California BEAD Five Year Action Plan: Substantially greater funding needed for universal FTTP.

California is unable to assure the timely construction of universal fiber to the premises (FTTP) infrastructure – estimated to cost $9.78 billion including infrastructure hardening in areas with high wildfire risk – because less than half that amount is available as federal and state subsidy funding.

That’s according to the state’s draft Five Year Action Plan required by the National Telecommunications and Information Administration’s (NTIA) Broadband Equity, Access and Deployment (BEAD) program. BEAD requires states to file “a comprehensive, high-level plan for providing reliable, affordable, high-speed internet service throughout the (state) including the estimated timeline and cost for universal service.” Additionally, the plans must include an estimated timeline and cost for universal service and planned utilization of federal, state, and local funding sources to pay for it.

“This estimate assumes no re-use of existing infrastructure (e.g., poles, conduit, manholes, etc.) in the total investment,” the draft plan prepared by the California Public Utilities Commission states. “The timeline for universal service with fiber-to-the-premises would extend beyond the BEAD funding timeline and require additional federal and state funding.”

The draft plan cautions given the Golden State’s large size, it may be challenging for BEAD-funded subgrantees to deploy infrastructure within the required five-year timeline. Additionally, “the CPUC recognizes that developing sufficient capacity may be a challenge for some potential subgrantees, including small ISPs and localities and other entities” as well as permitting challenges.

Oregon’s draft Five Year Action Plan similarly concluded that state’s BEAD funding allocation would not sufficiently subsidize universal FTTP. Like Oregon, California’s draft plan calls for the possible use of alternatives funded by the state’s $1.86 billion BEAD allocation. Those deemed “reliable” by the NTIA include hybrid fiber-coaxial cable, digital subscriber line (DSL) technology and terrestrial fixed wireless utilizing entirely licensed spectrum or using a hybrid of licensed and unlicensed spectrum.

Vermont draft BEAD Five Year Action Plan: FTTP to all on grid addresses by year end 2028.

The state of Vermont expects fiber to the premises (FTTP) advanced telecommunications infrastructure will reach every location connected to the electrical grid by the end of 2028. That’s according to a draft Five Year Action Plan setting a timeline and budget to achieve universal service in the state as required by the National Telecommunications and Information Administration’s (NTIA) Broadband Equity, Access and Deployment (BEAD) program.

“Vermont shares NTIA’s strong preference for deploying end-to-end fiber connectivity to all unserved and underserved locations, as well as all eligible CAIs. Aligned with the VCBB’s statutory mandate, this approach prioritizes quality, scalability, and reliability,” the draft plan states.

The draft plan anticipates all remote off grid locations will be reached by other technologies deemed “reliable” by the NTIA: hybrid fiber-coaxial cable, digital subscriber line (DSL) technology and terrestrial fixed wireless utilizing entirely licensed spectrum or using a hybrid of licensed and unlicensed spectrum.

The draft plan estimates the cost of extending fiber to all of Vermont’s approximately 50,000 locations not served by fiber excluding locations where the U.S. Federal Communications Commission has allocated grants to subsidize infrastructure under its Rural Digital Opportunity Fund (RDOF) at $500-$700 million. The plan anticipates subsidies under BEAD, the American Rescue Plan Act’s Capital Projects Fund, subgrantee matches, and other funding sources will cover this cost.

The estimate is based on road miles. The upper estimate accounts for the risk of project cost overruns due to inflation, supply chain challenges, and labor shortages. The draft plan notes additional, more extensive analysis will be required to develop a more precise cost estimate. The state intends to refine the estimate in its initial proposal to the NTIA for BEAD infrastructure subsidy funding.

The plan notes the Vermont Community Broadband Board (VCBB) will continue its support of efforts by Communications Union Districts (CUDs) organized under state law to submit and gain approval for applications for grants to extend their end-to-end fiber networks. CUDs are two or more towns that join as a municipality to jointly build telecommunications infrastructure.

Oregon draft BEAD Five Year Action Plan: Federal allocation insufficient to attain universal FTTP

The Oregon Broadband Office has posted its draft Five Year Action Plan required by the National Telecommunications and Information Administration’s (NTIA) Broadband Equity, Access and Deployment (BEAD) program authorized by the Infrastructure Investment and Jobs Act (IIJA). The program mandates states develop the plan this year including “a comprehensive, high-level plan for providing reliable, affordable, high-speed internet service throughout the (state) including the estimated timeline and cost for universal service.” Additionally, the plans must include an estimated timeline and cost for universal service and planned utilization of federal, state, and local funding sources to pay for it.

The draft plan indicates Oregon would need nearly five times its $689 million BEAD allocation to build universal fiber infrastructure at an estimated cost of $3.3 billion deployed over a five year period.

“Long-term planning is likely to require additional federal and state funding beyond the BEAD funding because the cost estimate for universal service under a universal fiber-to-the-premises model…exceeds NTIA’s BEAD allocation,” the draft plan states. “In the interim, the state will plan to use its BEAD allocation of $688,914,932.17 in the most cost-effective manner by using a mix of technologies.” The draft plan’s estimate for universal fiber to the premises (FTTP) infrastructure includes a total of 26,347 miles of new fiber construction reaching 158,152 locations. That is estimated to be 71.9 percent underground infrastructure and 28.1 percent aerial using existing poles.

While BEAD program guidance prioritizes FTTP given its reliability and technical flexibility to expand to accommodate future demand, the guidance allows use of non FTTP infrastructure in areas states designate as extremely high cost that exceed a state designated threshold for subsidy dollars to connect eligible locations. Those include hybrid fiber-coaxial cable, digital subscriber line (DSL) technology and terrestrial fixed wireless utilizing entirely licensed spectrum or using a hybrid of licensed and unlicensed spectrum. According to the draft plan, Oregon intends to award its federal BEAD allocation “to potential subrecipient partners to achieve universal service.” The draft plan states Oregon “will look to maximize this allocated funding through a mix of technologies to serve as many Oregonians as possible.”