Texas Broadband Development Office

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Texas Hold 'Em: State Freezes BEAD Funding Amid Musk Favoritism Claims

The Texas Broadband Development Office (BDO) says that it has placed Broadband, Equity, Access, and Deployment (BEAD) broadband grant money on hold to address continued claims that the program has been unfairly tilted to the direct benefit of billionaire Elon Musk.

In July, the office faced widespread accusations that Trump administration changes made to the BEAD program deprioritized faster fiber technologies and gave an unfair advantage to Elon Musk, Jeff Bezos, and their slower, more congested low-Earth-orbit (LEO) satellite technologies.

The changes were part of the Trump administration’s misleadingly-named “benefit of the bargain” modifications, which eliminated requirements that taxpayer-funded broadband be affordable to the public, removed efforts to ensure equitable broadband delivery, and doled out billions to Musk and Bezos for satellite service they’d already planned to deploy.

An email obtained by the Texas Tribune sent from the state broadband office to subgrantees says that a hold is being placed on all BEAD disbursements “until further notice.”

“No further action is required from subgrantees at this time,” the office said in the email. “The BDO will provide additional guidance and updates as they become available.”

The email does not provide a reason for the hold, and the Texas Broadband Office did not respond to a request for comment. But the hold comes just a week after Texas Comptroller Don Huffines announced a comprehensive internal review of his office, including the state broadband office, in part to address complaints of Musk favoritism.

Monahans, Texas Builds Its Own ‘Labor Of Love’ Fiber Network

Tired of the high prices, spotty coverage, and slow speeds of regional monopoly broadband providers, the remote West Texas city of Monahans has spent the last decade taking matters into their own hands.

Now, thanks to hard work, determination, and local philanthropy, the city’s 7,500 residents are headed for the right side of the digital divide.

Carroll Faulkner, who consulted with the city on its project, and Teresa Burnett, executive director of the Monahans Chamber of Commerce, told ILSR the project to bring Monahans into the modern era has been a challenging labor of love.

It has recently culminated in the completion of the first phase of the project, bringing affordable fiber to around 2,000 residents in city 36 miles southwest of Odessa.

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oil rig behind a wired fence in Sandhills State Park

“We are very passionate about this project,” Burnett told ILSR. “It's been a lot of ups and downs, and it's been 10 long years.”

The city’s network build is in partnership with Hosted America, which is acting as the first last mile ISP serving residents, and View Capital’s American Fiber Infrastructure Fund, which technically owns the finished network. Hosted America enjoys early exclusive usage of the network, but the duo say the network will ultimately be open access, allowing numerous partners.

Phase one of the network plan was completed roughly a year ago, bringing affordable fiber for the first time ever to around 2,000 locals. The full cost of phase one was expected to be around $4.5 million, said Faulkner, of which around $1 million was funded by the 2020 Coronavirus Aid, Relief, and Economic Security (CARES) Act.

The remainder of the funding was obtained from View Capital and a coalition of philanthropic organizations.