Rural cooperatives have been the backbone of modern efforts to bring affordable next-generation fiber to long-neglected rural U.S. communities. 

So it’s important to listen to them when they warn that Trump administration NTIA changes to U.S. telecom subsidy programs are going to have a profoundly-negative impact on efforts to expand fast, affordable Internet access.

Earlier this month rural electric and broadband cooperatives gathered in Washington, DC, for the 5th annual Broadband Leadership Summit. 

The topic du jour was broadly unpopular changes made by the NTIA to the Broadband, Equity, Deployment, and Access program (BEAD) created by the 2021 infrastructure bill.

As ILSR has repeatedly explored, NTIA BEAD changes reduced oversight of deployment, lowered quality standards, stripped away requirements that the resulting taxpayer Internet access be affordable and equitably deployed, and redirected billions of dollars away from affordable fiber to the low-Earth orbit space ambitions of billionaires Jeff Bezos and Elon Musk.

That’s not sitting well with the cooperatives doing the heavy and costly lifting to bring affordable access into long-neglected rural communities.

The Electric Cooperatives of Arkansas say they recently finished delivering fiber broadband capability to more than one million Arkansans as part of a $4.66 billion expansion.

More than 40,000 miles of fiber have been installed by 17 cooperative broadband providers, including 15 local broadband providers, one wholesale broadband provider, and one middle-mile fiber company.

In a prepared statement, Arkansas cooperatives indicate they have $2.2 billion in additional projects lined up connecting an additional 13,000 residents in the “Natural State.” Once completed, Arkansas cooperatives will have deployed 53,000 miles of fiber and connected 1.2 million state residents to fiber.

Informed by their efforts at rural electrification nearly a century earlier, U.S. electrical cooperatives have increasingly been pushing into fiber broadband deployment. Initially as a way to better monitor and manage complex modern electrical grids, then ultimately as a way to extend access to predominately rural customers trapped on the wrong side of the digital divide.

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Nearly 80 percent of the state cooperatives’ investment in fiber infrastructure has been self-funded without grant subsidies, the coalition notes. Many of the markets they’ve targeted have long been neglected by regional cable and phone giants that believe the investment into rural counties isn’t worth the time and resources, or won’t be profitable enough, quickly enough for Wall Street.  

The Rural Digital Opportunity Fund (RDOF) was supposed to drive affordable fiber into vast swaths of long-underserved parts of rural America. And while the FCC administered program accomplished some of that goal, a multitude of problems have plagued the program since its inception, putting both current and future broadband funding opportunities at risk.

The $20.4 billion RDOF program was created in 2019 by the Trump FCC as a way to shore up affordable broadband access in traditionally unserved rural U.S. markets.

The money was to be doled out via reverse auction in several phases, with winners chosen based on having the maximum impact for minimum projected cost.

During phase one of the program, the FCC stated that 180 bidders won $9.2 billion over 10 years to provide broadband to 5.2 million locations across 49 states and the Commonwealth of the Northern Mariana Islands.

But, according to ILSR data, roughly 34 percent of census blocks that won RDOF funding–more than $3 billion in awards – are now in default. All told, 287,322 census blocks were defaulted on by more than 121 providers as of December 2023.

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The defaults are only one part of a larger problem: namely that many communities bogged down in RDOF program dysfunction may risk losing out on the historic amount of federal funding to build modern broadband networks (BEAD) made possible by the 2021 bipartisan infrastructure law.

One Big Giant Mess