By Carl Northrop and Ashley Brydone-Jack of Telecommunications Law Professionals PLLC
UPDATE On Friday, the National Telecommunications and Information Administration (NTIA) released the much-anticipated Notice of Funding Opportunity for the Broadband Equity, Access, and Deployment (BEAD) Program. At $42.45 billion, this is the largest of the broadband programs created by the bipartisan Infrastructure Law.
NTIA can distribute this money to all 50 states, the District of Columbia, Puerto Rico and all U.S territories (each an “Eligible Entity”) to fund programs that expand high-speed internet access to unserved (those with no access to 25/3 Mbps) and underserved (those with no access to 100/20 Mbps) locations. The BEAD program prioritizes and favors projects that provide (i) fiber connectivity directly to end users; (ii) low-cost options to eligible subscribers; and (iii) gigabit connections to community anchor institutions (e.g. libraries, community centers). Continue Reading
The states, D.C. and PR initially are eligible to receive a minimum of $100 million; the territories $25 million. Up to 5 percent of these funds are available for administrative costs associated with applying and planning for the BEAD program. After the initial grants, the remaining BEAD funds will be granted to Eligible Entities based upon their relative number of unserved locations shown by the Broadband Data Maps the FCC is creating.
To receive funds, an Eligible Entity first must submit to NTIA by July 18, 2022 a letter of intent (LOI) to participate in the BEAD program. This LOI must identify the office that will serve as the recipient of and administering agent for the funds. Next, an Eligible Entity may submit by August 15, 2022 a Planning Request seeking administrative funds. If this request is granted, the recipient must submit, within 270 days thereafter, a Five-Year Action Plan setting forth the recipient’s broadband goals and priorities.
After the FCC’s Broadband DATA Maps are released (now estimated in November 2022), NTIA will issue Notices of Available Amounts. Eligible Entities will then have 180 days to submit an Initial Proposal that sets forth the processes they will use to distribute BEAD funds fairly to service providers and to oversee projects to ensure they provide reliable, affordable, high-speed service.
In most instances, the grants awarded by Eligible Entities to service providers will be for 75 percent of the total projected costs and the service provider will be required to fund 25 percent. If the Initial Proposal is acceptable, NTIA will release at least 20 percent of the available funds and the Eligible Entity can commence its service provider selection process and begin to award funding for certain activities.
An Eligible Entity will have 12 months from approval of the Initial Proposal to submit a Final Proposal that demonstrates compliance with its approved program and the results of its processes. If the Final Proposal is approved, NTIA will release the remaining funds and monitor the program to ensure that the approved service providers initiate service within four years.
NTIA also kicked off on Friday its Middle Mile Infrastructure and Digital Equity programs that will be summarized in a separate report.
Contact Carl Northrop and Brydone-Jack at Telecommunications Law Professionals PLLC (www.tlp.law/broadband).
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