Broadband program still in doubt
As we’ve previously reported, US Senator Ted Cruz (R-Texas) and other Republicans want to overhaul the BEAD funding plans. Cruz accused the NTIA of “technology bias” because the agency decided that fiber networks should be prioritized over other types of technology, and Republicans objected to the Biden administration’s enforcement of a requirement that low-cost plans be offered.
The US law that created BEAD requires Internet providers receiving federal funds to offer at least one “low-cost broadband service option for eligible subscribers,” but also says the NTIA may not “regulate the rates charged for broadband service.” Republicans allege that the NTIA has gone too far in the direction of rate regulation, and Internet providers complained about NTIA guidance that “strongly encouraged” states to set a fixed rate of $30 per month for the low-cost service option.
Cruz, who is chairman of the Senate Commerce Committee, has said that Congress will do a thorough review of the program early in 2025. Levin’s research note said the NTIA was likely to have paused spending even if the Trump administration hadn’t tried to freeze funding.
“Even without the memo, we would not have been surprised to see NTIA informally pause spending while it awaits guidance on how the Trump Administration wishes to proceed with the program,” Levin wrote. New Street Research expects to see changes similar to those proposed by Cruz.
“We expect a pause in BEAD funding, and perhaps USF [Universal Service Fund] funding as well, but further expect that, because the funding largely assists Republican areas, the pause will be relatively short,” Levin wrote. “Still, we acknowledge considerable uncertainty about the timing and constraints on future BEAD spending.”
Article by:Source: Jon Brodkin
