Staff Reports
The ambitious broadband initiative propelled by the Biden administration may be veering off course, according to an alarming chorus of over 30 executives from various broadband companies and trade organizations. The Broadband Equity Access and Deployment (BEAD) program, which was supposed to revolutionize internet access across the nation with a generous budget of $42 billion set aside by the bipartisan infrastructure law of 2021, appears to be foundering under bureaucratic mismanagement.
These executives have sent a clearly-worded letter to Commerce Secretary Gina Raimondo, indicating their urgent concerns about how the National Telecommunications and Information Administration (NTIA) is overseeing the BEAD program. They suggest that the current approach could lead to a catastrophic failure of the program designed to bridge the digital divide. Instead of fostering connectivity, the method employed by Raimondo’s agency seems to jeopardize the very goals the program was meant to accomplish.
While some consider the BEAD program as a once-in-a-generation investment in affordable high-speed internet access, advocates believe it is designed to fail. https://t.co/TANk25KFmw
— The Markup (@themarkup) July 22, 2024
The crux of the issue is the NTIA’s insistence on mandating a low-cost service option priced at $30 per month for eligible customers, a move that these broadband providers argue is not only unrealistic but also detrimental to their business models. This requirement is particularly problematic in rural areas, as serving those regions typically involves higher operational costs. It seems that the Biden administration’s quest to provide affordable broadband is creating a hurdle for these companies that would actually like to participate in the program.
Moreover, the executives point out that some states, like Pennsylvania, recognize the necessity of a higher minimum rate due to the expenses involved in providing service to hard-to-reach areas. Yet, despite this understanding, the NTIA is allegedly pushing some states to conform to the $30 benchmark, effectively disregarding the realities of internet deployment in underdeveloped areas. This seems to go against the spirit of the infrastructure law, which prohibits federal interference in broadband pricing, making it all the more questionable why the administration is doubling down on its misguided rabbit hole.
Amid these criticisms, the White House continues to tout the BEAD program as a cornerstone of Biden’s domestic agenda, claiming it will enhance connectivity and create job opportunities using made-in-America materials. However, the dire commentary from Federal Communications Commission Commissioner Brendan Carr suggests that the program is severely lagging, with no tangible results marking its progress as of early July. Such realizations underscore the chasm between political rhetoric and on-the-ground realities in the hunt for improved internet access across the nation.
In an age where reliable internet is as essential as air and water, the implications of this looming failure in the BEAD initiative could leave many Americans stranded in a digital wasteland. With the government’s heavy-handed approach to regulation and seemingly inflexible pricing models, it appears that good intentions may not be enough to prevent this ambitious broadband endeavor from crashing and burning.
