Broadband providers are applauding the Biden administration’s guidance on implementing its multibillion-dollar broadband subsidies to states, guidance those ISPs said will make it easier to build out the universal high-speed broadband that is the administration’s end-of-the-decade goal.
The National Telecommunications & Information Administration, which is administering the $42.45 billion Broadband Equity, Access and Deployment (BEAD) Program subsidies to states, on Tuesday (December 27) issued guidance on how that money should be handed out. The guidance essentially lines up with the Treasury Department’s guidance on broadband subsidies connected to COVID-19 recovery and capital projects.
NTIA had sought comment on the proposed new guidance. NCTA–The Internet and Television Association, the group representing big cable providers, had warned that not providing added flexibility could discourage participation in the program. It pointed out that what it called the “onerous” rules for the administration’s BTOP broadband grant program had discouraged “experienced“ and “more established and qualified” ISPs, as contrasted with the 60% of the awards that went to government or not-for-profit entities.
The NTIA clearly heard those comments.
For one thing, NTIA said the period over which ISPs will still be bound by the terms and conditions of grants — the so-called Federal Interest Period — will be shortened from 20 to 10 years. Cable broadband operators represented by NCTA, among others, had asked for a shorter compliance period.
Also Read: Republicans Slam Broadband Subsidy Program
NCTA had argued that the 20-year compliance period would “negatively impact an ISP’s ability to obtain financing for future broadband projects and thus impair their ability to participate in future BEAD bids.” ACA Connects, representing smaller, independent cable operators, had also sought an eight-year period.
Also music to ISPs’ ears is that they will be able to use income from BEAD-funded programs without restrictions and states won’t have to track where that income goes. ISPs can also upgrade BEAD-funded plant without getting NTIA's permission first.
ACA Connects president and CEO Grant Spellmeyer called the NTIA guidance a “significant step forward in implementing the BEAD program.” He said the “exemptions and modifications” to the BEAD requirements will “encourage participation by ACA Connects members and other broadband providers, leading to more cost-effective deployments.”
Telco broadband providers were also pleased.
“Getting the details right matters and today’s action by NTIA is a positive step towards streamlining the broadband deployment process for providers and consumers alike,” USTelecom CEO Jonathan Spalter said. “Waiving burdensome requirements will help encourage participation in the BEAD program and ensure more efficient utilization of federal funds. Also, NTIA’s commitment to align with Treasury’s approach on this issue will help ensure the overall success of BEAD.”
