D.C. Memo: Cap BEAD Grants at $1,200 Per Location, ITIF Analysts Say
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BEAD: The Trump administration should reject any state BEAD plan that includes a per-location cost higher than $1,200, according to a new analysis by Ellis Scherer and Joe Kane at the Information Technology & Innovation Foundation. The proposal, released yesterday, said NTIA should not allow states to spend billions on costly fiber projects when less expensive alternatives, such as Starlink and fixed wireless, are reliable and available. "In short, [low Earth orbit] satellites are often the most economical way to get high-speed broadband to rural areas, even when accounting for monthly service charges. With the LEO option on the table, there is no reason to press forward with far more expensive fiber projects," Scherer and Kane said. NTIA last week approved Nevada's BEAD plan that awarded $22 million to Beehive Broadband at an average per-location cost of $77,013. A $1,200 cap would cover the cost of a high-end Starlink terminal and provide a $25 monthly discount on service for two years, said Scherer and Kane, who want the money saved from their approach to support programs like the Affordable Connectivity Program (ACP). NTIA has so far approved three state BEAD plans – Louisiana, Delaware, and Nevada – providing sufficient time to establish the $1,200 Extremely High Cost per Location Threshold (EHCPLT) cap for the other states and territories. "No state is too far along in the BEAD process to make changes that set a more realistic EHCPLT to make their deployment plans more affordable," Scherer and Kane said. Some states prefer fiber because it provides faster speeds than Starlink and fixed wireless. "While technically true, the high throughput of fiber is no reason to prioritize it at extreme cost. The vast majority of broadband use doesn’t require anywhere near gigabit speed," Scherer and Kane said.