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South Carolina and Georgia Release Volume Two of BEAD Initial Proposals

Unlike most states, South Carolina released both volume one and two together.

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Photo of a binder from Flickr, used with permission.

WASHINGTON, November 8, 2023 – Two more states have released drafts of volume two of their initial proposals for the Broadband Equity, Access and Deployment program.

South Carolina released both volumes one and two on October 30, followed closely by Georgia, which released its volume two on November 1. Volume one details how states will accept challenges to broadband mapping data, while volume two outlines the states process for administering grants under the $42.5 billion program.

The public comment period for draft versions lasts 30 days, with South Carolina accepting comments until November 30, and Georgia’s window closing December 1. A total of 32 states have now released volume two of their proposals for public comment.

States must submit both volumes to the National Telecommunication and Information Administration by December 27, but the agency is approving proposals submitted earlier. Virginia and Louisiana have received approval for their volume ones and are getting their challenge processes underway

South Carolina

In volume one of its proposal, South Carolina said it plans to adopt the model challenge process set up by the NTIA. That’s the process for ground-truthing broadband data to determine which homes and businesses need coverage.

The state is making optional modifications outlined in the model process. It will designate any area served only by DSL – digital subscriber line – technology as “underserved,” and thus eligible for BEAD funded projects, regardless of what speed the provider advertises. The option was included in the model to phase out copper telephone wires in favor of more future-proof broadband technologies like fiber-optic cable.

It will do the same with fixed wireless broadband, citing bad experiences using fixed wireless service for online learning efforts in 2020.

Eligible entities like nonprofits, local governments, and broadband providers, will be able submit challenges to state broadband data over a 30 day period. The process is ultimately slated to last 90 days, with 30 days each reserved for challenge rebuttals and adjudication.

In its volume two, South Carolina declined to set an extremely high cost threshold, the price at which the state will start to consider non-fiber technologies. Instead, the state’s broadband office is planning to compile a list of locations that are left off its round of grant applications and negotiate directly with providers on getting them service.

The state is also asking the NTIA for a waiver of its letter of credit rules in certain circumstances, such as small projects and companies the state has previously found to be trustworthy. The agency typically requires a 25 percent letter of credit from an accredited bank, which advocates and broadband companies have said could edge out smaller providers.

NTIA released a slate of acceptable alternatives to its letter of credit rule on November 1.

Georgia

Georgia released for public comment volume two of its BEAD initial proposal, a 242-page document detailing its plans for administering grants under the program.

The state will be following the NTIA’s updated letter of credit guidance, letting grant applicants choose performance bonds instead. Those are only paid out if the project fails outright, tying up less grant money than letters of credit.

Like South Carolina, Georgia did not set a high-cost threshold outright, opting to accept a round of grant applications first.

But unlike many other states, Georgia is planning to oversee multiple rounds of funding. BEAD rules give states one year to disburse their entire allocation, which some state broadband offices have flagged as too little time.

The state said in its draft volume two that it plans to use all of its $1.3 billion in getting service to areas its challenge process reveals to be unserved – having less than 25 * 3 Mbps broadband – and underserved – less than 100 * 20 Mbps, with no money left over for non-deployment efforts.

As such, the state is seeking comment on potentially changing its grant application scoring criteria to favor unserved locations, as underserved will generally be less expensive to build to.

Reporter Jake Neenan, who covers broadband infrastructure and broadband funding, is a recent graduate of the Columbia Journalism School. Previously, he reported on state prison conditions in New York and Massachusetts. He is also a devoted cat parent.

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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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