Federal Broadband Program’s Costly Fiber Bias Delays Access; ITIF Proposes Tech-Neutral Strategy for BEAD
WASHINGTON—The federal government’s flagship program to expand high-speed Internet access in unserved parts of the country is off track because it is too strongly biased toward laying fiber-optic cable even though newer technologies like low-Earth orbit (LEO) satellites and fixed-wireless access (FWA) can provide comparable connectivity at a fraction of the expense, according to a new report from the Information Technology and Innovation Foundation (ITIF).
ITIF proposes reforming the $42 billion Broadband Equity, Access, and Deployment (BEAD) program by taking a technology-neutral approach to broadband deployment, which would save money that could be better spent on other causes of America’s lingering digital divide.
“BEAD’s bias toward the most expensive broadband technology is draining resources and delaying broadband access in the very communities it’s meant to help,” said Joe Kane, ITIF’s Director of Broadband and Spectrum Policy. “LEO satellites are now able to offer speed and reliability that can compete with fiber, especially in rural areas. It’s time for policymakers to embrace smarter, technology-neutral strategies.”
The report highlights several key points:
- LEO satellites offer cost-effective broadband for rural and hard-to-reach areas, where fiber deployment can be prohibitively expensive and time-consuming.
- Technological advancements have made LEO satellite broadband a viable alternative to traditional infrastructure.
- Misallocated resources on overly expensive deployment projects leave the larger barrier to broadband adoption—affordability—underfunded.
Policy Recommendations:
- Adopt a technology-neutral deployment strategy: Allow technologies like LEO satellites and FWA to compete on equal footing with fiber-optic projects to maximize cost efficiency.
- Reallocate funding priorities: Use savings from deployment to address affordability challenges, such as vouchers for low-income households.
- Expand focus to all aspects of the digital divide: Ensure funding addresses affordability, digital skills training, and broadband adoption alongside deployment.
“By clinging to prohibitively expensive fiber, BEAD is off track in its goal of closing the digital divide,” said co-author Ellis Scherer, a research assistant at ITIF. “A flexible, tech-inclusive approach will connect more Americans faster, and it will allow policymakers to address persistent affordability issues without adding any additional spending. A win-win for everyone.”
Said Kane: “The message is clear: it’s time to stop wasting billions on costly, biased broadband strategies. Reforming BEAD to embrace cost-effective technologies like LEO satellites and FWA will connect more Americans faster, save taxpayer dollars, and free up resources to tackle real barriers like affordability and adoption. Smarter broadband policy isn’t just possible—it’s essential.”
Contact: Austin Slater, [email protected]
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The Information Technology and Innovation Foundation (ITIF) is an independent, nonprofit, nonpartisan research and educational institute focusing on the intersection of technological innovation and public policy. Recognized by its peers in the think tank community as the global center of excellence for science and technology policy, ITIF’s mission is to formulate and promote policy solutions that accelerate innovation and boost productivity to spur growth, opportunity, and progress.