The Broadband Equity, Access, and Deployment (BEAD) Program provides $42.45 billion to expand high-speed internet access across the U.S. by 2030. BEAD is being managed at the local level by broadband offices across all 50 states and 6 territories, which means for practical purposes there are 56 individual programs. Each one is very different depending on the state’s current and future needs.
State governments don’t provide broadband services on their own, but they do partner with broadband service providers in coordination with their local communities. Read on to learn what you need to do today to take part in this unprecedented federal program:
What is a BEAD Subgrantee, and When Will They be Selected?
A subgrantee is any organisation hired by a state to fulfill the work requirements under the BEAD program, and 2024 is the year when states will be making their subgrantee selections.
States had to submit their initial BEAD proposal to the National Telecommunications and Information Administration (NTIA) by December of last year. As of April 29, 2024, only four states have had their proposals approved. They now have one year to complete the subgrantee selection process and submit their final proposals, which means the clock is ticking. Subgrantee applications will be available mid to late 2024, but Internet providers interested in participating in the BEAD program should get ready now. It’s estimated that you’ll need about six months to prepare.
How are BEAD Subgrantees Chosen?
Each state’s broadband office will choose its own subgrantees through a proposal process. The selection includes weighted scoring criteria to ensure that subgrantees have the capacity and resources to build and operate networks. 75% of the criteria are mandated by the NTIA and include issues like affordability, fair labor practices, and speed to deployment, but 25% are left up to the states. Service providers interested in learning more should visit each state’s broadband office website.
To make their selection, each state will be assembling a group of subject matter experts to review proposals and assess qualifications. These groups will likely include experts from various fields, including financial analysts, permitting and construction companies, network engineers, lawyers, and grant specialists.
What Key Qualifications are States Looking for in their Subgrantees?
Financial Strength: States are looking for financially sound partners. Internet service providers will need to provide a line of credit that meets or exceeds 25% of the subaward value. Teams will likely request audited financial statements showing cash flows that indicate financial stability, along with business plans and projections that can help prove the project’s sustainability.
Operational Capability: States want ISPs that have provided service for at least two consecutive years prior to submitting their application, or they are wholly owned by a subsidiary that meets those requirements.
Managerial Readiness: States want to ensure prospective ISPs have the right teams in place for success. They’ll want resumes and organisational charts that show experience in building, managing, and maintaining similar networks.
Technical Competency: Are you technically qualified to deliver the funded activities in a competent manner? ISPs will be asked to deliver network design diagrams with detailed project costs and timelines with capital investment schedules. These action plans should indicate that the project will be completed within four years.
Additionally, the BEAD program mandates that network operators applying for funding must abide by the cybersecurity and supply chain risk management guidelines established by the National Institute of Standards and Technology (NIST).
Are There Any Deadlines for When Services Must Go Live?
Once selected, all subgrantees must begin providing service to each customer that desires it within four years after receiving the grant. This means ISPs need to be equipped with the right teams, tools, and technologies that will help them meet these tight timelines.
What Can BEAD Funds be Used For?
The NTIA instructs that BEAD grants must fund tools that support the planning and building of broadband networks, including data collection, staff support, and local outreach and training. This includes the construction, improvement, or acquisition of facilities, including telecommunications equipment for backhaul, middle-mile, and last-mile networks. Community Anchor Institutions (CAI), such as schools, libraries, and multi-tenant buildings, have a strategic priority in this plan.
Funding can also be used for:
- Network software upgrades, including service assurance and cybersecurity solutions.
- Engineering design and permitting.
- Deployment of internet and Wi-Fi infrastructure within an eligible multi-family residential building.
- Personnel costs, including consultants providing services directly connected to the implementation of the BEAD program.
- Core technology and Cybersecurity training for professionals who will be working on BEAD-funded networks.
Are There Any Reporting Requirements for Subgrantees?
Yes, subgrantee ISPs must provide at least 2 reports per year to the state broadband office for the duration of the subgrant. Here are some of the items you will need to share:
- a list of addresses or locations that will be served and if they are residential, commercial, or a community anchor institution,
- the types of facilities that have been constructed and installed,
- the percentage of customers taking service within each project area,
- peak and off-peak speeds of service being offered as compared to the maximum advertised, and prices charged for different tiers of service,
- a list of interconnection agreements that were requested, and their status.
Given the competitive nature of the BEAD program, it’s important for ISPs to put their best foot forward. It may be time to invest in long-overdue upgrades to tools and technologies that will ensure your ability to deliver quality services within these tight timeframes.
Prepare Now: How Enghouse Networks Can Help
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Network Inventory Management – Network inventory is the heart of the operational management of the network, providing a unified view across the company of the complex mix of Telco and IT network resources. Having a highly accurate inventory is the only way to share one view of the network between planning and operations and achieve faster network and service rollout.
Service Assurance – Our service assurance solutions manage critical services in real-time across multi-vendor, multi-protocol networks, addressing the unique hurdles and opportunities presented by hybrid networks consisting of legacy and next-generation elements. Our portfolio includes solutions for fault and performance management, topology based correlation and proactive care.
Reach out to us today to learn how we can help you achieve your BEAD goals and initiatives.
