Associations warn BEAD funding could fail if old mistakes aren't avoided

A new blog post signed by the CEOs of the Fiber Broadband Association and the Rural Broadband Association warned that Americans could be left underserved if Federal and state agencies prioritize the funding of lower-performing networks.

The post, titled “The Importance of Spending Federal Funds to Build Broadband Right the First Time,” said the rubber is hitting the road when it comes to the rollout of BEAD funding and argued that policymakers need to make sure BEAD funding investments result in generational change.

In the post, Shirley Bloomfield, the CEO of the Rural Broadband Association (NTCA), and Gary Bolton, the president and CEO of the Fiber Broadband Association, wrote states and territories are developing rules to govern the selection of broadband projects and the distribution of BEAD funds.

“As part of these initial proposals, subject to National Telecommunications and Information Administration (NTIA) review, states and territories will establish a ‘threshold’ of project costs at which the fiber priority ceases,” they wrote. “The importance of setting this ‘extremely high-cost threshold’ properly cannot be overstated. We’ve all lived through broadband funding programs that have made the mistake of “incrementalism”— funding lower-performing networks that are outdated soon after or even before they are finished.”

Bloomfield and Bolton said taxpayers cannot afford to see BEAD to repeat old mistakes, which they wrote would leave “unserved residents and communities stranded once more.”

They said it will be important to define areas where BEAD funding can be applied in a manner that involves smaller local providers.

“BEAD risks becoming a broadband funding failure if unserved Americans are still standing around in 2030 wondering why taxpayer dollars were used to build networks that might have been marginally acceptable at best in 2023 rather than investing in critical infrastructure for the long-term.”

The CEOs said their respective associations are calling on the NTCA, along with states and territories, to “make sure that the extremely high-cost threshold is set in a way that matches the vision of Congress to build broadband right the first time.”

Bloomfield and Bolton said they recognize that states and territories are not going through an easy process and said the Fiber Broadband Association and the NTCA have developed a Broadband Infrastructure Playbook to assist with the rollout of BEAD funding.

“NTIA and the states and territories should aim to ‘finish the job’ when it comes to implementing the clear priority articulated by Congress, which will in turn allow committed providers to ‘finish the job’ by connecting as many Americans as possible to networks that will stand the test of time and give them the opportunity to participate fully in our economy, society, and critical healthcare, educational, and other community institutions.”