News
Arielle Roth, speaking last week at The Hudson Institute, outlined a new requirement for providers that take BEAD dollars.
By: Brad Randall, Broadband Communities
Assistant Secretary of Commerce for Communications and Information Arielle Roth last week unveiled a new requirement that will impact providers taking money under the $42.45 billion Broadband Equity, Access, and Deployment (BEAD) program.
In remarks to The Hudson Institute, Roth said the National Telecommunications and Information Administration (NTIA) will now require states to obtain written statements from providers, pledging “that they will not require or take additional federal subsidies—including operational subsidies—to complete or operate their BEAD projects.”
Roth, who serves as NTIA administrator through her role, continued her remarks.
“Those unwilling to make that commitment will not get an award,” she said. “Their proposed service areas will instead go to entities that can and will deliver.”
Roth said the aforementioned written certifications from providers will be required because “providers that are banking on future subsidies to stay afloat, are setting themselves, and their communities, up to fail.”
If a provider expects federal dollars to keep them afloat, Roth said that serves as a warning of heightened default risks.
“Moreover, it’s an expectation that’s harmful to the competitiveness and transparency of the BEAD provider selection process,” Roth said.
Providers increase ‘skin in the game’
She also said NTIA has seen a “substantial increase in skin in the game, with a nearly 40 percent match to our federal dollars.”
Roth pointed out that the nearly 40 percent matching funds is “well above the 25 percent statutory minimum.”
The recent statements from Roth paint a more complete picture of comments she made back in March, during her nomination hearing.
Back then, Roth emphasized that she wanted BEAD deployments to begin as quickly and as efficiently as possible. She also implied – strongly but not implicitly – that BEAD decisions would be made on a nuanced basis.
Before her current role, Roth led legislative and oversight efforts on communications and broadband policy for Sen. Ted Cruz.
