Congress has committed over $42 billion to address the "digital divide." However, a new report from the Information Technology and Innovation Foundation (ITIF) suggests that this endeavor may not reach its full potential due to the federal Broadband Equity, Access and Deployment (BEAD) program's tendency to push states towards high-cost fiberoptic infrastructure, thereby neglecting other digital inclusion initiatives.
The ITIF scrutinized the initial BEAD funding proposals submitted by 34 states to the National Telecommunications and Information Administration (NTIA), which oversees the program. The aim was to determine whether their plans would effectively tackle all root causes of America’s digital divide, not just insufficient broadband infrastructure. Only nine states - Arkansas, the District of Columbia, Georgia, Idaho, Iowa, Maine, Michigan, Oregon, and Virginia - received an 'A' grade in ITIF’s analysis.
Jessica Dine, ITIF Analyst and author of the report said: “NTIA encourages states to make fiber the default choice for broadband infrastructure. However, this is often the most expensive option. Prioritizing fiber drains resources that could be used to address other aspects of the problem.” She added that mismanaged BEAD funding ultimately hinders every American's opportunity to get online.
The report outlines three major criteria for states:
1. Practice true tech neutrality.
2. Create a regulatory and programmatic environment promoting efficiency.
3. Address digital inclusion within BEAD.
The report aims to warn states whose current trajectories may jeopardize their future program success. It includes an interactive data visualization illustrating ITIF’s assessment of state plans which will be updated as more submissions are graded.
While providing high-quality broadband everywhere is crucial for universal connectivity, there are various technologies available to cover areas without broadband infrastructure. If states consider less expensive alternatives to fiber, they should be able to use BEAD funds for universal coverage while also supporting other digital inclusion programs.
States can bypass NTIA’s preference for fiber by requesting waivers to choose economical bids in certain areas or by setting a cost-per-location threshold that limits fiber networks to where they are financially viable. The ITIF argues that states must use every tool at their disposal for the best long-term results, and the NTIA should support these efforts by approving waivers or cost thresholds.
The most successful states will use the savings from selective fiber deployment to fund digital inclusion activities, incorporating digital equity procedures into their BEAD programs and encouraging local communities to implement BEAD-focused programs and events.
Dine concluded: “Each state receiving funding should keep an eye on other states’ plans as they emerge and look to them for inspiration. Addressing broadband needs and effectively implementing the BEAD program is a complex, ongoing task that requires a thoughtful, collaborative approach."
