"Heins thinks that future challenges with BEAD may lie in two key areas. (Spoiler alert: The article we are developing with Finley will address these challenges.) First, the National Telecommunications and Information Administration (NTIA) is setting three cost-per-location thresholds. Depending on the threshold reached, providers must (1) explain and justify their price, (2) explain, justify, and lower their price, or (3) renegotiate and accept other providers' technology to serve the proposed area."
"The practical result of these thresholds and the revised BEAD guidelines established in June is that, in the future, some rural areas and communities may not have access to the reliable, high-speed connections they want, need, and have been promised by the BEAD legislation. Heins believes rural areas and communities across the nation that want fiber will end up with low Earth orbit (LEO) satellite connections and will be disappointed with its quality."
NTIA is setting three cost-per-location thresholds that trigger escalating provider requirements: (1) explain and justify proposed prices, (2) explain, justify and lower prices, or (3) renegotiate and accept competing providers’ technologies to serve an area. These thresholds, combined with June’s revised BEAD guidelines, create a practical risk that some rural communities expecting fiber will instead receive low Earth orbit (LEO) satellite service with inferior performance. Provisional award patterns indicate private equity may play a significant BEAD funding role. Private equity’s typical exit-driven investment profile can prioritize short-term returns over long-term network buildout, maintenance, and service quality.
Read at Telecompetitor
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