The $42.5 billion federal Broadband Equity, Access, and Deployment (BEAD) grant program is facing what appears to be a significant overhaul as the new administration aims to alter, among other things, one of program’s key tenets: a preference for building fiber networks.

Meanwhile, a new ILSR policy brief – “BEAD Should Continue to Prioritize Fiber Internet Network Investments” – makes the case for why “these changes would repeat past policy mistakes and waste billions of dollars while delivering subpar Internet access to rural families at much higher prices.”

The brief goes on to succinctly describe why fiber networks should continue to be prioritized:

“In designing BEAD, Congress recognized that it was foolish to spend thousands of dollars per home every 5-10 years to deliver obsolete connections and chose instead to build fiber optic networks that will last generations – ultimately both saving taxpayer dollars and delivering an equitable Internet access option to millions of rural homes.”

And while the policy brief points to important long-term consequences that should be considered to ensure rule changes don’t squander a “generational investment” by building “something more temporary and inferior to the services found on every street in urban and suburban areas,” the brief does not argue that other technologies should not be a part of the mix.

“To be clear, BEAD’s priority for fiber does not bar the use of other technologies when appropriate. In cases where the cost of fiber is simply too great, other technologies are on the table – likely wireless options of both terrestrial and low-earth orbit,” the brief says.

With the incoming Trump administration and the ascendance of GOP leaders taking aim at key aspects of broadband expansion initiatives embedded in the Bipartisan Infrastructure Law, industry insiders expect the $42.5 billion Broadband Equity, Access, and Deployment (BEAD) program to likely get a major facelift in the coming months.

GOP Senate leaders have signaled they will push for BEAD to be scaled back or reconfigured.

One way they may do that is to remove the law’s preference for funding fiber network deployments and create a path for subsidizing Musk’s satellite Internet company, arguing that Starlink would be a more cost-effective solution to bring broadband to rural America.

Late last week, in fact, NTIA released its “Final Guidance for BEAD Funding of Alternative Broadband Technology.” And while the updated guidelines still considers fiber deployments as “priority broadband projects,” the agency administering the BEAD program now explicitly says that states can award “LEO Capacity Subgrants.”

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.

Now that the election has been settled, many in the broadband space are wondering what, if anything, will change with the incoming Trump administration.

Of course no one has a crystal ball, but there are a number of telecommunication policy developments we will be tracking, which include numerous fronts where there will likely be changes.

What those changes will be exactly will only become apparent sometime next year.

BEAD and DEA

The BEAD (Broadband Equity, Access, and Deployment) program and Digital Equity Act (DEA) programs are at the center of the universe in the national effort to ensure everyone has high-speed access to the Internet.

Image

However, in the run-up to the election, GOP leaders were highly critical of the BEAD program, saying it was taking too long to dispense funds to build new networks, questioned the NTIA favoring the building of fiber networks, and criticized aspects of the effort they consider to be a waste of taxpayer dollars.

A California telecom and electrical cooperative says the state’s ongoing last-mile broadband grant program will help deploy affordable fiber to multiple communities across four heavily unserved and underserved California counties.

Back in July, Imperial, Lassen, and Plumas Counties were the latest to receive broadband expansion grants courtesy of California’s $2 billion Last Mile Federal Funding Account Grant Program (FFA). The program, part of a broader $6 billion California “Broadband For All” initiative, is aimed at boosting broadband competition and driving down costs statewide.

Plumas-Sierra Telecommunications (PST), a subsidiary of Plumas-Sierras Rural Electric Cooperative (PSREC) has been a major early winner in ongoing California FFA awards. The cooperative says it’s poised to receive roughly $67 million in FFA grants to expand affordable broadband to roughly 6,600 unserved and underserved locations across Sierra, Plumas, Lassen, and Nevada Counties.

Image

California Public Utilities Commission (CPUC) recently announced another $86 million in FFA grants that will help fund broadband expansion across 21 different California towns, cities, counties, and tribal communities. One Plumas grant award is for a $14.5 million project to bring fiber to 834 unserved locations and 1,169 unserved residents across Plumas County.

Consumer Reports’ latest survey of the most popular ISPs in America is once again dominated by smaller providers and community-owned and operated broadband networks.

The magazine’s semi-paywalled report measured the opinions of 48,000 readers on a 100 point scale across four criteria: value for money, connection reliability, customer service, and speed.

The top ranked (95 points) ISP in the nation according to Consumer Reports was Greenlight, a small fiber operator that deploys largely around upstate New York. The second (92) was EPB, the community-owned fiber network in Chattanooga, Tennessee whose deployment has helped the city envision an estimated $2.69 billion return on its initial investment.

Image

At the same time, regional monopolies that benefit from muted competition and oversight continued to fare poorly in the magazine’s rankings.

Expensive and usage-capped satellite broadband services fared the worst (HughesNet (14) and Viasat (14)), followed by a peppering of regional cable and telco monopolies like Comcast Xfinity (28), CenturyLink/Lumen (25), Mediacom’s Xtream (25), or Altice’s Optimum (20).