Foundation study recommends capping BEAD support at $1,200 per location; more satellite and "alternative technologies"

The Information Technology & Innovation Foundation analysts Ellis Scherer and Joe Kane argue that the Trump administration should reject state BEAD (Broadband Equity, Access, and Deployment) plans that exceed $1,200 per location in costs. They contend that expensive fiber projects are unnecessary when more cost-effective alternatives like Starlink and fixed wireless are available.

The proposal comes after NTIA (National Telecommunications and Information Administration) approved Nevada's BEAD plan, which granted $22 million to Beehive Broadband at an average cost of $77,013 per location. The analysts suggest that a $1,200 cap would cover a high-end Starlink terminal and provide a $25 monthly service discount for two years.

Scherer and Kane recommend using the saved funds to support programs like the Affordable Connectivity Program (ACP). They argue that it's not too late to implement this cap, as NTIA has only approved three state BEAD plans so far (Louisiana, Delaware, and Nevada).

While some states prefer fiber for its superior speeds, the analysts argue that gigabit speeds are unnecessary for most broadband uses. They emphasize that low Earth orbit satellites are often the most economical solution for providing high-speed broadband to rural areas, even when factoring in monthly service charges.

The proposal suggests establishing an Extremely High Cost per Location Threshold (EHCPLT) cap of $1,200 for remaining states and territories. The analysts maintain that states can still modify their deployment plans to set more realistic cost thresholds, making broadband expansion more affordable while meeting user needs.

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