And if the timetable is one aspect still in question, broadband industry officials also want greater clarity around operations and maintenance funding for the broadband expansion. The act only provides funding for construction, not ongoing operation and maintenance.
The federal Universal Service Fund currently provides $10 billion a year to subsidize broadband operation and maintenance costs. But with the number of networks expected to quadruple under this round of broadband expansion, the Universal Service Fund will need to also increase. Phone customers pay into the fund as part of their monthly phone bills, but with rising costs and fewer landline users, the funding mechanism is broken and needs to be retooled, Bennet said. Big tech companies, which reap the benefits of widespread consumer broadband access, may be asked to contribute to the fund. Bennet expects the FCC to take this up once the permanent Chair is named and there are five commissioners in place.
Winners and Opportunities in Wireless Broadband Expansion
Bennet said the large, national broadband providers may receive some funding, “But I see this opportunity being more for the infrastructure players, like the tower builders. The rural carriers and coops that have built infrastructure have the opportunity to expand their footprint. But I think we’re going to see a lot of new players, because there’s a lot of rural America where telephone and broadband cooperatives don’t exist. It’s going to take a lot of creativity because there’s a reason nobody has gone there – it’s not lucrative.”
She said small wireless internet service providers (WISPs) have a real opportunity to grow under the Infrastructure Investment and Jobs Act. These small businesses already are working to bridge the digital divide by providing service to underserved and unserved areas, and the funding provided by the act will aid in that mission.
However, Bennet said current market challenges—including some supply shortages and a tight market for construction labor—could be issues, particularly in the short term.
Companies interested in accessing the broadband expansion funds should pay close attention to coverage maps to ensure that the areas they seek to cover are classified as underserved or unserved.
“You’ll get cut out of the process if you don’t challenge mapping inaccuracies,” she said.
But while the process won’t be easy or quick, Bennet said the prospects for broadband expansion to hard-to-serve areas holds great promise. Economically challenged areas will have new opportunities to attract business with the deployment of high-speed broadband. Many companies and workers may be attracted to rural areas due to the lower costs of living, once they are able to be fully connected to high-speed broadband.
“Everything is going to be connected somehow, in some way, to the internet,” Bennet said. “It just goes to show you that broadband is the lifeblood of the new economy. We saw that during the pandemic. We’ve just got to get everyone connected to it.”