Opening up BEAD to greater participation by low earth orbit (LEO) satellites under the auspices of being more technology-neutral "is really a billion-dollar handout" to SpaceX's Starlink, Penn State Pioneers Chair in Telecommunications Christopher Ali wrote Friday. "Subsidizing a technology that offers only 'good enough' connectivity ... risks creating a new digital divide as parts of the country go to satellite while others move to fiber optics," he added. Starlink is "a viable option for some," particularly for certain rural residents. But it shouldn't receive federal funding when its speeds don't meet minimum standards, it has high upfront costs, and it largely operates as a monopoly in the LEO market, Ali wrote.
New BEAD guidance from NTIA is expected in the middle of next month, state sources told us. There have been indications from the Commerce Department and elsewhere that big changes are ahead for BEAD rules (see 2503200003). NTIA didn't comment.
The U.S. reliance on tariffs should have minimal impact on most fiber broadband equipment pricing and deployments, Dell'Oro Group's Jeff Heynen wrote Monday. Key U.S. fiber broadband equipment providers have onshored most of their manufacturing and assembly so they can qualify for BEAD's Build America Buy America provisions, he said. Most commonly deployed components have already been self-certified by vendors and seen big increases in domestic manufacturing.
Letting ISPs retire copper lines and move to next-generation technologies is critical to broadband deployment, industry experts said during a USTelecom forum Thursday. FCC Chairman Brendan Carr has said repeatedly that the agency wants to make it easier for ISPs to modernize their networks (see 2504030011). Other executives warned that uncertainty in the BEAD program could be slowing broadband deployment.
With West Virginia's announced pause of its BEAD process as it revamps its state program to be more in line with what the White House wants, some other states are expected to follow its lead, observers told us. There have been numerous indications that big changes are ahead for BEAD rules (see 2503200003).
While FCC Chairman Brendan Carr has indicated that the agency envisions more steps to retire copper networks, beyond a series of orders issued in March, we're told it's unclear what big regulatory burdens remain. The agency last month called its steps "initial" and promised additional action (see 2503200056). Carr used similar language at last week's FCC meeting (see 2503270042). His office didn't comment further.
BEAD's pivot toward supposed tech neutrality is concerning if it treats alternatives to fiber such as low earth orbit satellites or fixed wireless as interchangeable with fiber, New America blogged Monday. LEO and fixed wireless have lower upfront deployment costs than fiber, but a fiber connection has vastly more capacity than LEO and a useful life of dozens of years, it said. Fiber might be more expensive upfront, but it could save replacement later, New America said, adding states must ensure that plans for universal access will be viable long-term solutions, it added. There also is a trade-off between fiber and LEO on service quality, New America said: SpaceX's Starlink service intermittently meets 100/20 Mbps speeds, while fiber capacity is more likely to be sufficient in the future, even given growing consumer bandwidth needs.
Oklahoma is "holding off" on its subgrant selection process for the BEAD and tribal broadband connectivity program following NTIA's rescoping of BEAD, the state's Broadband Office said during a governing board meeting Tuesday (see 2503060047). The office will soon release a second request for information (RFI) for network expansion territories as it awaits NTIA's next move concerning programmatic changes.
Every Maine resident "who wanted a connection could get one" by the end of 2024, the Maine Connectivity Authority said in its annual impact report. Released Monday, the report found that 3% of locations have slow or unreliable internet, while 1% could connect only through the state's working internet ASAP program. The report said that BEAD funding will upgrade the remaining 26,000 broadband serviceable locations whose service is at less than 100/20 Mbps. "We have made great progress, but the work is not done," wrote MCA President Andrew Butcher, adding that the agency will launch a $15 million digital opportunity campaign to expand digital equity initiatives. It will also "begin construction on a state-owned middle mile network" and launch a "wireless and cellular initiative" to improve mobile service.
Despite numerous signs that big changes are ahead for BEAD, states will likely stay the course on their programs and should, broadband consultants and others told us. The only smart play is for states to stay in close contact with NTIA and try to figure out what to expect, several said. Commerce Secretary Howard Lutnick said earlier this month that a review of BEAD rules was underway (see 2503050067), and the former head of the program, Evan Feinman, predicted rules changes were coming from the Trump administration (see 2503170045). Commerce didn't comment.