OBD outlines their plans, which haven’t changed. MTA and MN Cable discuss their concerns and hopes for broadband funding in MN. MTA outlines the reason their members are not interested in applying for BEAD awards.
Office of Broadband Development Presentation:
Questions:
- There’s anxiety about federal funding. DO you have a plan considering the current situation?
There is confusion. We await guidance from our federal partners. Until then, we stay the course. - What about regulations for installers?
Our role is to carry out laws. We talk to everyone on clarity. We try our best to provide education and resources. With federal dollars, we know there are some concerns with BEAD rules (low-cost options and installer regulations). We carry out rules of NTIA. - So in the last year, we have connected 19,000 in the last year? And 40,000 in the year before? Are they really connected?
In it a combination or private, federal and state funding that got these folks connected.
I want to know how many people have been connected. - BEAD funding is $650M – how are houses counted eligible?
That’s according to Feds. We and they knew the maps were not correct and that’s what we had a challenge process. - 89,000 locations are eligible to get BEAD funding. What’s the next step? What do those people need to do?
We will hold subgrantee application rounds – three of them where providers can submit bids. In final round we will have to look at alternative broadband providers if no fiber bids come in. NTIA has to approve any waivers. The rule is that everyone needs to have a provider. - So we have 4 years to dole out funds?
We have to show that everyone gets connected. - What about the reverse auction? Is it working?
It has been effective. We have had good applications. It was over-subscribed. The Line Extension builds off success of other state grants.
MN Telecom Alliance Presentation:
Why are MTA members not interested in applying for BEAD?
- NTIA rules require that NTIA has a lien on any facilities put into the ground – members banks will have a problem with that.
- Requirement of open access does not interest these providers.
- Requirement environmental/archeologic permit approval before grants are awarded
- Required self-funding low-cost program will not work for smaller providers
- Prevailing wage can be a problem because the telecommunications jobs have not been well classified, which can lead to overpayment for some jobs.
- New data-reporting requirements are a hinderance
- New certification programs are a hinderance – also leads to extra training to develop and offer
Solution?
We need to incentivize rural providers to build broadband. We need to go after the bad actors – through office of pipeline safety and others.
MN Cable Presentation:
Hindrances
- Industry taxation could hinder growth.
- Required permitting is slow and uncertain.
- Roll out has been slow and leads to uncertainty but MN Cables are interested in applying.
Questions:
- On challenges and regulations passed last year. How will that impact you and broadband deployment?
Significant challenges. My member do not plan to patriciate in BEAD. That leaves only US ReConnect.
We are worried across the board with restrictions fitting in training, seasonal building restrictions and deadlines. - We are starting with safety first. We want to get broadband to everyone. We will keep talking.
We know there are bad actors and we have to go get them. - Projects that are midway done – if they go past June 30 – they need to adhere to these new regulations?
Yes – and we can’t meet deadlines and complete training. Especially with our shorter construction season.