Bridge the digital divide with BEAD funding

Use the BEAD program to build your broadband network

The digital divide is the modern version of the haves and have-nots: some people have affordable access to a broadband network and others do not. The digital divide impacts the lives of many Americans, particularly in rural, suburban, and indigenous communities. That’s why the U.S. government is investing in broadband access to rebuild and revitalize unserved and underserved communities. The BEAD Program and other federal funds are a historic opportunity for communities to improve their residents’ lives for generations to come. However, to get BEAD funding, you must have a plan and start right away.

Building Broadband Equity

To bolster the backbone of America’s high-speed internet infrastructure, the U.S. Department of Commerce’s National Telecommunications, and Information Administration (NTIA) launched the Internet for All initiative, which is funded by the Bipartisan Infrastructure Law. The initiative’s focus is to promote digital inclusion while expanding high-speed broadband internet access and adoption across the country.

The largest of the Internet for All initiatives is the Broadband Equity, Access, and Deployment (BEAD) Program, which will provide $42.45 billion to fund partnerships between states, territories, communities, and stakeholders for infrastructure planning and implementation. Together, these partnerships will focus on building fiber broadband infrastructure that will connect everyone and increase internet adoption in the needed areas of communities. According to the NTIA, funds from the BEAD Program will not only support planning, mapping, and deployment of broadband networks, but also projects to ensure digital equity, workforce development, and job training programs.

This monumental infrastructure investment will lay the groundwork for universal connectivity to close the broadband availability gap — from big cities to small towns and Tribal nations. As a result, underserved and unserved households will benefit from affordable, reliable broadband connectivity, which makes healthcare, jobs, and educational opportunities more accessible for a more prosperous community.

Who is eligible to receive BEAD funding?

The purpose of the BEAD Program is to ensure areas deemed as unserved (those with internet coverage under 25/3 Mbps) are addressed first, followed by underserved locations with internet coverage less than 100/200 Mbps. Any remaining funds will also be distributed to Community Anchor Institutions (CAIs) without gigabit connections.

On November 18, 2022, the Federal Communications Commission (FCC) published new broadband coverage maps. These maps will drive the total allocation of funds that will be given to eligible entities —all 50 states, territories, District of Columbia, and Puerto Rico. The accuracy of these maps is paramount so our country can finally close the digital divide. It will be essential for you, as someone seeking to close your digital divide, to collaborate with your state/territory, broadband champions, and the FCC to map your community and understand the adoption rates at various speeds. Doing so, will help ensure your state or territory secures the funding needed to close the gap in your community.

Each entity will be given a minimum allocation with the possibility of additional funding based upon the number of unserved locations in high-cost areas. For example, a minimum allocation of $100 million will be given to states, District of Columbia, and Puerto Rico, while the U.S. territories will receive $25 million.

Once each entity’s allocation is determined, eligible subgrantees, broadband internet service providers, (i.e., rural electric co-ops, utilities, public utility districts, local government, nonprofits, public-private partnerships, and private companies) will have the opportunity to apply for BEAD funding from their state/territory. It is important to be aware that, as detailed in the NTIA’s Internet for All FAQ, the BEAD program requires matching funds. The grant applicant must contribute 25% of the broadband deployment project costs; the BEAD program will provide 75% funding.

What are the requirements for subgrantees?

Your state or territory will pre-qualify all prospective subgrantees, ensuring the grant can be carried out in a competent manner and in compliance with all applicable laws. According to the BEAD Program Details for Applicants (page 31), there are seven specific qualifications you’ll need to meet to prove that you are fit to be a broadband services provider:

1. Financial capability: Certification of financial qualifications, letter of credit, audited financial statements, and project pro forma analyses
2. Managerial capability: Resumes for key personnel, organizational charts, and a narrative describing qualifications
3. Technical capability: Network design, diagram, project cost, buildout timeline and milestones, plus a capital investment schedule
4. Compliance with laws: Permit work-led health and safety committees that management will meet
5. Operational capability: Certification of operational capability and certification for experience (e.g., for broadband service experience)
6. Ownership: Provide ownership information, including name, address, and citizenship of any party with more than 10% stock in applicant
7. Other public funding: Disclose any applications for broadband service projects using public funds

Once you’re deemed fit to be a broadband service provider and your grant application is accepted, you’ll be obligated to build broadband infrastructure that meets these criteria from the BEAD Program Detail for Applicants (page 46):

1. Network capabilities
   • Speed: ≥100/20 Mbps or 1/1 Gbps for CAIs
   • Latency: 95% of measurements below 100 ms round-trip time
   • Outages: <48 hours over any 365-day period, except in case of natural disasters or force majeure
2. Deployment requirements
   • Deadlines: Deploy and begin service no later than four years after subgrant is received (with possible one year extension)
   • Milestones: Meet milestones established by your eligible entity (e.g., state)
   • Conduit access points: Include interspersed conduit access points at regular and short intervals for interconnection
3. Service obligations
   • Low-cost plan: Offer a low-cost option for all eligible subscribers
   • Consumer protection: Do not impose data usage caps
   • Access to service: Reasonable and non-discriminatory terms and conditions
   • Public notice: Conduct awareness campaigns to increase adoption
   • Interconnections and wholesale access: Permit interconnection for middle mile infrastructure receiving funding
   • Cybersecurity and supply chain: Adhere to baseline requirements

How can Fujitsu help?

Caption: A Fujitsu Board-Ready Study helps you become investment-ready to receive BEAD funding (page 5).  It gives you the right information ―market demand analysis, financial models, high-level network design, and operations plan―so you’ll know what it takes to start a broadband business.

If you’re overwhelmed by the requirements and deadlines, Fujitsu offers many services that can make it easier for you to apply for BEAD funding. We can help you create a compelling, complete, and competitive project to best align with your state broadband office’s BEAD scoring framework, which is used to determine eligibility.  With our full turnkey capabilities, the dream to close the digital divide becomes an actionable plan. The Board-Ready Study is a great first step to understand and plan out what is needed to apply for the BEAD program. You can also learn more about Fujitsu’s broadband consultancy services here.

If you have any questions on how we can help your organization get prepared to apply for new BEAD program funding, email me at anthony.bednarczyk@fujitsu.com or connect with me on LinkedIn.