Telecom experts discuss importance of accurate maps and prioritizing unserved areas in infrastructure funding

It’s important to focus on unserved areas when expanding broadband infrastructure, and accurate mapping is an essential element of that goal. Those were the two overarching thoughts during a recent panel discussion hosted by the American Enterprise Institute (AEI).

The web event, which was hosted by former Federal Communications Commission (FCC) Chairman Ajit Pai and now a nonresident fellow at AEI, began with an interview with Senator Deb Fischer (R-Neb.).  Sen. Fischer’s thoughts were critical considering she has been a vocal advocate for rural broadband expansion.

The Infrastructure Investment and Jobs Act (IIJA), passed by Congress last year, includes more than $42 billion for the buildout of broadband infrastructure. Pai said that the funding gives the U.S. an “unprecedented chance to bridge the digital divide.” In all, $65 billion will be spend on digital programs, including cybersecurity.

In a nod to taxpayers and ensuring the funds are spent wisely, Pai noted that, “But to make the most of that opportunity, [stakeholders] will have to think carefully about how to structure the broadband subsidy program.”

Fischer said she was a big supporter of IIJA and pushed for increased oversight and transparency in the broadband program. She said federal agencies such as the FCC, U.S. Department of Agriculture, and National Telecommunications and Information Administration (NTIA) (each of which has a hand in various broadband programs), must work cooperatively to see that the effort is successful. One component essential for oversight is accurate mapping.

“If we’re really going to have an impactful distribution of these funds…I think you have to be really wise when it comes to spending this money and make sure that it’s not wasted,” Fischer said. “And I think an important part of that is the deployment location map amendment that we were able to include in the bill.”

Fischer, formerly a Nebraska state senator, said that while federal agencies will help guide the funds and provide oversight, it’s important that local stakeholders have more say in how the money is distributed.

“I’m a supporter of decisions being made at the state and local level,” she said. “I think policymakers at the state level have a better understanding of their own states. They know where investments are best made. They can have oversight and be able to keep costs down.”

In a panel discussion following the discussion with Fischer, Evan Feinman, deputy associate administrator at the Broadband Equity, Access and Deployment (BEAD) office at NTIA, said his agency is now creating requirements for states. That will likely include mandating that states create a state broadband office to work with stakeholders, including residents, telecom providers and local government officials.

“They’re going to create a program that is tailored for their state’s specific challenges, opportunities and existing digital infrastructure,” Feinman said.

He added that it’s up to states and telecom providers to work with the FCC to make the mapping as accurate as possible.

“We have the resources necessary to get every American online, but only just,” he said. “If we are overspending and oversubsidizing in areas that don’t require it, we will not have enough resources to get to the unserved and underserved elsewhere.”

Feinman suggested that states use programs such as reverse auctions so that lower-bidding providers get contracts to build the infrastructure, a popular method used by the FCC to cut costs.

Sarah Oh Lam, senior fellow at the Technology Policy Institute, said that states must decide on speed thresholds for broadband funding, noting that the statute mentions 100 Megabits per second download speeds and 20 Mbps upload speeds as a guideline. But she cautioned about “unintended consequences” if higher thresholds are set, which means more areas would qualify for the funding. That could create more competition and leave some unserved or underserved areas still behind the digital divide.

As more discussions take place about these taxpayer-funded broadband expenditures, the AEI panel is an important reminder that there are many aspects to consider when using taxpayer resources to close the digital divide.  

Johnny Kampis is director of telecom policy for the Taxpayers Protection Alliance.