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BEAD Program Faces Further Delays Amidst Shifting Priorities
Republicans have consistently criticized the Broadband Equity, Access, and Deployment (BEAD) program for its protracted rollout. Now, a further 90-day postponement has been announced, adding to the program’s challenges. The BEAD program aims to expand broadband access, but recent developments have raised concerns about its direction and efficacy.
The National Telecommunications and Information Administration (NTIA) recently informed state broadband offices of a blanket 90-day extension for submitting final BEAD funding proposals. The stated intent is to “improve efficiency, take a more technology-neutral approach, cut unnecessary red tape, and streamline deployment.”
Focus on Technology Neutrality
The “technology-neutral” approach marks a significant shift. BEAD was initially designed to prioritize fiber optic networks, but these updated rules are predicted to favor satellite internet options.
Starlink’s Potential Gain
Currently, Elon Musk’s Starlink appears to be the primary satellite internet provider poised to benefit from this modification.
Drew Garner, director of policy at the Benton Institute for Broadband and Society, told FASTNET, “By all appearances, it is to shift money towards Starlink.”
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Since the beginning of the Trump’s time in office, states have been preparing for considerable adjustments to BEAD, enacted as part of the 2021 Infrastructure Investment and Jobs Act. According to a Wall Street Journal report published in March, Starlink is anticipated to secure up to $20 billion in funding under potential rule changes, a notable rise from the originally projected $4.1 billion.
State Connectivity Authorities Await Guidance
Brian Allenby, senior director with the Maine Connectivity Authority, indicated that his office has adopted a waiting stance, anticipating alterations to the program.
Allenby told FASTNET, “We’re ready to go. The ISPs are clearly ready to go. We’re just kind of waiting for that program guidance.”
Fiber Optic’s Initial Prioritization Under BEAD
Throughout BEAD’s development, fiber optics served as the guiding principle. While representing the fastest and most reliable technology, its installation costs are considerably higher than that of satellite, especially in geographically isolated regions. Technologies such as Starlink were previously intended as “alternative technology” solutions, bridging gaps where no other provider bid to meet BEAD’s stipulated speed and latency standards.
Starlink’s Performance and BEAD Requirements
Notably, Starlink’s capability to consistently meet these requirements has been questioned; however, future rule revisions are expected to address this. Recent data from Ookla reflects Starlink’s average speeds around 79Mbps, falling below the 100Mbps benchmark set by BEAD.
Concerns and Irony
Until recently, Starlink’s involvement in BEAD was limited. Musk previously described BEAD on X as “an outrageous waste of taxpayer money and is utterly failing to serve people in need.”
Broadband specialists find irony in the stated rationale for the 90-day delay being to accelerate the overall process.
Garner stated: “I can’t imagine anything less streamlined than a bureaucratic, 90-day delay, in which states essentially have nothing to do except wait to hear about the new rules that they’re going to have to adapt to.”