Though the NTIA’s inclusion of LEO satellite in BEAD programming represents progress for the industry, the agency’s request for more feedback indicates some lingering hesitancy
The NTIA has issued detailed guidance on eligible technologies for BEAD programme funding
On 26 August 2024, the US National Telecommunications and Information Administration (NTIA) published proposed guidance on the eligibility of “alternative broadband technologies” for upcoming federal funding programmes. As part of its work to implement the Broadband Equity, Access, and Deployment (BEAD) Program, established by the Infrastructure Investment and Jobs Act (IIJA) in 2021, the NTIA is required to work with all US states to direct the available $42.45bn (£32.3bn) in competitive grant funding to eligible network development projects. In advance of funds being disbursed, the regulator has also worked to improve the maps which outline existing broadband access across the country and to write technical requirements for proposed projects incorporating updated speed and latency standards from the Federal Communications Commission (FCC). The NTIA’s proposal will remain open for comments from interested stakeholders until 10 September.
LEO satellite and unlicensed FWA projects will be able to compete for federal broadband subsidies
According to the NTIA’s prior funding rules, states should assign preference to projects based on certain underlying technologies. Full fibre projects are classed first as “priority” broadband projects, referred to as the “gold standard” for BEAD funding by Evan Feinman (BEAD Program Director). Projects that rely on combinations of copper and fibre as well as cable and fixed wireless access (FWA) using licensed spectrum then have second priority as “reliable” broadband services. Through its new guidance, the NTIA has offered additional clarification on the third priority class of projects that rely on alternative broadband technologies. In the event states do not find a project using a priority or reliable broadband service to extend connectivity to an area that falls under a cost threshold, the NTIA has provisionally confirmed that they may grant funds to alternative technology operators, including low Earth orbit (LEO) satellite and unlicensed FWA providers. Alternative technology projects must still meet all of the obligations of the BEAD Program, including meeting reliability and cybersecurity requirements, as well as offering a low cost-service option. With the addition of satellite and unlicensed FWA to the list of BEAD-eligible operators, states must also now disqualify projects that target areas which already receive sufficient connectivity through these alternative technologies and class them as adequately served.
The NTIA is seeking additional feedback on lingering questions about the LEO satellite performance and affordability
At the end of its guidance, NTIA also included a series of questions regarding its proposal focused in large part on the ability of LEO satellite providers to meet service obligations. Under the BEAD requirements, operators must reserve capacity in order to ensure that any eligible household which requests a new connection will be served within 10 days. Operators, however, are only to be reimbursed for the actual delivery of service to consumers as based on subscription rates. In the early stages of the grant period, the regulator predicts that consumer demand may be unpredictable and unstable, making it difficult for satellite providers in particular to sell excess capacity and recover some of their high capital costs while still maintaining sufficient reserves. The NTIA is therefore seeking input on whether states should be allowed to grant satellite operators funding to cover all eligible households in a project area regardless of the subscription rate during the early years of a grant. Echoing other familiar concerns with satellite connectivity, the NTIA also asked for additional input on how the higher start-up costs for consumers seeking satellite services should factor into funding formulas that prioritise affordability, as well as if the reservation of a certain amount of dedicated capacity per household would act as an effective proxy for guaranteeing that satellite services will meet speed and latency requirements.
