Understanding BEAD and How to Take Advantage of the Changing Industry 

The Broadband Equity, Access, and Deployment (BEAD) program is set to revolutionize broadband access in underserved areas across the United States. With a total allocation of $42.45 billion, BEAD aims to bridge the digital divide by funding high-speed internet projects in unserved and underserved communities, mainly rural regions where fiber infrastructure is lacking. As broadband providers and EMS manufacturers navigate this changing industry, it’s crucial to understand the implications of BEAD and how it can be leveraged to your advantage. 

What Is BEAD? 

BEAD is the largest federal broadband investment initiative in U.S. history. The goal of the program is to guarantee that all Americans, wherever they may be, have access to dependable, reasonably priced high-speed internet. Expanding broadband networks to underserved areas and advancing digital equity are the main goals of BEAD, which helps to improve digital literacy and offers low-income households affordable broadband services.

How BEAD Affects Broadband Providers 

For broadband providers, BEAD comes with both challenges and opportunities. The large amount of funding available through this program creates great potential for expanding rural networks, but it also comes with compliance and competitive pressures. 

Increased Competition for Funding  

Although billions of dollars have been allotted by the federal government, providers still have to compete for grants at the state level. BEAD will allocate funds to states, which will then use those allocations in accordance with their own broadband strategies, including plans for mapping, construction schedules, and prioritizing unserved areas. In addition to addressing the unique needs of underserved communities, providers must make sure their proposals are in line with state plans. 

Shift Toward Fiber  

BEAD prioritizes fiber-to-the-home (FTTH) deployments due to fiber’s long-term scalability and reliability. The need for sophisticated electronic manufacturing systems that can support fiber networks, such as routers, switches, and optical networking equipment, may rise as a result of this change for EMS manufacturers.  

Compliance with Affordability and Equity Mandates 

Providers participating in BEAD must offer affordable options, including low-cost internet packages to low-income households. This is where digital equity comes into play. Affordability and varying pricing models must be a key element of all projects.

What Broadband Providers Can Do to Plan and Take Advantage 

Here is what broadband providers can do to position themselves for success: 

 Identify Organizational Goals and Priorities 

 For all broadband providers, regardless of their business model, the obvious first step in planning is to identify goals and priorities. Having clear goals helps providers align strategic initiatives and make better decisions.  

 Discover Opportunities 

 After identifying goals, the next stage is to map current and impending threats and opportunities. All providers must be aware of the BEAD funding flow in order to plan where to invest themselves and where their rivals may make investments. It’s critical for providers to know what, where, and how quickly their rivals are deploying.  

 Use Robust Data Analytics to Evaluate Feasibility 

 It is crucial for a provider to collect and use as much data as possible to assess each project’s viability after identifying market opportunities. This can be done using comprehensive research and analytic software. 

 Plan Beyond Construction 

 Planning beyond the construction phase can and should be done using the same data analytics that help providers decide which projects to take on. Today’s robust data software solutions come with dashboards that can be customized so all departments can access data for projects in real time. 

 Engage Early with State and Local Stakeholders 

 Since BEAD funding will be distributed at the state level, it is crucial for providers to actively participate in state broadband planning discussions. By working closely with state officials and local broadband advocacy groups, providers can better understand the priorities and strategies guiding funding decisions.  

 Explore Partnership Opportunities 

 Given the competitive nature of BEAD funding, partnerships between broadband providers, EMS manufacturers, and local governments can strengthen applications. These partnerships can also help distribute the financial and operational burden of large-scale infrastructure projects. 

Prep For the Changing Future 

With billions of dollars in funding available, broadband providers have a unique opportunity to expand their networks, bridge the digital divide, and create lasting impacts in their communities. By planning strategically, engaging with stakeholders, and investing in future-proof infrastructure, providers can take full advantage of the changes BEAD will bring to the industry and position themselves as leaders in the next wave of rural broadband deployment. 

Need help navigating these changes? Contact us and one of our experts would be happy to assist you.