Some Republicans in Congress are not happy with the way the Biden Administration plans to hand out its tens of billions of dollars in broadband infrastructure subsidies, pointing to conditions that suggest rate regulation, a thumb on the scale for fiber and "nontraditional" broadband providers like municipal broadband, and much more.
The Biden Administration signaled early on that affordability and competition would be factored into their definition of broadband availability for its broadband subsidy program blitz, including the Broadband Equity, Access and Deployment (BEAD) program ($42.5 billion), the Enabling Middle Mile Broadband Infrastructure Program ($1 billion), and the State Digital Equity Act programs ($1.5 billion).
In a letter to Commerce Secretary Gina Raimondo--Commerce's National Telecommunications & Information Administration arm is overseeing most of that funding--a group of Republican Senators led by Susan Collins of Maine said NTIA's notice of funding opportunity (NOFO), which outlines how the money is to be handed out and under what conditions, "undermines" the plain language or clear congressional intent of the legislation that created the broadband subsidy programs.
Also: White House Rolls Out Internet for All
The legislators said that while the law explicitly prohibits government action that would regulate rates," the NOFO appears to open that door by suggesting price points to states--which are getting most of the money--which the Republicans see as pressure to set rates. Then there is the NOFO's condition of a "middle class affordability plan."
"Congress did not invite States to adopt rate regulations that the statute plainly prohibits, nor can NTIA go beyond the statutory affordability initiatives in the law," they told Raimondo.
The senators said the funding should be technology neutral, not steered toward fiber.
The Republicans also take issue with the NOFO's priority for municipal broadband, cooperatives and nonprofits and its requirement that states have to defend awards to traditional broadband providers if a non-traditional provider has also bid to serve the same area. The NOFO even "strongly encourages" the states to waive state laws limiting municipal broadband, they said, despite the law's prohibition on that.
But wait, there's more.
Among their other issues are 1) that not participating in the Digital Equity Program would appear to disadvantage a bidder; 2) that states are encouraged to use directly employed workforce rather than contractors, which Republicans said could delay buildouts; 3) that it has interconnection requirements that go beyond the statue and will discourage deployments; 4) that it has what the Republicans call a complex review process that "is likely to mire State broadband offices in excessive bureaucracy and delay connecting unserved and underserved Americans as quickly as possible."
Among the dozen others signing on to the letter were Sens. Roger Wicker of Mississippi, ranking member of the Senate Commerce Committee; Charles Grassley of Iowa; and Mitt Romney of Utah. ■
