Digging Deeper Into the 2021 Infrastructure Bill: Broadband

We are undeniably living in the digital era and with the recent pandemic pushing many companies to transform their businesses into an online presence, it has created a major shift with everyday activities. Schools and offices were closed and shifted to online classes and meetings, and stores and restaurants had to adapt quickly to deliver goods online, suddenly, having faster internet speed became a necessity. And to keep the U.S. economy from slowing down due to the pandemic, the U.S. government passed sweeping bills to reinvest in modernizing the nation’s infrastructure, especially improvements to broadband.  

With the Consolidated Appropriations Act of 2021 and the American Rescue Plan Act (ARP), Congress appropriated tens of billions of dollars to achieve the goals of universal broadband access and affordability. And with the recently signed $1.2 trillion Infrastructure Bill (known as Infrastructure Investment and Jobs Act), $65 billion has been budgeted for broadband improvements. Signifying the robust investment in U.S. infrastructure. 

Defining “Broadband” According to Federal Communications Commission 

First, let’s discuss what “broadband” means. The Federal Communications Commissions (FCC) defines broadband as a high-speed Internet that allows users to access the Internet at a higher speed than the “dial-up” Internet services.  

According to the FCC, there are classifications of “broadband” based on speed and connectivity. To know these classifications is important for us to know how the broadband improvements will affect us and you, as a vendor. 

Here are the brief classifications according to the FCC: 

• Digital subscriber line (DSL)- a faster wireline transmission of data through copper wire telecommunication lines. 
• Cable Modem -uses the existing coaxial cables that cable providers use to provide both broadband and cable TV simultaneously. Speed varies depending on the cable network.  
• Fiber Optics- are transparent glass fibers about the diameter of a human hair, that allows electrical signals carrying data to convert into light and sends the light through the fibers. 
• Wireless– allows a home or business to connect to the internet by using a radio link, connecting the customers location to the providers facility. This includes “mobile wireless” provided by mobile broadband service providers. 
• Satellite – another form of wireless; it is used mostly in remote or sparsely populated areas.

Past Spending on Broadband Infrastructure 

The American Recovery and Reinvestment Act of 2009 dedicated $7.2 billion in stimulus funds to broadband projects, both wireless and land-based. This then led the FCC to present the National Broadband Plan in 2010, which outlined its goals for national investment in broadband infrastructure.  

What’s Inside the 2021 Infrastructure Bill for Broadband? 

On August 10, 2021, the Senate-approved the 2021 Infrastructure Bill which will provide about $1 trillion in infrastructure funding over the next 8 years.ⁱⁱⁱ $65 billion in new spending funds will be allocated for broadband improvements, the largest investment in broadband infrastructure so far.ⁱ The provisions for the funds are aimed more toward lowering the cost of internet per household and improving internet infrastructure in underserved areas.  The funds will be distributed directly to the affected states and will be overseen by National Telecommunications and Information Administration.^iv 

Here are some key provisions that Internet Service Provider (ISP) vendors might be interested in: 

• $42.5 billion – most ofthe funds will go straight to local and state governments to work on improving their internet infrastructure. Depending on the final bill and state legislation, there may be potential bidding opportunities for ISPs to expand the internet network within the region.  
• $2 billion – will go tothe U.S. Department of Agriculture’s ReConnect program that provides loans, grants, or a combination of the two to fund broadband deployments for rural areas. 
• $600 million - to allowstates to issue private activity bonds in rural areas to finance broadband deployment where many of the households do not have access to broadband. 
• $1 billion- will go towards middle-mile networks which is a dedicated line that transfers the signal to and from an access point of the internet. Investment in the middle-mile networks is expected to help defray the costs of last-mile deployment. 
• $2.75 billion- for implementing the Digital Equity Act which provides money to states to develop plans to make sure at-risk, disadvantaged, and vulnerable communities have affordable internet connections. 

(Source: 2021. “Senate Passes Infrastructure Bill with $65 Billion for Broadband”. Telecompetitor.com) 

Other provisions include permanent investment in Emergency Broadband Benefit dedicated to lowering the monthly broadband cost for qualifying households.  

Moving forward 

The economy is inevitably revolving around the internet and the government will aggressively invest in improving the broadband infrastructure. It is good to know that there will be funding provided in the years to come with the Consolidated Appropriations Act of 2021 and the American Rescue Plan Act (ARP).  

Some of the bid opportunities related to broadband infrastructure you may want to keep an eye out for include improvements or additions of poles and wires, expanding towers, and grants on digital literacy. It would be wise to prepare your business for the influx of new opportunities most likely to come that your company can bid on. Start doing some research on local and state regulations regarding bidding on broadband-related opportunities. Gathering all the necessary documentations and certifications is also crucial at this stage. Be on the lookout for news in your business area for other opportunities as well. Being prepared helps your business be in the lead.