Panelists Worry About Costs of Shifting Away From Fiber and Digital Equity Efforts
Shifting federal priorities away from fiber toward newer technologies like low earth orbit (LEO) satellites is creating uncertainty for states' broadband plans and funding, experts and local officials warned Thursday at the National Association of Telecom Officers and Advisors' (NATOA) annual conference (see 2508200037). Panelists said the move has rattled the industry, left local governments scrambling for resources, and raised questions about how states will balance cost, access and long-term reliability without the possibility of new federal support.
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One of the biggest challenges facing the broadband industry and local governments is the "tremendous shift from fiber being the preferred technology of choice to anything that is cutting-edge and deeply cool," said Lori Adams, Nokia's vice president of broadband policy and funding strategy. She noted that Elon Musk's relationship with President Donald Trump "has created some shock waves in our industry with what's happened with BEAD" and the push toward LEO satellites.
Christine Mailloux, a broadband policy specialist at Michael Baker International, agreed, also pointing to NTIA's decision to abandon the fiber-first priority that it had for BEAD under the previous administration (see 2508190045).
That shift "has really thrown a loop in a lot of the state broadband plans because that was not the original plan," Adams said. In Mailloux's view, states are "waiting to see how flexible NTIA is going to be" with those that favor one technology due to costs, acknowledging that there's a role for non-fiber technologies in some areas.
Adams noted that at least three states -- Virginia, Louisiana and West Virginia -- each awarded more than 80% of their BEAD funding to fiber. "The states are doing the hard work and heavy lifting" to ensure funding goes to areas where it's needed most.
Local governments are also facing pressure from the lack of federal funding across the board for broadband, said Ou Nopmongcol, acting broadband officer for the city of San Jose. Despite the FCC's affordable connectivity program having ended nearly 18 months ago, "we're still feeling that today." The "big one" is the freeze on Digital Equity Act grant funding, she said. "It's a setback for us" because people "who were once ahead could now fall behind."
Adams suggested that local governments start looking to their states rather than the federal government for funding opportunities. "The states will be far more responsive," and the "era of government funding for broadband programs" is "coming to a close quickly." Mailloux also encouraged local governments to get involved with their state broadband offices and federal partners. Local governments "have a role to play in shaping state and federal broadband policy" because "it will affect your community," she said.
Some state and local broadband officials echoed those concerns during a roundtable discussion with outgoing NATOA President Rick Assmus and Boston Neighborhood Network General Manager Glenn Williams. Several attendees also emphasized the need for trust and community engagement, citing examples from Baltimore and Eugene, Oregon, aimed at getting rural or veteran residents online.
Most also agreed that broadband services should be considered essential to boost digital equity and inclusion efforts absent new federal funding. One attendee suggested looking at broadband when a local government considers the "core services" its community needs, comparing it to water and other utilities.
Brian Donoghue, Boston's digital equity officer, cited a study his city conducted on broadband costs and adoption rates in public housing. There's still a gap "even if you are able to build fiber in those locations," he said, because public housing residents are charged a certain percentage of their income for monthly rent and utilities. If broadband gets added to the list of utilities, it could mean a resident pays 10% of their monthly rent based on that one service alone, he said, adding that the question then becomes what a free public internet option could look like in those areas.