Today, internet connectivity is synonymous with opportunities. However, there is a digital divide that needs to be addressed. It is now more urgent than ever as about 20% of households across the U.S. — approximately 24 million — still lack access to high-speed broadband. The low broadband coverage limits their ability to participate fully in the digital age.
As the internet plays a crucial role in education, work, health care and other industries, the discrepancies in broadband access create social and economic inequalities. To address these challenges, the government created a broadband rollout program.
This new program aims to bridge the digital gap and ensure that every American can harness the benefits of a connected world — regardless of location or socioeconomic status. Let's learn more about this initiative and what impacts it has.
Broadband is a high-speed internet connection that provides fast and efficient data transfers. Think of it like a wider digital highway compared to older, slower connections. With a broadband connection, you can quickly download or upload information, stream videos, make video calls and more — all at once.
Unlike dial-up connections, broadband is "always on," meaning you don't need to dial in to access the internet. Some common types of broadband include digital subscriber line (DSL), cable, fiber-optic and satellite connections.
Basically, broadband makes your online experience smoother and more seamless. With it, you can do various tasks on the internet with ease.
The Broadband Equity, Access and Deployment (BEAD) program is a major initiative under the broader Infrastructure Investment and Jobs Act (IIJA), also known as the Bipartisan Infrastructure Law. Its primary goal is broadband and fiber expansion to improve connectivity across the U.S., particularly in underserved and unserved areas.
The digital divide became even more apparent during the COVID-19 pandemic. During this time, internet connectivity was crucial in helping the population with remote work, online schooling and telehealth services.
So, to provide affordable and accessible high-speed internet to communities nationwide, significant funds have been allocated to boost infrastructure development. This investment aligns with the government's recognition of internet access as an essential service. It is akin to electricity or water as it's critical to the overall well-being of individuals and the functioning of the economy.
By addressing the affordability and accessibility issues, the BEAD program strives to create equal opportunities for Americans in various aspects of their lives, such as education, employment or health care. The program represents a significant step towards a more connected and digitally inclusive society.
The BEAD program follows a comprehensive timeline that spans from initial planning to allocating subsidies for broadband expansion across the United States. The process began with states submitting proposals for their broadband projects within 180 days from June 30, 2023. Once approved, they can access at least 20% of their allocated funds. This structured approach ensures states use the funds efficiently and effectively.
The "big push" from the BEAD program is anticipated around 2025. That will be the year of accelerated broadband infrastructure development. The period between 2024 and 2026 is when the plan gets put into action. It's a time for a concentrated effort to help connect underserved and unserved regions.
Of course, the different states will play a vital role in this process. They must set up regulations, provide connectivity plans and obtain the necessary approvals to access the allocated funding.
The BEAD program's timeline follows a strategic and phased approach to address the digital divide quickly. By focusing on the specific milestones, plans and executions thereof, the U.S. will be well on track to a more connected and equitable digital future.
The BEAD program boasts a substantial financial budget of $42.45 billion — all under the umbrella of the IIJA. The allocation of these funds spans all 50 states, the District of Columbia and five territories. This shows the U.S.'s dedication to bridging the digital divide with an all-inclusive approach.
Some states have higher budgets than others. Here are the top five states receiving the largest allocations:
These allocations are strategic, considering each state's unique connectivity challenges and needs. The funds are set aside to help the states and territories develop and implement their broadband expansion projects. This is to ensure that the impact is felt nationwide.
Each state's funding amount is detailed at InternetforAll.gov.
The BEAD program promises to address the persistent issue of the U.S. digital divide. Its primary objective is to bring broadband access to underserved or unserved areas, particularly rural and remote communities.
But what exactly is the impact of this initiative?
The BEAD program promises to address the persistent issue of the U.S. digital divide. Its primary objective is to bring broadband access to underserved or unserved areas, particularly rural and remote communities.
But what exactly is the impact of this initiative?
The widespread availability of broadband is expected to help with economic growth and development. This initiative will help support entrepreneurship and attract new business, which can lead to other positive outcomes like higher employment rates, wage growth and market access.
The BEAD program also changes how individuals access learning opportunities. Broadband access is essential for online education, which offers students — in both urban and rural settings — access to a wealth of educational resources. Beyond formal schooling, think of lifelong learning and skill development. The program provides avenues for continuous personal and professional growth.
The BEAD program aims to improve access to medical services, particularly in remote areas. Telehealth services — which depend on robust broadband connections — stand to benefit the most from this program. Through telemedicine, the initiative can help improve health outcomes by ensuring individuals can access medical services without being hindered by geographical constraints.
Broadband access is a basic component of social connectivity in today's digital world. It allows individuals to engage with each other, their communities and the larger world. This aligns with the broader goal of reducing social disparities and ensuring everyone can participate fully in the digital age.
Naturally, the BEAD program has also sparked excitement within the infrastructure industry. Telecommunication companies, internet service providers (ISPs) and technology firms are gearing up to participate in this initiative. They see it as a chance for business growth while contributing to the broader goal of digital inclusion.
However, for businesses in the infrastructure industry, there are a few potential issues to keep in mind. Concerns have been raised regarding the possible delays associated with the "Build America, Buy American" provisions. These provisions prioritize the use of domestically produced materials in infrastructure projects.
While this approach aims to boost the national economy, some worry about the availability and cost-effectiveness of American-made components. It becomes a balancing act. It can be challenging to balance supporting local industries while ensuring the timely and cost-efficient rollout of broadband infrastructure.
Additionally, enforcing these requirements adds another layer of complexity. This calls for careful management to ensure compliance without hindering the program's progress.
As you prepare to contribute to this initiative, remember that Bekaert is here to help. As the world's largest independent producer of steel wire products, we ensure a reliable supply of steel wire — essential for power and utility transmission.
For all wire needs and inquiries, check out our product catalog. If you can't find what you need, our team of experts can provide support and guidance. Let's build a connected future together.
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