BEAD Program’s Focus on Low-Cost Networks Sparks Concerns and Changes

Rural America still needs fast internet. Some worry new federal plans will fall short

In a shift in broadband policy, the National Telecommunications and Information Administration (NTIA) is approaching all broadband technologies with a new perspective, treating them as equal. Drew Garner, the director of policy engagement at the Benton Institute for Broadband & Society, has highlighted this change, noting that the focus is now on the most cost-effective networks rather than the highest quality ones.

The Benton Institute, located in Wilmette, Illinois, is dedicated to promoting reliable and affordable internet access across the United States. Garner expressed concerns about the Broadband Equity, Access, and Deployment (BEAD) program, noting that its current strategy prioritizes what’s least expensive for the program itself, potentially sidelining affordability for consumers. “We’re not going to be looking at sort of the best quality network,” Garner stated. “We’re going to be looking at the least expensive networks.”

This shift has led to an increase in satellite internet services, which are expanding their reach nationwide. However, this technology can come with higher monthly costs for users. Two major players in this field, Jeff Bezos’ Project Kuiper and Elon Musk’s Starlink, have emerged as significant beneficiaries of the BEAD program. “In fact, the two companies that have won the most locations with BEAD so far are Starlink and Kuiper,” Garner added.

While the BEAD program has saved money, the future allocation of these funds remains uncertain. For example, Oklahoma initially received an allocation of $797 million that was later reduced to $550 million. Garner pointed out that states are awaiting further instructions from the NTIA. “They are being very cagey about what they’re going to let states do with that money,” he mentioned. “By law it is the states’ money. We’re just waiting for NTIA to say what they can do with it.”

Long-term Outlook

Efforts to improve internet connectivity have been ongoing in Wisconsin, where the state’s broadband office has invested $345 million since 2019 to extend high-speed internet to approximately 410,000 homes and businesses. However, Gail Huycke, a community development specialist at the University of Wisconsin-Madison, noted some dissatisfaction with the BEAD program’s move away from fiber-centric projects.

Initially, Wisconsin’s proposal aimed for 93% of its projects to be fiber-based, a figure that has now decreased to around 74% under the new framework.

Huycke expressed concerns about potential future costs associated with non-fiber projects, stating, “I think that’s one of the things that people are seeing as so frustrating because they’re afraid we’re going to have to go backwards again and do some of those areas over.” Despite the ambition of achieving “internet for all,” she acknowledged that some areas in Wisconsin will still require attention.

Meanwhile, in Oklahoma, the BEAD initiative is anticipated to help the state connect its most challenging and costly locations. “When it’s all said and done, I believe Oklahoma will be very proud with the product that we have produced,” said Sanders from the Oklahoma Broadband Office. “However, there’s a big ‘however’ here, everything will now lie within NTIA.”

Sanders plans to commence construction next spring, pending NTIA’s approval of project proposals. This story was produced in partnership with Harvest Public Media, a collaboration of public media newsrooms in the Midwest and Great Plains, focusing on food systems, agriculture, and rural issues.

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