Alert

The Broadband Equity, Access, and Deployment (BEAD) Program offers a transformative opportunity for rural Incumbent Local Exchange Carriers (ILECs) and Internet Service Providers (ISPs) looking to expand broadband services. With $42.45 billion available through the Infrastructure Investment and Jobs Act (IIJA), this program aims to connect unserved and underserved areas, providing reliable, high-speed internet access to communities that have been left behind.

Participating in the BEAD Program allows ILECs and ISPs to expand their service footprint and upgrade technology with substantial federal support. For providers in rural areas, it offers a strategic opportunity to:

• Build or upgrade networks
• Secure a competitive market position
• Contribute to closing the digital divide in their communities

By aligning their proposals with state priorities, demonstrating technical and financial readiness, and emphasizing community engagement, providers can position themselves for success in this unprecedented funding opportunity.

Leverage this opportunity successfully with insights into funding priorities, the selection process, and key considerations to positioning your proposal for a positive outcome.

Understanding the Opportunity

The BEAD Program is designed to address the digital divide by prioritizing broadband deployment in areas without reliable internet access. States are responsible for selecting subgrantees—service providers who will build out the infrastructure.

For providers, this represents a chance to secure funding for deploying high-speed, scalable broadband networks. The program places a strong emphasis on fiber-based projects, ensuring that the infrastructure can meet the evolving needs of rural communities.

Key Funding Priorities

Service providers looking to participate in the BEAD program should understand the priorities that states will consider during the subgrantee selection process:

• Unserved and Underserved Areas. Projects targeting areas without access to speeds of at least 25/3 Mbps—unserved—and those below 100/20 Mbps—underserved—are the primary focus. Providers should align their proposals with state-defined priority areas to maximize their chances.
• Fiber Deployment. While other broadband technologies are eligible, the program prioritizes fiber-based solutions due to their scalability and reliability. Providers proposing fiber projects may have a competitive edge.
• Affordability and Low-Cost Plans. States will evaluate proposals based on their commitment to offering affordable broadband options. Service providers must include a low-cost plan for eligible subscribers to meet program requirements and demonstrate efforts to ensure middle-class affordability.

What to Expect in the Subgrantee Selection Process

Applying for BEAD funding through your state involves several key steps:

• Local Coordination and Engagement. States will expect providers to demonstrate meaningful coordination with local communities, including underserved and historically excluded populations. Providers should engage with municipalities, local governments, Tribal governments, and community organizations to ensure their plans reflect local needs.
• Competitive Proposal Submission. States will run a competitive process to select subgrantees for broadband deployment projects. Providers should prepare comprehensive proposals detailing the service areas, technology types, project timelines, and expected outcomes. Emphasizing how your project aligns with state priorities and addresses unserved locations will strengthen your application.
• Demonstrating Financial and Technical Capability. States will assess the providers’ financial stability and technical expertise to ensure project feasibility. Applicants should be prepared to demonstrate their ability to meet project timelines, adhere to BEAD program standards, and maintain service quality over the long term.
• Labor Standards and Workforce Development. The BEAD program emphasizes the creation of good-paying jobs and a diverse workforce. Providers must describe their approach to labor standards, including compliance with federal employment laws, safety training, and workforce development programs. Proposals that include partnerships with training organizations or initiatives to recruit underrepresented groups may be viewed favorably.

Preparing for Success: Key Considerations

Position your application for success with these key considerations:

• Understand State-Specific Requirements. Each state has flexibility in setting additional priorities and criteria for selecting subgrantees. Providers should thoroughly review their state's BEAD guidelines and coordinate with state broadband offices to align their proposals with local goals.
• Leverage Available Data. States will use the FCC’s Broadband Data followed by a local challenge process to identify eligible areas for deployment. Providers can use this data to target proposals to areas that are likely to be prioritized for funding. States will use this information to produce a final list of Broadband Serviceable Locations that will be eligible BEAD funding.
• Compliance with Buy America Requirements. The Build America, Buy America (BABA) provisions apply to the BEAD program, requiring the use of U.S.-manufactured products and materials for construction. While the National Telecommunications and Information Administration (NTIA) has proposed a limited waiver for certain items, service providers should plan for compliance with these requirements or monitor updates to the waiver process. NTIA has stated they are producing a list of self-certified manufacturers to aid service providers in a compliant acquisition process.
• Cybersecurity Requirements. The BEAD program emphasizes the importance of securing broadband networks against cyber threats to protect user data and ensure network reliability. Service providers are required to incorporate robust cybersecurity measures in their project proposals. This includes adhering to best practices in network security, protecting against unauthorized access, and implementing safeguards against potential vulnerabilities. Providers should be prepared to demonstrate how they’ll maintain the integrity and security of the network throughout the deployment and operational phases, aligning with federal and state cybersecurity standards.
• Plan for Reporting and Accountability. Providers must comply with reporting requirements throughout the project’s lifecycle, including detailed updates on deployment progress, workforce utilization, and adherence to affordability commitments. Building robust tracking and reporting processes will be crucial for ongoing compliance.
• Matching Funds Requirement. Most BEAD-funded projects require a minimum match of 25% from the service provider, which can be in the form of cash or in-kind contributions. These matching funds can’t generally come from other federal sources but may include contributions from state, local, or private sources. In certain cases, such as projects in high-cost areas, this match requirement may be waived or reduced. Providers should plan to demonstrate their ability to meet the matching requirements when preparing their proposals, as this can be a crucial factor in the state's evaluation of their project’s feasibility and readiness.

We’re Here to Help

To learn more about the BEAD program and how it can benefit your organization, contact your Moss Adams professional.

Additional Resources

• Communications and Media Practice
• Telecommunications Consulting Services