While the funds to deploy broadband across the US are now available, there isn’t yet a clear picture of where they are most needed
A plan to improve both availability and affordability: Last week, Joe Biden signed the Infrastructure Investment and Jobs Act. As part of the $1.2tn plan, $65bn has been earmarked for broadband investment. This is less than the initial proposal of $100bn, yet a concession Biden had to make to obtain bipartisan support in the Senate. The plans aim to address the lack of broadband at “minimally acceptable speeds” (i.e. 25Mbps) for more than 30m people, and to facilitate a reduction in broadband prices. $42.5bn will be allocated to states and territories. The FCC will allocate another $14.2bn as subsidies to low-income users, as an extension of the scheme it started during COVID-19. Operators that receive grants to deploy will also have to offer at least one low-cost option to eligible customers.
Different technologies will play a role: Before the plan was approved, there was lively debate as to whether it should set higher standards than the current definition of broadband. Some operators admitted that it was time to aim higher than 25Mbps, but urged the Government to retain a flexible approach and avoid referring to symmetrical speeds. Policymakers have listened, and defined ‘underserved’ areas as those receiving speeds lower than 100Mbps in download and 20Mbps in upload. This leaves a role for 5G FWA, which is capable of reaching those speeds, and for cable technology such as HFC, which in the US is more common than full-fibre.
An important compromise on municipal networks: To obtain bipartisan approval, Biden also had to compromise on the role of municipal networks. Nonetheless, he obtained an important shift from previous policymaking on this issue. The initial draft of the law prioritised cooperatives, nonprofit organisations, public-private partnerships, public utilities and local governments to have access to the funds. The final text simply prevents states from excluding these organisations, which is an improvement on what currently happens in at least 18 states. In Biden’s plans, municipal networks should play a role in spurring competition at the retail level, and contribute to lower broadband prices.
Having a clear map of broadband coverage is now even more crucial: Now that the funds are available, it will be important to direct them where they are really needed. However, this is still far from clear. The FCC’s mapping of broadband coverage is notoriously poor. This year the regulator started the work to address that, but its new maps may not be ready until well within 2022. Some states have started building their own broadband maps – but there is a need to have a complete picture soon, in order to avoid delays and wasting funding.
Source: https://www.whitehouse.gov/bipartisan-infrastructure-law/#internetaccess
