BEAD by Example: The Next Chapter in the Broadband Saga
The federal Broadband Equity, Access, and Deployment (BEAD) Program has lived many lives since its enactment in 2021. The sprawling nature of the $42.45 billion program is largely due to complex requirements and bureaucratic hoops states had to jump through in order to access BEAD funding.
BEAD began as an effort to bring fast, reliable internet to those Americans without access. The digital divide is real and impacts the daily lives of millions of Americans. Unfortunately, alongside the goal of connectivity, BEAD included jobs programs, rate requirements, and other conditions that prohibited states from choosing the plan and provider that best served their citizens’ needs.
These restrictions made it difficult for states to gain approval for their plans and, according to the National Telecommunications and Information Administration’s (NTIA) tracker, only four states reached the final stage of the process and selected internet service providers (ISPs): Louisiana, Delaware, Nevada, and West Virginia. Of those four, only Louisiana, Delaware, and Nevada released their final proposal for public comment and approval. Shovels have not broken ground at a single location and the program has not brought internet to even one home.
In the latest twist for the BEAD program, the NTIA announced major changes that included lifting restrictions and rescinding plan approvals on a state by state basis.
The new “Benefit of the Bargain BEAD Program” seeks to correct some of the pitfalls of the previous BEAD guidelines. Tech neutrality is a key tenant of the reforms, and states no longer have to show a preference for fiber-based internet technologies. Instead, states can prioritize the systems that are right for the specific locations they are serving. For example, a rural area will most likely be more affordably and efficiently served through a method like Starlink as opposed to in-ground fiber.
The NTIA also announced the removal of rate regulations, a Biden-era practice that limited broadband companies from setting their own rates for their services because of a “low cost option” requirement. In the official fact sheet for the new changes, the NTIA explains “NTIA will refuse to accept any low-cost service option proposed in an Eligible Entity’s Final Proposal that attempts to impose a specific rate level (i.e., dollar amount) and instead call on Eligible Entities to permit providers to propose their existing, market driven low-cost plans to meet the statutory low-cost requirement. NTIA will also eliminate the requirement that Eligible Entities have a middle-class affordability plan, which was undefined and impossible to operationalize.”
The NTIA is also rescinding approval of final proposals from the few states that had gained it. Louisiana, Delaware, and Nevada will now have to reopen the bidding process. States like Louisiana, where the broadband office ConnectLA prioritized efficiency, competition, and tech neutrality from broadband providers, should be well prepared to face the challenging but necessary work of reversing the burdensome regulations of yesteryear’s BEAD.
The new changes to BEAD reflect a reverence for the power of competition within a free market. When broadband providers are free to vie against each other using different technologies, prices, and approaches, states are then able to select the provider that best serves their citizens’ needs. Louisiana welcomes innovation, competition, and solutions to the digital divide and the next chapter of BEAD is a wonderful opportunity to demonstrate our grit and resilience.
Links to Learn More
NTIA Rewrites Rules for BEAD, Forcing States to Rebid Broadband Projects
Why Technological Neutrality Is Key to BEAD’s Success – International Center for Law & Economics
