How far might broadband funding go? Estimating state-level deployment programs

In a previous post, I estimated how far the Broadband Equity, Access and Deployment (BEAD) Program broadband funding might go in closing the digital divide. With this updated model, the national story is the same: after you factor in existing funding programs and private capital matches, there is plenty of money in BEAD to reach all of the unserved and reach far into the underserved. Maybe more interesting are the state-level stories. Due to dramatic differences in cost per location to bring new broadband, some states like Kansas will only be able to reach 10 percent of their un- and underserved, while many states with lower costs will be able to reach all their unserved and all their underserved. While the imbalance between expensive states and less expensive states is hard to solve — the allocation formula is written into the law — there are actions we can take on managing costs. A “back-end” process where the National Telecommunications and Information Administration (NTIA) evaluates and rejects grants based on costs would be unpopular and probably unworkable. However, a process on the front-end might work. I’d suggest a transparent cost model available to all states and potential grantees as a yardstick against which to measure proposals. In my view, a public cost model could make a significant impact in making this once-in-a-generation funding go as far as possible—possibly bringing broadband all of the unserved, and a lot more.