$42 Billion Spent & No Internet Yet | Saturday Extra
In this episode of Morning Wire, the discussion centers around the Biden administration's $42 billion BEAD program, aimed at expanding rural broadband access. The conversation explores the severe delays plaguing the program's rollout, attributed to bureaucratic hurdles and policy requirements unrelated to broadband deployment.
The episode also examines the potential of alternatives like Starlink's satellite internet service to provide cost-effective connectivity in hard-to-reach areas. It delves into the opportunity costs faced by rural communities lacking reliable high-speed internet, including impacts on small businesses, telemedicine access, and remote education and work opportunities.
This is a preview of the Shortform summary of the Nov 2, 2024 episode of the Morning Wire
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1-Page Summary
The Unrealized Promise of the BEAD Broadband Program
Severe Delays in Rollout
The $42 billion BEAD program, intended to expand rural internet access, has made no progress so far. According to Brendan Carr, construction originally slated for this year won't start until at least 2026 - potentially the slowest federal broadband rollout ever.
Bureaucratic and Policy Hurdles
Carr attributes the delays to the Biden administration layering on various progressive policy requirements unrelated to broadband deployment, like diversity mandates and climate change goals. He argues these extra rules have slowed progress.
State officials report dysfunction, with conflicting federal guidance hindering implementation.
Pricing Concerns Deter Providers
Carr notes the administration has implemented price controls, discouraging many broadband providers from participating due to doubts about recouping costs.
The Potential of Alternatives Like Starlink
Proven Rural Access Capabilities
Despite initially receiving over $800M in federal funding that was later revoked, Starlink has demonstrated an ability to swiftly provide high-speed internet to hard-to-reach rural areas. Carr contends technologies like this can deploy broadband faster and cheaper than fiber, especially in low-density areas.
Controversy Over Revocation
Carr argues the revocation exemplifies how a technology-specific strategy may be hindering cost-effective rural connectivity by excluding promising alternatives like Starlink's satellite service.
Opportunity Costs for Rural Communities
Small Businesses Stalled
Without BEAD funds flowing, Carr says small construction and broadband businesses prepared to serve rural areas cannot expand operations and hire workers.
Critical Services Missed
The lack of reliable high-speed internet deprives rural communities of telemedicine, remote education/work, and other modern essentials, Carr states. Areas like Western North Carolina remain especially vulnerable to disruptions sans alternatives like Starlink.
1-Page Summary
Additional Materials
Clarifications
- The BEAD program, standing for Broadband Equity and Access Development, is a $42 billion initiative aimed at expanding internet access in rural areas. It was designed to address the digital divide by providing funding for broadband infrastructure projects to improve connectivity in underserved communities. The program has faced severe delays in its rollout, with construction delays pushing back the start date to at least 2026. The delays have been attributed to bureaucratic hurdles, policy complications, and pricing concerns that have deterred broadband providers from participating.
- Price controls impact broadband providers by setting limits on the prices they can charge for their services. When price controls are in place, providers may find it challenging to cover their costs or generate profits. This can deter providers from participating in programs or projects that have price controls, as they may be concerned about the financial viability of offering services at restricted prices. Ultimately, price controls can influence the willingness of broadband providers to invest in and expand their services in certain markets or programs.
- A technology-specific strategy in this context means focusing solely on one type of technology, like fiber optics, for expanding broadband access. This approach may overlook or exclude other innovative solutions, such as satellite internet like Starlink, which could be more effective or cost-efficient in reaching rural areas with limited connectivity. By not considering a variety of technologies, there is a risk of missing out on potential alternatives that could better address the specific challenges of rural connectivity.
- The delays in the BEAD program impact small businesses by preventing them from expanding operations and hiring workers who could provide construction and broadband services in rural areas. This lack of progress hinders the growth potential of small businesses that were prepared to serve rural communities with the support of BEAD funds.
- Telemedicine and remote education/work are crucial in rural areas because they provide access to healthcare services and educational/work opportunities that might not be readily available locally. In rural areas with limited healthcare facilities, telemedicine allows residents to consult with healthcare providers remotely, improving access to medical care. Similarly, remote education and work opportunities enable individuals in rural areas to access quality education and job opportunities without the need to relocate, contributing to economic growth and community development.
Counterarguments
- The BEAD program's delays could be attributed to the complexity of the project and the need for thorough planning and coordination to ensure long-term success, rather than solely on policy requirements.
- Progressive policy requirements, such as diversity mandates and climate change goals, may enhance the long-term sustainability and inclusivity of the broadband infrastructure, rather than simply acting as a hindrance.
- Bureaucratic processes and federal guidance could be seen as necessary steps to maintain oversight and accountability in the use of a significant amount of federal funds.
- Price controls might be intended to ensure that the service remains affordable for rural communities, which could be seen as a long-term investment in equitable access to broadband.
- While Starlink has shown potential, its long-term viability, cost-effectiveness, and performance under different conditions compared to fiber are still under evaluation.
- The revocation of Starlink's federal funding could be based on rigorous criteria that aim to ensure the most effective use of taxpayer money and adherence to the program's requirements.
- The delay in the flow of BEAD funds could be part of a careful vetting process to ensure that the funds are used effectively and that projects are sustainable and well-planned.
- The absence of reliable high-speed internet in rural communities, while critical, may require a multifaceted approach that includes but is not limited to federal funding, considering the challenges of diverse geographical and socio-economic conditions in these areas.
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The status and lack of progress in the BEAD broadband infrastructure program
The BEAD (Broadband Equity, Access, and Deployment) program, established in 2021 with a $42 billion funding provision under the Infrastructure Act, intended to expand internet access to rural Americans, remains unrealized with no homes or businesses yet connected to the internet.
The BEAD program was established in 2021 to provide $42 billion in funding to expand internet access to rural Americans, but no homes or businesses have been connected to the internet through this initiative so far.
Despite the promises of the Infrastructure Act, the Biden administration has declared that construction for the BEAD program, originally slated to begin this year, won't start until at least next year, with the majority of projects postponed until 2026. This marks it as potentially the slowest federal broadband buildout effort in modern history. Brendan Carr remarks on the delay, emphasizing the frustration from stakeholders in Pennsylvania who are eager to see the BEAD program’s dollars put to work and shovels in the ground.
The Biden administration has delayed the start of the BEAD program until at least 2026, making it the slowest federal broadband buildout effort in modern history.
The delay is pronounced, with Carr addressing the significant postponement that sets the program's start not to begin until 2025 or 2026, in contrast to earlier expectations for projects to be underway by now.
The administration has added various progressive policy requirements to the BEAD program, such as diversity, equity, and inclusion (DEI) mandates, climate change agenda, and preferences for union labor and government-run networks, which have slowed down the program's implementation.
The sluggish advance of the BEAD program is, i ...
Here’s what you’ll find in our full summary
The status and lack of progress in the BEAD broadband infrastructure program
Additional Materials
Clarifications
- The BEAD (Broadband Equity, Access, and Deployment) program is a government initiative established in 2021 to expand internet access to rural areas in the United States. It was funded with $42 billion under the Infrastructure Act to improve broadband infrastructure and connectivity for underserved communities. The program aims to address the digital divide by providing resources for broadband deployment and ensuring equitable access to high-speed internet services. The BEAD program has faced delays and challenges in implementation, impacting its ability to connect homes and businesses to the internet as originally intended.
- Brendan Carr is a member of the Federal Communications Commission (FCC), serving as a Commissioner. He has been vocal about issues related to broadband deployment and telecommunications policy in the United States. In the context provided, Brendan Carr is mentioned expressing frustration over delays in the BEAD broadband infrastructure program.
- DEI mandates stand for Diversity, Equity, and Inclusion mandates. These mandates aim to ensure fair representation and opportunities for individuals from diverse backgrounds, promote equality, and foster an inclusive environment within programs or initiatives. They can include requirements related to hiring practices, representation, and policies that support underrepresented groups. The inclusion of DEI mandates in the BEAD program may have contributed to its slower implementation due to the additional considerations and complexities involved.
- Union labor typically involves workers who are part of labor unions, which are organizations that represent workers in various industries to negotiate better wages, working conditions, and benefits. Government-run networks are broadband networks owned and operated by government entities, ...
Counterarguments
- The BEAD program's timeline may reflect the complexity and scale of the infrastructure project, which requires careful planning and coordination to ensure long-term success and sustainability.
- Delays in the BEAD program could be due to the federal government's due diligence in ensuring that the funds are allocated efficiently and effectively, avoiding waste and mismanagement.
- Progressive policy requirements such as DEI, climate change considerations, and labor preferences may aim to ensure that the program's benefits are equitably distributed and that the infrastructure built is sustainable and socially responsible.
- The introduction of progressive policies in the BEAD program could lead to more resilient and future-proof infrastructure, considering the long-term impacts on society and the environment.
- The reported dysfunction and changing guidance could be indicative of the iterative nature of large government progr ...
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The reasons for the delays in the BEAD program, including the administration's policy decisions
Several of the Biden administration’s policy decisions have contributed to delays in the Broadband Equity, Access, and Deployment (BEAD) program, which aims to connect more people to the internet.
The Biden administration has layered additional regulatory and political requirements onto the BEAD program that have nothing to do with simply connecting people to the internet.
As the administration considers the deployment of the BEAD program, it has incorporated various progressive policy goals, which has resulted in complications. Specifically, the administration has inserted preferences for union labor and DEI (Diversity, Equity, and Inclusion) hiring practices into the program, which critics argue hinder the pool of available workers and slow down progress due to workforce shortages. Additionally, there are components of a climate change agenda included, which some believe steer the program away from its core objective of just connecting rural communities to the internet. These additional requirements have been cited as the primary drivers behind the program's delays, as the focus seems to have shifted toward achieving these broader progressive policy goals rather than concentrating solely on the expansion of broadband access.
The administration has also implemented price controls on broadband providers participating in the BEAD program, which has discouraged many from ...
Here’s what you’ll find in our full summary
The reasons for the delays in the BEAD program, including the administration's policy decisions
Additional Materials
Counterarguments
- The additional regulatory and political requirements may aim to ensure that the program's implementation is sustainable and equitable, addressing long-term social and economic goals alongside expanding internet access.
- Preferences for union labor could lead to higher quality workmanship and better working conditions, which may result in more reliable internet infrastructure and positive social outcomes.
- DEI hiring practices might help to correct historical imbalances in the workforce and ensure that the benefits of the BEAD program, and the jobs it creates, are accessible to a diverse population.
- Incorporating a climate change agenda could ensure that broadband infrastructure is resilient and sustainable, po ...
Actionables
- You can educate yourself on the complexities of broadband expansion by reading up on the BEAD program and similar initiatives to understand the challenges and debates surrounding internet connectivity in rural areas.
- By becoming more informed, you'll be able to make better decisions when it comes to supporting policies or initiatives that align with your values. For example, if you value internet accessibility for all, you might prioritize learning about the trade-offs between regulatory requirements and the expansion of services. This could involve reading government reports, following news articles, or even attending local town hall meetings where such topics are discussed.
- Consider writing to your local representatives to express your concerns or support for specific aspects of broadband expansion programs like BEAD.
- By voicing your opinion, you contribute to the democratic process and can influence policy-making. For instance, if you're concerned about the economic viability of broadband providers due to price controls, you could draft a letter explaining your position and suggesting alternative solutions that could encourage provider participation without sacrificing affordability.
- Start a conv ...
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The potential for alternative broadband solutions like Starlink to be more effective
The need for reliable internet service has never been greater, particularly in rural areas where traditional broadband access is limited. As the Federal Communications Commission (FCC) looks to bridge this digital divide, alternative solutions like SpaceX's Starlink have shown significant promise.
Starlink's Impact on Rural Broadband Access
In 2020, as part of the federal government's effort to expand broadband service to rural America, the FCC awarded various providers with funding to address these underserved regions. Starlink emerged as a notable beneficiary of this effort, having received over $800 million to serve 640,000 rural homes and businesses. However, in a subsequent decision in the following year, the FCC, in a party-line vote, revoked Starlink's award.
Despite this setback, Starlink has demonstrated its capability to swiftly provide high-speed internet access to rural areas. For example, when terrestrial networks were disrupted, Starlink kits were deployed in Western North Carolina to restore connectivity. This speaks to the vibrancy of their technological approach in reaching areas that are otherwise difficult to serve.
A Better Solution at Lower Cost and Faster Deployment
Brendan Carr, an FCC Commissioner, contends that technologies like Starlink and other fixed wireless services can deliver broadband internet at a lower cost and more quickly than fiber-optic broadband solutions. This is especially true in low population density areas, where laying fiber can be prohibitively expensive and time-consuming. Such innovative approaches like Starlink's satellite-based service have shown to be more immediate in their deployment capabilities, suggesting that they may offer more efficient alternatives to traditional broadband infrastructure investments.
The Controversy Around the Revocation of Funding
The Biden administration's revocation of Starlink's FCC awa ...
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The potential for alternative broadband solutions like Starlink to be more effective
Additional Materials
Clarifications
- The FCC allocates funding to expand broadband access in underserved areas, with various providers receiving awards for this purpose. In some cases, decisions regarding funding awards can be subject to review and potential revocation based on regulatory considerations. The FCC's decision-making process can involve factors such as technology-specific approaches, cost-effectiveness, and the overall goal of bridging the digital divide in the United States. The agency aims to balance various interests and considerations to ensure the efficient and equitable deployment of broadband infrastructure across different regions.
- Starlink is a satellite internet constellation project developed by SpaceX, aiming to provide global broadband coverage. It works by deploying a network of small satellites in low Earth orbit, creating a mesh network that communicates with ground stations and user terminals. Users connect to the internet through a phased-array antenna installed at their location, which communicates with the satellites passing overhead. This setup allows for high-speed internet access in remote or underserved areas where traditional infrastructure is lacking.
- The controversy surrounding the revocation of Starlink's FCC award stems from concerns about the Biden administration's decision to revoke the funding previously awarded to Starlink for expanding rural broadband access. Critics argue that this move may limit the potential of innovative solutions like Starlink in addressing connectivity challenges in underserved areas. The debate centers on whether a technology-specific approach, as seen in the revocation of Starlink's award, is the most effective strategy for bridging the digital divide in rural communities. This decision has raised questions about the broader implications of favoring certain broadband technologies over others in federal initiatives aimed at improving internet access nationwide.
- "Fixed wireless services" typically involve the provision of internet access through radio waves to connect users to the internet, without the need for physical cables. This technology uses fixed antennas on buildings or towers to transmit data wirelessly, offering an alternative to traditional wired connections like fiber optics.
"Technology-agnostic stance" means adopting a neutral approach that does not favor any specific technology but instead focuses on achieving the desir ...
Counterarguments
- Starlink's technology, while promising, may face challenges in terms of scalability and reliability, as the satellite network could become congested as more users come online.
- The initial cost of Starlink's equipment and the monthly service fee may still be prohibitive for some rural users, despite the potential lower cost of deployment compared to fiber.
- The latency and speeds offered by satellite internet, although improved, may still not match those of fiber-optic solutions, which could be a disadvantage for certain applications that require high bandwidth and low latency.
- The revocation of Starlink's FCC award could be seen as a measure to ensure that government subsidies are used in the most effective way, possibly due to concerns about the long-term viability or cost-effectiveness of the solution.
- The technology-specific approach to broadband expansion might be based on the premise that certain technologies, like fiber-optic, have a proven track record and established infrastructure, which could be seen as a more s ...
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The economic and opportunity costs of the delays in the BEAD program for rural communities
The delays in the Broadband Equity, Access, and Deployment (BEAD) program are negatively impacting small broadband providers and construction businesses that were prepared to improve connectivity in rural areas. Brendan Carr discusses the consequences these delays have on rural communities.
The delays in the BEAD program are harming small broadband providers and construction businesses that were anticipating the influx of funding to hire and build out networks.
Carr indicates that small businesses, especially those specializing in construction and broadband, are ready to hire workers and start building. However, the anticipated funds are not flowing to them due to the delays in the BEAD program. Without these funds, these businesses are prevented from taking on projects and expanding their operations, which would serve rural areas that are in desperate need of better internet connectivity.
Without the BEAD program funds flowing, these businesses are being prevented from taking on projects and expanding their operations to serve rural areas.
The lack of BEAD program funds is halting the expansion efforts of these small businesses and broadband providers, stunting their growth and their ability to bring essential services to rural communities.
The lack of reliable high-speed internet access is depriving rural communities of critical economic and social opportunities, such as telemedicine, remote education, and remote work, that have become increasingly essential in modern life.
Carr highlights the economic and opportunity costs for rural America due to the BEAD program's delays. He points out that the internet is crucial for access to telehealth, education, and remote work opportunities ...
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The economic and opportunity costs of the delays in the BEAD program for rural communities
Additional Materials
Counterarguments
- The BEAD program delays may be due to necessary regulatory or compliance checks that ensure funds are used effectively and prevent waste or fraud.
- Some small businesses may not have the capacity or expertise to handle large-scale broadband deployment without proper oversight, which could lead to subpar infrastructure development.
- Alternative funding or financing options might be available for small businesses to continue their operations and expansions, such as private investments or loans.
- The importance of high-speed internet access is clear, but there may be other pressing infrastructure needs in rural areas that also require attention and funding.
- While the revocation of Starlink's funding award has had negative effects, it may have been based on legitimate concerns regarding the service's long-term viability or cost-effectiveness in those are ...
Actionables
- You can support local broadband initiatives by choosing to subscribe to small, local internet service providers (ISPs) when available, which helps them grow and potentially reach underserved rural areas. By opting for their services over larger corporations, you're directly contributing to their revenue and enabling them to hire more workers and expand their operations, even in the absence of external funding.
- Consider volunteering for or donating to non-profit organizations that aim to bridge the digital divide. These organizations often work on the ground to provide internet access and digital literacy training in rural communities. Your involvement could range from financial support to hands-on help with setting up internet access points or teaching basic computer skills.
- Advocate for improved broadband infr ...
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1-Page Summary- The status and lack of progress in the BEAD broadband infrastructure program
- The reasons for the delays in the BEAD program, including the administration's policy decisions
- The potential for alternative broadband solutions like Starlink to be more effective
- The economic and opportunity costs of the delays in the BEAD program for rural communities
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