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Blueprints for BEAD: What We Can Learn From the Low-Cost Option That Was, Then Wasn’t, Then Was Again

Blueprints for BEAD is a series of short notes and analysis on nuances of BEAD that might otherwise get lost in the volume of material published on this federal funding program. Click the “Blueprints for BEAD” tag at the bottom of this story for other posts.

Few people dispute the vital importance of affordability in closing the digital divide. A 2021 Pew Research Center survey found that nearly half of all people without broadband cited cost as a barrier, with 20 percent listing cost as the primary reason for not subscribing to broadband service.

Research from EducationSuperHighway pegged that number even higher, estimating that lack of affordability explained about two thirds of the remaining digital divide in the country.

As the Broadband Equity, Access, and Deployment (BEAD) program steams ahead, questions about affordability have come to the fore. After all, deploying tens of thousands of miles of new fiber is only half the equation. BEAD will help build the physical networks necessary to connect the millions of households that still lack access to high-speed Internet service, but will it make a difference if they still can’t afford a plan? This possibility is all the more likely in light of the Affordability Connectivity Program’s (ACP) untimely demise.

Image
Empty Wallet

BEAD’s low-cost plan requirement sought to ease such concerns about affordability. To ensure households with limited financial means would actually see the benefits of the program’s massive infrastructure investment, this requirement mandated that all networks built using BEAD funds offer a low-cost plan for eligible subscribers.

Blueprints for BEAD: What We Can Learn From the Low-Cost Option That Was, Then Wasn’t, Then Was Again

Blueprints for BEAD is a series of short notes and analysis on nuances of BEAD that might otherwise get lost in the volume of material published on this federal funding program. Click the “Blueprints for BEAD” tag at the bottom of this story for other posts.

Few people dispute the vital importance of affordability in closing the digital divide. A 2021 Pew Research Center survey found that nearly half of all people without broadband cited cost as a barrier, with 20 percent listing cost as the primary reason for not subscribing to broadband service.

Research from EducationSuperHighway pegged that number even higher, estimating that lack of affordability explained about two thirds of the remaining digital divide in the country.

As the Broadband Equity, Access, and Deployment (BEAD) program steams ahead, questions about affordability have come to the fore. After all, deploying tens of thousands of miles of new fiber is only half the equation. BEAD will help build the physical networks necessary to connect the millions of households that still lack access to high-speed Internet service, but will it make a difference if they still can’t afford a plan? This possibility is all the more likely in light of the Affordability Connectivity Program’s (ACP) untimely demise.

Image
Empty Wallet

BEAD’s low-cost plan requirement sought to ease such concerns about affordability. To ensure households with limited financial means would actually see the benefits of the program’s massive infrastructure investment, this requirement mandated that all networks built using BEAD funds offer a low-cost plan for eligible subscribers.

Blueprints for BEAD: What We Can Learn From the Low-Cost Option That Was, Then Wasn’t, Then Was Again

Blueprints for BEAD is a series of short notes and analysis on nuances of BEAD that might otherwise get lost in the volume of material published on this federal funding program. Click the “Blueprints for BEAD” tag at the bottom of this story for other posts.

Few people dispute the vital importance of affordability in closing the digital divide. A 2021 Pew Research Center survey found that nearly half of all people without broadband cited cost as a barrier, with 20 percent listing cost as the primary reason for not subscribing to broadband service.

Research from EducationSuperHighway pegged that number even higher, estimating that lack of affordability explained about two thirds of the remaining digital divide in the country.

As the Broadband Equity, Access, and Deployment (BEAD) program steams ahead, questions about affordability have come to the fore. After all, deploying tens of thousands of miles of new fiber is only half the equation. BEAD will help build the physical networks necessary to connect the millions of households that still lack access to high-speed Internet service, but will it make a difference if they still can’t afford a plan? This possibility is all the more likely in light of the Affordability Connectivity Program’s (ACP) untimely demise.

Image
Empty Wallet

BEAD’s low-cost plan requirement sought to ease such concerns about affordability. To ensure households with limited financial means would actually see the benefits of the program’s massive infrastructure investment, this requirement mandated that all networks built using BEAD funds offer a low-cost plan for eligible subscribers.

Blueprints for BEAD: What We Can Learn From the Low-Cost Option That Was, Then Wasn’t, Then Was Again

Blueprints for BEAD is a series of short notes and analysis on nuances of BEAD that might otherwise get lost in the volume of material published on this federal funding program. Click the “Blueprints for BEAD” tag at the bottom of this story for other posts.

Few people dispute the vital importance of affordability in closing the digital divide. A 2021 Pew Research Center survey found that nearly half of all people without broadband cited cost as a barrier, with 20 percent listing cost as the primary reason for not subscribing to broadband service.

Research from EducationSuperHighway pegged that number even higher, estimating that lack of affordability explained about two thirds of the remaining digital divide in the country.

As the Broadband Equity, Access, and Deployment (BEAD) program steams ahead, questions about affordability have come to the fore. After all, deploying tens of thousands of miles of new fiber is only half the equation. BEAD will help build the physical networks necessary to connect the millions of households that still lack access to high-speed Internet service, but will it make a difference if they still can’t afford a plan? This possibility is all the more likely in light of the Affordability Connectivity Program’s (ACP) untimely demise.

Image
Empty Wallet

BEAD’s low-cost plan requirement sought to ease such concerns about affordability. To ensure households with limited financial means would actually see the benefits of the program’s massive infrastructure investment, this requirement mandated that all networks built using BEAD funds offer a low-cost plan for eligible subscribers.

Blueprints for BEAD: What We Can Learn From the Low-Cost Option That Was, Then Wasn’t, Then Was Again

Blueprints for BEAD is a series of short notes and analysis on nuances of BEAD that might otherwise get lost in the volume of material published on this federal funding program. Click the “Blueprints for BEAD” tag at the bottom of this story for other posts.

Few people dispute the vital importance of affordability in closing the digital divide. A 2021 Pew Research Center survey found that nearly half of all people without broadband cited cost as a barrier, with 20 percent listing cost as the primary reason for not subscribing to broadband service.

Research from EducationSuperHighway pegged that number even higher, estimating that lack of affordability explained about two thirds of the remaining digital divide in the country.

As the Broadband Equity, Access, and Deployment (BEAD) program steams ahead, questions about affordability have come to the fore. After all, deploying tens of thousands of miles of new fiber is only half the equation. BEAD will help build the physical networks necessary to connect the millions of households that still lack access to high-speed Internet service, but will it make a difference if they still can’t afford a plan? This possibility is all the more likely in light of the Affordability Connectivity Program’s (ACP) untimely demise.

Image
Empty Wallet

BEAD’s low-cost plan requirement sought to ease such concerns about affordability. To ensure households with limited financial means would actually see the benefits of the program’s massive infrastructure investment, this requirement mandated that all networks built using BEAD funds offer a low-cost plan for eligible subscribers.

Pew Provides Needed Tools for State Broadband Offices

<p>The <a href="https://www.pewtrusts.org/en/">Pew Charitable Trusts </a>has begun publishing memos that will be useful for state broadband offices as they beef up staff to ensure state broadband grant funds are not wasted and track whether states are awarding grants to proposed projects in a way that advances various state’s goals in building a bridge across the digital divide.</p><p>One memo focuses on how allowing providers to object to applications can promote accountability. The second memo examines how state broadband offices can use scoring metrics to evaluate grant applications.</p><p><strong>The Challenge Process</strong></p><p>The first memo begins noting that by “providing a system for existing high-speed [I]nternet providers to raise concerns about grant applications, (it) can help state broadband offices ensure that public funds are not tapped multiple times for the same project or awarded to areas without sufficient need.”</p><p>That can be done through the “<a href="https://www.pewtrusts.org/-/media/assets/2022/01/broadband-grant-progra… process</a>,” which allows Internet Service Providers (ISPs) to challenge an application if the challenger can demonstrate that they already provide service in a grant application area, have started network construction in that area, or have plans to do so.</p><p>The memo boils down four summary points that are “key features from a variety of states.”</p><blockquote><p>• Challenge processes can be an important control to prevent public subsidies from being awarded to areas that are already receiving equivalent service or will receive equivalent service within a set period (e.g., 12 months).

Pew Provides Needed Tools for State Broadband Offices

<p>The <a href="https://www.pewtrusts.org/en/">Pew Charitable Trusts </a>has begun publishing memos that will be useful for state broadband offices as they beef up staff to ensure state broadband grant funds are not wasted and track whether states are awarding grants to proposed projects in a way that advances various state’s goals in building a bridge across the digital divide.</p><p>One memo focuses on how allowing providers to object to applications can promote accountability. The second memo examines how state broadband offices can use scoring metrics to evaluate grant applications.</p><p><strong>The Challenge Process</strong></p><p>The first memo begins noting that by “providing a system for existing high-speed [I]nternet providers to raise concerns about grant applications, (it) can help state broadband offices ensure that public funds are not tapped multiple times for the same project or awarded to areas without sufficient need.”</p><p>That can be done through the “<a href="https://www.pewtrusts.org/-/media/assets/2022/01/broadband-grant-progra… process</a>,” which allows Internet Service Providers (ISPs) to challenge an application if the challenger can demonstrate that they already provide service in a grant application area, have started network construction in that area, or have plans to do so.</p><p>The memo boils down four summary points that are “key features from a variety of states.”</p><blockquote><p>• Challenge processes can be an important control to prevent public subsidies from being awarded to areas that are already receiving equivalent service or will receive equivalent service within a set period (e.g., 12 months).

Pew Provides Needed Tools for State Broadband Offices

<p>The <a href="https://www.pewtrusts.org/en/">Pew Charitable Trusts </a>has begun publishing memos that will be useful for state broadband offices as they beef up staff to ensure state broadband grant funds are not wasted and track whether states are awarding grants to proposed projects in a way that advances various state’s goals in building a bridge across the digital divide.</p><p>One memo focuses on how allowing providers to object to applications can promote accountability. The second memo examines how state broadband offices can use scoring metrics to evaluate grant applications.</p><p><strong>The Challenge Process</strong></p><p>The first memo begins noting that by “providing a system for existing high-speed [I]nternet providers to raise concerns about grant applications, (it) can help state broadband offices ensure that public funds are not tapped multiple times for the same project or awarded to areas without sufficient need.”</p><p>That can be done through the “<a href="https://www.pewtrusts.org/-/media/assets/2022/01/broadband-grant-progra… process</a>,” which allows Internet Service Providers (ISPs) to challenge an application if the challenger can demonstrate that they already provide service in a grant application area, have started network construction in that area, or have plans to do so.</p><p>The memo boils down four summary points that are “key features from a variety of states.”</p><blockquote><p>• Challenge processes can be an important control to prevent public subsidies from being awarded to areas that are already receiving equivalent service or will receive equivalent service within a set period (e.g., 12 months).

Pew Provides Needed Tools for State Broadband Offices

<p>The <a href="https://www.pewtrusts.org/en/">Pew Charitable Trusts </a>has begun publishing memos that will be useful for state broadband offices as they beef up staff to ensure state broadband grant funds are not wasted and track whether states are awarding grants to proposed projects in a way that advances various state’s goals in building a bridge across the digital divide.</p><p>One memo focuses on how allowing providers to object to applications can promote accountability. The second memo examines how state broadband offices can use scoring metrics to evaluate grant applications.</p><p><strong>The Challenge Process</strong></p><p>The first memo begins noting that by “providing a system for existing high-speed [I]nternet providers to raise concerns about grant applications, (it) can help state broadband offices ensure that public funds are not tapped multiple times for the same project or awarded to areas without sufficient need.”</p><p>That can be done through the “<a href="https://www.pewtrusts.org/-/media/assets/2022/01/broadband-grant-progra… process</a>,” which allows Internet Service Providers (ISPs) to challenge an application if the challenger can demonstrate that they already provide service in a grant application area, have started network construction in that area, or have plans to do so.</p><p>The memo boils down four summary points that are “key features from a variety of states.”</p><blockquote><p>• Challenge processes can be an important control to prevent public subsidies from being awarded to areas that are already receiving equivalent service or will receive equivalent service within a set period (e.g., 12 months).

Why 25/3 Broadband Is Not Sufficient

In the interest of “closing the digital divide,” the FCC issued a Notice of Inquiry in August “Concerning Deployment of Advanced Telecommunications Capability to All Americans in a Reasonable and Timely Fashion.” According to the notice, the FCC still considers it reasonable and timely to define the minimum broadband speed as 25 Megabits per second (Mbps) download and 3 Mbps upload, the same minimum speeds the FCC first established in 2015.

It’s an important benchmark that is widely-agreed to be outdated in the era of families juggling multiple video chat calls and other digital tasks at the same time.

However, according to the FCC’s most recent look at the issue, there remains “significant support for maintaining this benchmark.” Therefore, the notice went on to say, “we propose to maintain the 25/3 Mbps benchmark for fixed services.”

This, despite the objection of Commissioner Jessica Rosenworcel, whose official dissent noted that, in addition to the “nonstop criticism from consumers and Congress” over the FCC’s misleading data on how many Americans lack access to broadband, “in its last report, the FCC continued to use a broadband standard that is too low for a nation that has moved so much online.”

“Many households with multiple users are calling, watching, listening, gaming, and searching online all at the same time,” Rosenworcel noted. “But the FCC has been sticking with a download standard of 25 megabits per second that it adopted more than five years ago. We need to set audacious goals if we want to do big things. With many of our nation’s providers offering gigabit service, it’s time for the FCC to adjust its baseline upward, too. We need to reset it to at least 100 megabits per second.”

A year prior to Rosenworcel’s dissent, Next Century Cities submitted comments noting how much had changed both up and downstream since the 2015 standard was put in place.

“As more people work from home or engage in online education courses, the requirement of multi-tasking while participating on an HD video conference will overwhelm that 3 Mbps capacity, even if no other devices in the household are attempting to share the network.”