
Fast, affordable Internet access for all.
The $42.5 billion federal Broadband Equity, Access, and Deployment (BEAD) grant program is facing what appears to be a significant overhaul as the new administration aims to alter, among other things, one of program’s key tenets: a preference for building fiber networks.
Meanwhile, a new ILSR policy brief – “BEAD Should Continue to Prioritize Fiber Internet Network Investments” – makes the case for why “these changes would repeat past policy mistakes and waste billions of dollars while delivering subpar Internet access to rural families at much higher prices.”
The brief goes on to succinctly describe why fiber networks should continue to be prioritized:
“In designing BEAD, Congress recognized that it was foolish to spend thousands of dollars per home every 5-10 years to deliver obsolete connections and chose instead to build fiber optic networks that will last generations – ultimately both saving taxpayer dollars and delivering an equitable Internet access option to millions of rural homes.”
And while the policy brief points to important long-term consequences that should be considered to ensure rule changes don’t squander a “generational investment” by building “something more temporary and inferior to the services found on every street in urban and suburban areas,” the brief does not argue that other technologies should not be a part of the mix.
“To be clear, BEAD’s priority for fiber does not bar the use of other technologies when appropriate. In cases where the cost of fiber is simply too great, other technologies are on the table – likely wireless options of both terrestrial and low-earth orbit,” the brief says.
If the cloud of uncertainty suddenly hovering over federal broadband funding programs is lifted, four Tribal communities in Alaska can fully celebrate the announcement last week that state-of-the-art fiber connectivity will soon arrive at their homes on Kodiak Island just off the south coast of Alaska.
On January 16, Old Harbor Native Corporation secured a portion of $162 million in grants in the second round of funding from the Tribal Broadband Connectivity Program (TBCP) administered by NTIA.
Old Harbor Native Corporation will undertake the project, named Project Nunapet for an Alutiiq word meaning “our lands,” in partnership with Alaska Communications.
According to a recent press announcement, a 155-mile subsea cable originating at Alaska Communications’ fiber landing station in Homer will cross the Shelikof Strait to reach Kodiak Island in Ouzinkie before circling the eastern coast of the island with stops in Narrow Cape, Old Harbor, and Akhiok. Project Nunapet will also bring fiber-to-the-home connectivity to Old Harbor, Chiniak, Akhiok, and Womens Bay.
The two corporations hope that the infrastructure will serve as a foundation for future network expansion in the area.
In this episode of the podcast, Chris sits down with Representative Kelly Kortum of Montana to discuss his efforts to repeal a law that restricts municipal broadband networks in the state. Drawing on his personal experience growing up in a small Montana town with limited Internet access, Representative Kortum shares how his passion for technology has shaped his advocacy for better broadband for rural communities.
The conversation explores Montana’s existing barriers to broadband expansion, including outdated legislation favoring incumbent cable companies and the impact of federal funding programs like ARPA and BEAD. Representative Kortum highlights the critical role cooperatives and nonprofits, like Yellowstone Fiber in Bozeman, play in bridging the digital divide. Together, they emphasize the importance of local control in infrastructure development and the broader implications of equitable broadband access for innovation and economic growth.
Tune in to learn how one legislator is working tirelessly to empower small towns across Montana with faster, affordable Internet and to challenge corporate control of connectivity.
This show is 17 minutes long and can be played on this page or via Apple Podcasts or the tool of your choice using this feed.
Transcript below.
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Thanks to Arne Huseby for the music. The song is Warm Duck Shuffle and is licensed under a Creative Commons Attribution (3.0) license
Back in 2021, ILSR noted that government leaders across Virginia had forged a partnership with a local private ISP and several nearby cooperatives to finally expand affordable, next-generation fiber into long unserved portions of eight predominantly rural Virginia counties.
Three years later and the partnership doesn’t appear to be working out all that well for Augusta County, with numerous county officials bickering about a lack of transparency and a conspicuous lack of deployment progress.
The original coalition involved Rappahannock Electric Cooperative (REC), the Shenandoah Valley Electric Cooperative (SVEC), All Points Broadband, and Dominion Energy Virginia collaborating to bring fiber to unserved parts of Augusta, Clarke, Fauquier, Frederick, Page, Rappahannock, Rockingham, and Warren counties.
But recent reporting by the Augusta Free Press and the News Leader indicates that the Augusta County Board of Supervisors and the county administrator, Tim Fitzgerald, are increasingly fighting over what they say is a lack of any progress, and a lack of transparency between county agencies and the company.
In the City of Sherwood, a mostly residential bedroom community 16 miles south of Portland, officials have been quietly cultivating a digital vineyard across Oregon’s “Gateway to Wine Country.”
As part of its on-going work to build out a citywide fiber network, Sherwood Broadband recently secured a $9 million grant from the Oregon Broadband Office Broadband Deployment Program (BDP) to continue expanding Sherwood’s municipally-owned network into neighboring rural communities just outside city limits.
The grant award is part of $132 million in federal Rescue Plan funds the state is doling out to an array of community-owned broadband initiatives for 16 projects across 17 counties.
Award winners include Beacon Broadband, a subsidiary of the Coos-Curry Electric Cooperative ($19.4 million); Jefferson County ($19.2 million); Douglas Fast Net, a wholly-owned subsidiary of the Douglas Electric Cooperative ($8.5 million); the Idaho-based member-owned cooperative Farmers Mutual Telephone Company, which offers broadband service in Malheur County, OR ($18.9 million); and a handful of independent providers like Blue Mountain Networks ($6.5 million) and Ziply Fiber ($10.2 million), recently acquired by Bell Canada.
Conexon Connect has completed its first fiber to the home project in Florida, a 2,000-mile network launched in partnership with Escambia River Electric Cooperative (EREC).
In a public statement, Conexon noted that this was the sixth fiber project they’ve completed nationwide with fiber Internet access being delivered to 12,000 EREC members.
"Over the past two years, we've worked tirelessly to bring this critical infrastructure to every EREC member in Escambia and Santa Rosa counties," EREC CEO Ryan Campbell said of the milestone. "Today, every member of our cooperative has access to fast, reliable Internet, which is not just about improving connectivity – it's about enhancing quality of life, fostering economic growth and ensuring that no one in our community is left behind in the digital age.”
Conexon’s Alexis Madison told ILSR that the EREC project will be financed with approximately $21.8 million in grants, including an Escambia County grant of $6.3 million, two Broadband Opportunity Program (BOP) grants totaling $5.9 million, and a Broadband Infrastructure Program (BIP) grant of $9.6 million.
The Oklahoma Broadband Office (OBO) says local providers have broken ground on several new grant-fueled fiber projects designed to provide high-speed Internet access to long unserved or underserved communities across wide swaths of the Sooner state.
According to two different announcements by the state’s broadband office, the OBO recently greenlit $65.9 million in new fiber expansion initiatives in the Southern part of the state, as well as another $24.6 million in deployments for the northern-central part of the state.
The fiber upgrade projects were made possible via $158 million in Capital Projects Fund grants made possible by the 2021 American Rescue Plan Act (ARPA). The grants are expected to help fund more than 50 projects in 28 counties.
In the Southern part of the state, $43.2 million in federal grants – plus $22.8 million in matching funds – will connect over 2,000 unserved homes and businesses in partnership with Medicine Park Telephone, Oklahoma Fiber Network, Oklahoma Western Telephone, Phoenix Long Distance, Southern Plains Cable, Southwest Oklahoma Telephone, and Texhoma Fiber.
With the incoming Trump administration and the ascendance of GOP leaders taking aim at key aspects of broadband expansion initiatives embedded in the Bipartisan Infrastructure Law, industry insiders expect the $42.5 billion Broadband Equity, Access, and Deployment (BEAD) program to likely get a major facelift in the coming months.
GOP Senate leaders have signaled they will push for BEAD to be scaled back or reconfigured.
One way they may do that is to remove the law’s preference for funding fiber network deployments and create a path for subsidizing Musk’s satellite Internet company, arguing that Starlink would be a more cost-effective solution to bring broadband to rural America.
Late last week, in fact, NTIA released its “Final Guidance for BEAD Funding of Alternative Broadband Technology.” And while the updated guidelines still considers fiber deployments as “priority broadband projects,” the agency administering the BEAD program now explicitly says that states can award “LEO Capacity Subgrants.”
North Carolina’s Roanoke Cooperative continues to make steady progress with expansion of its Fybe last mile fiber network within The Tar Heel State.
Cooperative officials tell ILSR that the cooperative and a coalition of organizations across North Carolina have major expansion plans in the works, starting with a fiber build in Halifax County, population 47,298.
Currently, Fybe provides fiber broadband service to around 6,000 subscribers in North Carolina, but thanks to an historic infusion of federal and state grants, the hope is to expand fiber access to the bulk of unserved addresses county-wide.
Fybe COO Bo Coughlin tells ILSR that the lion’s share of the cooperative's upcoming efforts to bring affordable connectivity to unserved and under-served portions of North Carolina will be under the banner of a coalition dubbed Encore, a nonprofit collaboration between MCNC, North Carolina Electric Membership Cooperatives (EMC), and Fybe.
“MCNC has been around for 40 years,” Coughlin notes. “It started as an economic Development institution funded by the state. Their goal was originally to help birth the microchip industry in RTP down in Raleigh, but today they provide transport to around a hundred universities, charter schools, and community anchor institutions across nearly 100 counties.”
Back in April, Fybe won a $9 million Growing Rural Economies with Access to Technology (GREAT) grant to help bring fiber to the largely underserved, heavily-rural residents of Martin, Bertie, Halifax, and Hertford counties.
“So currently, we pass about 5,000 total homes across Northampton and Halifax,” Coughlin said of Fybe’s current footprint.
States wary about the restrictions and delays with looming federal broadband grants are poised to put significant taxpayer resources into Starlink and other low Earth orbit (LEO) satellite constellations. The problem: such services often aren’t affordable, raise environmental questions, and may struggle to keep pace with consumer capacity demand.
Back in March, Maine unveiled a $5.4 million initiative to offer Starlink Low Earth Orbit (LEO) terminals to 9,000 state residents outside the reach of broadband from existing terrestrial providers.
An estimated 9,000 locations in the state (1.5 percent of residents) have no access to broadband, mostly peppered across rural Oxford, Penobscot, and Aroostook counties.
While well intentioned, the state’s initiative immediately sparked a debate about whether Starlink is the best use of taxpayer resources.
Starlink May Be Part of Solution
LEO satellite broadband has understandable allure for state broadband offices tasked with showing the federal government they have a solution for every premise – household and business – in the state. Depending on geography and state, some of these locations may require $100,000 for a terrestrial wireline connection.
Many of these unserved locations may be inhabited for a few weeks a year by the family of billionaires or 52 weeks a year by a family barely able to afford the fuel to live there. Spending $100,000 on that household may mean tens of other households see no improvement or have to settle for worse technology. And depending on who you ask, NTIA either demands that the state actually connect that household or simply have a feasible plan to achieve that connection.