The new BEAD rules have caused fiber providers to take a second look at applying to BEAD. Fiber applicants need to reassess whether applying still makes strategic sense for their customers and their long-term business strategy. This blog outlines key considerations to help fiber ISPs decide whether to move ahead with a new BEAD application.
Is your state still prioritizing fiber?
Some states are hoping to award a lot of fiber grants, while some are signaling their intent to prioritize cost above all else in most cases (which suggests much fewer fiber awards). Look closely at your state broadband office’s recent statements, grant materials, and timelines. Reading between the lines, do you believe they’re still aiming to fund a meaningful number of fiber projects?
What happens to your business case if unlicensed fixed wireless (ULFW) BSLs come off the map?
If unlicensed fixed wireless providers submit new map challenges, the revised maps will remove locations eligible for subsidy, which means total grant awards will be less.
How much rework will you need to do?
With new maps, updated rules, and potentially redefined grant areas, how much application work will you need to redo? Think about your network design, route miles, pro forma, and other elements. Do you have the capacity to take that on within the new timeline?
Will new providers become competitive in your area?
When the ULFW pre-registration window closes, have additional providers emerged as serious competition in your area? Thinking in conjunction with your state’s posture towards fiber awards, what does that mean for your application’s likelihood of being competitive?
Are you being asked to make the case that ULFW and LEO are not viable solutions in your area?
Under the new guidance, eligible entities may try to make the case that ULFW and LEO are not viable technologies – such as, in wooded, hilly areas, or considering “scalability to 5G”. But, making this case well may require developing technological, financial, and operational arguments against other technologies. Depending on your state, the broadband office might handle making that case for certain application areas, or they might expect you to do it. Are you able to do the extra work to demonstrate that wireless or satellite options will not meet the needs of your proposed project areas, on top of all the other application materials?
So, should you still apply?
If you’ve navigated through these considerations and are comfortable with your changes – definitely still apply. While nothing is certain yet about how the NTIA will approach approval of Final Proposals, there will still be fiber awards – and many states appear to be doing their best to preserve fiber deployments through BEAD as much as possible.