NTCA CEO Shirley Bloomfield today testified before the U.S. House of Representatives Committee on Energy and Commerce Subcommittee on Communications and Technology about the implementation of the Broadband Equity, Access, and Deployment (BEAD) Program, highlighting what has worked well thus far and ongoing concerns of NTCA members and other smaller and rural providers.
During the hearing, “From Introduction to Implementation: A BEAD Program Progress Report,” Bloomfield described the role that grant programs like BEAD have previously played in overcoming broadband deployment barriers and the need also to focus on ongoing achievement of universal service – ensuring that these networks and the services they enable will be adopted and useful for consumers for decades to come. She shared that, even as work on BEAD implementation continues, NTCA members have proactively employed loans, private capital, Universal Service Fund (USF) support, and grant programs through the Department of Treasury or U.S. Department of Agriculture to facilitate upgrades of existing networks in their own communities and to expand into other rural areas. Finally, Bloomfield shared that while NTCA members are eager to finish connecting rural customers in need, several concerns, if not adequately addressed, could deter small, community-based providers from participating in BEAD:
- While the FCC’s broadband map is improving, a lack of sufficient reporting standards and inadequate challenge processes continue to undermine its accuracy and reliability. These flaws may keep providers from reaching areas in need or deter participation.
- If states require providers to bid on large project areas in BEAD, smaller providers may be deterred from participation and more customers in these areas may end up with lesser technologies that cannot keep pace with demand over time. This is a bad result both for consumers and for the government’s investment in networks meant to last.
- The weighting of matching funds could affect participation by smaller providers by effectively creating a “reverse auction” where the biggest provider with the most financial resources wins.
- Ongoing concerns about affordability measures in some states, increased costs for labor or supplies and lengthy permitting delays also warrant monitoring and may warrant additional relief.
- Uncertainty surrounding the FCC’s USF – which has been critical to the progress that smaller operators have made in providing rural broadband – may have a chilling effect on BEAD participation in the wake of judicial challenges to the contribution mechanism that funds universal service programs.
Bloomfield’s full testimony can be viewed on the committee’s website.