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Extremely High Cost Question

State BEAD Plans Differ on Satellite, Fixed Wireless

States' broadband equity, access and deployment (BEAD) program initial proposals before NTIA show varied levels of openness to satellite broadband and fixed wireless. Some states specifically say they will entertain satellite or FW as broadband delivery options in extremely high-cost areas, but others say satellite and FW won't be eligible under any circumstances, according to BEAD initial proposal second volumes filed with NTIA. That volume covers states' selection processes for deciding what ISPs will be subgrantees of BEAD funding.

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If Wyoming receives no proposals about servicing a location or group of locations, the state Broadband Office plans to first talk with proposed adjacent projects about expanding, even sweetening the offer with state funds. If there's still no interest in those unserved or underserved locations, the state "may be forced to target those locations for service using a technology that does not meet NTIA’s definition of reliable broadband service (e.g., satellite service)," said the second volume of the state's BEAD initial proposal, posted by NTIA last week.

Idaho said it will look at fixed wireless or low earth orbit if other technologies that can't deploy for less than the extremely high cost per location threshold at a given location. Satellite and fixed wireless might not meet NTIA's definition of reliable broadband "but will nonetheless provide service at a minimum of 100/20 and latency less than or equal to one hundred milliseconds at a lower cost," the state said. "Utilizing multiple forms of broadband technology will help ensure universal service across the state and that no location, no matter how remote or prohibitive the cost, will remain unserved." In its scoring rubric for last-mile deployment, Idaho included satellite but gives it one point, compared with five points going to hybrid fiber coaxial using DOCSIS 4.0 or four points hybrid fiber coaxial using DOCSIS 3.1. Wireless using licensed or unlicensed spectrum also scores higher than satellite.

If no proposals are received for a given geographic area, Louisiana said it will seek NTIA OK for a non-reliable service offering being made available directly to individual unserved locations "such as for unlicensed fixed wireless if already deployed in a nearby area or options such as low-earth orbit satellite service, all provided at a minimum of 100 Mbps down and 20 Mbps up." Nevada's plan is much the same; if its Office of Science, Innovation and Technology has no reliable technology options, it will ask NTIA to sign off on use of a non-reliable program to individual unserved locations. That could include unlicensed fixed wireless if directly available in the area or LEO satellite service, as long as they provide at least 100/20 Mbps service, Nevada said. Montana said when there are no other options, its state Broadband Office will solicit satellite proposals for the remaining unserved service locations, possibly through a bulk negotiation process. "While not considered a reliable broadband technology by the NTIA, the [Montana Broadband Office] will resort to using such a technology if no other options are available to ensure that all unserved locations have access to speeds that meet or exceed 100/20 Mbps," it said.

However, Kansas' Office of Broadband Development will require all subgrantee proposals to use technologies NTIA cited as capable of qualified broadband service, so the state agency "would not consider satellite or unlicensed wireless for last mile interconnection to a subscriber," the state said. Kansas said expanding DSL also isn't considered reliable and qualified.

If Delaware has BEAD funds left over after reaching unserved and underserved locations and community anchor institutions, the state said its next priority is line extensions to unserved and underserved residences getting service via fixed wireless or satellite.

Some states don’t directly mention satellite or FW at all in their second volume filings, including Illinois, Vermont and Virginia, though their plans do indicate the door is open to non-fiber alternatives.

All states will be working through setting their extremely high cost thresholds -- above which, the preference for fiber projects doesn't apply, ACA Connects Chief Regulatory Counsel Brian Hurley said. The cable group urged states to set that threshold as high as possible, to maximize fiber availability at eligible locations, he said. But for the most expansive, hardest to serve locations, he said, "there may be a need for alternative technologies."

The BEAD notice of funding opportunity indicated a preference for fiber everywhere, but the agency seems to be coming around to the idea of there being a role for FW in universal service, said Steve Schwerbel, Wireless ISPA Association state advocacy manager. "We really hope states hear that message and use that threshold creatively” in ways that can expand their broadband portfolio, he said. He said as more second volumes come out, FW will likely play a role in many because of insufficient funding to do fiber alone.