Following the broad explanations of NTIA’s “limited and targeted” waiver of the “Build America, Buy America” provisions for its BEAD program, NTIA drilled down into what the waiver requirements are and how manufacturers can meet them.
NTIA is now proposing that most fiber broadband equipment will need to be made in the U.S. This includes optical fiber, fiber optic cable, key electronics and enclosures. It says the policies will ensure that “close to” 90 percent of BEAD funding spent on equipment goes for gear made here. It says the proposed waiver is the result of months of market condition analysis and discussions with industry and stakeholders.
NTIA established criteria to prioritize products targeted for onshoring:
- Strategically important technologies, like those that ensure the security, integrity, and reliability of network data, should be produced in America.
- If a product’s domestic manufacturing line can be scaled quickly, it should be produced in the U.S.
- And if a product—like fiber-optic cable—comprises a significant portion of the overall network spend, it should be produced here.
NTIA created the waiver to fit instances where it’s needed for certain pieces of broadband equipment. NTIA says it “acknowledges that some chips may not be available in time to meet BEAD Program construction timelines. We’ve proposed a limited non availability waiver to fit these unique dynamics.”
Several companies have announced plans to open or expand fiber optic cable and electronics manufacturing operations here. NTIA highlighted Nokia’s July announcement that it plans to expand its broadband electronics manufacturing in Kenosha, WI. Telecom equipment manufacturer Adtran highlighted an investment last week for expanded production of key broadband electronics at its Huntsville, AL facility.
They are joined by fiber optic cable manufacturers like Corning, CommScope, and Prysmian who have all recently announced investments to make more fiber optic cable in the U.S. As 2024 turns to 2025, more companies will expand production to meet the demand of Internet for All, according to NTIA.
NTIA invites public comments on the proposals over the next 30 days. After final publication, NTIA will continue to monitor implementation. Those with questions are encouraged to contact Build America, Buy America.
By Leslie Stimson, Inside Towers Washington Bureau Chief
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