’s going to participate.”

States are poised to receive $42.5 billion in new Broadband, Equity, Access, And Deployment (BEAD) subsidies in the new year thanks to the 2021 infrastructure bill. But a growing number of ISPs in states like Minnesota say they may not participate in this latest round of federal grants, citing bureaucracy and burdensome restrictions.

While American Rescue Plan Act (ARPA) grants came with significant leeway as to how grant money could be spent, BEAD grants, overseen by the National Telecommunications And Information Administration (NTIA), come with numerous requirements related to lien mandates, low-cost service obligations, and deployment technology.

Those restrictions serve a purpose in the wake of the boondoggle that was the FCC’s Rural Digital Opportunity Fund, which resulted in a massive number of defaulting bids and unfinished projects because companies bidding on projects lacked the competency or financing to finish their awarded projects. It’s a major reason the NTIA was put in charge of BEAD.

But many Minnesota ISPs are still bristling at BEAD’s requirements, according to Brent Christensen, president and CEO of the Minnesota Telecom Alliance, an organization that represents 70 ISPs across the North Star State.

Image

“My members are telling me they’re not going to participate,” Christensen recently told MinnPost when asked about the $42.45 billion broadband program. “The way that BEAD is structured. I don’t know how anybody’s going to participate.”

States are poised to receive $42.5 billion in new Broadband, Equity, Access, And Deployment (BEAD) subsidies in the new year thanks to the 2021 infrastructure bill. But a growing number of ISPs in states like Minnesota say they may not participate in this latest round of federal grants, citing bureaucracy and burdensome restrictions.

While American Rescue Plan Act (ARPA) grants came with significant leeway as to how grant money could be spent, BEAD grants, overseen by the National Telecommunications And Information Administration (NTIA), come with numerous requirements related to lien mandates, low-cost service obligations, and deployment technology.

Those restrictions serve a purpose in the wake of the boondoggle that was the FCC’s Rural Digital Opportunity Fund, which resulted in a massive number of defaulting bids and unfinished projects because companies bidding on projects lacked the competency or financing to finish their awarded projects. It’s a major reason the NTIA was put in charge of BEAD.

But many Minnesota ISPs are still bristling at BEAD’s requirements, according to Brent Christensen, president and CEO of the Minnesota Telecom Alliance, an organization that represents 70 ISPs across the North Star State.

Image

“My members are telling me they’re not going to participate,” Christensen recently told MinnPost when asked about the $42.45 billion broadband program. “The way that BEAD is structured. I don’t know how anybody’s going to participate.”

States wary about the restrictions and delays with looming federal broadband grants are poised to put significant taxpayer resources into Starlink and other low Earth orbit (LEO) satellite constellations. The problem: such services often aren’t affordable, raise environmental questions, and may struggle to keep pace with consumer capacity demand.

Back in March, Maine unveiled a $5.4 million initiative to offer Starlink Low Earth Orbit (LEO) terminals to 9,000 state residents outside the reach of broadband from existing terrestrial providers.

An estimated 9,000 locations in the state (1.5 percent of residents) have no access to broadband, mostly peppered across rural Oxford, Penobscot, and Aroostook counties.

While well intentioned, the state’s initiative immediately sparked a debate about whether Starlink is the best use of taxpayer resources.

Starlink May Be Part of Solution

LEO satellite broadband has understandable allure for state broadband offices tasked with showing the federal government they have a solution for every premise – household and business – in the state. Depending on geography and state, some of these locations may require $100,000 for a terrestrial wireline connection.

Many of these unserved locations may be inhabited for a few weeks a year by the family of billionaires or 52 weeks a year by a family barely able to afford the fuel to live there. Spending $100,000 on that household may mean tens of other households see no improvement or have to settle for worse technology. And depending on who you ask, NTIA either demands that the state actually connect that household or simply have a feasible plan to achieve that connection.

States wary about the restrictions and delays with looming federal broadband grants are poised to put significant taxpayer resources into Starlink and other low Earth orbit (LEO) satellite constellations. The problem: such services often aren’t affordable, raise environmental questions, and may struggle to keep pace with consumer capacity demand.

Back in March, Maine unveiled a $5.4 million initiative to offer Starlink Low Earth Orbit (LEO) terminals to 9,000 state residents outside the reach of broadband from existing terrestrial providers.

An estimated 9,000 locations in the state (1.5 percent of residents) have no access to broadband, mostly peppered across rural Oxford, Penobscot, and Aroostook counties.

While well intentioned, the state’s initiative immediately sparked a debate about whether Starlink is the best use of taxpayer resources.

Starlink May Be Part of Solution

LEO satellite broadband has understandable allure for state broadband offices tasked with showing the federal government they have a solution for every premise – household and business – in the state. Depending on geography and state, some of these locations may require $100,000 for a terrestrial wireline connection.

Many of these unserved locations may be inhabited for a few weeks a year by the family of billionaires or 52 weeks a year by a family barely able to afford the fuel to live there. Spending $100,000 on that household may mean tens of other households see no improvement or have to settle for worse technology. And depending on who you ask, NTIA either demands that the state actually connect that household or simply have a feasible plan to achieve that connection.

States wary about the restrictions and delays with looming federal broadband grants are poised to put significant taxpayer resources into Starlink and other low Earth orbit (LEO) satellite constellations. The problem: such services often aren’t affordable, raise environmental questions, and may struggle to keep pace with consumer capacity demand.

Back in March, Maine unveiled a $5.4 million initiative to offer Starlink Low Earth Orbit (LEO) terminals to 9,000 state residents outside the reach of broadband from existing terrestrial providers.

An estimated 9,000 locations in the state (1.5 percent of residents) have no access to broadband, mostly peppered across rural Oxford, Penobscot, and Aroostook counties.

While well intentioned, the state’s initiative immediately sparked a debate about whether Starlink is the best use of taxpayer resources.

Starlink May Be Part of Solution

LEO satellite broadband has understandable allure for state broadband offices tasked with showing the federal government they have a solution for every premise – household and business – in the state. Depending on geography and state, some of these locations may require $100,000 for a terrestrial wireline connection.

Many of these unserved locations may be inhabited for a few weeks a year by the family of billionaires or 52 weeks a year by a family barely able to afford the fuel to live there. Spending $100,000 on that household may mean tens of other households see no improvement or have to settle for worse technology. And depending on who you ask, NTIA either demands that the state actually connect that household or simply have a feasible plan to achieve that connection.

States wary about the restrictions and delays with looming federal broadband grants are poised to put significant taxpayer resources into Starlink and other low Earth orbit (LEO) satellite constellations. The problem: such services often aren’t affordable, raise environmental questions, and may struggle to keep pace with consumer capacity demand.

Back in March, Maine unveiled a $5.4 million initiative to offer Starlink Low Earth Orbit (LEO) terminals to 9,000 state residents outside the reach of broadband from existing terrestrial providers.

An estimated 9,000 locations in the state (1.5 percent of residents) have no access to broadband, mostly peppered across rural Oxford, Penobscot, and Aroostook counties.

While well intentioned, the state’s initiative immediately sparked a debate about whether Starlink is the best use of taxpayer resources.

Starlink May Be Part of Solution

LEO satellite broadband has understandable allure for state broadband offices tasked with showing the federal government they have a solution for every premise – household and business – in the state. Depending on geography and state, some of these locations may require $100,000 for a terrestrial wireline connection.

Many of these unserved locations may be inhabited for a few weeks a year by the family of billionaires or 52 weeks a year by a family barely able to afford the fuel to live there. Spending $100,000 on that household may mean tens of other households see no improvement or have to settle for worse technology. And depending on who you ask, NTIA either demands that the state actually connect that household or simply have a feasible plan to achieve that connection.

States wary about the restrictions and delays with looming federal broadband grants are poised to put significant taxpayer resources into Starlink and other low Earth orbit (LEO) satellite constellations. The problem: such services often aren’t affordable, raise environmental questions, and may struggle to keep pace with consumer capacity demand.

Back in March, Maine unveiled a $5.4 million initiative to offer Starlink Low Earth Orbit (LEO) terminals to 9,000 state residents outside the reach of broadband from existing terrestrial providers.

An estimated 9,000 locations in the state (1.5 percent of residents) have no access to broadband, mostly peppered across rural Oxford, Penobscot, and Aroostook counties.

While well intentioned, the state’s initiative immediately sparked a debate about whether Starlink is the best use of taxpayer resources.

Starlink May Be Part of Solution

LEO satellite broadband has understandable allure for state broadband offices tasked with showing the federal government they have a solution for every premise – household and business – in the state. Depending on geography and state, some of these locations may require $100,000 for a terrestrial wireline connection.

Many of these unserved locations may be inhabited for a few weeks a year by the family of billionaires or 52 weeks a year by a family barely able to afford the fuel to live there. Spending $100,000 on that household may mean tens of other households see no improvement or have to settle for worse technology. And depending on who you ask, NTIA either demands that the state actually connect that household or simply have a feasible plan to achieve that connection.