The $42.5 billion federal Broadband Equity, Access, and Deployment (BEAD) grant program is facing what appears to be a significant overhaul as the new administration aims to alter, among other things, one of program’s key tenets: a preference for building fiber networks.

Meanwhile, a new ILSR policy brief – “BEAD Should Continue to Prioritize Fiber Internet Network Investments” – makes the case for why “these changes would repeat past policy mistakes and waste billions of dollars while delivering subpar Internet access to rural families at much higher prices.”

The brief then describes why fiber networks should continue to be prioritized:

“In designing BEAD, Congress recognized that it was foolish to spend thousands of dollars per home every 5-10 years to deliver obsolete connections and chose instead to build fiber optic networks that will last generations – ultimately both saving taxpayer dollars and delivering an equitable Internet access option to millions of rural homes.”

And while the policy brief points to important long-term consequences that should be considered to ensure rule changes don’t squander a “generational investment” by building “something more temporary and inferior to the services found on every street in urban and suburban areas,” the brief does not argue that other technologies should not be a part of the mix.

“To be clear, BEAD’s priority for fiber does not bar the use of other technologies when appropriate. In cases where the cost of fiber is simply too great, other technologies are on the table – likely wireless options of both terrestrial and low-earth orbit,” the brief says.

If the cloud of uncertainty suddenly hovering over federal broadband funding programs is lifted, four Tribal communities in Alaska can fully celebrate the announcement last week that state-of-the-art fiber connectivity will soon arrive at their homes on Kodiak Island just off the south coast of Alaska.

On January 16, Old Harbor Native Corporation secured a portion of $162 million in grants in the second round of funding from the Tribal Broadband Connectivity Program (TBCP) administered by NTIA.

Old Harbor Native Corporation will undertake the project, named Project Nunapet for an Alutiiq word meaning “our lands,” in partnership with Alaska Communications.

According to a recent press announcement, a 155-mile subsea cable originating at Alaska Communications’ fiber landing station in Homer will cross the Shelikof Strait to reach Kodiak Island in Ouzinkie before circling the eastern coast of the island with stops in Narrow Cape, Old Harbor, and Akhiok. Project Nunapet will also bring fiber-to-the-home connectivity to Old Harbor, Chiniak, Akhiok, and Womens Bay.

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The two corporations hope that the infrastructure will serve as a foundation for future network expansion in the area.

Wadsworth, Ohio officials say they’re making steady progress on the expansion of a city-owned broadband network that’s extending affordable fiber connectivity to the city’s nearly 25,000 residents.

Originally a coaxial-based network, the city now says it’s in the process of delivering Wi-Fi to many city residents while they go block-by-block removing older coaxial cable and upgrading residents to more future-proof fiber optic connectivity.

All told, city officials say they currently have around 5,800 existing subscribers that will ultimately be upgraded to fiber.

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Wadsworth, Ohio first launched its hybrid fiber-coaxial CityLink network back in 1997, and has been offering broadband, television, and phone access to the community ever since.

In 2020 ILSR spoke with Wadsworth IT Manager Steve Lange in Episode 438 of the Community Broadband Bits Podcast.

Affordable, Popular Alternatives To Monopoly Power

The network, unlike many similar deployments, is separate from the city’s municipal electric department. Wadsworth Assistant Service Director Mike Testa recently told the Medina County Gazette that the city has completed around 400 fiber installations so far, including a recently updated area along Weatherstone Drive where 120 homes were connected.

In the City of Sherwood, a mostly residential bedroom community 16 miles south of Portland, officials have been quietly cultivating a digital vineyard across Oregon’s “Gateway to Wine Country.”

As part of its on-going work to build out a citywide fiber network, Sherwood Broadband recently secured a $9 million grant from the Oregon Broadband Office Broadband Deployment Program (BDP) to continue expanding Sherwood’s municipally-owned network into neighboring rural communities just outside city limits.

The grant award is part of $132 million in federal Rescue Plan funds the state is doling out to an array of community-owned broadband initiatives for 16 projects across 17 counties.

Award winners include Beacon Broadband, a subsidiary of the Coos-Curry Electric Cooperative ($19.4 million); Jefferson County ($19.2 million); Douglas Fast Net, a wholly-owned subsidiary of the Douglas Electric Cooperative ($8.5 million); the Idaho-based member-owned cooperative Farmers Mutual Telephone Company, which offers broadband service in Malheur County, OR ($18.9 million); and a handful of independent providers like Blue Mountain Networks ($6.5 million) and Ziply Fiber ($10.2 million), recently acquired by Bell Canada.

The Oklahoma Broadband Office (OBO) says local providers have broken ground on several new grant-fueled fiber projects designed to provide high-speed Internet access to long unserved or underserved communities across wide swaths of the Sooner state.

According to two different announcements by the state’s broadband office, the OBO recently greenlit $65.9 million in new fiber expansion initiatives in the Southern part of the state, as well as another $24.6 million in deployments for the northern-central part of the state.

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The fiber upgrade projects were made possible via $158 million in Capital Projects Fund grants made possible by the 2021 American Rescue Plan Act (ARPA). The grants are expected to help fund more than 50 projects in 28 counties.

In the Southern part of the state, $43.2 million in federal grants – plus $22.8 million in matching funds – will connect over 2,000 unserved homes and businesses in partnership with Medicine Park Telephone, Oklahoma Fiber Network, Oklahoma Western Telephone, Phoenix Long Distance, Southern Plains Cable, Southwest Oklahoma Telephone, and Texhoma Fiber.

New York State officials have unveiled the first round of broadband deployment grants made possible by the state’s $100 million Affordable Housing Connectivity Program (AHCP), which aims to drive affordable fiber and Wi-Fi to low-income state residents trapped on the wrong side of the digital divide.

As part of the program, the state recently announced it will be spending $13.1 million to connect 14,167 lower income residents across Buffalo, Rochester, upper Manhattan and the Bronx with both affordable gigabit-capable fiber – and low cost Wi-Fi.

Flume, the partner ISP chosen by the state, will offer residents the choice of three broadband tiers: 100/20 megabit per second (Mbps) fiber for $10 per month, symmetrical 200 Mbps fiber for $15 per month, and symmetrical 1 gigabit per second (Gbps) fiber for $30 per month. All three subsidized fiber options will be locked at that price point until 2034, according to the state.

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“In today's digital age, access to reliable, affordable high-speed Internet isn't just about convenience – it's about ensuring every New Yorker can participate fully in our modern economy and society,” New York Governor Kathy Hochul said of the new grants. “Through these strategic investments, we're not only installing fiber and infrastructure, we're opening doors to education, healthcare and economic opportunity.”

Faster, Better, Cheaper

With the incoming Trump administration and the ascendance of GOP leaders taking aim at key aspects of broadband expansion initiatives embedded in the Bipartisan Infrastructure Law, industry insiders expect the $42.5 billion Broadband Equity, Access, and Deployment (BEAD) program to likely get a major facelift in the coming months.

GOP Senate leaders have signaled they will push for BEAD to be scaled back or reconfigured.

One way they may do that is to remove the law’s preference for funding fiber network deployments and create a path for subsidizing Musk’s satellite Internet company, arguing that Starlink would be a more cost-effective solution to bring broadband to rural America.

Late last week, in fact, NTIA released its “Final Guidance for BEAD Funding of Alternative Broadband Technology.” And while the updated guidelines still considers fiber deployments as “priority broadband projects,” the agency administering the BEAD program now explicitly says that states can award “LEO Capacity Subgrants.”

The City of Baltimore is using $2 million of its American Rescue Plan Act (ARPA) funding to bring fiber to 12 new city apartment buildings. It’s the latest effort in the city’s attempt to bridge the digital divide and bring affordable Internet access to long-marginalized communities.

According to the formal announcement from the Baltimore Mayor’s Office, Mayor Brandon Scott and the Baltimore Office of Broadband and Digital Equity (OBDE) have awarded the $2 million grant to Waves, a nonprofit formerly known as Project Waves.

“This grant program is more than just wires and signals – it’s about unlocking opportunity,” Scott said of the announcement. “By partnering with Waves, we’re ensuring residents with the greatest need have a chance to learn, connect, and build a better future for themselves and their families.”

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Waves was first launched in 2018 in direct response to the Trump FCC’s repeal of net neutrality and the general failures of federal telecom policy to address digital inequity. Project Waves (profiled by ILSR last year) initially used Point-to-Multipoint wireless connectivity to deliver free wireless broadband service to about 300 multi-dwelling unit (MDU) residents.

In the last few years, the organization has shifted to Hybrid Fiber Coaxial connectivity to provide more reliable connectivity by running fiber to the buildings and leveraging the existing wiring in the multi-dwelling units it serves, providing access to more than 1,000 local Baltimore residents, at no cost to residents.

Digital inclusion advocates are bracing themselves for an uncertain year ahead.

As the incoming GOP regime takes aim at key aspects of the Digital Equity Act (DEA) and the BEAD (Broadband, Equity, Access, And Deployment) program, those working to bridge the digital divide have more questions than answers just as states are preparing to dole out federal grant money yet to be awarded to grant recipients.

One major question looming over both BEAD and the Digital Equity Act is whether a new Congress can leverage the Congressional Review Act – a tool Congress can use to overturn certain federal agency actions – to undermine the 2021 bipartisan infrastructure law behind the national “Internet For All” initiative.

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“The Congressional Review Act only applies to things that were adopted in the last six months. I know that there were a number of things the FCC did to make sure that they were done and would be non-reviewable under the CRA and I suspect NTIA did that as well (with BEAD),” former FCC Chief of Staff and now New Street Research policy advisor Blair Levin said during our final Building For Digital Equity (B4DE) livestream of 2024.

North Carolina’s Roanoke Cooperative continues to make steady progress with expansion of its Fybe last mile fiber network within The Tar Heel State.

Cooperative officials tell ILSR that the cooperative and a coalition of organizations across North Carolina have major expansion plans in the works, starting with a fiber build in Halifax County, population 47,298.

Currently, Fybe provides fiber broadband service to around 6,000 subscribers in North Carolina, but thanks to an historic infusion of federal and state grants, the hope is to expand fiber access to the bulk of unserved addresses county-wide.

Fybe COO Bo Coughlin tells ILSR that the lion’s share of the cooperative's upcoming efforts to bring affordable connectivity to unserved and under-served portions of North Carolina will be under the banner of a coalition dubbed Encore, a nonprofit collaboration between MCNC, North Carolina Electric Membership Cooperatives (EMC), and Fybe.

“MCNC has been around for 40 years,” Coughlin notes. “It started as an economic Development institution funded by the state. Their goal was originally to help birth the microchip industry in RTP down in Raleigh, but today they provide transport to around a hundred universities, charter schools, and community anchor institutions across nearly 100 counties.”

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Back in April, Fybe won a $9 million Growing Rural Economies with Access to Technology (GREAT) grant to help bring fiber to the largely underserved, heavily-rural residents of Martin, Bertie, Halifax, and Hertford counties.

“So currently, we pass about 5,000 total homes across Northampton and Halifax,” Coughlin said of Fybe’s current footprint.