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Impressive Match for Middle Mile Projects Not a Likely Harbinger for BEAD Awards

BEAD program awards are expected to have a smaller matching funds total than the middle mile awards.

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WASHINGTON, June 21, 2023 – The nearly doubling of the $930 million in federal funds announced for Middle Mile awards last week is not likely to be repeated in the Broadband Equity Access and Deployment program, said experts at a Broadband Breakfast Live Online event Wednesday. 

In addition to the federal funds awarded, entities brought forth $848 million in other funding. That’s the equivalent of 47 percent of the total project cost, or a more than 91 percent “match” of the federal project funds.

Photo of Joshua Broder of Tilson

The awards, which make up nearly all of the $1 billion available for the projects under the bipartisan infrastructure law, support 35 projects across 35 states. The money will invest in middle mile builds, the network that connects to last mile infrastructure.  

Middle mile awards were evaluated on a scored system. Applicants could improve their score by increasing the matching dollars they would provide in the project. 

The match amount for awarded projects was high because of the competitiveness of the program, said Joshua Broder, CEO of telecom company Tilson. Experts estimate that the ideal investment in middle mile would be close to $7 billion, a $6 billion deficit, he cited.  

Furthermore, many middle mile projects needed little subsidy to make the investment profitable for providers, said Broder. 

Instead, BEAD program investments are last mile networks in unserved or underserved areas which increases cost for build out, making them less economically feasible for providers and thus limiting the amount of match funds available to the projects, he continued. 

Although the BEAD program requires a 25 percent match, it will be difficult for providers to achieve, added Mark Goldstein, president at the international research center. 

Executive Vice President of government affairs at telecom nonprofit Connected Nation, Brent Legg, expressed his agreement claiming that the requirement to achieve 100 percent connection will limit BEAD matching funds further.  

Awarded middle mile projects are expected to deploy more than 12,000 miles of new fiber that will pass within 1,000 feet of nearly 7,000 community anchor institutions. Grants span from $2.7 million to $88.8 million and additional grants will be announced on a rolling basis.  

State broadband entities are the announcement of their funding allotments for the BEAD program from the National Telecommunications and Information Administration. The Commerce Department agency has set a deadline for the announcements by June 30.  

Our Broadband Breakfast Live Online events take place on Wednesday at 12 Noon ET. Watch the event on Broadband Breakfast, or REGISTER HERE to join the conversation.

Wednesday, June 21, 2023 – Middle Mile Award Announcements

The National Telecommunications and Information Administration’s Middle Mile Program has the potential to play a key role in narrowing the digital divide, and the long-awaited awards are set to be announced by the end of June. With applications for the $1 billion program amounting to over $5.5 billion in total, what should we expect from the upcoming grants, and what might get left behind?

Panelists

  • Joshua Broder, CEO, Tilson
  • Mark Goldstein, President, International Research Center
  • Mike Ellison, Vice President, Public Sector, FiberLight
  • Brent Legg, Executive Vice President, Government Affairs, Connected Nation
  • Drew Clark (moderator), Editor and Publisher, Broadband Breakfast

Joshua Broder serves as CEO of Tilson, a national leader in telecom consulting, design, and build services, which under his leadership, has grown from less than 10 employees to 1200, earning a top spot on the Inc. 5000 list for the past twelve years. He is also the founder of Tilson Infrastructure, which develops, owns, and leases back digital infrastructure including poles, towers, and long-haul fiber to carriers nationwide.

Mark Goldstein chairs the Arizona Telecom & Information Council and is president of the International Research Center, providing consulting, custom research and strategic support for business, legal and public policy clients across a variety of high-tech disciplines and arenas since 1992. Much of IRC’s work has been in broadband, wireless communications, IT, and IoT/smart everything. Mark recently led grant development teams for three NTIA Middle Mile Grant applicants in Alaska, Iowa and Pennsylvania.

Mike Ellison brings over 20 years of telecommunications experience to his current role as vice president, public sector at FiberLight. He is responsible for the overall management and performance of his team, who are engaged with state and local leaders across Texas, Maryland, Florida, Georgia and Virginia and helps FiberLight customers design, engineer, build and optimize their fiber optic networks so that each community is able to witness the greatest possible return. Ellison’s belief in customer engagement is one rooted in developing a thankful culture that helps each customer exceed their expectations and provide superior offerings to their residents.

Brent Legg has worked at the intersection of technology, politics and public policy for more than 20 years, and currently serves as executive vice president at national nonprofit Connected Nation. In that role, he is leading the organization’s joint venture to establish carrier-neutral Internet Exchange Points in unserved markets across the United States. These IXP facilities, which will primarily be located on public university campuses, will improve the broadband ecosystem across entire regions by reducing latency, improving access to cloud and content networks, and fostering a marketplace for transport and transit competition that will drive down costs.

Drew Clark (moderator) is CEO of Breakfast Media LLC. He has led the Broadband Breakfast community since 2008. An early proponent of better broadband, better lives, he initially founded the Broadband Census crowdsourcing campaign for broadband data. As Editor and Publisher, Clark presides over the leading media company advocating for higher-capacity internet everywhere through topical, timely and intelligent coverage. Clark also served as head of the Partnership for a Connected Illinois, a state broadband initiative.

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As with all Broadband Breakfast Live Online events, the FREE webcasts will take place at 12 Noon ET on Wednesday.

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Contributing Reporter Teralyn Whipple, who joined Broadband Breakfast in 2022, studied marketing at Brigham Young University. She has reported extensively on broadband infrastructure, investments and deployment. She has also headed marketing campaigns for several small companies.

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Funding

$113 Million in Broadband Grants Aim to Empower Colorado’s Local Providers

All but one of the awardees are Colorado-based internet service providers.

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Photo of Highway 160 in Colorado TKN from Defense Visual Information Distribution.

WASHINGTON, January 4, 2024 – Colorado on Wednesday tentatively granted more than $113.5 million in broadband expansion awards to 13 applicants to connect nearly 19,000 homes and businesses across southwest Colorado. 

All but one of the awardees are Colorado-based internet service providers and municipal network operators. The other, Visionary Communications, offers service across two additional states, Montana and Wyoming. 

Administered through the Advance Colorado Broadband Grant Program, the awards were funded by the Treasury Department’s Capital Projects Fund. The program saw fierce competition, receiving 112 applications seeking a combined total of over $642 million across 47 counties.

Clearnetworx emerged as a major victor, securing $25.3 million for five projects. Based in Montrose, Colorado, the locally owned and operated fiber and wireless service provider arose in 2012 to address the region’s broadband scarcity.

Clearnetworx has been granted awards to install fiber along Highway 160 and Highway 184 in Montezuma County. This development coincides with the Colorado Transportation Commission’s recent approval of a fee schedule that allows broadband service providers to install fiber along the state’s roadways at reduced rates. Under the revised fiber access fee structure, broadband providers in rural counties such as Montezuma will gain access to some of the most competitive rates in the region, priced at $0.03 per foot.

Close on its heels, Maverix Broadband, is in line to win $25.1 million, aiming to deploy fiber-to-the-home services across Gilpin, Boulder, Chaffee, and Saguache counties, and Kiowa city, extending coverage to 731 locations in a city of 725 residents.

Fort Collins Connexion, a municipal broadband utility, secured $10.8 million for four projects serving 1,409 locations in Larimer County. Meanwhile, another municipal network operator, Loveland Pulse, is slated to receive $3.2 million to extend fiber connectivity to three service areas.

The Southern Ute Indian Tribe secured $8.5 million to serve 557 locations within the Southern Ute Reservation, marking a significant step in enhancing connectivity.

The recipients are committing over $42 million in additional funds towards the project’s costs – a total $155.5 million investment. 

Additionally, more funding from the Capital Projects Fund is designated for the Ridge View campus in rural Colorado. This initiative aims to establish a supportive residential community to aid in overcoming homelessness, ensuring long-term housing stability, and fostering successful reintegration into preferred communities.

The awards are set for finalization following an ongoing challenge process.

The state is committed to connecting 99 percent of Colorado’s households to “adequate” broadband by 2027. Today, over 90 percent of Colorado’s households and businesses have access to internet with 100 * 20 Megabits per second service, according to state data.

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Funding

Florida Announces $13 Million for Broadband Devices

The money will allow community centers to loan devices like laptops and routers.

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Photo by Shannon McGee

WASHINGTON, January 4, 2024 – Florida announced on Wednesday $13 million in grant funding for devices through its Digital Connectivity Technology Program.

Counties, municipalities, non-profits, and organizations serving high-poverty areas can apply for grants until March 4. The funds can be used to make devices like laptops and routers available for loan at local community centers, or to equip those community centers with connectivity equipment and devices.

The money comes from the Treasury Department’s Capital Projects Fund, a $10 billion pandemic response that provides states money for expanding broadband infrastructure and other connectivity projects. About $9 billion of that has been awarded so far.

Florida received an additional $247 million in CPF funds for its Broadband Infrastructure Program, which the state awarded in July. Those projects are expected to get broadband 59,000 homes, businesses, farms, and community centers. 

CPF rules require new infrastructure funded by the program to deliver speeds of at least 100 * 100 Megabits per second (Mbps), but most projects funded by the state are expected to provide up to 1 * 1 Gigabit per second (Gbps).

The state will hold a webinar on the Digital Connectivity Technology Program’s application process on January 10.

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Funding

In Year-End Message, FCC Chairwoman Urges Affordable Connectivity Funding

The low-income internet subsidy could run out of funding as early as April 2024.

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Photo of FCC Chairwoman Jessica Rosenworcel from December 2022

WASHINGTON, December 29, 2023 – Federal Communications Commission Chairwoman Jessica Rosenworcel again called for Congress to fund the Affordable Connectivity Program.

In a year in review note published Friday, Rosenworcel touted the FCC’s efforts to promote the ACP, which provides a $30 monthly internet discount to low-income households. She noted the more than $77 million in ACP outreach grants – money for organizations to advertise the program and get eligible households enrolled –  the Commission awarded in 2023 and the 7 million new households that signed up for the program, bringing the total to more than 22 million.

“But our progress here cannot slow down – we need help from Congress to keep this groundbreaking program going,” she wrote.

The ACP was set up with a $14.6 billion allocation from the Infrastructure, Investment and Jobs Act. About $3.6 billion of that remains, according to a monitoring tool developed by the advocacy group Institute for Local Self-Reliance. Rosenworcel testified to the Senate in September that the Commission expects that money to dry up as early as April 2024.

Republican leaders on the House and Senate commerce committees expressed some skepticism about the program in a December 18 letter to Rosenworcel, calling the ACP “wasteful” because many enrolled low-income households were able to subscribe to broadband before receiving the subsidy. The FCC’s estimates put the number at 78 to 80,  Rosenworcel testified at a November House oversight hearing, but she noted the figures are not exact, as providers are not required to collect that information when someone enrolls.

President Joe Biden asked Congress in October for $6 billion to keep the fund afloat through 2024. Bipartisan groups of lawmakers and broadband industry groups have also pushed for Congress to refund the program, saying it will be an important tool for closing the digital divide and ensuring low-income subscribers stay online.

Providers who build new infrastructure with money from the Infrastructure Act’s $42.5 billion Broadband Equity, Access and Deployment program will be required to participate in the ACP, which experts have said would help stabilize revenue for ISPs who build in the hard-to-serve areas targeted by BEAD.

Rep. Yvette Clarke, D-New York, hinted at introducing a bill before the new year to address the impending ACP shortfall during the FCC oversight hearing, but the legislation has not yet materialized.

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