NTIA Issues New BEAD Guidance: Performance Standards and Accelerated Construction Measures

NTIA Issues New BEAD Guidance: Performance Standards and Accelerated Construction Measures

This month, the National Telecommunications & Information Administration (NTIA) issued two announcements regarding technical and funding details of its $42 billion Broadband Equity, Access, and Deployment (BEAD) grant programs. First, NTIA released a Policy Notice with draft Performance Measures for BEAD Last-Mile Networks (BEAD Performance Measures).  This draft provides Eligible Entities (states and territories) and prospective subgrantees with guidance regarding BEAD performance measurement standards related to speed, latency, and reliability of last-mile deployment projects. It could provide an advantage to prospective subgrantees already participating in high-cost support programs that require performance testing. Second, NTIA announced that it has allocated all BEAD funding to Eligible Entities, which allows states and territories to access their funding and allows Internet service providers to begin negotiating contracts that will accelerate BEAD-funded construction.

Draft BEAD Performance Measures

Released in May 2022, the BEAD Notice of Funding Opportunity (NoFO) allows for three performance measurement methodologies for existing high-cost support recipients:

• First, a high-cost support recipient may use Measuring Broadband America (MBA) testing by arranging with entities that manage and perform testing for the MBA program to implement performance testing, as required, for the Connect America Fund (CAF).
• Second, a high-cost support recipient may use existing network management systems and tools, ping tests, and other commonly available performance measurement and network management tools (off-the-shelf testing) to implement performance testing.
• Third, a high-cost support recipient may implement a provider-developed self-testing configuration using software installed on residential gateways or in equipment attached to residential gateways to initiate speed and latency tests regularly. Providers that implement self-testing of their own networks may make network performance testing services available to other providers.

NTIA proposes that all subrecipients collect measurements twice a year during the period of performance (five years from the award date) and the subsequent federal interest period (ten years from the subgrant closeout). The committed speed tier will depend on the individual subgrantee’s grant agreement. If the subgrantee commits to multiple speed tiers, a sample of all tiers must be submitted. Test subjects must be randomly selected from the provider’s active subscribers in each committed speed tier, as described above, in each state or territory. The measurement sample sets must rely on the BEAD locations reported to the National Broadband Map to avoid duplicative data collection efforts for the Eligible Entity and the providers. The sample set is to be drawn from the locations available for service with an as-of date seven months prior to the semiannual report due date. Speed and latency testing must be conducted for one week, repeated at each measurement interval, with a default of two measurement periods per year unless the Eligible Entity requires more frequent testing of no more than quarterly. In those weeks, testing must be performed between the hours of 6:00 P.M. and 12:00 A.M. local time each day, including weekends (testing hours).

To comply with the speed standard, a provider’s certified test results for each state or territory and speed tier, must show that 80% of the upload measurements are at or above 80% of the required upload speed, and 80% of the download measurements are at or above 80% of the required download speed. For example, for priority projects that have committed to 100/20 Mbps, 80% of measurements must meet or exceed 80/16 Mbps. Subgrantees must also submit results of latency and reliability testing.

The BEAD Performance Measures indicate a significant effort on the part of NTIA to verify prospective subgrantees’ technical claims during the BEAD application process ongoing in many states and territories. They will also provide NTIA with political cover from an incoming Trump Administration that will likely view existing BEAD’s focus on fiber with a critical eye, given recent statements by incoming Senate Commerce Committee Chair Ted Cruz (R-TX) and potential incoming Federal Communication Commission Chair Brendan Carr criticizing the BEAD program generally but supporting a greater role for non-fiber-based broadband technologies.

We encourage clients to assess how these performance standards might impact their ability to comply with BEAD compliance requirements. We also recommend that clients use their substantial track record of compliance with rigorous testing standards that confirm the deployment of broadband networks that meet robust capability targets associated with high-cost support as a potential advantage in achieving compliance with performance testing.

Funding Allocation Announcement and Guidance

As of December 20, 2024, NTIA has obligated all BEAD funding Eligible Entities. This means that, subject to the terms and conditions of their awards, states and territories can access their BEAD allocation. NTIA also streamlined the BEAD Final Proposal process and providing resources that it claims will allow states, territories, and service providers to put shovels in the ground more quickly. This announcement is another example of NTIA providing political cover for the BEAD program on the eve of an incoming Trump Administration, this time for both states/territories and potential subgrantees to proceed with planning and grant administration.

In its related “Accelerating the Construction of BEAD Projects” non-binding Guidance Document, NTIA identified the following actions service providers can take to accelerate network construction, if approved by the state:

• Ordering Equipment and Materials: Provisional subgrantees may place orders for equipment and materials necessary to deploy broadband infrastructure.
• Negotiation for Rights of Way and Pole Attachment: Provisional subgrantees may negotiate and sign agreements for rights of way and pole attachments.
• Environmental Review: Subgrantees may apply for permits from federal, state, and local agencies and may initiate environmental analysis and prepare documentation for National Environmental Policy Act review.

We encourage clients to pursue these activities as soon as practicable given potential political and operational uncertainty surrounding both the BEAD program and market/regulatory realities.

Please contact Diana Zake if your company is interested in applying for BEAD grant funding or needs any assistance with understanding BEAD requirements, or Barb Greger if you need assistance complying with existing grant funding.