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BEAD Can Close the Digital Divide if We Build for the Future, Avoid Mistakes of the Past

The United States has an extraordinary opportunity to close the digital divide that has long kept rural America from fully participating in the modern economy. As it opens to applications, the $42.5 billion Broadband Equity, Access, and Deployment (BEAD) Program promises more than just better internet — it offers a lifeline to economic growth, educational access, and healthcare.

But only if we avoid the mistakes of the past and reject the notion that what’s deemed “good enough” for our rural communities today will continue to serve them well tomorrow.

The desire for better connectivity isn’t new. For decades, the federal government has devoted significant resources to this cause through programs such as the Broadband Technologies Opportunities Program, the Connect America Fund and the Rural Digital Opportunity Fund. Despite the substantial funding made available through these programs, they’ve fallen short.

Rapid adoption of new technologies and increasing demands for bandwidth mean that the capacities of networks built through these programs often have not kept pace with consumer demands. As a result, large swaths of rural America still lack reliable broadband service, worsening the digital divide.

Today, multi-gigabit networks are under construction in urban areas, and many urban providers offer speeds in excess of 300 Mbps as their slowest broadband package. Yet increasingly, we’re seeing federal programs — including BEAD — contend that network speeds of just 100 Mbps download and 20 Mbps upload are adequate for a location to be considered “served,” despite being well below current market demands.

This failure to take a forward-looking approach often results in networks that are incapable of meeting consumer needs before construction has been completed.

Network speeds and capacities are not the only factors impacting universal connectivity; the challenge of expanding broadband to rural areas cannot be overstated. The economics of serving hard-to-reach areas make building and operating these networks difficult for any provider. While some claim that pole access and attachment fees are among the biggest roadblocks to rural deployment, the real barrier is that rural areas are sparsely populated and often geographically challenging. Difficult terrain coupled with long distances between homes means that more poles and wires are needed to reach only a handful of customers.

Electric cooperatives uniquely understand this challenge. Much like they did during the electrification of rural America more than 75 years ago, many are stepping up to close the digital divide by bringing high-speed internet to some of the most underserved and geographically isolated regions of the country. Their local roots, mission-driven approach, and decades of experience serving these challenging areas make them uniquely suited to this task.

And much like the rural electrification movement, co-ops aren’t just looking to meet the minimum standard — they’re building for the future. They’re investing in high-quality, future-proof networks that will not only serve today’s needs but will scale to meet tomorrow’s demands as well. This long-term vision ensures that rural America can keep pace with the rapidly evolving digital landscape, from remote work to telemedicine.

At this critical juncture, regulators and broadband offices must ensure that rural communities are not relegated to subpar broadband service that’s merely “good enough,” no matter who the provider is. This means setting ambitious goals, such as multi-gigabit speeds, and ensuring that rural networks are on par with those in urban areas.

Access to reliable, high-speed internet is no longer a luxury — it’s a necessity. Co-ops have proven that scalable, future-proof networks are possible in hard-to-reach rural areas. By setting the bar high, policymakers can leverage the BEAD program to close the digital divide and ensure no community is left behind in the broadband revolution.

Jim Matheson, CEO

NRECA

Jim Matheson is CEO of the National Rural Electric Cooperative Association, the national trade association representing nearly 900 electric cooperatives. He previously served seven terms as a U.S. representative from Utah.

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