MinnPost reports on MTA’s reaction to BEAD funding…

While Minnesota will be receiving $652 million from the federal Broadband Equity, Access and Deployment (BEAD) program to help fund broadband access projects across the state, many internet service providers might not opt-in over frustrations with the program.

“My members are telling me they’re not going to participate,” said Brent Christensen, president and CEO of Minnesota Telecom Alliance. “The way that BEAD is structured. I don’t know how anybody’s going to participate.”

His group represents 70 companies that provide advanced telecommunications services, like wireless video and high-speed internet, to Minnesota’s rural and metropolitan regions. Members vary in size, with the largest, Century Link, serving metro customers and the smallest serving a little over 200 customers.

MN Cable Communications Association feels the same…

The industry is frustrated with the federal body because of these requirements and the amount of time it’s taken to set up a program. Melissa Wolf, executive director of the Minnesota Cable Communications Association, said Minnesota already had programs that worked well with internet service providers and that if BEAD had more closely modeled those programs, projects would have already been completed.

Here are some of the issues:

• One of the requirements is that any property or equipment improved with the funds will have to be held in trust by the NTIA, meaning the providers record liens on what they install. Christensen said many MTA members can’t do that.
• The BEAD program also requires providers to provide low-cost services to low-income households.
• Wolf also said BEAD funds might not be enough to outweigh the risk of providers having to offer the low-cost services of $46.98 a month, though grantees may request a modification of up to $62.28.

Wolf and Christensen make predictions on possible participation…

Wolf thinks the members of the Minnesota Cable Communications Association will likely consider participating in the program, though she thinks the projects will be smaller scale than the ones the state has previously helped fund. Her membership consists of larger companies, while Christensen has smaller providers whom he doesn’t think will take interest in this program.

Christensen said he thinks internet providers may apply for the program if the locations that are eligible are located close to current service areas. But they won’t know what those locations are until the state finishes its so-called “challenge” process, which was put in place this summer to correct maps that were showing several locations as ineligible for the funds.