In 2021, the Federal Communications Commission (FCC) found that 17.3% of rural Americans lacked access to high speed internet (25/3 Mbps), compared to 1.2% of urban Americans. And with the rise in IoT and other digital platforms powering much of today’s businesses, factories, hospitals, schools, and farms – the growing ‘digital divide’ is creating huge hurdles, not just in how we surf the web, but also in how communities can support business growth.
The National Telecommunications and Information Administration (NTIA) is on the verge of allocating $42.45 Billion in state funding aimed at bringing affordable and reliable high-speed Internet service to every corner of America. This momentous funding initiative, known as the Broadband Equity, Access, and Deployment (BEAD) Program, seeks to ensure that all individuals have equal access to the economic resources and opportunities facilitated by the Internet.
The NTIA recently announced, the exact amount of funds going to each state, who will now begin accepting applications from service providers as they shape their initial proposals, which will then need to be submitted for approval by the NTIA.
Understanding the BEAD Program:
The primary objective of the BEAD program is to expand broadband deployment and bridge the digital divide. State government broadband offices, acting as intermediaries, will distribute the majority of these funds to broadband providers through a competitive process, however each state is guaranteed a minimum of $100 million.
Responsibility for awarding BEAD funding is entrusted to the state governments, but service providers should take note of several important guidelines that will shape the implementation of the program and influence the selection process.
9 Key Considerations for Service Providers: What You Need to Know
- Fiber First Approach: The NTIA makes clear that end-to-end fiber is the preferred technology; fiber being an enduring infrastructure can easily scale speeds over time. States are encouraged to gather input from local providers on the extent to which the reach of fiber can be increased through the leveraging of existing infrastructure, in-kind matches, or other innovative approaches.
- Satellite and Unlicensed Broadband: Satellite and unlicensed spectrum are excluded from the definition of “Reliable Broadband Service.” However, these projects can receive funding if no other reliable technology can be deployed within the specified cost thresholds.
- Backhaul Funding: Besides last-mile broadband deployment, BEAD also permits funding of necessary middle-mile infrastructure.
- Cost Sharing: 25% of the project cost must be provided through matched funds. States will likely be looking to service providers, but these funds can also come from other sources.
- Prioritizing Areas of Focus: The FCC’s broadband maps play a vital role in determining whether a location is considered unserved or underserved, however states are encouraged to solicit input from local service providers on the choice of project areas. The first funding priority is for providing broadband to unserved areas (those below 25/3 Mbps), followed by underserved areas (those below 100/20 Mbps), and then community anchor institutions. In fact, the NTIA will give strong preference to those that can ensure “deployment of gigabit connections to community anchor institutions such as libraries and community centers that lack such connectivity. [1]”
- Environmental Impact: Projects are expected to be designed so that they minimize the potential for adverse impacts on the environment.
- Data Caps and Network Management: Broadband providers funded by the BEAD Program must not impose data usage caps or employ unjust or unreasonable network management practices.
- Key Selection Criteria: State broadband offices will be ranking applicants on affordability, use of fair labor practices, and speed of deployment (must launch within 4 years of the grant date). They also must ensure less than 48 hours of network outages per year and have a wholesale backup option if they are no longer operating a network. Service providers must offer at least one low-cost broadband option and provide service to each customer that desires it. In addition, it’s expected that each service provider will carry out their own public awareness campaign to help drive adoption [2].
- Important Dates and Timelines to Keep in Mind:
- June 30, 2023: The NTIA will announce the exact amount of funds going to each state.
- December 30, 2023: Initial proposals are due from each state, describing long- term goals and an action plan. If NTIA approves, 20% of funds will be released.
- December 30, 2024: Final state proposals are due. If approved, the remaining funds will be released.
Getting to Work
Once a service provider has been selected to be part of the BEAD initiative, the four year countdown begins. It’s estimated that the program will require 23,000 new jobs for skilled telecom workers, but with today’s tight labor market, no one is sure how this will be achieved [3].
One of the best ways to maximize the limited supply of human resources is through technology. Having the proper tools and automation in place will enable teams to be more productive and make fewer mistakes; to do more, with less. Enghouse Networks offers a full portfolio of operational and business support systems (OSS/BSS) that provide this assistance – from initial service planning, design and build through operating and monetizing. Some examples include:
- Enghouse Networks’ Esri-powered Geospatial Intelligence suite enables next generation fiber network buildouts. It’s a leading network planning, design and engineering platform that enhances the decision-making process, improves productivity in network operations and empowers the entire telecom enterprise with a “true view” of the network. It’s fast to deploy and easy to integrate, while also delivering accurate and reliable results.
- Enghouse Networks’ service planning and inventory provides an accurate view of outside and inside equipment that needs to be maintained.It captures the physical and logical inventory and topology for the network and the services running over them. This permits accuracy in network and service planning and provides the key data to enable a wide range of reporting and automation functions.
For more information, contact us today.
