Republicans and Democrats disagreed during a House Communications & Technology subcommittee hearing yesterday on how NTIA is implementing the $42 billion BEAD grant program to connect all Americans, but especially the hardest-to-reach rural areas. Full Commerce Committee Chair Cathy McMorris Rodgers (R-WA) said the committee recently opened an investigation into “NTIA’s lack of transparency” regarding its implementation of the broadband grant program.
She mentioned “our fears that NTIA’s guidelines will undermine the program.” Rodgers cited “NTIA’s decision to pressure states to regulate rates despite the law’s prohibition will [hinder] the program’s success and make it more expensive to operate.”
Rodgers credited NTIA for recent guidance on how states could use technology other than fiber to connect hard-to-reach areas like satellite and fixed wireless access. However, she and other lawmakers said they continue to hear about “unnecessary delays” in BEAD’s approval process.
Ranking Member Frank Pallone (D-NJ) said some Republican members and governors are enthusiastic about the promise of BEAD. “But unfortunately, today we’re likely to hear Committee Republicans criticize the implementation. They will likely complain that the investments are not getting to their states fast enough, but they all voted against the investments in the first place.”
Pallone and other Democrats on the subcommittee said what the GOP members are calling “rate regulation” is not that. Pallone and other Democrats said the BEAD process is deliberative on purpose; to get it right. They cited the “rushed” process of the Rural Digital Opportunity Fund (RDOF) program under the previous administration that was “burdened by waste and plagued by providers defaulting on their commitments to build out networks.”
Montana CEO Misty Ann Giles testified that assistance from NTIA has been “kind of like flying a plane without clear guidance.” She welcomed NTIA’s recent guidance on how technologies other than fiber can qualify for BEAD funds, but says it came about a year too late.
Tarana Wireless CEO Basil Alwan told lawmakers that “fiber backhaul, in many cases, is too expensive to install. Timely deployments matter. As states begin implementation, fiber will fall far short. I think there’s a pretty big stress coming,” said Alwan.
Shirely Bloomfield, Chief Executive Officer, NTCA – The Rural Broadband Association, said, “Failing to vet” the process up front wastes time,” which was “learned with RDOF,” she said. “We continue to hear about lengthy delays in state approvals. They need to have the staff to handle the applications.”
Bloomfield also cited a recent federal court decision “that declared Universal Service participation is unconstitutional. This may have a chilling effect on BEAD.”
Blair Levin, Policy Analyst, New Street Research, said much of the delays in getting BEAD going were because the FCC had to have new broadband location maps developed. “BEAD makes states rely on the maps,” Levin explained. He said the problems stem from Congress’ desire to avoid the “waste, fraud and abuse that plagues RDOF grants.”
Levin sees the “biggest challenge will be enforcing ISP compliance with grant terms. Implementation will not be perfect. The main thing is to keep our country’s century-long commitment to make communications universally available and affordable.”
By Leslie Stimson, Inside Towers Washington Bureau Chief
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