Strengthening the Nationwide Effort to Deliver Broadband Access to Every Rural and Urban Community
In a significant move, Congress has allocated over $42.5 billion to build out the nation's broadband system. This funding is set to revolutionise the digital landscape, with the National Telecommunications and Information Administration (NTIA) introducing the revamped Broadband Equity, Access, and Deployment (BEAD) program in June 2025. However, the program's philosophical shift has brought about numerous hurdles and changes affecting fiber broadband deployment across the U.S.
One of the most notable changes is the elimination of fiber preference, adopting a technology-neutral approach. This shift diminishes fiber’s previous priority status, opening the door for lower-cost but potentially less durable technologies like cable, fixed wireless, DSL, satellite (including Low Earth Orbit or LEO satellites like Starlink and Kuiper) to compete as long as they meet minimum performance criteria.
Another significant change is the scrapping of the three-tier scoring system, which emphasized priority, reliability, and extremely high-cost areas. Now, any technology that qualifies under the newly defined “priority broadband project” can participate, regardless of infrastructure type.
The cost efficiency mandate requires states to prioritise cost-effectiveness when awarding grants. This requirement disadvantages fiber deployments, which typically have higher upfront costs compared to satellite or fixed wireless solutions.
States with previously approved fiber proposals, such as Nevada and Louisiana, are frustrated as they must resubmit their plans within a 90-day window and conduct at least one additional bidding round to find the most cost-effective option. This restart has disrupted progress and increased uncertainty for fiber providers.
The updated BEAD rules also eliminate conditions related to fair labor practices and workforce development, which might affect the quality and sustainability of deployments.
States with large rural populations are concerned that the emphasis on lowest-cost solutions may prioritise short-term coverage over long-term network reliability and scalability. Some states may seek litigation or consider supplementing federal funds with state capital to support fiber projects financially and align with the cost-efficiency rules.
The BEAD program's shift from a fiber-first, long-term infrastructure approach to a speed and cost-focused technology-neutral strategy poses considerable challenges for traditional fiber broadband deployment. While this may speed up initial broadband availability, critics warn it could undermine future-proof broadband infrastructure, especially in high-cost rural areas.
The Universal Service Fund, which supports next-generation communications technology like broadband, is intended to work synergistically with the BEAD program to deliver comprehensive broadband solutions. The Universal Service Fund, however, has been under attack, with some arguing it is unconstitutional, and the Supreme Court is expected to make a decision on its constitutionality this week.
The Commerce Department is working to remove some of these regulations and rules to speed up the deployment of broadband, while also working with states, the broadband sector, and Congress to expedite the process and make it as seamless as possible. The broadband sector is ready to begin deploying broadband and is urging the Commerce Department to expedite the process.
The biggest hurdles faced by the broadband sector are an over-emphasis on process rather than outcomes, as well as excessive regulations and rules. The BEAD program and the Universal Service Fund are bipartisan-supported programs that have been in place for over 30 years. U.S. Telecom is advocating for a future-ready USF program that will be reformed and streamlined to support the broadband future.
The states are currently tasked with rebidding proposals for the BEAD program, a complex process. The Commerce Department has advised states that it needs to rethink the broadband choices it will make, with a focus on providing the communities with the broadband they need and want, particularly fiber broadband. The broadband sector hopes that Washington will allow state broadband offices and governors to make the real decisions about how to allocate the funds and broadband options to their states.
The deployment of broadband has been slow due to the federal government's slow progress. The BEAD program, focused on closing the digital divide, is being revamped by the Commerce Department to focus on outcomes. The next few months of state bidding and proposal adjustments will be critical in shaping the country’s broadband landscape. The broadband sector, in collaboration with the government, aims to provide high-quality broadband options to millions of Americans who are still not served, particularly in rural communities.
- The workforce responsible for deploying the nation's broadband system, known as the federal workforce, is facing a reimagined landscape due to the technology-neutral approach of the revamped Broadband Equity, Access, and Deployment (BEAD) program.
- The education-and-self-development of the workforce may be impacted by the elimination of conditions related to fair labor practices and workforce development in the updated BEAD rules, potentially affecting the quality and sustainability of broadband deployments.
