This year saw the initial implementation of broadband elements in the Infrastructure Investments and Jobs Act (IIJA), signed by President Biden in November 2021. The coming year is likely to determine how broadband map challenges get resolved, who gets grants from the Middle Mile program, and how funding rules for the Broadband Equity, Access and Deployment (BEAD) program could change.

The IIJA contained roughly $65 billion for broadband, including $42.5 billion for the BEAD program and $1 billion for the Middle Mile fund, among others. The programs are managed by the Department of Commerce and National Telecommunications and Information Administration (NTIA), headed up by NTIA Chief Administrator Alan Davidson.

Figure 1: (Source: Geopix/Alamy Stock Photo)

In late 2021, Commerce Secretary Gina Raimondo outlined a process for BEAD funding, designating $100 million for each state with additional funds dependent on their number of unserved and underserved locations per the FCC's new National Broadband Map. Once allocations are made, states will write broadband plans for sub-granting BEAD funds, to be approved by NTIA.

In May, NTIA published infrastructure funding rules for BEAD and the Middle Mile program. It has since received industry feedback and made minor adjustments – including proposing a temporary waiver for "Buy America" requirements on middle mile grants due to supply constraints.

The department solicited applications for the Middle Mile program in September, receiving $5.5 billion in requests for the $1 billion fund. It also started awarding BEAD planning funds so states can staff broadband offices and create grant programs.

Figure 2: (Source: Brian Jackson/Alamy Stock Photo)

Moving into 2023, here's what we're watching on the broadband infrastructure funding front:

Map challenges due: With BEAD allocations riding on the new FCC broadband map, the Commission requested all challenges to map data be submitted by January 13, 2023. We'll be watching how challenges get resolved and how states respond to funding allocations which NTIA will release in June.

Middle mile money: NTIA also said it will award Middle Mile grants "no earlier" than March 2023. With that program "wildly oversubscribed," in the words of Davidson, we'll be looking to see which projects NTIA favors and whether there's a push for the program to get more funding. We'll also watch for if/how the limited waiver on "Buy America" rules is resolved.

Rules revisions: With at least another year (or two) before BEAD's billions get disbursed, we expect the wireless industry to keep pushing NTIA to revise its funding rules. In particular, wireless players take issue with NTIA's rule against funding projects using unlicensed spectrum. The Wireless Internet Service Providers Association (WISPA) has met with NTIA to argue against the rule and is "hopeful" NTIA will change it, a spokesperson told Light Reading in November. Conversely, Gary Bolton, CEO of the Fiber Broadband Association, said his focus next year is "holding the line on NTIA's policy choices."

Related posts:

— Nicole Ferraro, editor, Light Reading, and host of "​​The Divide" podcast.