The Biden administration's flagship broadband initiative, the $42.5 billion Broadband Equity, Access, and Deployment (BEAD) program, is facing mounting criticism. Launched with the promise of bridging America's digital divide, the BEAD program has yet to connect a single household or business three years in. Many point to the program's design and the bureaucratic hurdles imposed by the National Telecommunications and Information Administration (NTIA) as the primary causes of delay. Others are sympathetic to the NTIA.
It's true that NTIA is overseeing an enormously complex project. Congress tasked it with designing and overseeing broadband expansion efforts in all 50 states and US territories, each of which must submit implementation plans. NTIA and the states hired hundreds of new staff, most of which had little experience with broadband programs. While NTIA asserts that BEAD is a 10-year initiative and therefore still on track, the reality is that current delays are unnecessary and there are simple, actionable steps the agency can take to accelerate progress.
First, NTIA should grant states waivers for non-legislative requirements that add unnecessary costs and administrative burdens. For example, NTIA's preference for fiber-optic technology, workforce mandates that impose union costs, and price control policies are all provisions that go beyond Congressional mandate. These additional rules complicate state-level implementation and enforcement, wasting both time and money. By easing these restrictions, states would have the flexibility to work with providers more efficiently.
Second, NTIA should reduce its micromanagement of state broadband plans. Currently, the agency involves itself in numerous minor details, such as the challenge process for determining whether a given area is eligible for BEAD funds. While Congress allows for providers to challenge whether a geographic region qualifies for funding -- especially if the Federal Communications Commission (FCC) maps misclassify areas as unserved -- NTIA has turned this into a long, multistep process. This excessive control delays funding, burdens state officials, and creates barriers for providers looking to expand service.
Another practical reform would be allowing states to use a portion of their BEAD allocations for transitional broadband services. Many states have more funding than they need to meet the program's goal of providing universal broadband coverage. In these cases, states should have the option to use BEAD money to subsidize interim solutions, such as low earth orbit (LEO) satellite broadband. For instance, states could issue coupons to residents in remote, underserved areas to help them access LEO services like Elon Musk's Starlink. This would provide immediate relief to communities while long-term infrastructure is built out over the coming years.
Some political obstacles may complicate the adoption of this idea, particularly NTIA's fiber-first policy, which contradicts Congress's directive that BEAD be technology-neutral. LEO satellite services have gained significant traction in recent years, with rapid adoption among customers who value its performance and accessibility. Despite this, the administration appears less enthusiastic about LEO, possibly due to the involvement of Musk, who has been vocal in his criticisms of the administration. Still, the popularity of LEO and fixed wireless services, both of which have seen strong growth, suggests that the market is diversifying away from traditional broadband solutions -- such as fiber and cable. In fact, there is evidence that LEO and fixed wireless have compensated for the decline in wireline broadband subscriptions.
A more flexible approach to broadband policy -- one that considers market realities and customer preferences -- would go a long way toward speeding up the deployment of critical services. Allowing for the use of interim and niche technologies like LEO, cutting red tape, and streamlining NTIA's oversight processes could help BEAD deliver on its promise much sooner.
Ultimately, NTIA has the tools to improve BEAD's implementation. If it does so, the agency can ensure that this massive federal investment delivers meaningful, timely benefits to Americans in need of better broadband access.