Understanding BEAD Eligibility, Requirements, and Timelines: A Deeper Dive

A business woman at a desk shaking hands with a BEAD funding applicant

The $42.45 billion Broadband Equity, Access, and Deployment (BEAD) program is by far the largest federal grant program of its kind in U.S. history. Funded by the Bipartisan Infrastructure Law and managed by the National Telecommunications and Information Administration (NTIA), BEAD aims to connect all Americans to reliable broadband. Its impact will be extensive, bringing high-speed internet access to unserved and underserved areas nationwide!

What Are the Eligibility Criteria for BEAD?

Every U.S. state and territory qualifies as an eligible entity under the BEAD program. Now that funding has been allocated, they are responsible for distributing it to eligible sub-grantees, which include cooperatives and non-profits, public/private partnerships, private companies, utilities and public utility districts, and local governments.

To qualify as an unserved location, an area must either lack broadband service entirely or have access speeds below 25 Mbps downstream and 3 Mbps upstream. Underserved locations are defined as having access speeds greater than 25 Mbps downstream and 3 Mbps upstream, but less than 100 Mbps downstream and 20 Mbps upstream.

Funds can be used for several eligible activities. These include research and training, deploying or upgrading internet access in unserved or underserved areas, installing service in multi-unit residences, launching digital equity programs, and more.

Eligible sub-grantees must demonstrate their ability to provide service to all unserved and underserved locations before proposing plans for other approved uses that support the program’s goals. Upon connecting 100 percent of those underserved locations, the NTIA advises that any additional funds should first be used to provide gigabit connections to all Community Anchor Institutions (CAI’s) like libraires and community centers.

Understanding Program Priorities, Requirements, and Timelines

The BEAD program prioritizes projects designed to provide fiber connectivity directly to subscribers. BEAD funds will first target all unserved locations, followed by the underserved, and, lastly, upgrade CAI connections. Some key requirements include providing low-cost subscriptions, addressing middle-class affordability, adhering to specific labor and wage requirements, and abiding by various post-award reporting and compliance obligations.

The BEAD process is well underway—here’s a quick snapshot of key milestones:

Fund Allocation: Eligible entities received their allocation of BEAD funds on June 26, 2023, based on the number of un(der)served locations within their territories (according to FCC BDC data). Allocations are detailed here.

Initial Proposals: Eligible entities were required to submit their Initial Proposal Volumes 1 and 2 by December 27, 2023.

NTIA Approvals: NTIA must approve every eligible entity’s Initial Proposal Volumes 1 and 2, and the Challenge Phase results prior to commencing the Application Phase. They must also approve the results of the Application Phase prior to distributing the funds.

Challenge Phase: Using the details outline in Volume 1, eligible entities will run a Challenge Phase to confirm the eligibility of all locations within their borders. Many states and territories have completed this phase, but some are still underway.

Pre-Qualification Phase: Prior to the Application Phase, each eligible entity will run a Pre-Qualification Phase to confirm the eligibility of all sub-grantees.

Application Phase: Eligible sub-grantees will submit their project proposals to the eligible entity to be considered for funding.

Final Proposals: Once NTIA approves Volume 2, states have 365 days to submit a Final Proposal, The Final Proposal will include a list of all the awarded projects. This will vary by state, but this dashboard provides the current status.

How To Engage With BEAD Now

Engagement strategies differ by state. Participating in your local challenge process—either offensively or defensively—is a good place to start:

An offensive approach supports new buildouts by allowing BSPs to challenge locations competitors have deemed to be served already. (Many providers overstate their capabilities.)

A defensive approach protects your service area by ensuring your served locations aren’t considered eligible for BEAD funding, preventing competitors from overbuilding your network.

Some states, which have completed their challenge process, are expected to open their pre-application portal. This is a critical step for interested sub-grantees to prequalify for the upcoming application period. For more details, this NTIA reference provides links to every state and territory broadband office, where you can find more details on their BEAD initiatives.

BEAD is a funding program worth pursuing. Familiarize yourself with your state’s proposals, understand all the program requirements, and start preparing to meet them now—because the application phase will move quickly. Be proactive and contact your local broadband office. You will be surprised how much they need your involvement to reach their ultimate goal: to serve every un(der)served location within their borders.

Start confidently engaging with BEAD now by scheduling a funding consult with our team—or learn more by downloading our eBook, “The Ultimate Guide to Broadband Funding.”