It seems that almost everybody I’ve talked to in the last week is wondering what NTIA is up to when the agency said that non-deployment funds can be used to serve locations missed by the first round of BEAD grants. The common question I’m being asked is where NTIA and State Broadband Offices are going to find more BEAD-eligible locations. It’s a great question.
I can only think of three sources of locations for that were missed by BEAD the first time around. One group of locations are the ones being turned back to State Broadband Offices when BEAD awardees decide not to accept a BEAD grant. The broadband offices have been trying to find other ISPs to take these locations at the original award price. But I already know of several examples where there are no takers – at least at the dollar level of BEAD that was awarded after the Benefit of the Bargain round. Perhaps NTIA will loosen the purse strings a bit to allow for higher awards for some of these locations. I’ve also hear speculation that unclaimed BEAD locations will all go to satellite.
This option is risky for NTIA. The first time an offer is made to a new ISP that is higher than the original award, ISPs everywhere are going to be clamoring for more money. One of the cooperative associations recently made that request. I can foresee lawsuits arising if NTIA allows increases in funding for some locations but not others.
Another potential source of locations comes from each update of the FCC mapping fabric, when new locations are added to the FCC map. Some of these are new construction, and others are corrections of the fabric. I can’t imagine that is a whole lot of places in this category, but there are always going to be some with each new map. What’s not being talked about is that with every release of a new fabric, there are also locations that are being removed from BEAD. NTIA is quietly whittling away at the BEAD grants that have already been awarded, and almost everybody I know with a BEAD grant is seeing some reduction in eligible BEAD locations.
The only other source of new BEAD locations I can think of would be from fixing the many errors introduced in the BEAD map challenge process. The only word I can use to describe the map challenge process is ludicrous. NTIA created a set of rules to challenge the BEAD maps that were impossible to comply with. I know counties, cooperatives, and other ISPs that made numerous claims to the map challenge that were denied. Many of these challenges tried to add legitimate locations that were missing from the fabric.
A much larger number of challenges tried to add locations where an ISP was falsely claiming speed capabilities of 100/20 Mbps or faster that were overstated. A successful speed challenge required a local government to find actual customers of suspect ISPs and get them to take a complicated series of speed tests at defined times and intervals. That whole process was largely unachievable, particularly when the map challenge process was rushed through. In my opinion, the folks who designed the map challenge rules were either completely out of touch with the real world, or else the process was rigged on purpose to hold down the number of BEAD-eligible locations. I’ve seen some credible estimates that there are at least a million locations that were incorrectly thrown off the BEAD map. My own back-of-the-envelope estimate, which is admittedly based only on work in about twenty counties, is that this could be more than two million locations.
I can’t imagine a process where NTIA reopens the map challenge with challenge rules that work. I could see that process dragging out for a year.
There is an easier way to do a map challenge, which would be for NTIA to buy the entire Ookla speed test database of actual speed tests and compare it against ISP speed claims in the fabric. I’ve already written a future blog about how that might work. But I suspect this would lead to lawsuits and chaos as ISPs fight to not get overbuilt with BEAD grant funding.
My gut reaction when I heard this announcement is that won’t amount to a hill of beans. I talked to several people who think this announcement is just another way for the NTIA to put off the announcement of how they will spend the remaining $22 billion in nondeployment funds. NTIA had promised to make that announcement before the end of summer – which is next week. I sure hope this was not that announcement, because I don’t think there is any hidden stash of BEAD-eligible locations that will use more than a tiny amount of the nondeployment funds.


