AT&T likely to seek BEAD subsidies for fixed wireless serving “extremely high cost” locations

WASHINGTON, July 26, 2023 – AT&T is set to be competitive in the $42.5 billion Broadband Equity Access and Deployment subgrant process, said CEO John Stankey during the company’s second-quarter earnings call Wednesday, adding fixed-wireless technology will be key to connecting hard-to-reach areas using the subsidies.

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Stankey estimated that fixed-wireless services will be in demand following the allocation of BEAD funds despite the program’s preference for fiber connection, saying that fixed-wireless is the only way to connect every address in hard-to-reach geographies. He expects that AT&T’s fixed-wireless offerings will be a competitive offer in broadband builds for decades to come.

https://broadbandbreakfast.com/2023/07/att-expects-fixed-wireless-itself-to-be-competitive-in-bead-applications/

AT&T appears to be targeting fixed wireless access (FWA) to what are defined in the NTIA’s BEAD program guidance as “extremely high cost” locations. Those are addresses where deploying fiber would exceed a subsidy amount threshold “above which (a state) may decline to select a proposal if use of an alternative technology meeting the BEAD Program’s technical requirements would be less expensive.” (Given materials and more recently labor pool constraints, those costs are likely to be considerably higher than they would have otherwise been with a more timely and orderly migration from copper to fiber.)

Those technical requirements define “reliable” service by throughput (at least 100/20Mbps with latency less than or equal to 100 milliseconds) as well as delivery infrastructure (fiber, hybrid fiber-coaxial technology; digital subscriber line (DSL) technology or terrestrial fixed wireless technology utilizing entirely licensed spectrum or using a hybrid of licensed and unlicensed spectrum).

For extremely high cost locations, BEAD program guidance allows states to choose fiber alternatives involving a less costly technology for that location “even if that technology does not meet the definition of Reliable Broadband Service but otherwise satisfies the Program’s technical requirements.” (Emphasis in original)

That gives those proposing FWA-based BEAD deployments an out. However, as Doug Dawson writes at his POTS and PANS blog, the quality of fixed wireless service varies considerably based on the distance from the radio transmitting it and the amount of mobile wireless traffic. In addition, the challenging topography likely to exist in extremely high cost locations as well as tall trees pose propagation challenges to line of sight FWA signals.

Stankey acknowledges these limitations as he was quoted in this Light Reading analysis:

"It's going to be key in certain parts of our consumer segment as we work through the next phase of our cost-reduction efforts," Stankey said. "It is [also] a means for us to begin finding a good catch to shut down other infrastructure and still serve customers." He added that one big caveat is ensuring that there's ample wireless capacity for Internet Air to deliver the kinds of speeds that customers require.

As for shutting down “other infrastructure,” Stankey is apparently referring to its legacy copper outside plant built for voice telephone service. AT&T is petitioning state telecom regulators to relieve it of Title II Carrier of Last Resort requirements in high cost areas to get out from under the high cost of maintaining this deteriorating, decades old delivery infrastructure. They mandate telephone companies provide landline voice service over the legacy copper to all customers requesting it.